New York’s no-fault insurance system plays a key role in how car accident claims are handled, but it’s not always easy to navigate. While this system ensures that accident victims can quickly access compensation for medical bills and lost income, it comes with specific rules and restrictions that may affect your ability to recover all damages. Understanding these details is critical to protecting your financial and legal interests after an accident.
In a no-fault insurance state such as New York, an individual’s own insurance policy is used to cover medical expenses and other out-of-pocket costs regardless of who is at fault for the accident. However, if injuries are serious and cannot be adequately treated with minimum coverage, the lawyers at the Law Office of Cohen & Jaffe, LLP can help seek justice for the damages you suffered.
Overview of New York’s No-Fault Insurance System
New York operates under a No-Fault Insurance system, which aims to streamline the process for victims of car accidents by ensuring that medical bills and other expenses related to injuries are covered quickly. In a No-Fault state, an individual’s own auto insurance policy generally covers their medical expenses, lost wages, and other out-of-pocket costs—regardless of who caused the accident. This system is designed to reduce the need for lengthy legal battles over liability and allows for faster compensation.
Under this system, drivers must carry Personal Injury Protection (PIP) coverage, which pays for the initial expenses following an accident. This includes medical treatments, rehabilitation, and even a portion of lost earnings. However, there are limitations on the types of damages covered, and for more serious injuries, victims may pursue additional compensation by filing a lawsuit outside of the No-Fault framework.
New York Minimum Insurance Requirements
Specifics of PIP coverage in New York include the following coverage:
- Medical and rehabilitation expenses deemed reasonable and necessary
- 80% of lost income from work, capped at $2,000 monthly, for up to three years following the accident
- A daily allowance of up to $25 for additional reasonable expenses for up to a year after the accident
- A standard no-fault limit of $50,000 per person
- An additional $2,000 death benefit on top of the no-fault limit, payable to the deceased’s estate
New York drivers must also carry liability insurance to address claims from third parties in cases of severe injuries, fatalities, or property damage resulting from an accident.
Minimum requirements for liability insurance are:
- $25,000 for bodily injury per person, with a total of $50,000 per accident
- $10,000 for property damage
- $50,000 for wrongful death per person, totaling $100,000 per accident
For specific questions regarding insurance coverage following your accident, speak with the lawyers of Law Office of Cohen & Jaffe, LLP. We assess the validity of your case and help you determine the best path forward.
Can I Sue the Other Driver in a No-Fault State?
In no-fault states, the system is designed to minimize lawsuits after car accidents by handling claims through your own insurance. However, there are circumstances under which you might step outside this system and file a lawsuit against another driver:
- Your medical expenses surpass the limits of your Personal Injury Protection (PIP) coverage.
- You experience a severe injury.
In New York, the law permits you to pursue a fault-based claim if your injuries qualify as “serious” by legal standards. A “serious” injury includes conditions such as:
- Loss of a limb
- Significant scarring or disfigurement
- Bone fractures
- Miscarriage
- Permanent loss or impairment of a bodily function or system, like blindness or a neurological condition
- A body function that is permanently limited
- Permanent loss of a body part or organ
- An impairment that prevents normal daily activities for most days during at least 90 days of the first 180 days after the accident
- Death
If you suffer from a “serious” injury, you may also claim noneconomic damages for pain and suffering through a lawsuit, which doesn’t involve your insurance provider.
Should the accident result in death, the personal representative of the deceased can file a wrongful death lawsuit, which must be initiated within two years of the death.
Types of Damages in New York Auto Accident Cases
In New York, you can seek economic damages for verifiable financial losses due to a car accident. These include:
- Lost wages
- Diminished earning capacity
- Past and future medical expenses
- Costs for vehicle repair
- Transportation expenses
Non-economic damages, though intangible, address the impact on your quality of life and may include:
- Pain and suffering
- Scarring or disfigurement
- Loss of companionship
- Loss of consortium
These non-economic damages are often more challenging to quantify and require the legal guidance of an experienced personal injury lawyer at Law Office of Cohen & Jaffe, LLP.
Speak With the Personal Injury Lawyers at the Law Office of Cohen & Jaffe, LLP
Navigating the complexities of New York’s No-Fault Insurance system can be challenging, especially when your injuries are serious or your expenses exceed what your Personal Injury Protection (PIP) coverage can cover. While this system is designed to simplify the claims process, there are important nuances that could impact your compensation, particularly in cases involving severe injuries or fatalities.
Contact Law Office of Cohen & Jaffe, LLP LLP at (516) 358-6900 or fill out our contact form to schedule a consultation. For more insights, visit our YouTube channel. Let us guide you through the process and fight for your rights.
