Understanding Car Accident Damages

Understanding Car Accident Damages

Car accidents can be painful, overwhelming, and costly. Even a minor collision may leave you with medical bills and other financial losses you are unsure how to handle.

New York is a no-fault car insurance state, meaning most auto insurance claims are paid through your insurance provider regardless of fault. However, before accepting a settlement from the insurer, it is critical to calculate the value of your car accident claim accurately.

Unfortunately, accident victims in New York who do not understand the types of damages they qualify for may end up without the financial support they need to recover from their injuries. This post discusses different categories of car accident damages and factors that may influence the amount of compensation you qualify to receive.

Recovering Compensation for New York Car Accident Economic Damages

Economic damages are quantifiable monetary losses resulting from a car accident. These damages encompass all financial losses incurred due to the accident. Economic damages are typically documented with receipts, bills, and other financial records.

The following are types of damages that may be included in your New York car accident settlement.

Medical expenses

Economic damages can cover the costs of medical treatment related to the auto accident, including future medical costs you may incur, such as:

• Emergency room visits
• Hospital stays
• X-rays and diagnostic tests
• Prescription medications
• Surgeries and medical procedures
• In-home medical care
• Rehabilitation and physical therapy
• Medical devices (crutches, wheelchairs, etc.)

Lost wages

Car accident injuries may force you to miss work while you get medical care. This can be stressful since you are missing out on income and worrying about medical bills and other costs accruing from the accident. Fortunately, if your injuries prevent you from working, you may be able to receive compensation for lost income.

This includes:

• Salary or hourly wages
• Commissions
• Bonuses
• Overtime pay
• Self-employment income

To prove lost wages, you may need to provide pay stubs, tax forms, or evidence of lost financial opportunities.

Loss of earning capacity

Loss of earning capacity refers to the reduction in an individual’s ability to earn income due to severe or life-altering injuries sustained in a car accident. Unlike damages for lost wages, loss of earning capacity considers the long-term impact on your ability to work and earn a living.

Calculating loss of future earning capacity can be complex and involve factors such as:

• Medical evidence: Medical reports and expert testimony to establish the extent of your injuries and their long-term impact on your ability to work

• Vocational expert analysis: Vocational experts assess how your injuries affect your ability to perform your job and whether you are able to work in a different capacity

• Economic projections: Testimony from economists may be needed to project your potential future earnings based on your age, career trajectory, and industry standards

Property damage

Your vehicle was likely damaged if you were involved in a car accident. Compensation for property damage should cover the cost of repairing or replacing your vehicle and any personal property damaged in the accident.

The insurance company may require proof of property damage through:

• Photos or videos of your damaged vehicle
• Photos from the accident scene
• Statements from eyewitnesses
• Receipts from the mechanic or auto body shop

Recovering Compensation for New York Non-Economic Damages

Severe car accident injuries can leave you with not only physical injuries but also mental trauma and emotional distress. Non-economic damages compensate for non-monetary losses that are more subjective and difficult to quantify.

Pain and suffering

Pain and suffering damages are intended to compensate you for the physical pain and discomfort you suffer as a result of the car accident, including:

• Chronic pain
• Side effects from ongoing medical treatments
• Discomfort from injuries
• Impact of daily activities and quality of life

Emotional distress

Emotional distress damages recognize the significant emotional toll that a car accident can take on a victim’s life.

Car accident victims may be left coping with the following:

• Depression
• Anxiety
• Post-traumatic stress disorder (PTSD)

Documenting your feelings and experiences with a mental health professional may help strengthen your claim for emotional distress damages.

Loss of consortium

Loss of consortium damages may be awarded to the spouse or family members of an injured party.

These damages provide compensation for the following:

• Loss of companionship
• Loss of affection
• Impact on sexual relations

Loss of enjoyment of life

Your injuries may prevent you from participating in activities and hobbies you previously enjoyed before the car accident, including:

• Traveling
• Sports
• Exercise
• Social activities

Your ability to engage in these pastimes can significantly diminish your overall happiness and fulfillment.

Punitive Damages and New York Car Accident Cases

When involved in a New York car accident, your primary financial focus typically revolves around recovering damages for medical bills, lost wages, and the other damages we previously discussed. However, in certain situations, a car accident victim may also be awarded punitive damages.

These are a special category of compensation sometimes awarded by a judge to a plaintiff in a personal injury lawsuit. Unlike compensatory damages, which aim to reimburse an injured victim for losses sustained, punitive damages are designed to punish the defendant for his or her conduct and deter similar behavior in the future.

Punitive damages are not awarded in every car accident case. Judges usually only award these damages in situations where the defendant’s actions were especially reckless, malicious, or grossly negligent.

