Where payment usually comes from
In many cases, the practical ceiling on a settlement is the insurance available rather than the full value of the injuries. The drunk driver's liability policy is the starting point, and its limits may be modest. Your own policy may include supplementary uninsured and underinsured motorist coverage, though in New York it is usually reduced by what the driver's insurer pays, so its value depends on comparing the two limits. If a bar or store unlawfully served the driver, its insurance may become another source. Individual drivers often have few collectible assets beyond insurance, and New York generally does not allow insurers to pay punitive damages on behalf of the people they insure, which affects how that part of a claim is valued.
Order and consent matter
Settling with the driver's insurer before checking with your own carrier can put an underinsured motorist claim at risk, because many policies require the carrier's consent before you release the at-fault driver. Medicare, Medicaid, a workers' compensation carrier, or certain self-funded employer health plans may assert liens that need to be resolved from the proceeds, while New York limits most other health insurer claims. If the criminal court orders restitution, how it relates to the civil settlement should be worked out. A settlement typically includes a release, and its wording determines which parties and claims are covered. Keep records of all treatment, bills, lost wages, and expenses, since they support both the demand and any lien negotiations.
Before accepting an offer
Before you answer the insurer, we review every potential source of payment, the status of your medical treatment, and whether it is too early to understand your long-term needs. We look at whether the offer reflects the policy limits and whether those limits have been verified. We explain the sequence for resolving the claim against the driver and any supplementary coverage, and the release terms that protect your rights. The decision to accept is yours, and our aim is that you make it with the full picture in front of you.
