Yes, New York is a no-fault insurance state. This means that expenses incurred by drivers involved in car accidents are covered by their own insurance providers – regardless of who’s responsible for the accident. Adopted in 1974, this system is designed to speed up compensation for drivers/families suffering injuries or damages. It also significantly reduces accident-related claims for New York courts.
Since 2020, reports from the Institute for Traffic Safety Management and Research (ITSMR) indicate that there are around 350,000 car accidents in New York annually. These car accidents contribute to about 100,000 personal injuries every year – about 9000 of which are serious injuries; and about another 1000 proving fatal. (We’ll circle back on serious injuries and car-accident-related deaths later.)
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No-Fault Insurance VS. At-Fault Insurance
No-fault insurance is a car insurance coverage that pays for medical expenses and lost wages if you're injured in a car accident – regardless of who caused the accident. Each driver's own insurance company shoulders incurred personal expenses up to a certain limit, without the need for extensive investigations.
On the other hand, at-fault insurance is the more traditional type. Under this system, the at-fault driver’s insurance company pays for any damages or injuries incurred during an accident. The turnover within this system is generally lengthier – requiring multiple investigations and several official proceedings.
Minimum Car Insurance Requirements in New York
In New York, car owners need to meet minimum coverage amounts before their car registration can be finalized. Here are some coverages that must be included in individuals’ car insurance policies, as provided by the New York Department of Financial Services:
- No-Fault (Personal Injury Protection) - used for medical expenses, lost wages, and other reasonable and necessary expenses should an accident happen
- Liability Insurance - used for any damage that you might be held accountable for during a driving accident
- Uninsured Motorist Insurance - used to protect you, a family member, or your passenger from any injuries caused by an uninsured vehicle (applicable to hit-and-run accidents also)
Let’s take a closer look at these specific insurances.
Personal Injury Protection (PIP)
Basic PIP coverage is capped at $50,000. Drivers can purchase additional PIP limits if they want to. This type of insurance covers the following:
- accident-related medical and rehabilitation expenses
- 80% of lost earnings, to a maximum payment of $2,000 per month (up to 3 years after the accident)
- up to $25 a day to reimburse other reasonable quality-of-life expenses (up to a year after the accident)
- a $2,000 death benefit (in addition to the $50,000 basic cap)
Certain conditions – such as drunk driving, intentional personal harm, or felony-related accidents – can forfeit a person’s eligibility for no-fault benefits.
Liability Insurance
In a nutshell, this insurance shoulders any expenses that result from another person taking legal action against you. The minimum limits for their coverage are:
- $25,000 for bodily injuries, or $50,000 for bodily injuries that result in the death of a person
- $50,000 for bodily injuries sustained by 2 or more persons, or $100,000 if injuries result in multiple deaths
- $10,000 for property damage
If you are, unfortunately, on the receiving end of the injury – these are the minimum limits you can keep in mind. Note that any further legal action falls outside your insurance provider's coverage.
Uninsured Motorist Insurance
Applicable in hit-and-run accidents and accidents involving uninsured parties, these cover any bodily injuries incurred by you, your family, or your passenger. This insurance can also apply for instances where the policyholder (or a family member) is a pedestrian.
Here are some important things to note:
- These can be extended out-of-state (consult your insurance provider)
- This insurance would not cover any damage received by your vehicle
- The minimum limits set are equal to that of liability insurance ($25k / $50k / $10k)
In New York, drivers can only finalize the registration after these 3 types of policies are set in place.
Special Considerations in New York
While New York is a no-fault state, certain circumstances allow individuals to pursue further legal actions. These circumstances are determined by certain damages or compensation thresholds, as outlined by the New York State Insurance Law §5102. These special considerations are as follows:
Serious Injury Threshold
In New York, an individual can sue for additional damages if they have suffered any serious injury. As cited by the law, serious injuries refer to:
- Personal injury resulting in death
- Dismemberment
- Significant disfigurement
- Fracture
- Loss of a fetus
- Permanent loss of use of a body organ or function
- Limited use of a body organ or member
- Non-permanent injuries that persist for more than 90 days
Basic Economic Loss Threshold
Individuals whose basic economic loss exceeds $50,000 may also pursue a claim against the at-fault driver for damages above the initial threshold. These economic losses include:
- Medical expenses (i.e., surgeries, extended hospitalizations, medical devices, etc.)
- Lost wages (due to the inability to work as usual)
- Psychological/physical rehabilitation expenses
- Other related out-of-pocket expenses
It is important that you keep all receipts and records relevant to your incurred injury for better accounting and projection if things come to this point. Given the New York statute of limitations**, it’d be best to speak to a personal injury lawyer as soon as possible – ensuring that your claim falls within the valid time frame.
**a rule that determines the period wherein a legal claim is valid
Compensation for Driving Accidents?
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Filing a No-Fault Insurance Claim
Under the no-fault system, getting compensation is streamlined. Here are some general steps that you can follow:
| 1. Submit a No-Fault Form (NF-2) to your insurance provider |
| 2. Notify the Department of Motor Vehicles (DMV) in your area |
| 3. Consult a specialized lawyer if you’re looking at further legal actions |
Insurance providers take a maximum of 30 calendar days before denying or paying for your no-fault claim. Any unjust denial can be disputed with the help of specialized lawyers and medical professionals.
Personal injury lawyers can also help you pursue further legal actions against drivers who have caused you severe injuries or extreme economic loss. They’ll help you establish your case, gather necessary evidence, file a complaint, and negotiate compensation
Speak to a Specialized Lawyer Today
At the Porter Law Group, our experienced personal injury lawyers have a track record of providing favorable results. We do our best to help clients get properly compensated, providing legal support while their family recuperates. We operate on a contingency basis – meaning you don’t have to pay anything unless we win.
If you or a family member is suffering from serious injuries due to an accident, please reach out to us for a no-obligation, free consultation. You may also contact us at 833-PORTER9 or info@porterlawteam.com to schedule an appointment.
