21 January, 2025
New York is not an at-fault state. It operates as a “no-fault” state, meaning that regardless of who caused the accident, your own insurance provider is responsible for covering medical expenses and lost wages. In a no fault insurance state like New York, car crashes are handled differently than in at-fault states, with each driver’s own insurance covering their losses.
Those who’ve been in a car accident understand the struggle of dealing with insurance companies, car repairs, and personal injuries afterward. In the state of New York, individuals who get into car accidents fall under the state’s “no-fault” law. Things can get tricky. We’ll explain more below.
New York’s insurance laws are built around a no-fault system, which means that after a motor vehicle accident, each person involved must first turn to their own insurance company for compensation—regardless of who was at fault. This approach is designed to ensure that accident victims receive prompt payment for medical expenses and lost wages, without the delays that can come from determining fault. Every driver in New York is required to carry personal injury protection (PIP) as part of their car insurance policy. This PIP coverage provides no-fault benefits to the policyholder and their passengers, helping to cover the costs of medical treatment and lost income resulting from car accident injuries. Understanding how no-fault insurance works in New York is essential for anyone involved in a car accident, as it shapes the process for filing a no-fault claim and recovering compensation for personal injury and related expenses.
Following a car accident, you may be able to collect compensation for lost income, medical expenses, and other intangible losses. Did you know that this process varies based on what state you live in? That’s why navigating a post-car accident compensation in New York involves understanding its “no-fault” status. New York’s no fault law applies to most motor vehicle accidents and is designed to streamline the process for injured parties. In the state, 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. Insurance policies in New York are structured to provide personal injury protection coverage, which allows accident victims to pursue compensation for their injuries without proving fault.
There are two types of compensation systems in the United States for auto accidents: fault and no-fault. 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.
Disclaimer: *Steve and Rich Barnes have obtained millions in recoveries for their clients and have supervised over $2.5 Billion Dollars in settlements.
In reference to auto claims, states fall under either a fault or a no-fault compensation system. In a fault state, the driver who caused the accident is responsible for paying for any incurred losses the other driver suffered. This could include either economic or noneconomic damages.
If the other driver was at fault, you will file a third-party claim with that driver’s insurance company. This is referenced as a third-party claim because you are filing a claim with an insurance company even though you are not a policyholder.
Once your claim is filed, the third-party insurer will probably assign an adjuster to investigate your case. If your claim is accepted, the insurance carrier will cover your medical expenses and vehicle damage up to the insured’s policy limits.
In a no-fault system, such as exists in the state of New York, a victim of a car accident would file a claim through his or her own auto insurer. In no-fault states, each driver will have to file a claim for losses through his or her own respective insurance. It’s important to follow the exact requirements to file a claim or coverage that could be denied. If a claim is delayed or documentation is submitted late, providing a reasonable justification is necessary to avoid denial. If no-fault benefits do not fully cover your medical expenses, standard health insurance may be used to pay for additional costs.
Since New York is a no-fault state, insurance companies require drivers to carry Personal Injury Protection (PIP), also referred to as “No-Fault Coverage.”
PIP will cover accident related medical expenses, including treatment, rehabilitation, prescription drugs, and other associated costs, as well as 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 drunk driving.
In New York, PIP coverage covers the following:
Medical providers play a key role in treating injuries and submitting documentation for claims. It is important to file lost wage claims promptly under New York no-fault laws to recover lost earnings. You must also submit medical bills within the required deadlines as part of the PIP claim process to ensure coverage for accident related medical expenses.
New York drivers are still required to buy liability insurance in the event that a third-party claim is filed with your insurance company. This insurance coverage is essential to meet New York’s legal requirements and to ensure protection in case of serious injuries, death, or damage to another’s property. It is important to have appropriate insurance policies in place to comply with New York’s minimum liability requirements.
Minimum liability coverage is:
Given these coverage amounts, New York minimum liability limits are sometimes referred to as “25/50/10.”
Insurance companies are central to the no-fault system in New York. When a car accident occurs, it is the insurance company of the vehicle involved that typically pays for the medical expenses and lost wages of the driver and any passengers, up to the limits of the policy. By law, insurance companies in New York must provide a minimum of $50,000 in PIP coverage for each person injured in a car accident. In addition to this no-fault coverage, insurance companies may offer other types of protection, such as liability insurance and collision coverage, to help drivers manage the financial impact of an accident. The goal of the no-fault system is to ensure that accident victims receive no-fault benefits quickly, without having to wait for a determination of fault. However, insurance companies also play a role in evaluating claims and making sure that payments for medical expenses and lost wages are made according to the terms of the policy and state regulations.
