Those who have had a car accident are aware of how difficult it can be to deal with insurance providers, automobile repairs, and personal injuries later on. People who are involved in auto accidents in the state of New York are covered by the “no-fault” law of the state. Each party and their insurance provider must cover the cost of any property damage in a no-fault state, although complications might arise. In this article, Eastcoastlaws.com will outline all you need to know about No-fault insurance in New York.
What Is A No-fault Insurance
No-fault insurance, sometimes referred to as personal injury protection insurance (PIP), can help cover you and your passenger’s medical expenses and loss of income in the event of a covered accident, regardless of who is found at fault.
The distinction between no-fault insurance and other types of auto insurance, such as comprehensive, collision, and liability, which pay out for damages based on who is found to be “at fault” in the accident, can be made by this last point. PIP coverage covers payments paid by you or your passengers for medical bills, lost wages, and other related costs as long as the accident is covered under the terms of your insurance policy (after your deductible, and up to your covered limit).
Is New York A No-Fault Insurance State?
Yes, New York is a no-fault insurance state. In New York, all drivers are required to purchase insurance that includes personal injury protection (PIP) coverage. This no-fault insurance provides coverage for medical expenses, lost wages, and other damages that an individual may incur as a result of an accident, regardless of who was at fault. In the event of an accident, drivers are required to file a claim with their own insurance company, rather than trying to seek compensation from the other driver’s insurance company, to provide a quick and efficient way for injured parties to get the coverage they need.
Minimum Car Insurance Coverage Requirements In New York
In order to drive a motor vehicle in New York, vehicle owners must carry certain minimum amounts of insurance on it:
- $25,000 liability coverage for bodily injury per person (when you cause a car accident)
- $50,000 total liability bodily injury coverage per accident you cause (regardless of how many people are injured)
- $10,000 liability coverage for property damage (per accident you cause)
- $50,000 in no-fault (personal injury protection) coverage, and uninsured motorist coverage (for bodily injury sustained by you) subject to these same minimums.
Remember that if you are held accountable for causing a car accident and the losses of the injured drivers and/or passengers exceed the limits of your auto insurance policy (which is not an unlikely scenario if you’ve only met New York’s minimum coverage requirements), you may end up having to use your own assets to make up the difference.
What Does No-Fault Insurance Cover?
The minimum no-fault coverage required in New York covers up to $50,000 for each person injured in a vehicle. Any pedestrians injured by a car can also receive no-fault benefits from the insurance company that covers that car.
The benefits of no-fault insurance include paying for medical expenses, supplementing lost wages due to recovery, and covering a few basic expenses related to the accident. In New York, no-fault insurance will also pay $2,000 to the family of anyone who died in a car accident.
What Does No-Fault Insurance Not Cover?
While no-fault insurance covers the expenses of medical bills and lost wages, it does not cover any damage to your car. If the insurance companies determine that the other driver was at fault, the other driver’s insurance company will reimburse you for your car’s damage.
You can also file a lawsuit to cover your car’s damage. You may also want to file a lawsuit if you get a severe injury and your no-fault benefits don’t cover your medical costs. Speak with an attorney if you feel like the insurance benefits do not cover the cost of your accident.
In New York, no-fault insurance is designed to provide quick and efficient compensation to individuals who are injured in a car accident, regardless of who is at fault. Personal injury protection (PIP) coverage is the key component of New York’s no-fault insurance laws. PIP coverage typically includes the following:
- Medical expenses: PIP coverage will pay for medical expenses incurred as a result of an accident, such as hospital bills, doctor’s visits, and physical therapy.
- Lost wages: PIP coverage will compensate individuals for lost wages if they are unable to work as a result of injuries sustained in an accident.
- Death benefits: PIP coverage will provide death benefits to the family of an individual who dies as a result of an accident.
- Additional expenses: PIP coverage may also provide compensation for additional expenses, such as transportation to and from medical appointments.
It is important to note that no-fault insurance in New York provides coverage only for economic losses, or specific out-of-pocket expenses that result from the accident, not non-economic losses such as pain and suffering. If a person is seriously injured, they may have the right to file a lawsuit against the at-fault driver seeking additional damages.
Additionally, New York’s no-fault laws set limits on how much an insurance company will pay for medical expenses and lost wages. The monetary caps for lost wages, for example, vary with time. as for medical expenses, there’s a $50,000 limit and only for injuries deemed “Serious” that exceed that cap, a person can file a legal action.
Therefore, it is important for individuals to carefully review their PIP coverage and understand the limits of their no-fault insurance policy before an accident occurs.
What Is A “Serious Injury” Under New York’s No-Fault Laws?
As mentioned above, you must meet the state-mandated definition of “severe” injuries in order to file a claim against the driver who hit you in a car accident outside of New York’s no-fault auto insurance system. That means, as a result of the car accident, you’ve experienced any of the following:
- significant disfigurement
- bone fracture
- permanent limitation of use of a body organ or member
- a significant limitation of use of a body function or system, or
- substantially full disability for 90 days.
You are not restricted to a no-fault claim under your own coverage if your injuries fall within this description. You can seek compensation for all types of losses, including pain and suffering and all other available non-economic damages (which, once again, are not available in a no-fault claim), by filing a third-party auto insurance claim or personal injury lawsuit against the at-fault motorist.
How to File No-Fault Insurance Claims in New York
Within 30 days of the accident, a formal claim must be filed with the insurance in accordance with New York No-Fault laws. The insurance provider for the concerned car is where the claim is made. Rarely, and only where a claimant can demonstrate in writing that there is a “clear and reasonable justification for the failure to comply with the time limits,” is this period of time extended.
The written statement must contain as much information as possible, including the accident’s date and time. The accident’s circumstances should be described in as much detail as possible, including detailed information on each victim of the event.
The vehicle’s repair is not covered by no-fault insurance. Only personal losses incurred by people who are insured as a result of their injuries are covered.
Exclusions From Receiving No-Fault Benefits in New York
As there is with almost every law, there are exceptions to established rules. Coverage under a no-fault policy is no different. Those who are not covered according to New York’s no-fault statute include:
- Motorcycle riders.
- 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. The law allows private insurers to make their own exclusions, so it is very important for policyholders to review their policy, so they understand under what circumstances they may not be covered by their no-fault policy.
- Those who are covered, but intentionally cause 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 Can Receive No-Fault Benefits In New York?
The coverage is intended to cover the following people:
- The owner is 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 one is injured as a pedestrian.
- If a designated household member is hurt in an accident when the at-fault driver of the vehicle they were in is driving without insurance, there may be coverage for that member to collect benefits.
Benefits Of New York’s No-fault Law
No-fault benefits include payments for economic losses. This includes necessary expenses, which are defined as medically-related expenses, other expenses, lost wages, and burial expenses.
- Medical Expenses
- Ambulance cost.
- Necessary x-rays, surgical interventions, and nursing care.
- Dental costs.
- Prescription drugs.
- Prosthetic devices.
- 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 are needed within one year of the accident if the services are required because of injuries incurred in the accident. This time may be extended in certain circumstances.
What You Need To Know
It is best to also let your lawyer help you with no-fault insurance problems. If you don’t have one it is also best to get one.
