Understanding New York's No-Fault Auto Insurance System

New York is a no-fault state, which means that your own insurance covers your medical bills and other losses after a car accident, regardless of who caused the accident. In other words, victims can seek compensation without determining fault. This type of insurance is often referred to as personal injury protection or PIP. In New York, PIP coverage includes reasonable and necessary accident-related medical bills, 80% of lost work income up to a certain limit, a daily allowance for other related expenses, and a death benefit. It's important to note that New York's no-fault insurance only applies to injuries and not to vehicle damage claims.

No-fault insurance benefits and limitations

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. In a no-fault system, such as in New York, a victim of a car accident would file a claim through their own auto insurer. In no-fault states, each driver must file a claim for losses through their own insurance.

Benefits of No-Fault Insurance in New York

No-fault insurance was designed to protect the insured. No matter who caused the accident, no-fault insurance guarantees that both parties will receive reimbursement for their own damages if they carry personal car insurance. In addition to property damage, no-fault insurance also helps the insured to obtain repayment for medical bills, loss of wages, and medical equipment. In New York, individuals can receive up to $50,000 for these expenses.

Who Receives the Benefits of No-Fault Insurance?

New York state laws outline who receives the benefits of no-fault insurance in the case of an accident. According to the law, drivers, passengers, pedestrians, and cyclists all benefit from no-fault insurance. Furthermore, to receive the benefits of no-fault insurance, the accident must occur in New York, and the vehicle/driver involved in the accident must have an insurance policy issued in the state of New York. It's important to note that motorcycles and motorcyclists are not covered under no-fault insurance laws.

Filing a No-Fault Insurance Claim

Anyone who is involved in a car accident in the state of New York and wants to file a no-fault insurance claim must follow a specific process. It's important to follow the exact requirements to file a claim or risk having coverage denied. The basic requirements of filing a no-fault claim in New York are:

• 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

Limitations of No-Fault Insurance in New York

No-fault insurance in New York has limitations on benefits, some exclusions, and situations where a personal injury lawsuit may be filed against the party at fault for the accident.

No-fault insurance does not provide coverage for vehicle repairs. It only covers personal losses that those who are covered have suffered due to their injuries.

There are also exclusions from receiving no-fault benefits:

• Motorcycle passengers
• Owners driving their own uninsured vehicle
• Owner's driving or occupying their spouse's uninsured vehicle
• Those who are not residents of New York
• Those who may be excluded under your own policy
• Those who are covered but intentionally caused their own injury
• When the driver was intoxicated as defined by law or under the use of a controlled substance
• If, at the time the person who was injured was in the act of committing a felony, such as trying to escape from the police
• Driving or occupying a vehicle the policy owner or passenger knows to be stolen
• Racing or conducting a speed test

Who is covered by no-fault insurance in New York

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. When a vehicle owner carries mandatory no-fault personal injury protection (PIP) coverage, it will cover the following:

• The vehicle owner/policyholder or anyone else who's driving the vehicle owner/policyholder's car with permission at the time of an accident.
• Any passenger riding in the vehicle owner/policyholder's car at the time of an accident.
• Any pedestrian hit by the vehicle owner/policyholder's car.
• Any bicyclist hit by the vehicle owner/policyholder's car.
• Any member of the named insured’s household if one is injured as a pedestrian.

Motorcycles and motorcyclists are not covered under no-fault insurance laws.

In New York, after a car accident, the vehicle owner/policyholder's no-fault or PIP coverage will apply to pay the covered person's:

• "Reasonable and necessary" accident-related medical bills.
• 80 percent 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 (like household help and transportation to medical appointments).
• A $2,000 death benefit to the estate of any covered individual killed in a car accident.

The basic No-Fault limit is $50,000 per person.

Exclusions from receiving no-fault benefits

New York's "no-fault" car insurance laws provide benefits to those involved in a car accident, regardless of who caused the accident. However, there are certain exclusions from receiving these no-fault benefits.

Firstly, motorcycle passengers are not covered by no-fault insurance laws. If you are injured while riding a motorcycle, you are excluded from no-fault benefits and may need to sue for compensation.

Secondly, if you are driving your own uninsured vehicle, or your spouse's uninsured vehicle, you are not covered by no-fault insurance. It is important to note that no-fault insurance is mandatory in New York, and driving without insurance is illegal.

Thirdly, those who are not residents of New York are not covered by the state's no-fault insurance. Additionally, if you are found to be driving under the influence of drugs or alcohol, or if you intentionally cause your own injuries, you will be excluded from receiving no-fault benefits.

