What Happens If the Person at Fault in an Accident Has No Insurance in New York?

New York operates a no-fault auto insurance system, meaning each driver's insurance provider is responsible for covering their medical expenses, lost wages, and other economic damages up to statutory limits, regardless of who caused the accident. However, when an at-fault driver is uninsured, they may still be personally liable for property damage or serious injuries exceeding the no-fault thresholds established under New York Insurance Law § 5102.

Victims in such cases may pursue compensation through their uninsured motorist (UM) coverage or file a civil lawsuit against the at-fault uninsured driver. Yet, recovering damages can be difficult if the uninsured party lacks sufficient financial resources. Driving without insurance is among the more serious New York traffic violations and infractions, carrying penalties such as vehicle impoundment, license suspension, hefty fines, and civil liability in the event of a crash.

Is It Illegal To Drive Without Insurance In New York?

Yes, it is illegal to drive without proper auto liability insurance in New York. Under the Motor Vehicle Financial Security Act, all registered vehicles must maintain valid proof of financial responsibility, including at least the minimum required liability coverage. Every motor vehicle registered in the state must have:

• A liability insurance policy issued by a New York-authorized insurer
• Continuous coverage for as long as the vehicle remains registered
• Electronic proof of insurance filed with the New York State Department of Motor Vehicles (DMV)

Driving without insurance may result in one or more of the following penalties:

• Revocation of the driver's license and registration (mandatory for at least one year if involved in a traffic crash)
• Fines, citations, or even arrest
• Vehicle impoundment
• Traffic fines of up to $1,500, plus a $750 DMV fee for license reinstatement if revoked

What Is the Minimum Insurance Requirement in New York?

N.Y. Ins. Law § 3420 mandates that every motor vehicle liability insurance policy issued or delivered in New York must include specific minimum coverages. These provisions ensure financial protection for injuries or damages resulting from auto accidents. The required minimum coverage consists of:

• No-Fault (Personal Injury Protection): Covers necessary medical expenses and lost wages, regardless of fault.
• Liability Insurance: Offers bodily injury and property damage coverage for accidents caused to others.
• Uninsured Motorists Coverage: Protects policyholders against injuries sustained in hit-and-run accidents or collisions with uninsured drivers.

What To Do After A Car Accident With an Uninsured Driver in New York

Getting into a car accident can be stressful, but the situation becomes even more complex when the at-fault driver is uninsured. Individuals facing this scenario in New York should take the following steps:

• Notify the Police: Under N.Y. Veh. & Traf. Law § 605(a)(1), any accident involving bodily injury or property damage surpassing $1,000 must be reported to law enforcement. A police report is crucial, as it provides documented evidence for potential claims or legal action.
• File a Report with the DMV: State law requires submitting a Motor Vehicle Accident Report (MV-104) form to the DMV within 10 days if the crash led to injury, death, or property damage over $1,000.
• File a Claim Under Uninsured Motorist (UM) Coverage: If the at-fault driver lacks insurance, victims can recover damages through their own insurance policy's uninsured motorist (UM) coverage. This applies to accidents involving uninsured drivers or hit-and-run incidents.

What Happens If You Have No Insurance But The Other Driver Was At Fault?

Because driving without valid insurance is illegal in New York, recovery options after an accident become severely restricted. For instance, under N.Y. Ins. Law § 5103, drivers operating an uninsured vehicle are ineligible to receive no-fault (PIP) benefits for accident-related injuries. However, if another driver is at fault, the uninsured driver may still pursue a lawsuit to recover certain damages.

Can I Sue an Uninsured Driver in New York?

New York law permits injured parties to pursue legal action against at-fault drivers regardless of the defendant's insurance status. The state's no-fault system limits litigation for minor injuries; however, civil lawsuits become permissible when:

• The accident results in serious injury (as defined by N.Y. Ins. Law § 5102), or
• Economic damages exceed no-fault coverage limits ($50,000)

Claims up to $10,000 can be filed in Small Claims Court, those between $10,000 and $50,000 in Civil Court, and higher-value claims in Supreme Court.

Will My Insurance Cover Me If the At-Fault Driver Has No Insurance in New York?

New York mandates Uninsured Motorist (UM) Coverage to protect policyholders in accidents caused by uninsured drivers. This coverage provides compensation when the at-fault party lacks proper insurance. State insurance regulations establish minimum coverage limits of $25,000 for bodily injury per person and $50,000 per accident.

