To drive on New York’s roads, vehicle owners must register with the state, get a license plate, and prove financial responsibility by purchasing an insurance policy. The state requires drivers to carry PIP, or personal injury protection, which is sometimes referred to as no fault insurance, of at least $50,000 per injured person.
What is No Fault Insurance?
No fault insurance is designed to cover claims for personal injury, regardless of who caused an accident. No-fault insurance also covers economic losses, including medical bills, lost income, and funeral expenses.
While it does not cover non-economic losses such as emotional distress, the responsible party can still be sued once the claim is filed.
Is New York a No Fault State?
New York’s no-fault rules require claims to be filed within 30 days of an incident, and these claims are filed with the company covering the involved vehicle. Extensions are rare, and only if the claimant can prove there’s a valid reason for their failure to file within the deadline. No-fault insurance doesn’t provide coverage for vehicle repairs—it only covers injury-related losses.
No-fault insurance covers people including:
- The person named on the policy
- Passengers in their vehicle at the time of the accident
- Any person residing in the insured party’s household if they are hurt in a pedestrian accident
In some cases, there is coverage for household members who are injured in accidents where their driver was under-insured or uninsured.
As with other laws in New York, there are a few exceptions to the no-fault rule. This type of coverage is different in that it does not cover:
- Passengers on motorcycles
- Owners of uninsured vehicles
- Owners occupying or driving a spouse’s uninsured car, truck, or SUV
- Residents of other states
Private insurance companies can list certain exclusions, so it’s important to read these documents carefully. A person who intentionally causes their own injury, is intoxicated, has an accident in the commission of a felony, is street racing, or driving a stolen vehicle will not be covered.
When to Hire a Lawyer After an Accident
Personal injury suits allow victims to seek reimbursement for non-economic damages incurred in an accident. Since these damages aren’t covered under New York’s no-fault insurance, victims can sue for additional damages.
It’s not as easy as it sounds to collect benefits after an auto accident, and insurance companies look for ways to deny claims. If that’s the case, it may be possible to sue the insurer for bad faith or breach of contract.
If you were in an accident and need help filing a no fault insurance claim, then get in touch with an attorney today.