Understanding New York No-Fault Insurance Laws

Traffic accidents are major headaches and often life-changing events. What comes after an accident can also be challenging: insurance claims. New York’s no-fault insurance laws are confusing at times. Many people wonder, “What is no-fault insurance?” Read on to get a grasp on the material aspects of no-fault insurance laws in New York.

If you’ve been in a car accident, you deserve to be represented by quality attorneys ready to fight for what you deserve. Contact Tucker Lawyers today at (516) 399-2364 for a free consultation and the guidance and representation you need.

What Is No-Fault Insurance?

No-fault insurance is insurance coverage that is paid out without regard to fault. In New York, most traffic accident cases are handled by no-fault insurance. Each motorist purchases a no-fault insurance policy that kicks in when an accident occurs. Instead of seeking compensation from an at-fault driver, injured motorists file compensation claims with their no-fault insurance company.

Not all motorists in New York have no-fault insurance, although the majority of them do. In the Empire State, the following types of motorists do not fall under auto no-fault rules:

  • Motorcycle riders and passengers
  • Uninsured motorists driving their own vehicle
  • Those driving a spouse’s uninsured vehicle
  • Non-residents of New York
  • Those who intentionally cause their injuries
  • DUI motorists, except for emergency healthcare services.

Under no-fault insurance rules, circumstances arise where no-fault insurance may not be the only type of insurance available. In other words, in some situations, compensation from other sources may be available.

Tucker Lawyers has the experience, skill, and reputation to recover the car accident compensation its clients deserve.  

What No-Fault Covers (and Doesn’t Cover)

The coverage provided by no-fault insurance is available regardless of who is at fault. However, no-fault is a type of abridged coverage in that it does not provide compensation for all of an accident victim’s damages, as would standard car insurance.

Instead, no-fault insurance compensates victims for limited economic losses, including:

  • Reasonable medical expenses
  • 80% wage-replacement compensation up to $2,000 per month for up to three years
  • Up to $25 per day for accident-related expenses and losses, such as hired help to assist around the house
  • A death benefit payment in the event of a fatality.

The policy limit for no-fault coverage is $50,000 per person. Keep in mind that although these forms of compensation are paid without regard to fault, victims still typically need an accident attorney to get maximum compensation.

As can be seen from the list, only damages related to financial matters are covered by no-fault insurance. Non-economic damages are not. Non-economic damages stemming from a car accident might include:

  • Pain and suffering
  • Mental and emotional anguish
  • Loss of enjoyment of life
  • Disfigurement
  • Disability.

These and other non-economic damages are only available from compensation sources outside of no-fault insurance, such as another driver’s liability insurance policy, uninsured/underinsured motorist coverage, and other sources.

Serious Injury Threshold

The serious injury threshold is a threshold that allows injury victims to seek full personal injury damages after a car accident. Under New York’s insurance laws, most car accident claims must be handled by no-fault insurance. However, if a victim suffers a serious injury, they may be entitled to seek full compensation instead of abridged damages from no-fault insurance.

In New York, a serious injury for auto insurance purposes may defined as any of the following:

  • Death
  • Dismemberment
  • Significant disfigurement
  • Fracture
  • Loss of a fetus
  • Permanent loss of use of a body organ, member, or function
  • Permanent, consequential limitation of a body organ or member
  • Significant, permanent limitation of a body system or function
  • Non-permanent injury causing at least 90 of the 180 days of disability.

New York also allows car accident victims to seek compensation outside of no-fault insurance when they incur more than $50,000 in basic economic loss.

Keep in mind that some injuries are accepted as “serious” more often than others. In other words, what counts as a serious injury is often disputed. If a victim needs access to full damages after an accident but is told their injuries are not serious, they should have an attorney fighting for the proper designation.

Filing a No-Fault Claim

Filing a no-fault claim is relatively simple and requires that you provide your insurance provider with a notice of an imminent claim. Within this notice, you should include:

  • Identities of the injured parties
  • Date and time of the accident
  • Location of the accident.

Generally speaking, this notice should be submitted to your insurance company within a reasonable amount of time after your accident — this is considered to be roughly 30 calendar days.

When you are in an accident and not driving your own vehicle, you may still be eligible for no-fault insurance coverage. For example, if you are a passenger in a spouse’s car or on a bus, you can still collect no-fault insurance compensation.

When You Can Sue the Other Driver

As mentioned, you can sue another driver if you have incurred over $50,000 in basic economic loss or you have suffered a serious injury. Examples of injuries serious enough to warrant a lawsuit against a driver include:

  • Traumatic brain injuries
  • Spinal cord injuries
  • Fractured bones
  • Amputations
  • Dismemberment
  • Disfigurement and scarring
  • Other catastrophic injuries.

At Tucker Lawyers, we identify every potentially liable person and every source of compensation you may be entitled to. No compensation is left behind when Tucker Lawyers is on the case.

Speak With an Experienced Car Accident Lawyer Today

New York’s no-fault insurance laws can lead to quick compensation after a car accident. However, they are confusing for many people, leading accident victims to miss out on valuable compensation. Hiring a lawyer after a crash is the recommended way to navigate these laws and get the compensation you deserve.

Are you in need of quality, effective representation after experiencing a car accident? If so, Tucker Lawyers is here to help. Call (516) 399-2364 for a free consultation with our team of auto accident lawyers today!

john tucker

Managing Attorney John. J. Tucker, Esq.

John has personally handled thousands of clients who were victims of another’s negligence and fights relentlessly for their rights. John enjoys bringing closure to a client’s matter so that the injured party can move forward with their life. His background enables him to evaluate complex liability related claims and bring resolution to claims in a record time frame. [ Attorney Bio ]

Table of Contents

Archives