Jane Dotson
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 insurance is often referred to as personal injury protection or PIP. It covers the driver, passengers, pedestrians, and cyclists, but not motorcyclists or uninsured vehicles. No-fault insurance provides a minimum of $25,000 per person and $50,000 in total coverage for out-of-pocket medical expenses. It does not cover vehicle damage claims, which can be made against the at-fault driver.
| Characteristics | Values |
|---|---|
| What is No-Fault Insurance? | New York is a "no-fault" state, meaning that you do not need to rely on an insurance carrier to determine fault to collect on a claim. |
| Who is covered? | The owner is named as the insured on the policy covering the vehicle, all passengers of the vehicle involved in the accident, any pedestrians or cyclists hit by the vehicle, and any member of the named insured's household if one is injured as a pedestrian. |
| Who is not covered? | Motorcycle passengers, owners driving their own uninsured vehicle, owners driving or occupying their spouse's uninsured vehicle, non-residents of New York, those excluded under the policyholder's own policy, those who intentionally cause their own injury, those who were intoxicated or under the influence of a controlled substance, those who were in the act of committing a felony, those who were driving or occupying a vehicle they knew to be stolen, those who were racing or conducting a speed test, and owners of an uninsured vehicle. |
| What is covered? | Reasonable and necessary accident-related medical and rehabilitative costs, 80% of lost earnings from work up to a maximum payment of $2,000 per month for three years after 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, a basic no-fault limit of $50,000 per person, and a $2,000 death benefit. |
| What is not covered? | No-fault insurance does not cover vehicle damage claims, non-monetary damages (e.g. pain and suffering), or repair of the vehicle. |
| How to file a claim? | Submit the no-fault application (Form NF-2), file the claim application within 30 days of the accident, and notify the New York State Motor Vehicle Accident Indemnification Corporation. |
What You'll Learn
Who is covered by no-fault insurance in New York?
In New York, no-fault insurance covers anyone riding in the insured vehicle, as well as pedestrians and cyclists who were hit by the insured vehicle. This includes the vehicle owner/policyholder, anyone else driving the vehicle with permission, and all passengers.
Motorcyclists and their passengers are not covered by no-fault insurance policies and must obtain alternate insurance coverage. If you are in a vehicle owned by someone in your household that is uninsured, you also won't be covered. However, if the uninsured vehicle is owned by someone outside your household, you may be eligible for coverage under your own insurance policy or the policy of another household member.
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What does no-fault insurance cover?
No-fault insurance, also referred to as personal injury protection insurance (PIP), covers the policyholder's economic losses in the event of an accident, regardless of who is at fault. This includes medical expenses and lost income. In New York, no-fault insurance covers:
- "Reasonable and necessary" accident-related medical bills
- 80% of lost work income, up to $2,000 per month, for up to three years from the accident
- Up to $25 a day (for up to a year after the accident) for "reasonable and necessary" expenses resulting from the accident, such as household help and transportation to medical appointments
- A $2,000 death benefit to the estate of any covered individual killed in a car accident
- Necessary x-rays, surgical interventions, and nursing care
- Psychiatric treatment
- Physical and occupational therapy
- Any necessary rehabilitation
- Any non-medical remedial care and treatment that may be chosen for religious reasons instead of medical treatment
- Any professional health services needed within one year of the accident, extendable in certain circumstances
No-fault insurance does not cover vehicle damage, which would instead be covered by collision insurance or the other driver's liability policy.
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What is the deadline for filing a no-fault insurance claim?
In New York, a no-fault/PIP insurance claim must be reported in writing to the insurance company that issued the policy within 30 days of the accident. This deadline can be extended if the claimant can provide written proof of a "clear and reasonable justification" for their failure to meet the 30-day deadline.
The written statement must include as many details as possible, including the date, time, and circumstances of the accident, as well as comprehensive information about each person injured.
The claim should be filed with the insurance company that covers the vehicle involved in the accident. If the claimant was a pedestrian and the vehicle that struck them is unknown or uninsured, they may file a claim with the insurer of a household family relative who had an auto policy at the time of the accident. If there was no auto policy in the household, the claim should be filed with the Motor Vehicle Accident Indemnification Corporation (MVAIC).
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How does no-fault insurance work in a fault vs no-fault state system?
No-fault insurance, also known as Personal Injury Protection (PIP), is mandatory in some states and an add-on option in others. It covers medical expenses and lost income resulting from a car accident, regardless of who is at fault. This is in contrast to at-fault states, where the driver who caused the accident is responsible for compensating the other party for their losses.
In a no-fault state, if you are injured in a car accident, you would file a claim with your own insurance company to cover medical costs and lost income, regardless of who caused the accident. This simplifies the claims process and reduces litigation costs, providing quick payments to those involved. However, no-fault insurance does not cover damage to your vehicle, which would be covered by collision insurance or the other driver's liability policy.
In an at-fault state, the driver who caused the accident is responsible for the other party's vehicle repairs and medical expenses. Their property damage liability coverage pays for the other driver's vehicle repairs, while their bodily injury liability insurance covers the other driver's medical costs.
It is important to note that even in no-fault states, fault still exists. Drivers are still liable for the property damage they cause and the medical payments if the injury amount surpasses the state-regulated threshold. Additionally, no-fault states generally do not allow injured parties to sue for non-economic damages unless the injury meets the state's definition of a severe injury.
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What are the benefits of no-fault insurance?
No-fault insurance in New York offers several benefits to those involved in a car accident. Here are some of the advantages:
Guaranteed Reimbursement
No-fault insurance guarantees reimbursement for damages, regardless of who caused the accident. This means that both parties can receive compensation for their own damages if they carry personal car insurance. This includes property damage and medical bills, without having to prove negligence or fault.
Speed and Convenience
The no-fault system streamlines the process of obtaining compensation. Instead of having to determine fault, each party deals directly with their own insurance company, making it faster and more convenient to receive reimbursement for losses.
Coverage for Various Expenses
No-fault insurance covers a range of expenses, including medical treatment, doctors' visits, rehabilitation costs, lost wages, medical transportation costs, and medically necessary expenses such as medical equipment. It also provides a death benefit to the estate of any covered individual who dies in a car accident.
Protection for All Road Users
No-fault insurance covers not only drivers but also passengers, pedestrians, and cyclists. This ensures that anyone involved in an accident, regardless of their mode of transportation, can receive the benefits they need.
Higher Minimum Coverage
New York's no-fault insurance provides a minimum coverage of $25,000 per person and $50,000 in total coverage for out-of-pocket medical expenses caused by an accident. This higher coverage amount ensures that individuals can receive adequate compensation for their accident-related costs.
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Frequently asked questions
No-fault insurance, also known as "personal injury protection" or PIP, is a type of insurance that covers economic losses for those who are injured in an accident, regardless of who was at fault.
No-fault insurance covers medical expenses, lost earnings, and other reasonable and necessary expenses such as household help and transportation to medical appointments, up to a certain limit.
No-fault insurance covers the vehicle owner/policyholder, anyone driving the vehicle with permission, passengers in the vehicle, pedestrians, and bicyclists hit by the vehicle.
The minimum amount of no-fault insurance required in New York is \$50,000 per person for basic No-Fault coverage, which includes personal injury protection and medical benefits.
To file a no-fault insurance claim in New York, you must submit a written claim to the insurance company within 30 days of the accident, providing details of the accident and the injuries sustained.
