Understanding New York’s No-Fault Insurance Law

New York is one of several states that operate under a no-fault insurance system for auto accidents. This system aims to streamline the process of obtaining compensation for injuries sustained in car accidents while reducing the burden on the court system.

How New York’s No-Fault Insurance System Works

Under New York’s no-fault insurance system, drivers must carry personal injury protection (PIP) coverage as part of their auto insurance policy. PIP coverage is designed to provide prompt and efficient compensation for medical expenses and other financial losses—up to the policy’s limits—resulting from injuries sustained in a car accident, regardless of who was at fault for the collision.

Personal Injury Protection (PIP) Coverage Requirements

New York drivers are required to carry minimum amounts of PIP coverage to help provide coverage per person per accident. This coverage may help pay for medical expenses, lost wages and other related costs for injuries sustained by the driver, passengers and pedestrians involved in the accident. PIP may help provide coverage to all occupants of the insured vehicle, as well as pedestrians injured by the insured vehicle.

The Monetary Threshold for Lawsuits

New York’s no-fault insurance law includes a monetary threshold that determines when individuals can pursue legal action against at-fault drivers for damages beyond what is covered by PIP insurance. To file a lawsuit for noneconomic damages such as pain and suffering, the injured party must meet the “serious injury” threshold as defined by New York law.

Benefits of New York’s No-Fault Insurance System

New York’s no-fault insurance system offers several benefits for drivers and accident victims, including the following:

• Prompt compensation—PIP coverage helps ensure that accident victims receive prompt compensation for medical expenses and lost wages without the need to establish fault.
• Reduced litigation—By streamlining the claims process and providing quick reimbursement for injuries, New York’s no-fault system helps reduce the number of lawsuits related to minor car accidents.
• Efficient resolution—The no-fault system helps expedite the resolution of insurance claims, allowing accident victims to focus on recovery rather than prolonged legal battles.

Contact Us

Understanding how New York’s no-fault insurance system works is essential for all drivers in the state, as it helps protect their financial interests and access to medical care in the event of an accident.

Contact James V. Funaro Agency in Bethpage, NY, to learn more about how no-fault insurance works in New York and get a car insurance quote.