Every vehicle driven in the State of New York is required by law to carry with it an insurance policy that, amongst other things, covers the defendant’s liability for injuries caused to another. This is known as liability insurance and it is this insurance that will pay for your pain and suffering up to a certain amount, which is known as the “policy limit”. The minimum policy limit in New York is $25,000. What this means for plaintiffs is that your recovery from the insurance company “capped” at the policy limit applicable to the vehicle that struck you. If that vehicle carried a $1,000,000 liability policy, then the limit is not likely to be a problem. The insurance company is the financially responsible party so it’s important that the right policy limits are maintained to protect you.