The Reality Of No-Fault Auto Insurance In New York State

New York is a no-fault state, meaning that your insurance company is responsible for the cost of damages to your own property in the event of a car accident. This is also referred to as Personal Injury Protection (PIP) and covers medical expenses, lost wages, and other necessary expenses related to injuries for yourself and your passengers, regardless of who was at fault. The minimum coverage amount is $50,000 per person. However, PIP will not pay if you were found to be drunk driving.

No-fault insurance benefits and who can receive them

No-fault insurance in New York State, also known as Personal Injury Protection (PIP), provides coverage for the following:

• Reasonable and necessary accident-related medical and rehabilitation expenses, including x-rays, surgery, nursing care, psychiatric treatment, physical and occupational therapy, and any necessary rehabilitation.
• 80% of lost earnings from work, up to a maximum payment of $2,000 per month for up to three years from the date of the accident.
• Up to $25 per day, for up to a year from the date of the accident, to reimburse other reasonable and necessary expenses, such as household help and transportation expenses to/from medical treatment.
• A $2,000 death benefit (in addition to the $50,000 basic No-Fault limit), payable to the estate of a person eligible for No-Fault benefits who is killed in a motor vehicle accident.

Basic No-Fault auto insurance coverage has a limit of $50,000 per person. This includes compensation received from all sources, such as workers' compensation benefits.

In New York, No-Fault insurance covers the following individuals:

• The owner named as the insured on the policy covering the vehicle.
• All passengers of the vehicle involved in the accident.
• Any member of the named insured's household if injured as a pedestrian.
• In some cases, a member of the named household may receive benefits if they were injured in an accident where the driver of the car they were in was uninsured.

It is important to note that there are exclusions from receiving No-Fault benefits in New York. These include:

• Motorcycle passengers.
• Owners driving their own uninsured vehicle.
• Owners driving or occupying their spouse's uninsured vehicle.
• Those who are not residents of New York.
• Those who are covered under the policy but intentionally caused their own injury.
• When the driver was intoxicated or under the influence of a controlled substance.
• If the injured person was committing a felony at the time of the accident, such as trying to escape from the police.
• Driving or occupying a vehicle known to be stolen.
• Racing or conducting a speed test.

If your expenses exceed the $50,000 limit, you may apply for Additional No-Fault benefits (Additional PIP) from the vehicle you occupied or any auto policy of a related member of your household. If no Additional PIP benefits are available, you may use your standard health insurance or apply for Federal Social Security Disability benefits. You can also sue the party responsible for the accident to recover costs that exceed your policy limit.

No-fault insurance exclusions

New York is a No-Fault state, meaning that insurance will cover the economic losses of those who are injured, regardless of who was at fault for the accident. However, there are some exclusions to the No-Fault benefits.

Firstly, motorcycle passengers are excluded from No-Fault benefits. If you are a motorcyclist or a passenger on a motorcycle, you are not covered by No-Fault insurance policies and must obtain alternate insurance coverage.

Secondly, if you are driving or occupying an uninsured vehicle that you own, or that is owned by your spouse, you are not covered by No-Fault insurance. Similarly, if you are a non-resident of New York, you are excluded from No-Fault benefits.

Additionally, No-Fault insurance does not cover situations where the policyholder intentionally causes their own injury, or if they were intoxicated or committing a felony at the time of the injury. If the policyholder was driving or occupying a vehicle that they knew to be stolen, or was racing or conducting a speed test, they are also excluded from No-Fault benefits.

It is important to note that private insurers can also make their own exclusions, so policyholders should carefully review their specific policy to understand the circumstances under which they may not be covered.

No-fault insurance deadlines

New York is a "no-fault" state, meaning that your own insurance covers your medical bills and other losses after a car accident, regardless of who caused the accident. This is also called Personal Injury Protection (PIP) and can include coverage for medical expenses, lost wages, and other necessary expenses related to injuries for yourself and your passengers.

To file a no-fault insurance claim in New York, you must follow these steps:

• Submit the no-fault application (Form NF-2)
• File the claim application within 30 days of the accident
• Notify the New York State Motor Vehicle Accident Indemnification Corporation

The 30-day deadline for filing a no-fault claim starts from the date of the accident. This deadline can be extended if the injured person submits written proof showing a "clear and reasonable" justification for the delay.

In addition to the 30-day deadline for filing a claim, there are also time limits for submitting written notice of the claim (30 days), submitting medical bills (45 days), and submitting lost wage claims (90 days). These time limits are important to ensure that your claim is processed smoothly and that you receive the benefits you are entitled to under New York's no-fault insurance laws.

No-fault insurance and vehicle damage

No-fault insurance is a system in which each driver involved in an accident files a claim through their own auto insurer for their losses. In no-fault states, each driver will have to file a claim for losses through their own insurance, regardless of who is at fault.

In the state of New York, individuals who get into car accidents fall under the state's "no-fault" law. This means that victims can seek recompense without determining fault. New Yorkers file personal injury claims with their own insurers for medical expenses and damages.

In New York, individuals can receive up to $50,000 in compensation for their injuries. This includes reasonable and necessary medical and rehabilitative costs, 80% of lost earnings from work, up to $25 per day for up to a year from the date of the accident to reimburse other reasonable and necessary expenses, and a $2,000 death benefit.

It's important to note that no-fault insurance does not cover vehicle damage. If you are found to be at fault for an accident, your insurance company will not pay for repairs to your vehicle. Instead, you will need to carry All Perils, Collision, or Upset coverage and pay your agreed-upon deductible for your vehicle's damages to be covered.

In a no-fault state, if you are involved in an accident with another driver, your insurance company will typically pay for damage to the other driver's vehicle and property, just as they would in an at-fault state. This is why drivers in no-fault states are still required to carry liability car insurance coverage.

No-fault insurance and personal injury lawsuits

No-fault insurance laws, currently in effect in about a dozen states, limit potential sources of financial recovery after a car accident. In a no-fault state, each party and their insurance company are responsible for the cost of damages to their own property. This means that, in the event of an accident, a victim can seek recompense without determining fault.

In the state of New York, which is a no-fault state, victims of car accidents file personal injury claims with their own insurers for medical expenses and damages. This is known as Personal Injury Protection (PIP) and is designed to pay promptly, regardless of who is at fault or whether there was any negligence. PIP covers medical expenses, lost wages, and other necessary expenses related to injuries for yourself and your passengers, up to a limit of $50,000 per person.

However, no-fault laws do not cover auto body repair or damage to another party's motor vehicle or other personal property. They also do not allow for non-economic damages, such as pain and suffering, to be claimed. If a victim wishes to claim for these, they will need to pursue a fault-based system, leaving the no-fault system. In New York, this is permitted if the victim's injuries are deemed "serious" under the law.

In a fault state, the driver who caused the accident is responsible for paying for any losses incurred by the other driver, including economic and non-economic damages. The injured party can file a third-party claim with the other driver's insurance company, and the insurance carrier will cover medical expenses and vehicle damage up to the insured's policy limits.

No-fault laws are designed to reduce the number of auto negligence suits filed in state court. They also serve to expedite recovery, as insurance claims are usually less adversarial than lawsuits and have faster turnaround times for payment.

Frequently asked questions