Understanding New York’s No-Fault Insurance Laws: What it Means for Car Accident Victims

New York operates under a no-fault insurance system for car accidents, which means that regardless of who caused the accident, each driver’s insurance company is responsible for covering their medical expenses and other economic losses.

However, there are limitations to what no-fault insurance covers and certain circumstances allow victims to step outside the no-fault system to pursue a personal injury lawsuit. Here, New York City personal injury attorneys at David Resnick & Associates, P.C. explain how New York’s no-fault insurance laws work and what they mean for car accident victims.

What is No-Fault Insurance in New York?

No-fault insurance, also known as Personal Injury Protection (PIP), covers expenses after a car accident, regardless of who is at fault. This means that if you are injured in a car accident in New York, your insurance will pay for your primary economic losses, and you generally cannot sue the other driver unless certain conditions are met.

In New York, no-fault insurance covers:

• Medical Expenses: Payment for necessary medical treatments, hospital bills, rehabilitation, and other health-related costs resulting from the accident.
• Lost Wages: Compensation for up to 80% of lost wages, up to a maximum of $2,000 per month for up to three years.
• Other Expenses: Coverage for reasonable and necessary expenses related to the accident, such as transportation to medical appointments, household help, or childcare services.

The minimum amount of no-fault coverage required by law in New York is $50,000 per person. Each driver’s insurance policy must provide at least $50,000 for medical expenses and other economic losses after an accident.

Who is Covered Under No-Fault Insurance?

No-fault insurance covers more than just the driver of the vehicle. The following individuals are typically covered under New York’s no-fault system:

• Drivers and Passengers: Any driver or passenger injured in a motor vehicle accident is entitled to no-fault benefits from the vehicle’s insurance policy.
• Pedestrians and Cyclists: Pedestrians and bicyclists struck by a vehicle are also covered under the driver’s no-fault insurance policy.

Under New York law, you can only sue the at-fault driver if your injuries meet the legal definition of a severe injury outlined in the state’s insurance laws. This is known as the “serious injury threshold,” and it allows victims with severe injuries to step outside the no-fault system and pursue compensation for pain and suffering and other non-economic damages.

A serious injury includes:

• Fractures: Any broken bone, regardless of severity.
• Significant Disfigurement: Permanent and significant scarring or disfigurement.
• Permanent Loss of a Body Organ or Limb: Permanent injury resulting in the loss of use of a body part or function.
• Permanent Limitation: Significant and permanent limitations in using a body part or organ.
• 90/180 Rule: An injury that prevents the victim from performing daily activities for at least 90 out of the 180 days immediately following the accident.

Understanding how no-fault insurance works and knowing when you can step outside the system to pursue a personal injury lawsuit is crucial for obtaining the full compensation you deserve after a car accident in New York.

Contact Our New York Personal Injury Attorney Today

Contact the New York personal injury law firm of David Resnick & Associates, P.C., online or call us at 212-279-2000 today for a free consultation about your case. We serve clients throughout New York City, in Manhattan, Queens, Brooklyn, Staten Island, the Bronx, and Long Island.

There is never a charge to speak with our skilled New York City injury attorneys. If your case qualifies to move forward, we will handle every aspect from start to finish without charging any upfront or out-of-pocket fees. You will pay nothing for our elite personal injury attorney services unless we win your case. That is a promise.

Author: David Resnick

Founder of David Resnick & Associates, P.C., a New York personal injury law firm in charge of providing exceptional and personal service to each of our clients in various areas including car accidents, slip and fall, wrongful death, construction accidents, and premises liability. David Resnick founded the firm in 1998 after working in large law firms where he saw a need for greater client communication and more personal care.