Car accidents happen in New York every day. Many of these collisions may result in serious injuries and significant property damage. Under these circumstances, it’s essential to understand how your insurance coverage will operate. Here is what you need to know about no-fault coverage after a car accident in New York.
New York is a No-Fault Car Insurance State
Every day, New Yorkers get into their cars, trucks, and other motor vehicles, expecting to arrive at their destinations safely. However, the truth is that thousands of these drivers and their passengers will be involved in motor vehicle collisions. In this situation, knowing where to turn for no-fault coverage is essential.
New York is a “no-fault” car insurance jurisdiction meaning that there can be coverage for medical bills and lost wages for the policyholder and their passengers regardless of who is to blame for a motor vehicle accident.
New York Motor Vehicle Insurance Coverage
In New York, no-fault coverage or Personal Injury Protection (PIP) is legally required for drivers. New York drivers must carry at least $50,000 in PIP no-fault coverage and at least $25,000 in liability coverage per person, and $50,000 per accident for uninsured/underinsured motorists. New York drivers may also purchase additional insurance coverage beyond these minimums.
New York No-Fault Insurance After an Accident
New York PIP insurance covers medical costs, economic losses, and death benefits.
New York basic no-fault insurance covers:
- Reasonable and necessary accident-related medical and rehabilitation
- 80% of lost earnings from work, up to $2000 per month for up to three years from the date of the accident; subject to statutory offsets for New York State disability, Worker’s Compensation, and Federal Social Security disability benefits.
- Up to $25 a day, for up to a year from the date of the accident, to reimburse other reasonable and necessary expenses (e.g., household help and transportation expenses to/from medical treatment) resulting from the auto accident; and
- A $2,000 death benefit (in addition to the $50,000 basic No-Fault limit), payable to the estate of a person eligible for No-Fault benefits who is killed in a motor vehicle accident.
When is a Person Ineligible for No-Fault Benefits?
Having no-fault coverage does not guarantee that an injured party will be eligible for coverage. Under most insurance policies, no-fault benefits will not be available if the person was driving while intoxicated or under the influence of drugs that contributed to the accident. Likewise, no-fault coverage will not compensate someone who intentionally caused their own injuries, was injured while committing a felony, was injured in a vehicle known to be stolen, or if the injured party is the owner of an uninsured vehicle. In addition, no-fault policies will not usually pay benefits for damages caused when the person was riding an all-terrain vehicle (ATV) or a motorcycle as an operator or passenger (a pedestrian struck by a motorcycle or ATV is covered).
Having no-fault coverage does not guarantee that an injured party will be eligible for coverage. Under most insurance policies, no-fault benefits will not be available if the person was driving while intoxicated or under the influence of drugs that contributed to the accident. Likewise, no-fault coverage will not compensate someone who intentionally caused their own injuries, was injured while committing a felony, was injured in a vehicle known to be stolen, or if the injured party is the owner of an uninsured vehicle. In addition, no-fault policies will not usually pay benefits for damages caused when the person was riding an all-terrain vehicle (ATV) or a motorcycle as an operator or passenger (a pedestrian struck by a motorcycle or ATV is covered).
Having no-fault insurance allows the injured party to file a claim regardless of who is responsible for the accident. This coverage generally allows the insured to obtain compensation faster. However, PIP coverage may not be enough to cover the injured party’s damages when the person has a serious injury. If the injured party has a serious injury as defined by New York law, and the other party is at fault, they may be able to recover medical bills from the other driver’s insurance.
Determining the extent of motor vehicle accident injuries can be complicated. If you have been injured in an accident, it’s important to consult with an experienced personal injury attorney to evaluate your claim.
Contact a New York Car Accident Attorney
If you were injured in a car accident and have questions about your New York car insurance coverage, you should speak with an experienced car accident attorney. At Bonina & Bonina, P.C., we have been helping car accident victims for over 50 years. Contact us online or call us at 1-888-MEDLAW1 to schedule your free consultation. Home and hospital visits are available—se habla español.