Is New York a No-Fault State?

Understanding your state’s insurance policy laws may help you receive fair coverage for injuries due to a car accident. There are fault, no-fault, and choice-no-fault states in the USA. So, which one is New York? 

The short answer would be that New York is a no-fault state. But answering follow-up questions is just as important: How does no-fault insurance work and who is covered under the law? What’s the procedure for filing a no-fault insurance claim? What to expect after a car accident? When does litigation become necessary? We’ll answer these common questions below. 

How No-Fault Insurance Works in New York

Let’s start with the definition of no-fault insurance. Under this type of insurance, parties involved in the accident are covered for their injuries by their own insurance policy regardless of who caused the accident. 

In other words, a driver’s own car insurance policy will typically cover their personal injury expenses up to a certain limit, regardless of who was at fault. This is known as Personal Injury Protection (PIP) coverage. If your claim exceeds your PIP coverage, you may be able to bring a personal injury lawsuit against the negligent third party, such as when a party’s injuries are legally severe  The no-fault system aims to reduce delays in compensation and the number of lawsuits for minor injuries. 

If you’re unsure about the process or need guidance, consulting a New York car accident lawyer can provide guidance that may guide you towards compensation for your accident. 

Who Is Covered Under New York’s No-Fault Law?

As stated previously New York’s no-fault insurance system is designed to ensure that the parties involved in an accident receive the necessary financial assistance without delays or disputes over fault. This coverage extends to the following individuals:

1. Drivers and passengers in the insured vehicle: the vehicle’s owner if they were driving; authorized drivers using the vehicle with permission; passengers, regardless of their relationship to the driver or vehicle owner.
2. Pedestrians struck by the insured vehicle: individuals walking, running, or standing in areas where vehicles operate; those crossing the street or using crosswalks.
3. Other parties injured in the accident: no-fault insurance extends coverage to other individuals injured in the accident subject to conditions. These conditions include: 
   • The accident must involve a New York-registered vehicle.
   • The incident must happen in New York state.
   • Coverage is provided irrespective of whether the injured party is another driver, a cyclist, or a passenger in another vehicle, as long as they meet the policy’s requirements.

There are a few key notes about coverage that we should keep in mind. 

• First, the injured parties do not have to be residents of New York to get coverage as long as the accident meets other criteria that we discussed above. 
• Second, drivers or passengers who intentionally caused the accident, were under the influence, or were committing a felony at the time may not be covered.
• Tourists and visitors who have been injured in accidents involving New York-registered vehicles can also access no-fault benefits if they meet the conditions.

How to File a No-Fault Insurance Claim in NYC

Filing a no-fault insurance claim in New York City is a complex process. Having a lawyer by your side simplifies the process and increases your chances of receiving fair compensation. Your lawyer will file a written notice of a car accident claim with the appropriate No-Fault insurer within 30 days of the accident, including all necessary details about the injured parties and the circumstances of the accident. If the filing is delayed for any reason, your attorney will provide written proof to justify the late submission.

What Happens After a Car Accident in a No-Fault State?

• Seek medical attention: ensure immediate medical treatment to document injuries as this is critical for your claim.
• Notify your insurance company: A lawyer will inform your insurer within 30 days of the accident on your behalf. 
• Complete the no-fault insurance application: submit Form NF-2 accurately, with your lawyer ensuring all required details are included.
• Collect supporting evidence: An attorney will manage the evidence collection and will gather medical records, bills, photos, and witness information.
• Communicate with insurance adjusters: A lawyer will handle all discussions, counter low offers, and protect your claim’s value.
• Ensure compliance with deadlines: your attorney will track and meet all deadlines, such as submitting required documents promptly.
• Appeal denials or low offers: if your claim is denied, your lawyer will file appeals and represent you in negotiations or arbitration.
• Obtain fair compensation: The lawyer will ensure you receive the damages that you are entitled to. 
• File a third-party claim (if necessary): if damages exceed no-fault coverage, your lawyer may pursue a lawsuit against the at-fault party subject to certain conditions.

Litigation in a No-Fault State: When Is It Necessary?

No-fault insurance provides coverage for specific economic losses, such as medical expenses and lost income, under Personal Injury Protection (PIP), but it has limitations. If your medical bills or lost wages exceed the PIP coverage cap, you may need to file a lawsuit to recover additional damages. 

Additionally, non-economic damages like pain and suffering, emotional distress, or loss of quality of life are not covered by no-fault insurance. Severe injuries, such as permanent disability or significant disfigurement, may qualify for compensation through litigation.

There are types of that may require litigation, including: 

• Severe injuries: in no-fault states such as New York, litigation is often permitted when injuries meet the “serious injury” threshold. These serious injuries in a car accident typically includes following conditions:
• • • Permanent loss of a body function
    • Significant disfigurement
    • Fractures
    • Death

• Disputes over fault or liability: if fault is disputed by the other party or their insurance company, litigation may be required to prove negligence and secure appropriate compensation.
• Denial of no-fault benefits: if your no-fault insurer denies your claim or fails to pay benefits, you may need to take legal action to enforce your rights.
• Bad faith insurance practices: litigation may also be necessary if the insurance company engages in bad faith practices, such as unreasonably delaying or denying claims.

What is the minimum required PIP coverage in New York?

In New York, the minimum required Personal Injury Protection (PIP) coverage under the no-fault insurance system is 50,000 per person per accident. This coverage aims to pay for necessary medical expenses, lost wages (up to 2,000 per month for up to three years), and certain other reasonable expenses (such as transportation to receive medical services) regardless of who was at fault for the accident. 

In cases of death resulting from an accident, an additional 2,000 in death benefits is provided under PIP coverage. Drivers in New York have the option to purchase additional PIP coverage for greater protection.

How Can Gregory Spektor & Associates P.C. Help with Your No-Fault Claim?

If you have been injured in a car accident in New York, Gregory Spektor & Associates P.C. is here to help you with the complexities of your case. From gathering evidence like police reports and medical records to negotiating with insurance companies, our attorneys will be by your side every step of the way, ensuring you receive the compensation you rightfully deserve. By handling legal intricacies on your behalf, a personal injury lawyer will let you focus on your recovery.