No-fault insurance allows drivers and others involved in automobile accidents to have guaranteed coverage for their losses, regardless of who caused the crash. The no-fault system provides peace of mind while still allowing more seriously injured victims the right to seek additional recourse through the court system.
If you were hurt in a New York City car crash, understanding no-fault insurance is key to protecting your rights and recovering from your injuries. Having legal counsel will also help. Find out why New York victims turn to the experienced guidance of Michael LoGiudice, LLP.
How Does No-Fault Insurance Work?
Also known as Personal Injury Protection or PIP, no-fault insurance in New York lets an auto accident victim seek compensation first from their own insurer, irrespective of fault. This is the initial route that victims take to cover their medical bills, lost wages, and other losses. It is designed to streamline the claims process by avoiding delays over questions of fault.
Other than motorcycles and certain commercial vehicles, all vehicles in New York must carry at least $50,000 per person in PIP coverage. The insurance covers the owner, occupant, or operator of a motor vehicle, plus injuries that pedestrians sustain through use of a vehicle.
What No-Fault Insurance Covers
A basic no-fault insurance policy pays for up to $50,000 of “basic economic loss” resulting from a motor vehicle accident. The primary benefits include:
- All reasonable and necessary medical expenses: Coverage includes hospital visits, surgery, tests, prescription drugs, physical therapy, and more.
- Lost income: Policies also cover lost earnings if the victim is unable to work. A typical policy pays 80% of lost income, up to $2,000 per week, for up to three years after the wreck.
- Accident-related expenses: Victims can also receive up to $25 per day for expenses related to the accident such as transportation or having to hire someone to watch their children.
What No-Fault Insurance Does Not Cover
For all its benefits and advantages compared to fault-based coverage, there are limitations to New York’s no-fault insurance. It does not cover these losses:
- Property damage to your vehicle
- Pain and suffering and other non-economic damages, except in limited circumstances
- Injuries sustained while committing a felony
- Operation of a non-insured vehicle
- Injuries to motorcyclists
How to File a No-Fault Claim
The claims process for no-fault insurance is relatively straightforward, but it’s important that you don’t miss any deadlines. You should start by contacting the New York insurance company that covered the involved vehicle within 30 days of the accident. You will also need to complete and submit an NF-2 form (Application for No-Fault Benefits) to the insurer.
The NF-2 will include the following details, among others:
- The identities of everyone involved in the wreck
- The date, time, and location of the accident
- A summary of your injuries
- Your medical providers (be sure to submit copies of your bills to the insurer)
- Written verification of employment or self-employment income and other details
- Copies of receipts for accident-related expenses
Can I File a Lawsuit For My Injuries?
The no-fault insurance system prevents most victims from filing a personal injury lawsuit unless they suffered serious injury. In that case, the victim can sue the at-fault driver for pain and suffering, full compensation, and economic loss exceeding $50,000.
Serious injury is a legal term in New York. Under statute it is defined as involving an accident that results in:
- Death
- Significant disfigurement
- Fracture
- Loss of an unborn child
- Permanent loss of the use of a body organ
- Significant limitation to a body system or function
- Medically determined impairment which prevents usual and customary activities for a minimum of 90 days within the first 180 days of the accident
Because serious injury is defined in the law, the victim must be prepared to substantiate the nature and extent of their injuries if they wish to sue. This will require such evidence as medical bills, doctors’ statements, imaging results, and the like.
How an Attorney Can Help With Your No-Fault Insurance Claim
If you were involved in an accident in New York City, it’s imperative that you speak with an attorney. Losses can quickly exceed $50,000, which may open the door to stepping outside of the no-fault system. But you can expect pushback from the driver’s insurance company.
A dedicated New York car accident attorney can assist with:
- Investigating the cause of your accident and the identities of all parties involved
- Processing your no-fault insurance claim and handling delays and other issues with insurers
- Reviewing the circumstances of your case to determine if you can sue outside of the no-fault system
- Determining the value of your losses, including pain and suffering and economic losses over $50,000
- Filing a lawsuit and serving it on the defendants if you are eligible to sue
- Using the discovery process to obtain additional evidence to use in your case
- Applying our extensive knowledge of personal injury law to your benefit, as we have done for other clients in the past
- Settling your case out of court if possible
- Taking your case in front of a jury if necessary
Here to Serve You During This Difficult Time
Our firm understands the apprehension you are facing in the wake of a car accident, as medical bills pile up and you lose time from work. We’re here to provide the representation you need to get your life back. If you were the victim of a car accident in New York City or elsewhere in New York, connect with Michael LoGiudice, LLP to explore your legal options today.
Frequently Asked Questions About New York No-Fault Insurance
Does no-fault insurance provide wrongful death coverage?
In the event the victim dies, no-fault insurance generally provides up to $2,000 for funeral expenses. Depending on the facts, eligible survivors may be able to pursue a wrongful death action to recover damages over and above the no-fault coverage.
Who is eligible to receive no-fault insurance benefits?
Drivers and passengers in insured vehicles are covered, even if the accident occurs outside of New York. A car owner’s no-fault policy also covers injured pedestrians and bicyclists, but motorcyclists and those riding in uninsured vehicles are not covered. Accidents occurring in the scope of employment may instead be subject to a workers’ compensation policy.
What should I do if I have problems with the insurer?
Even though no-fault insurance is designed to make the claims process easier, insurers still engage in various bad faith tactics. We can review the reason for your claim denial and advise you on your next best steps, which may include legal action.
What are the important deadlines to remember?
The most important deadline is the 30 days following the accident in which you must file your claim (the NF-2 form) with the insurance company. You should also send your medical bills to the insurer within 45 days of each treatment. Finally, you must submit proof of lost income within 90 days of the date that your work-related disability begins.
Missing any of these deadlines can be detrimental to your claim. If you have questions or concerns about deadlines, give our office a call.
How can I best protect my health and legal rights after being in a New York City crash?
Call emergency services and get immediate medical attention, even if you don’t think you were injured. Gather as much evidence as you can from the accident scene (e.g. pictures and eyewitness statements) and take notes about what happened and how it affects you. Be sure you also keep all records related to your treatment and accident-related expenses.
Lastly, reach out to an experienced New York City personal injury attorney for help.