Can You Be Personally Liable in a Car Accident?

No matter how diligent we are, accidents can happen. An experienced car accident lawyer will explain that you can be personally liable if the other party’s injuries are serious enough and if neither party’s insurance policy will fully cover the other party’s damages.

How do I Know if I May Be Liable?

Both New York and New Jersey operate using a no-fault car insurance system. This means that many injured car accident victims receive financial compensation for their damages exclusively from their own insurance. However, if the other party sustained serious enough injuries or their medical bills exceeded a certain amount, then it is possible that you would be personally liable.

Suppose you are carrying sufficient insurance to cover all damages sustained by the other party. In that case, your insurance company will defend any claim or lawsuit filed against you. However, if your insurance doesn’t cover the other party’s damages, you could be personally liable for the difference. If you were uninsured at the time of the crash, then you could be personally liable for all of the other party’s damages.

What is a “Serious Injury?”

You may be sued for your negligence that caused a crash if the following criteria are met:

1. The medical costs and other economic damages sustained by the other party surpass the mandatory $50,000 (in New York) or $15,000 (in New Jersey) no-fault insurance policy.
2. Neither driver carries sufficient insurance under New York or New Jersey’s minimum insurance requirements.
3. The other party incurred a personal injury that is defined as a serious injury according to New York Insurance Law Section 5104 (a), (b) (New Jersey’s law is similar).

Types of serious injuries:

• Death
• Dismemberment
• Significant disfigurement
• Fracture
• Loss of a fetus
• Permanent loss of use of a body organ, member, function, or system
• Permanent consequential limitation of a body organ or member
• Significant limitation of use of a body function or system

As of May 26, 2026, New York eliminated the “90/180-day” category of serious injury, which had previously allowed a non-permanent, medically-determined injury that prevented someone from performing substantially all of their usual daily activities for at least 90 of the 180 days following the accident to qualify on its own. The other party’s injury must now fall into one of the categories listed above.

What if both Drivers Were Partially Responsible for the Crash?

New York and New Jersey differ in terms of how each state approaches comparative negligence. New York has traditionally applied a pure comparative negligence rule, meaning an injured driver can collect economic damages against the other driver in a crash even if they were primarily responsible for the accident, with the award reduced by their share of the fault. In New Jersey, a driver injured in a car crash cannot collect any damages from the other driver if the first driver was more than 50 percent at fault.

As of May 26, 2026, New York’s rule for non-economic damages, such as pain and suffering, is narrower than its rule for economic damages. A driver found more than 50% at fault for a motor vehicle accident is now barred entirely from recovering pain and suffering and other non-economic damages, even though a proportional share of economic damages, like medical bills and lost wages, may still be available. This means that if you caused an accident and the other party was found more than 50% at fault themselves, they may not be able to pursue you for pain and suffering, though they could still seek a reduced share of their economic losses.

In some accidents, it is very clear that only one driver caused the crash. However, in many others, liability is disputed and complex. For example, if you were involved in an accident in New Jersey, you can only be personally liable if you were at least 50 percent responsible for the crash.

How New York’s 2026 Comparative Fault Rules Affect Your Claim

As of May 26, 2026, New York law bars a plaintiff found more than 50% at fault for a motor vehicle accident from recovering non-economic damages, such as pain and suffering. You may still be able to recover a proportional share of your economic damages, such as medical bills and lost wages, but pain and suffering compensation would not be available. The law also eliminated the “90/180-day” rule, under which a temporary injury lasting at least 90 of the 180 days following an accident could, on its own, qualify as a “serious injury” for purposes of filing a lawsuit. These changes apply to actions commenced on or after that date and affect how much compensation an injured driver can ultimately recover.

Car Accidents Can Be Complex

Determining whether or not you may be personally liable in a car accident can be complex. And if you are facing the possibility of being personally liable in an automobile crash, there are plenty of defenses that may be employed on your behalf. Additionally, even if you were negligent in causing the crash, that does not mean that the other driver was not also equally as negligent, if not more so, which under the current law can determine whether they are entitled to pain and suffering compensation at all.

At Kantrowitz, Goldhamer, Graifman, Perlmutter & Carballo, P.C., we advise that you consult with an experienced car accident lawyer as soon as possible. During this meeting, we’ll help you understand the strengths and weaknesses of your case and the best steps to take moving forward.

Contact our team of car accident lawyers for a free consultation

Since launching in 1975, we have recovered millions in settlements and jury verdicts for our injured clients. If you face the possibility of being personally liable, we fully understand the uncertainty, confusion, and fear that may be permeating your life right now. We take pride in going the extra mile to fight for justice for our clients.

If you have questions about being personally liable in a car accident, call Kantrowitz, Goldhamer, Graifman, Perlmutter & Carballo, P.C. today to arrange a zero-cost consultation. We never send our clients a bill unless they win their case.