Furthermore, if you are injured while committing a felony, such as trying to escape from the police, or if you are driving or occupying a vehicle that you know to be stolen, you will not be eligible for no-fault benefits.

Lastly, if you are racing or conducting a speed test, you are excluded from receiving no-fault benefits.

How to file a no-fault insurance claim

Yes, 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. In a no-fault state, each party and their insurance company are responsible for the cost of damages to their own property.

Step 1: Submit the No-Fault Application

To initiate the no-fault insurance claim process, you need to submit the no-fault application, also known as Form NF-2. This form can be obtained from the insurance company or their website. Make sure to fill out the form accurately and completely, providing all the necessary details of the accident.

Step 2: File the Claim Application Within 30 Days

It is important to act promptly after an accident. In New York, you generally have 30 days from the date of the accident to file your no-fault insurance claim. This deadline is crucial, and failing to meet it could result in your claim being denied. However, there may be exceptions if you can provide a valid reason for the delay in writing.

Step 3: Notify the New York State Motor Vehicle Accident Indemnification Corporation (MVAIC)

It is mandatory to inform the MVAIC about your claim. This step is particularly important if the other vehicle involved in the accident was uninsured or if you were a pedestrian and did not know the vehicle that struck you. You can find contact information for the MVAIC on their website or by calling them at (646) 205-7800.

Step 4: Provide Detailed Information

When filing your no-fault claim, be prepared to provide comprehensive information about the accident. This includes the date, time, location, and circumstances of the accident, as well as details about any injuries sustained. The more detailed and accurate the information you provide, the smoother the claims process is likely to be.

Step 5: Understand What is Covered

No-fault insurance in New York typically covers reasonable and necessary medical expenses, lost wages, and other related costs. It is important to review your insurance policy to understand the specific coverage provided and any exclusions or limitations that may apply.

Step 6: Seek Legal Assistance if Needed

If you encounter any issues with your no-fault insurance claim or if your claim is denied, consider seeking legal assistance. Consult a trusted attorney who specialises in personal injury and no-fault insurance claims to guide you through the process and protect your rights.

When to file a personal injury lawsuit

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. In a no-fault system, such as New York, a victim of a car accident would file a claim through their own auto insurer. In no-fault states, each driver will have to file a claim for losses through their own insurance.

In New York, individuals who get into car accidents fall under the state's "no-fault" law. Victims can seek recompense without determining fault. Unlike fault states, where the responsible party covers losses, New Yorkers file personal injury claims with their own insurers for medical expenses and damages.

New York's "no-fault" car insurance rules mean your own insurance covers your medical bills and other losses after an accident. Your options for pursuing a lawsuit and recovering compensation for losses like "pain and suffering" are limited when you're injured in a car accident in New York.

In New York, the statute of limitations for most personal injury cases is three years. That means you must begin any lawsuit within three years of the date you were hurt. If you fail to get to the courthouse before the three-year window closes, you'll almost certainly lose the right to seek compensation from the person who caused your injuries.

The lawsuit filing deadline can be important even if you don't think you're going to sue anyone. One key reason individuals and insurance companies agree to negotiated settlements is their desire to avoid time-consuming and costly lawsuits. This concern gives you valuable leverage as you negotiate for compensation. You lose this leverage once the statute of limitations runs out. So you should always diligently pursue your claim with the statute of limitations deadline in mind.

In rare cases, New York law allows an injured person additional time to file a lawsuit. For example, New York modifies its three-year filing deadline if, at the time of their injury, a person was either:

• Under the age of 18
• Suffering from a serious mental health condition

In these situations, the three-year deadline is counted from the time the person gains (or regains) their ability to make legal decisions on their own behalf. Even in these cases, though, a person must usually file a lawsuit within ten years of their injury. So it's still possible for time to run out while a person is still a child or suffering from mental illness.

New York also allows additional time if the prospective defendant in a lawsuit:

• Is not in New York State when they harm the victim
• Leaves New York after the incident and does not return for at least four months
• Is using a fake name that the victim doesn't know

In these situations, the time the person was out of state or using a fake name will generally be subtracted when calculating the statute of limitations deadline.

If you file a personal injury lawsuit after the statute of limitations has expired, the opposing party will surely file a motion to get the courts to dismiss your suit, claiming that the statute of limitations has passed. If you delay filing your suit and miss the deadline, the courts will not allow you to proceed with a lawsuit.

Frequently asked questions