Ny Auto Insurance: No-Fault State

New York is a no-fault state, meaning that your insurance company is responsible for the cost of damages to your own property after a car accident, regardless of who caused the accident. In a no-fault state, you don't need to rely on an insurance carrier to determine fault to collect on a claim. In New York, victims can seek recompense without determining fault.

No-fault insurance in New York covers medical expenses, lost income, and other necessary expenses

No-fault insurance in New York, also known as Personal Injury Protection (PIP), provides a minimum of $25,000 per person and $50,000 in total coverage for out-of-pocket medical expenses caused by an accident. This coverage extends to anyone riding in the insured vehicle, or a pedestrian or cyclist who was hit by the insured vehicle. Motorcyclists and their passengers are not covered by no-fault insurance policies and are required to obtain alternate insurance coverage.

No-fault insurance covers medical expenses, lost income, and other necessary expenses. This includes:

• Reasonable and necessary medical and rehabilitation expenses, in accordance with established fee schedules.
• 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. This is subject to statutory offsets for New York State disability, Worker's Compensation, and Federal Social Security disability benefits.
• 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 and from medical treatment.
• A $2,000 death benefit, payable to the estate of a person eligible for No-Fault benefits who is killed in a motor vehicle accident.

If your expenses exceed the $50,000 limit provided by No-Fault insurance, 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 make a claim to 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.

Personal Injury Protection (PIP) is mandatory in New York

In the state of New York, individuals who get into car accidents fall under the state's "no-fault" law. This means that, unlike fault states, the responsible party does not cover losses, and New Yorkers file personal injury claims with their own insurers for medical expenses and damages. In a no-fault system, a victim of a car accident would file a claim through their own auto insurer.

In New York, Personal Injury Protection (PIP), also referred to as "No-Fault Coverage," is mandatory. PIP will cover medical expenses, lost wages, and other necessary expenses related to injuries for yourself and your passengers, regardless of who was at fault. However, PIP will not pay if you were found to be drunk driving.

The minimum PIP coverage amount in New York is $50,0000 per person, with a basic no-fault limit of $50,000 per person. You can always add Additional PIP coverage and Optional Basic Economic Loss (OBEL) coverage to extend your cap for coverage. Additional PIP extends your PIP coverage by another $50,000 (for a total of $100,000 in coverage). OBEL offers an additional $25,000 of basic economic loss coverage, which includes payouts for lost wages, rehabilitation after an injury, and other forms of economic loss.

In New York, PIP coverage covers:

• Reasonable and necessary 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 $2,000 death benefit (in addition to the $50,000 basic no-fault limit), payable to a person's estate if they die from the accident

There are some situations where you cannot use PIP coverage in New York, including if you are riding in an ATV or are injured while committing a felony. Additionally, if you're found to have been intoxicated, your PIP coverage may pay for emergency health services, but your insurer has the right to collect that money back from you.

No-fault insurance doesn't cover pain and suffering or other non-monetary damages

No-fault insurance, also known as Personal Injury Protection (PIP), is a type of auto insurance that covers medical expenses and lost income resulting from a car accident, regardless of who was at fault. It is intended to reduce the demands on the court system by preventing lawsuits relating to car accident compensation. In a no-fault system, each driver must file a claim for losses through their own insurance.

In the state of New York, no-fault insurance covers medical and rehabilitative costs, 80% of lost earnings from work up to a maximum of $2,000 per month for three years after the accident, up to $25 per day for one 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.

However, no-fault insurance does not cover non-economic damages, including pain and suffering. This is because no-fault insurance policies typically only cover financial losses. Non-economic damages refer to intangible losses that impact a person's quality of life, such as scarring or disfigurement, and loss of companionship. If a person wishes to recover non-economic damages, they may need to take their case to court.

New York's no-fault system doesn't apply to vehicle damage claims

New York's no-fault system, also known as Personal Injury Protection (PIP), is designed to pay for economic losses such as medical/health expenses, lost earnings, and certain other reasonable and necessary expenses related to injuries sustained in a car accident. The purpose of the no-fault insurance is to restore individuals injured in auto accidents to health and productivity as swiftly as possible.

While New York's no-fault system covers medical expenses, lost wages, and other necessary expenses, it does not cover vehicle damage claims. This means that if your car is damaged in an accident, you will need to file a separate claim with the at-fault driver's insurance company or your own insurance company, depending on the insurance coverage you have.

In New York, if your car is damaged or totaled in an accident caused by another driver, you can make a claim against that driver's auto insurance policy for property damage liability. This is separate from any personal injury claim you may file under the no-fault system.

It is important to note that New York law requires all vehicle owners to maintain certain minimum levels of car insurance coverage, including liability coverage for property damage. This coverage will protect you in case you are found at fault for an accident and need to pay for the other party's vehicle repairs or replacement.

Additionally, when filing a claim for vehicle damage, it is essential to follow the proper procedures and provide the necessary documentation, such as police reports, repair estimates, and proof of ownership. It is always a good idea to consult with your insurance company or a trusted attorney to ensure you are taking the correct steps to protect your rights and interests.

To step outside the no-fault system, injuries must meet the threshold of a serious injury

In the state of New York, individuals who get into car accidents fall under the state's "no-fault" law. This means that, in the aftermath of an accident, each party and their insurance company are responsible for the cost of damages to their own property.

However, there are situations in which injuries can meet the threshold of a "serious injury", allowing those involved to step outside the no-fault system. In these cases, victims can seek recompense beyond the basic no-fault limit of $50,000 per person.

New York law defines a "serious" injury as:

• Significant disfigurement
• Permanent loss of a bodily function or system (e.g. blindness or a neurological disorder)
• Limitation of a bodily function
• Permanent loss of a body part or organ
• Injury or impairment that prevents a person from performing normal daily activities for at least 90/180 days following an accident or injury

If a "serious" injury is sustained, the victim will be eligible to recover non-economic damages, such as pain and suffering. This will take the form of a private lawsuit not involving the victim's insurance company.

Frequently asked questions