Can I Reopen a Closed Car Accident Insurance Claim in NYC? Insights from a Car Accident Lawyer in NYC

You’ve been in a car accident and went to your insurance company to claim compensation and eventually reached a settlement. However, your circumstances may have changed, and when you start weighing your options, you might wonder, can I reopen a closed car accident claim in NYC? As a personal injury law firm in NYC, the team at Gabriel Law deals with car accident claims on a daily basis, and in this blog, we’ll be talking about the legal hurdles you may face, how to overcome them, and even advise you on what to do before your case is ultimately closed.

What does it mean that an insurance claim is “closed”? 

In New York, if you are injured in a car accident, you can file a claim with your insurance company and have them cover your medical expenses, lost wages, and other related expenses, regardless of whether you share partial blame for the accident. This is the hallmark of New York’s no-fault insurance. 

An insurance claim may be considered “closed” when you and the insurance company have settled on the value of your payout, and you have signed an agreement to receive the payment. These agreements will always consist of a release of liability clause, and when you sign the agreement, you agree to give up your rights to take any legal action against the insurance company in the future. Alternatively, a claim may also be considered “closed” when the insurance company refuses to pay your settlement.   

Can a closed claim be reopened? 

Generally, once your insurance claim is “closed,” it cannot be reopened save for a few select circumstances. As we’ve mentioned above, your typical insurance settlement will contain a clause that says that you have accepted to receive a certain amount of money in exchange for dropping your case and agreeing not to take future legal action on the matter.

The few select circumstances where a case may be reopened are:

If signed under threat or duress.

In this situation, “threat” must include some form of violent physical action. While insurance companies withholding your money until you sign is distasteful, it will not constitute a threat, and desperately needing the money may not be considered as being in duress.

If the defendant or insurance company acted in bad faith.

During insurance negotiations, both sides must conform to the standard of uberrimae fidae, or utmost good faith. This means that the parties must disclose each and everything that may be relevant to the case. If the insurance company has withheld any information, provided false statements, or even misrepresented their policy, they would fall below the standard of utmost good faith. This allows you to request the court to consider the initial agreement as void so that you may be allowed to reopen your claim. 

If there was an administrative or clerical error.

If a significant administrative or clerical error has caused your case to be disregarded or closed prematurely, you may be able to file a petition and get your case reopened. 

If there is new evidence that could not be discovered at the time.

If you can show that new evidence, which was not discoverable at the time, has materialized and can have a significant impact on the case, you could compel your claim to be revisited. Medical conditions such as herniated discs and traumatic brain injuries are perfect examples of situations that fit this criterion, since these conditions are not immediately apparent and can take some time to manifest. However, a reopening of a claim under this criterion may only be possible if the initial insurance claim had not accounted for future medical expenses.

See also: 5 Facts About Personal Injury Law You Might Wish You Knew Sooner

How can a car accident lawyer in NYC help you? 

At the end of the day, it is extremely difficult to reopen a closed car accident claim. Therefore, it is important to make sure that you receive the best possible settlement offer before you sign the settlement and agree to give up your rights. Therefore, having a skilled and experienced auto accident attorney is not just a smart move—it’s an absolute necessity.

When you let Gabriel Law take over your case, we will:

• Take your initial consultation for free so that you can tell us your story. 
• Give an overview of all the laws that may apply and advise you on the best course of action. 
• Gather all available evidence to build a strong case.
• Calculate a fair and reasonable value for all the damages you’ve suffered. 
• Help you to determine if the settlement is fair and reasonable.
• Coach you on what to say and what not to say during the negotiations 
• Take the lead in the negotiations with the insurance company 
• Review any and all settlements offered and determine whether they are fair and reasonable.
• Prepare to take your case to court if necessary.

Conclusion 

Whether a closed insurance claim can be reopened is an interesting yet complicated question to answer. Therefore, our general advice on the matter is to make sure everything involving your insurance settlement is clear, fair, and reasonable. After all, once you’ve signed that dotted line, it is very difficult to go back. Having the right legal representation can make a world of difference to your fortunes, and you don’t need to look far with Gabriel Law. Call us today and schedule your free consultation. We will work from start to finish to ensure justice prevails and you get the compensation you deserve.