New York is a no-fault state. This means that drivers throughout the state need to invest in personal injury protection, or PIP insurance, if they want to avoid the financial fallout that might otherwise come in the wake of a dangerous accident.
Let’s break down what aspects you should consider about New York’s no-fault insurance system before investing in coverage. Once you better understand the intricacies of the state’s fault policy, you can invest in the right amount of insurance. You can also more effectively weigh the pros and cons of bringing a personal injury claim against one of your fellow drivers should you get into an accident.
New York’s No-Fault Insurance Covers Baseline Accident Losses
New York requires all drivers to invest in at least minimum no-fault insurance coverage. This coverage provides drivers with support amounting to:
- $25,000 per person injured in an accident
- $50,000 for out-of-pocket medical expenses
New Yorkers can expect this coverage to strictly support the cost of post-accident medical expenses. Basic no-fault insurance does not provide support based on property damage. Instead, state residents must invest in additional insurance, with minimum coverage coming in at $10,000 in property damage support.
It is illegal to operate on New York roads without the state’s minimum coverage. Drivers who get into accidents and don’t have insurance may face legal consequences on top of the financial fallout of their crash.
No-Fault Insurance Prevents You From Recovering Medical Damages From a Liable Party
You still have the right to file a personal injury claim against a negligent driver after a car accident. However, New York’s no-fault system does not allow you to recover damages based on medical expenses and related losses when filing a personal injury claim.
When filing a personal injury lawsuit, you may only recover damages based on losses not covered by your no-fault coverage. If you believe you may have the right to recover damages based on serious injuries, you must bring forward enough proof to argue that your losses are greater than those outlined by the serious injury threshold. You can work with an attorney to gather the data needed to make your case.
Any personal injury claim you bring against a liable party may instead request support based on your non-economic losses, including pain and suffering.
Your Insurance Provider Can Only Help You Recover Certain Economic Damages
The specific losses you can include in a no-fault insurance claim following a car accident may include the following:
- Ambulance fees
- Emergency room care
- The cost of long-term medical treatments
- The cost of wages lost while you received medical care
- Pain management and mobility aids
- At-home treatments
You can work with a personal injury lawyer in New York to argue for your right to these damages in conversations with an insurance claims adjuster. If you believe that a claims adjuster intends to act in bad faith to deny you coverage, our team can explore your right to take legal action against the adjuster and their employer.
Benefits Apply to Passengers, Pedestrians, and Other Parties
The no-fault insurance that New Yorkers invest in doesn’t solely protect the person driving a car. It also protects:
- Passengers
- Cyclists impacted by an accident
- Pedestrians impacted by an accident
Motorcyclists do not benefit from a driver’s no-fault insurance coverage and must instead purchase their own coverage before hitting the road.
Everyone in a household must be listed as a beneficiary of a person’s no-fault insurance if they want to operate the family car with the appropriate financial protections. If someone who is not listed on your insurance policy drives your car and gets into an accident, you may have to pay out-of-pocket costs to cover their medical expenses and property damage.
Learn More About the Impacts of New York’s No-Fault Insurance Today
New York’s no-fault insurance policy doesn’t seem personal injury claim-friendly at first glance. This policy doesn’t prevent you from filing a personal injury claim after a car accident, though. Instead, it allows you to recover certain damages from a liable party before exploring your right to civil action.
Unfortunately, the insurance claims adjusters in charge of your no-fault insurance policy are rarely on your side. These parties want to save their corporations money and may use bad-faith tactics to deny you the support you deserve. Fortunately, that’s where the Law Office of Cohen & Jaffe, LLP steps in.
Our car accident lawyers in New York can help you fight back against an uncooperative provider while building you a personal injury claim. If you’re ready to learn more about our services, you can contact us online or call our office at (516) 358-6900.
