Car accidents are a daily reality in New York, with tens of thousands of crashes occurring each year. While many victims focus on immediate concerns like vehicle damage and medical bills, the true cost of a car accident often extends far beyond what meets the eye. Insurance companies strategically minimize payouts, leaving victims struggling with unforeseen financial and legal burdens. This article explores the hidden costs of car accidents, the tactics insurers use to undercut claims, and the legal strategies you need to secure the compensation you deserve.
Car accidents in New York are not just common—they are costly. According to the latest data:
- 94,657 motor vehicle collisions occurred in New York City in 2023 (Greenberg & Stein).
- Traffic fatalities increased by 23% since 2019, even as vehicle miles traveled decreased (GoodCar).
- The average economic loss per serious injury is $78,900, according to the National Safety Council.
These numbers only reflect direct expenses, such as medical bills and vehicle repairs. However, the hidden costs—lost wages, emotional trauma, long-term medical care—can be even more devastating.
1. Lowball Settlements Are the Norm
Insurance companies are not on your side. Their goal is to pay as little as possible. Common tactics include:
- Deliberately delaying claim processing to pressure victims into settling.
- Offering quick but inadequate settlements before medical complications arise.
- Arguing that pre-existing conditions, rather than the accident, caused your injuries.
2. Fraudulent Claims Affect Legitimate Victims
New York has seen a rise in staged accident fraud, where individuals deliberately cause accidents to file exaggerated claims. In 2024, a viral case on the Belt Parkway highlighted how fraudsters manipulate crash reports to collect insurance money (New York Post). These cases make insurance companies more aggressive in disputing real claims—hurting legitimate accident victims in the process.
3. Police Policy Changes Can Impact Your Claim
Starting in February 2025, the NYPD is restricting police pursuits for minor traffic violations due to an increase in high-speed chases and crash-related deaths (New York Post). While this policy aims to improve safety, it could also mean fewer police reports for minor accidents—making it harder for victims to prove fault in insurance claims.
Legal Strategies to Maximize Your Compensation
1. Know Your Rights Under New York’s No-Fault Law
New York follows a No-Fault insurance system, meaning your insurance covers up to $50,000 in medical expenses and lost wages, regardless of who caused the accident. However, serious injuries (permanent disability, disfigurement, or significant loss of function) allow you to file a personal injury lawsuit against the at-fault driver for additional damages.
2. Don’t Accept the First Settlement Offer
Insurance companies hope you’ll settle quickly—before you fully understand your injuries and financial losses. Instead of accepting a low offer, consult an attorney to evaluate your claim and negotiate a fair settlement.
3. Document Everything
To build a strong case:
- Take photos and videos of the accident scene, injuries, and vehicle damage.
- Get a police report (even if the NYPD doesn’t respond, you can file one online).
- Keep medical records, receipts, and wage loss documentation.
4. Work with an Experienced Attorney here at CBAS!
An attorney can:
- Conduct a thorough investigation to prove negligence.
- Counteract insurance company tactics that undermine your claim.
- Negotiate a settlement that covers both immediate and long-term costs.
Protect Yourself from the Hidden Costs of Car Accidents
The aftermath of a car accident extends far beyond the crash itself. Medical expenses, lost income, and emotional distress can linger for months—or even years. Don’t let insurance companies dictate your financial future. By understanding the hidden costs of car accidents and working with a skilled attorney, you can secure the compensation you rightfully deserve.
If you or a loved one has been involved in a car accident in New York, contact our CBAS legal team today for a free consultation. We’ll fight for your rights so you can focus on healing.
