I was injured in a motor vehicle accident. How do I evaluate the insurance company’s offer?
That is a really difficult question to answer. You have not specified what role you had in the accident nor did you state your injuries. Thus, rather than directly give you an answer if a particular offer is good or bad, it makes more sense to give you the topics that come up when evaluating a case.
Liability
Who caused the accident? Are you at least partially responsible for the accident? Were there more than two vehicles involved in the accident? New York is a comparative negligence state which means that any award you receive is reduced by your portion of fault. So if a jury finds you 50% responsible for the accident, then any award you receive will be reduced by 50%. CPLR 1411.
Special Damages
Special damages are out of pocket expenses that you pay. For example, medical bills are special damages. However, since you were a motor vehicle accident, the No-Fault law applies. That means the first $50,000 of damages are covered by the no-fault carrier, but you can claim anything over that $50,000 for special damages. Insurance Law 5104. You might also miss time from work and you might recover for lost wages. If you have a catastrophic injury, then you might have a lifetime of lost wages. Depending upon your age, the lost wage claim could be substantial.
Personal Injury
Sometimes called a claim for pain and suffering, a personal injury claim should “justly and fairly compensate” the injured party for any injury, disability, loss of enjoyment of life and conscious pain and suffering. McMahon v Colabello, 58 NY2d 84 (1983). CPLR 4111. There is no formula or statute telling a jury what a case is worth. A jury looks at past and future pain and suffering. So for past pain and suffering, a jury considers pain and suffering from the date of the accident until the trial. For future pain and suffering, a jury looks at the pain and disability the injured party may suffer in the future. The court takes judicial notice of the mortality tables (tables which rely on statistical studies that predict how long a person may live given their current age). Giambrone v Israel America Line, Inc., 26 Misc2d 593 (Sup 1960). The jury is not bound to the life span in the mortality tables, but may consider that as well as evidence of health and habits of the injured party.
Liability Policy Limits
Unfortunately, not every person that causes an accident is financially independent or that well insured. Furthermore, bankruptcy laws protect a debtor from a judgment in a personal injury case.
Sometimes car insurance is the only recovery in a personal injury case. Thus, insurance coverage limits may be an important part of a case. Depending on the severity of the injuries and the finances of the defendant, insurance policy limits may dictate the recovery.
None of these answer your original question, but these are factors to consider in evaluating a personal injury claim.
By James Santner, Esq.
If you have questions about a similar situation, feel free to contact us. Consultations are free and there is no fee unless we win.