When you’re involved in a car accident in New York, your insurance company is responsible for handling your no-fault claim. After you file a claim, the insurance company will review the details, assess the extent of your injuries, and determine the amount of no-fault benefits you are eligible to receive under your policy. This process includes evaluating medical records, lost wage documentation, and other supporting evidence. Sometimes, insurance companies may deny a claim or offer a settlement that does not fully cover your losses. If this happens, it’s important to know that you have options—consulting with a personal injury lawyer can help you navigate the claims process, appeal a denial, or negotiate for a fair settlement. Insurance companies in New York are required to follow strict guidelines when processing no-fault claims, and policyholders have the right to challenge decisions that they believe are unfair or incorrect.
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, with personal injury protection coverage being a key benefit. In addition to property damage, no-fault insurance also helps the insured to obtain repayment for medical bills, loss of wages, and other economic losses, such as medical equipment. In New York, individuals can receive up to $50,000 for these expenses.
If no-fault benefits are exhausted, individuals may need to rely on standard health insurance to cover additional medical expenses.
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 for injuries sustained in the accident. 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 also important to note that motorcycles and motorcyclists are not covered under no-fault insurance laws.
While New York’s no-fault coverage is designed to help most people involved in car accidents, there are important exclusions to be aware of. For instance, if a driver is found to be intoxicated or impaired at the time of the accident, they may be excluded from receiving no-fault benefits, except for emergency medical care. Similarly, individuals who intentionally cause their own injuries or engage in reckless actions—such as attempting to evade law enforcement—may also be denied no-fault benefits. Understanding these exclusions is crucial, as they determine whether you are eligible to receive no-fault benefits and what steps you may need to take to seek compensation for your injuries and losses.
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 coverage that could be denied. The basic requirements of filing a no-fault claim in New York are:
When filing a claim, you must provide written proof of your injuries and expenses to support your case. If there is any delay in submitting the claim or required documents, you should be prepared to offer a reasonable justification, as insurance companies and courts require valid, documented reasons for such delays.
Following these simple steps after an accident helps ensure coverage by the insurance company. Drivers who are in an accident and unsure of the proper steps to take can consult the local authorities, their insurance agent, or a trusted attorney.
No-fault states are designed to protect you from being sued or from suing others following a car accident.
In pursuing litigation, you are essentially leaving the no-fault system. Although you may think filing an insurance claim is sufficient, you may want to consider taking the other driver to court for any of the following reasons:
When your injuries are serious, you have the right to pursue compensation from the at-fault party for damages that go beyond what is covered by no-fault insurance.
New York allows an injury victim to pursue a fault-based system if his or her injuries are deemed “serious” under the law. Let’s discuss what qualifies as a “serious” injury.
New York law classifies a “serious” injury to be:
If you have suffered a “serious” injury, you will also be eligible to recover compensation for noneconomic damages, such as pain and suffering, that are not covered by no-fault insurance. If you decide to take legal action, this will be a private lawsuit not involving your insurance company.
If a car accident victim dies, the personal representative of the decedent’s estate will be able to file a wrongful death suit. The personal representative must take legal action within two years of the injured party’s death before the limitation period ends.
In a New York automobile claim, you can recover economic damages. Economic damages, also referred to as economic losses, are easily quantifiable and result in direct financial losses or costs for injury victims. These damages are easy to calculate because they are accompanied by pay stubs or invoices.
In a car accident claim, economic damages may include:
However, noneconomic damages are intangible losses that impact your quality of life. You may have a more difficult time recovering these damages, and it often becomes necessary to take your case to court.
In New York, noneconomic damages in a car accident case may include:
People who are physically or mentally suffering after an accident still may need to file a personal injury lawsuit to obtain a settlement. It’s recommended that your claim is handled by a top accident lawyer in New York to assure you get the best result possible. Our York personal injury lawyers have extensive experience handling accident claims and are dedicated to helping clients pursue compensation for their injuries.
We have a team of lawyers ready to assist you with your personal injury claims. To learn more about your legal options related to car accidents, personal injury, and pain and suffering talk to the experienced attorneys at The Barnes Firm. We offer a free consultation so you can discuss your case with no obligation. We will assist you with all of your legal needs and help you win the best result possible.
The Barnes Firm (800) 800-0000
Written by The Barnes Firm, reviewed by Richard Barnes
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Rich Barnes
President
Richard Barnes: “As President of The Barnes Firm, I have dedicated my career to achieving justice in hundreds of cases for the victims of injuries caused through the fault of others. Additionally, I have been honored to have been elected Best Lawyer and a Super Lawyer”
Years of Experience: 30+ years
LinkedIn Profile: Richard Barnes
This page has been written, edited, and reviewed by a team of legal writers following our comprehensive editorial guidelines. This page was approved by attorney president Rich Barnes who has more than 30+ years of legal experience as a practicing personal injury trial attorney.
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