What Is Uninsured Motorist Coverage in New York?

Uninsured Motorist (UM) coverage in New York is a mandatory form of auto insurance that protects individuals injured in a crash caused by an uninsured driver, or when the driver cannot be identified. It applies when the at-fault driver lacks liability coverage and the insured suffers bodily injury. UM coverage ensures compensation even if the responsible driver is unable to pay.

What If I Don't Have Uninsured Motorist Coverage in New York?

UM coverage is part of the minimum requirements for having auto insurance in New York; hence, it is compulsory. In cases where a driver is deficient in this coverage and gets involved in an accident where UM coverage would usually apply, the chances of recovering damages are limited but not impossible. The person can file a lawsuit against the at-fault driver for medical costs, lost wages, property damage, or pain and suffering.

How Do I Get Compensation from an Uninsured Driver in New York?

If an individual is involved in an accident caused by an uninsured driver and wishes to sue, the first step is determining the correct court for the claim. When total damages are $10,000 or less, the lawsuit should be filed in Small Claims Court. If damages exceed $10,000, the case may be taken to either the Civil Court or the Supreme Court, depending on the amount and the jurisdiction's regulations. Selecting the appropriate court ensures that the case will be heard and processed properly.

How Much Can You Recover From an Uninsured At-Fault Driver in New York?

The amount that can be recovered from an uninsured at-fault driver in New York depends primarily on two factors: the financial situation of the defendant and the court in which the case is filed. For instance, Small Claims Court allows recovery of up to $10,000, while town and village courts are limited to $5,000. To obtain a judgment, the plaintiff must successfully demonstrate both the extent of the damages and the uninsured driver's liability. Even if a judgment is granted, the recoverable amount may still be restricted by the defendant's ability to pay.

How To Find Out If the At-Fault Driver Has Insurance in New York

The following methods can be used to ascertain whether an at-fault driver in an accident has insurance in New York:

• Reviewing the Crash Accident Report: The New York DMV keeps crash reports for four years, except in rare cases specified in N.Y. Veh. & Traf. Law § 201(i). These reports become available 14 to 60 days after the crash, depending on who filed the report and where the accident occurred. Researchers can order online (also through the Record Request Navigator) or by mail. Mail-in requests involve submitting the MV-198C form and payment to the DMV:

  New York State DMV
  MV-198C Processing
  6 Empire State Plaza
  Albany, NY 12228

• Making a Request During Civil Litigation: Under CPLR § 3101(f), a plaintiff can request the defendant's insurance information if the lawsuit proceeds to court. The defendant must provide details of any insurance agreement within 90 days of the request.
• Contacting the Driver's Insurance Company Directly: If the at-fault driver's insurer is known, contacting the company can quickly verify if coverage existed at the time of the crash.

Are Accidents Public Record in New York?

Yes. Accidents are generally public records in New York under the New York Freedom of Information Law (N.Y. Pub. Off. Law § 87), but access depends on the specific document type. DMV-submitted crash reports have certain restrictions under N.Y. Veh. & Traf. Law § 605 and federal privacy laws, such as the Driver's Privacy Protection Act (DPPA). Court records from accident-related lawsuits are typically public unless sealed, per N.Y. Jud. Law § 255.

Can You Go to Jail for Causing an Accident Without Insurance in New York?

Yes, it is possible to go to jail in New York for driving without insurance, but this typically occurs only in severe cases or for repeat offenders. This is because driving without insurance in New York is considered a traffic infraction (N.Y. Veh. & Traf. Law § 319), which does not have jail consequences. The law prioritises fines, license suspension, and vehicle impoundment as penalties.

Can You Settle With an Uninsured Driver Out of Court in New York?

Yes. Out-of-court settlements are possible in accident cases involving an uninsured driver. Settling outside of court can be a preferred option for persons who want to avoid the complexities and uncertainties of litigation. These settlements or agreements are binding and enforceable, provided they meet CPLR § 2104 requirements.

Can I Get Compensation If I Was Partially at Fault?

Yes, a person can get compensation even when partially at fault in an accident in New York. Per New York's comparative negligence law, specifically reflected in CPLR § 1411, the fact that an individual bears some fault does not bar them from recovery. Instead, the recoverable damages are reduced in proportion to the individual's percentage of fault in causing the accident. For example, if a person is found to be 20% at fault, their compensation will be reduced by 20%, allowing them to recover 80% of the total damages.