New York State’s No-Fault Insurance Laws Explained
Syracuse, NY—New York, like many other states, follows no-fault insurance laws. Under New York’s no-fault law, drivers are required to purchase Personal Injury Protection (PIP) insurance (i.e. no-fault insurance) and carry a minimum of $50,000 in coverage.1 In the event a driver engages in a collision with another motorist, they must file a PIP claim with their own carrier, regardless of whether they caused the accident or not.
PIP Benefits
PIP insurance helps injured parties recover benefits quickly as they get to work with their own insurance company and aren’t required to prove fault. When a person files a PIP claim, they are generally entitled to collect up to $50,000 for economic losses which might include:
- Medical expenses
- Lost wages
- “Reasonable and necessary expenses related to injuries sustained.”
If someone was injured while riding as a passenger in a vehicle and the driver was insured, they too would be entitled to collect PIP benefits. Additionally, PIP coverage also extends to a driver’s relatives who reside with them.
What are some things no-fault insurance will pay for?
PIP insurance will pay for medical and rehabilitation expenses that are necessary for a person to receive. In addition, it will also:
- Pay a person 80% of their lost earnings, up to a maximum of $2,000 per month for up three years from the date of their crash, according to the New York State Department of Financial Services.
- Up to $25 a day for certain types of expenses such as the cost of hiring someone to help around the house as well as transportation costs (i.e. traveling to the doctor).
The downside to no-fault insurance
While there are many benefits to no-fault insurance, there are a few things it cannot do. No-fault, or PIP insurance, won’t pay to repair a person’s vehicle nor will it pay to fix the damage their personal property sustained in an accident. Therefore, if a motorist’s vehicle was damaged in a collision they didn’t cause, they could file a property damage claim with the at-fault party’s insurance carrier.
No-fault insurance can also stand in the way of a person being able to file a lawsuit against a negligent driver. While a motorist’s right to sue isn’t taken away, New York’s no-fault laws say drivers can only file a lawsuit against a negligent party if:
- Their economic losses exceed their no-fault benefits, or they are seeking non-economic damages; and
- They suffered a “serious injury.”
New York’s no-fault insurance laws can be a bit confusing to someone who was recently involved in a wreck in Syracuse, and unfortunately, this confusion can stand in the way of them obtaining the benefits they are entitled to. Therefore, before an accident victim agrees to provide their insurer with a recorded statement or accept a settlement check, they should schedule an initial consultation with an experienced Syracuse, NY accident attorney.
Stanley Law is an accident law firm that helps victims in Central New York obtain a fair amount from the insurer after a crash and can be reached at 1-800-608-3333.
Stanley Law has multiple offices in Central New York that are located at:
Syracuse Office
215 Burnet Avenue
Syracuse, NY 13203
Phone: 1-800-608-3333
Website: www.stanleylawoffices.com
Binghamton Office
84 Court St, Ste 414
Binghamton, NY 13901
Watertown Office
200 Washington St, Ste 407A
Watertown, NY 13601
Rochester Office
510 Clinton Square Ste 521
Rochester, NY 14604
Montrose Office
22 Public Ave
Montrose, PA 18801
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