When purchasing car insurance, the agent may have mentioned something about no-fault or personal injury protection coverage. You might not have thought much about it – until you got into a car accident.
New York is a no-fault state. All drivers are required to carry no-fault coverage that will pay for medical expenses, lost wages, and certain other expenses up to policy limits. This system is designed to make sure that injury victims can get medical treatment and financial assistance immediately after an accident, regardless of fault. If your injuries exceed policy limits, then you may be able to file a personal injury lawsuit against the at-fault driver and their insurance company.
The Odierno Law Firm represents accident victims throughout Long Island. We work hard to help you get maximum compensation for your injuries and we never charge a fee unless we get money for you. Reach out to our law offices today to schedule a free initial consultation with a Long Island accident attorney.
Is New York a No-Fault State?
When it comes to car accident claims, states are either “fault” or “no-fault” states. The distinction between the two systems comes down to how insurance claims are processed, not who is at fault for the accident. New York is one of 12 states that has a no-fault system for car insurance.
In a fault state, a driver who is responsible for a motor vehicle accident is responsible for compensating the injury victim(s) for their losses. Their car insurance will pay for property damage, medical bills, lost wages, pain and suffering, emotional distress, and other losses. To get compensation, the accident victim will have to file a claim and potentially wait for months to get a settlement offer.
No-fault states generally require all drivers to purchase personal injury protection insurance. Both parties’ insurance companies will pay for their insured’s medical expenses and lost wages regardless of who was at fault for the accident up to the policy limits. The at-fault driver is responsible for paying for the other driver’s property damage. If these losses exceed PIP coverage, then the accident victim may be able to file a lawsuit against the at-fault party.
The goal of no-fault insurance systems is to make sure that people who are hurt in car accidents can receive necessary medical treatment immediately after an accident without worrying about who caused the crash. No-fault insurance may also cover lost wages and other necessary expenses. Instead of waiting for months – or longer – to get a settlement from the insurance company, accident victims can get coverage immediately.
The Basics of No-Fault Insurance
When it comes to car insurance, New York is a no-fault state. All drivers in New York are required to have Personal Injury Protection (PIP) coverage as part of their auto insurance coverage. PIP covers up to a minimum of $50,000 in medical expenses and lost wages per person.
PIP will pay for:
- Reasonable and necessary accident-related medical and rehabilitation expenses
- 80% of lost earnings from work, up to $2,000 per month for as long as 3 years
- Up to $25 per day for other reasonable and necessary expenses, such as household help due to injuries related to the accident
- A $2,000 death benefit
With no-fault insurance, you don’t have to wait until the at-fault driver’s insurance company pays a settlement or haggles with your health insurance company over medical bills. Instead, your car insurance policy will pay for economic losses of up to $50,000 per person hurt in an accident, including the driver, all passengers, and any pedestrians who may have been hurt in an accident in New York involving your car.
With a no-fault policy, the owner of the policy and all relatives who live in their household are covered. This coverage applies to any motor vehicle accident that may occur in the United States or Canada. It also covers passengers who were hurt in a crash in your vehicle in New York state.
As the name implies, fault is not considered for no-fault coverage. It does not matter whether you ran a red light and crashed into another car or if a distracted driver side-swiped your vehicle on the Long Island Expressway. In both cases, your insurance company will pay for your economic losses – primarily medical bills and lost wages – up to your policy limits (typically $50,000).
PIP only pays for medical bills, lost wages, and certain other “reasonable and necessary” expenses (such as your tolls and parking fees to get to a medical appointment). PIP does not pay for property damage to your car or anyone else’s vehicle. Instead, property damage will be covered by the at-fault driver’s insurance company.
For purposes of medical treatment, no-fault coverage is primary to health insurance. This means that your PIP policy will pay for medical care first for any injuries related to a motor vehicle accident. Your healthcare provider will often ask if you are being seen for a car accident or work injury for this reason.
One of the downsides of no-fault insurance coverage in New York is that you cannot file a lawsuit against the at-fault driver unless your injuries exceed a certain threshold. Your economic losses have to be greater than $50,000 OR you must have suffered a “serious injury.” In New York, a serious injury is defined as:
- Death
- Dismemberment
- Significant disfigurement
- Fracture
- Loss of a fetus
- Permanent loss of use of a body organ, member, function, or system
- Permanent consequential limitation of a body organ or member
- Significant limitation of use of a body function or system
- Medically determined injury or impairment of a non-permanent nature which prevents the injured person from performing substantially all of the material acts which constitute such person’s usual and customary daily activities for not less than 90 days during the 180 days immediately following the occurrence of the injury or impairment.
You cannot file a lawsuit seeking non-economic damages (such as emotional trauma) unless you meet one of these criteria. If you are not sure if your car accident was significant enough to file a lawsuit, your best option is to consult with a Long Island car accident lawyer. During a free consultation, they can advise you of your legal rights and options for filing a personal injury lawsuit.
Hurt in a Car Accident? Give Our Law Offices a Call.
As a no-fault state, it is easy to get medical treatment for car accident injuries – regardless of fault. However, it can be more difficult to file a personal injury lawsuit for a motor vehicle accident. A Long Island personal injury attorney can help you evaluate your options after a car crash.
At The Odierno Law Firm, we advocate for clients who have been hurt in all types of accidents. If you have been hurt in an auto accident, we will fight to help you get maximum compensation for your claim. To learn more or to schedule a free consultation with a Long Island car accident attorney, call our law offices at 631-994-1868 or fill out our online contact form.
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The Odierno Law Firm, P.C., a personal injury firm serving the residents of Long Island, has been dedicated to helping the wrongfully injured recover the compensation that they deserve for the past 30 years. The legal team at our firm handles a wide variety of injury cases such as: auto accidents, medical malpractice, wrongful death and many more! Our firm understands how devastating it can be to suffer a serious injury at the hands of a negligent party or individual, and for this reason, we do whatever we can to help our clients obtain the justice that they are looking for. If you have been involved in an accident and you believe that someone else is responsible for causing your injuries, do not hesitate to contact an experienced lawyer from our firm today. We offer a free consultation to anyone that is looking for answers.