Understanding No Fault Insurance in New York City
If you have been injured in a car accident in New York City, you may have heard the term “no-fault insurance” and wondered exactly what it means for you. Does it mean you cannot sue the other driver? Does it cover all of your medical bills? These are common questions, and the answers matter a great deal when you are trying to recover and figure out your next steps.
How No-Fault Insurance Works in New York
New York is one of a handful of states that operates under a no-fault insurance system. Under Article 51 of the New York Insurance Law, commonly known as the Comprehensive Motor Vehicle Insurance Reparations Act, every registered vehicle in the state is required to carry no-fault coverage. The basic idea is straightforward: if you are injured in a car accident, your own insurance company pays for certain losses up to the policy limit, regardless of who caused the crash. You do not have to prove that the other driver was at fault in order to receive these initial benefits.
This system was designed to speed up the claims process and help injured people get access to compensation for their medica bills and lost wages more quickly, without waiting for fault to be determined through litigation.
What No-Fault Benefits Cover
No-fault benefits in New York, sometimes referred to as Personal Injury Protection or PIP, can cover a range of expenses following an accident. Under Insurance Law § 5102, the basic economic loss coverage includes:
- Medical expenses, including hospital visits, surgery, prescription drugs, x-rays, and physical therapy
- Lost earnings from work, up to $2,000 per month for up to three years from the date of the accident
- Other reasonable and necessary expenses, up to $25 per day for up to one year
- Transportation costs to and from medical treatment
The standard no-fault policy provides up to $50,000 in basic economic loss coverage. It is worth noting that you only have 30 calendar days from the date of the accident to file a no-fault claim form in writing with your insurer.
The Limits of No-Fault Coverage
Here is something many people do not realize: no-fault coverage does not necessarily prevent you from bringing a lawsuit against the at-fault driver. However, under Insurance Law § 5104, there is an important restriction. To pursue a personal injury lawsuit for pain and suffering, you generally must have sustained what the law defines as a “serious injury.” This includes injuries such as significant disfigurement, bone fractures, permanent limitation of a body organ or member, or a medically determined condition that prevents you from performing your usual daily activities for at least 90 out of the 180 days following the accident.
No-fault coverage also has exclusions. Benefits may not be available if the injured person was driving under the influence of alcohol or drugs, intentionally caused their own injury, or was injured while committing certain crimes.
Speak with Our Team Today
Navigating the system after an accident can be more complicated than it first appears, especially when your injuries are serious. We at Jaroslawicz & Jaros, PLLC encourage anyone dealing with the aftermath of a car accident to reach out to our firm for a free consultation. Our New York City car accident attorneys are available to help you understand your options and what your particular circumstances may mean for a potential claim. Contact Jaroslawicz & Jaros, PLLC today to get started.
Source:
nysenate.gov/legislation/laws/ISC/5102