Car accident scenarios in New York where punitive damages may be considered include:

• Texting and driving: Texting or using a smartphone, despite common knowledge of the dangers associated with distracted driving, can be considered a major offense
• Driving under the influence: If the defendant was driving under the influence of alcohol or drugs, that person’s actions may warrant punitive damages being awarded to the accident victim
• Excessive speeding: Situations where the defendant was driving well over the posted speed limit show a blatant disregard for others
• Hit-and-run: If the driver fled the scene of a severe accident and was later discovered, the judge may consider this to be deserving of punitive damages

Factors That Influence New York Car Accident Damages

One of the main questions clients ask car accident lawyers is, “How much is my car accident claim worth?” The value of a car accident claim varies depending on several elements.

The following are factors that can impact the types of damages and the amount of compensation you receive:

• Severity of the car crash: The severity of the accident can have a major influence on damages. Minor fender-benders usually result in less severe injuries and lower repair costs compared to a head-on collision or other type of major accident.

• Types of vehicles involved: The size, weight, and safety features of a vehicle can play a role in determining compensation. For instance, a collision involving a large truck and a passenger vehicle is likely to result in more significant damages to the smaller vehicle.

• Degree of fault: Your level of fault in the auto accident can impact your compensation. In some states, such as New York, if you are partially at fault, your damages may be reduced proportionately.

• Pre-existing conditions: A motor vehicle accident victim with pre-existing conditions may sustain more intense injuries or experience longer recovery times. This can complicate the assessment of damages and personal injury claims.

• Insurance coverage: The extent of insurance coverage for both drivers involved in the crash can have an impact on the final settlement. Insurance policies with higher coverage limits provide more resources for medical expenses and other damages.

• Economic considerations: Financial factors, such as your income, ability to work, and cost of medical treatment, play a major role in the overall calculation of damages. Prolonged inability to work, ongoing medical expenses, and the cost of rehabilitation therapy can greatly increase the amount of damages awarded.

• Legal representation: Whether you hire an experienced car accident lawyer or handle the claim on your own can impact the amount you are compensated. Skilled personal injury lawyers can help ensure you receive full coverage for damages.

How New York No-Fault Laws Impact Car Accident Claims

New York follows a “no-fault” system for car accidents. Each driver in NY is required to carry personal injury protection (PIP) insurance. PIP covers accident-related costs up to a specified limit, regardless of who caused the car accident.

This means when you are involved in a motor vehicle accident in New York, you file a claim with your own insurer. Your insurance company should cover your medical expenses and lost wages regardless of whether you or the other driver were at fault for the collision.

Under the no-fault system, you are typically only able to file a personal injury lawsuit after you meet the “serious injury” threshold.

Injuries that may meet this threshold include:

• Bone fractures
• Dismemberment
• Disfigurement
• Permanent loss of a body organ
• Significant limitation of use of a body function or system

Additionally, if your medical expenses or other losses exceed the $50,000 PIP limit, you may be able to file a personal injury lawsuit against the at-fault party for the excess amount.

Maximize Your Claim With a New York Car Accident Lawyer

Car accidents are an all-too-common occurrence in New York. The NYPD reported 7,999 motor vehicle collisions in just one month in 2024. If you were injured in a car accident in New York, you have the choice of filing an insurance claim on your own or hiring a personal injury attorney.

Consider some of the reasons why it is in your best interests to hire a car accident lawyer:

• Legal advice: Personal injury lawyers can provide legal advice on the ideal course of action for maximizing your car accident settlement

• Thorough investigation: A car accident attorney can gather the evidence needed to build a strong personal injury case for you

• Accurately calculate your claim: A lawyer can carefully identify and calculate all damages that you are entitled to

• Negotiate with insurance companies: An experienced personal injury lawyer knows the tactics used by insurance adjusters and can effectively negotiate on your behalf

• Peace of mind: Having an attorney handle the legal aspects of your case allows you to focus on your recovery instead of dealing with the stress of insurance claims

Recover the Full Amount of Car Accident Damages You Deserve

Understanding car accident damages is vital to securing fair compensation for your losses. By recognizing the different types of damages and working with an experienced personal injury attorney, you can maximize the amount of compensation you recover.

When you choose Hill & Moin, LLP, to handle your car accident claim, you will have a trusted legal team looking out for you. We care about our clients. With our law firm on your side, it’s like having “a lawyer in the family.”

If you need assistance with your car accident claim or have questions about damages, please don’t hesitate to contact our law firm. We can offer Personal Injury Recovery SolutionsⓇ for you. Call us 24/7 at (212) 668-6000 to schedule your initial free consultation today.

Don’t wonder about your rights!