New York Car-Accident Settlement (2025): Ranges & Proof
In 2025, New York car-accident settlements depend on a mix of liability proof, medical documentation, wage-loss evidence, and policy limits. Because New York follows a hybrid no-fault and serious-injury threshold system, recovery for pain and suffering requires meeting specific injury criteria under Insurance Law § 5102(d). Typical soft-tissue settlements range from $10,000–$35,000, while severe or permanent-impairment cases can exceed $250,000+.
This guide outlines fault rules, key evidence, wage and medical proof, policy-limit considerations, timelines, and release essentials for negotiating fair 2025 settlements in New York.
Fault & no-fault basics
New York is a no-fault state (Insurance Law § 5101 et seq.), meaning each driver’s insurer pays basic economic loss—up to $50,000 per person—for medical expenses and lost wages regardless of fault. To sue for pain and suffering, a claimant must show a “serious injury,” including:
- Death or significant disfigurement.
- Fracture, loss of limb, or permanent limitation of a body function or system.
- 90/180 rule—disability for at least 90 of 180 days post-accident.
Beyond no-fault, liability hinges on negligence and comparative fault (CPLR § 1411)—a plaintiff’s damages are reduced by their percentage of fault, but recovery isn’t barred unless they’re 100 % at fault.
Evidence list
Thorough documentation accelerates negotiations and improves settlement value:
- Police MV-104A accident report and photos of the scene and vehicles.
- Witness statements or surveillance footage showing fault.
- Medical reports linking injuries to the crash, preferably with diagnostic imaging.
- Employment verification and payroll records for wage loss.
- Insurance declarations showing applicable policy limits (liability, SUM/UM).
Medical / wage loss
Under no-fault (Personal Injury Protection, “PIP”), medical and lost-wage benefits are handled first by your own carrier. Current PIP minimums:
- $50,000 per person total basic economic loss.
- Lost wages reimbursed at 80 % of earnings, capped at $2,000 per month for up to three years.
- Optional APIP or OBEL coverage can extend these limits.
Medical documentation must specify causation and prognosis. Consistent treatment and follow-ups help demonstrate permanency under § 5102(d).
Policy limits
Settlement ceilings are constrained by the at-fault driver’s bodily-injury policy limits—commonly $25,000 / $50,000 minimum in New York (Vehicle & Traffic Law § 311). Serious-injury cases often trigger the need for Supplementary Uninsured/Underinsured Motorist (SUM/UM) coverage to reach higher recoveries.
Always request the insurer’s 11 NYCRR 216.6 disclosure of policy limits early in negotiations. If multiple defendants exist, separate limits may apply.
Timelines
- Notify your PIP carrier within 30 days of the crash (11 NYCRR 65-1.1).
- Submit medical bills within 45 days of treatment; wage-loss proofs within 90 days.
- File a bodily-injury lawsuit within 3 years of the accident (CPLR § 214[5]).
- Municipal-vehicle claims require a Notice of Claim within 90 days (GML § 50-e).
Releases
Once settlement is agreed, insurers require a signed Release of All Claims. Review it for:
- Proper payee names and lienholder clauses (Medicaid, Medicare, ERISA).
- Scope—ensure it covers only the intended parties and accident date.
- Confidentiality or indemnification language (negotiable).
After the release and W-9 are submitted, insurers typically issue checks within 21 days (Insurance Law § 5106[a]).
FAQ
Recorded statements?
Politely decline until you’ve spoken with counsel. Statements can be used to dispute liability or injury severity. Insurers already have access to police reports and PIP submissions.
Soft-tissue cases?
Soft-tissue or whiplash claims can meet the serious-injury threshold only with MRI or medical proof of objective limitations. Consistent treatment and physician affidavits are essential.
When to settle?
Ideally after reaching maximum medical improvement (MMI) or obtaining a clear prognosis. Settling too early risks undervaluing future treatment and wage-loss components.
Key Takeaways
- No-fault covers initial medical and wage loss up to $50 k; pain-and-suffering claims require a “serious injury.”
- Document every expense, diagnostic result, and lost-wage calculation—proof drives value.
- Policy limits often cap settlements; request disclosures early.
- Negotiate only after clear medical prognosis and lien verification.
