No-Fault Insurance in New York Car Accidents: Understanding Your Coverage

No-Fault Insurance in New York Car Accidents: Understanding Your Coverage

After a deeply distressing event like a New York car accident, you may feel overwhelmed and vulnerable. Agonizing over whether it was your fault can multiply your stress.

At Hill & Moin, our heart goes out to auto accident victims. Our compassionate lawyers advocate for the injured, pursuing extraordinary results for our clients.

While no-fault auto insurance relieves some of the anxiety of determining fault, relief can also come with accurate knowledge. Our law firm is sharing this information to demystify New York no-fault coverage and explain how your no-fault insurance policy could impact your car accident claim.

No-Fault Coverage: What You Need to Know

Since New York is a “no-fault state,” no-fault insurance is required to register vehicles and purchase license plates. Your plan must include the following minimum coverage.

Personal injury protection

Personal injury protection (PIP) policies provide coverage for medical expenses and lost wages. Besides yourself, PIP pays for medical treatment for your passengers and pedestrians injured by your car.

Liability insurance coverage

Auto liability insurance coverage protects drivers if they are found legally responsible for causing an accident.

Some common types of liability coverage are:

• Bodily injury liability: Medical expenses associated with injuries sustained in an accident caused by the insured driver
• Property damage liability: Repair or replacement costs for damaged property and the other vehicle involved in the accident
• Comprehensive (optional in New York): Pays for property damage and vehicle repair or replacement needed due to collisions, theft, vandalism, fire, or other natural disasters

Auto liability insurance has a maximum payment amount called a policy limit. Drivers must carry adequate liability coverage to protect their assets and comply with the legal requirements set by New York State.

Uninsured vehicle coverage

In 2022, uninsured motorists composed about 14 percent of all drivers in New York. Without the protection of uninsured motorist insurance (UM) coverage, you would have to pay your medical bills and vehicle damages out of pocket if you were hit by an uninsured vehicle. UM covers injury-related costs for you and your passengers up to your policy’s limits.

Uninsured motorist coverage can also extend to underinsured motorists, which can help cover the gap between the at-fault driver’s insurance limits and the actual costs of your damages.

Such coverage is especially valuable in areas where many drivers may be uninsured or underinsured. While uninsured motorist coverage is optional in some states, New York law requires that all registered drivers carry it.

No-fault insurance protection

No-fault insurance coverage applies regardless of who was at fault in a car accident. Under your basic no-fault policy, you could qualify to receive funds for economic losses as well as:

• Reimbursement for accident-related medical bills and rehabilitation costs for bodily injury
• Lost earnings (minus offsets for New York State disability, workers’ compensation, or federal Social Security benefit payments) for up to a few years after the date of the accident
• An amount of money per day for transportation to and from medical providers and household help (e.g. childcare, household help, lawn care services) for a limited time after the accident
• Money payable to the estate of a person killed in a motor vehicle accident

To claim expenses related to your no-fault accident, you must prove these are “reasonable and necessary.” An attorney can help you provide reasonable justification for your claims to increase the likelihood of their acceptance by the insurance company.

In states where PIP is not required, you can often buy it as additional coverage. Each insurance company offers different no-fault benefits, so you should check your policy to see if rehabilitation, childcare, or funeral expenses are covered.

The personal injury protection required in New York and other “no-fault” states can speed up the claims process and avoid personal injury claims for minor injuries. In addition to no-fault coverage, another type of insurance policy may protect you if you get into a car accident in New York State.

Exploring Health Insurance Coverage and Other Benefits

If you have a serious injury, the cost of treatment might quickly exceed the amount covered under your no-fault policy. To prevent economic losses, you can explore your other options.

Optional PIP coverage

You can buy more than the coverage required in a no-fault state. Insurers are often required to offer extra PIP coverage, and if so, policyholders must sign a document to reject it. If the insurance company does not receive your waiver, they could charge additional fees.

Did you know you could be eligible for coverage under your family members’ insurance policies? A personal injury attorney can help you decode the fine print to determine whether you qualify to file a claim on the policy for the vehicle you occupied or a relative living in your household. If you were not at fault for the accident, the attorney can also contact the insurance company of the person at fault for the crash.

Standard health insurance coverage

In New York, as in many other states in the US, you must carry health insurance coverage. Standard health care coverage can protect you if no additional PIP benefits are available.

An attorney can help you contact your provider and follow the instructions for submitting a health coverage claim. You will need to provide proof of your injuries, including supporting documents like accident reports and doctor statements. Be sure to keep copies of all communication with the insurance agent for your records.

Federal Social Security disability

What if your serious injuries result in a long-term disability? Collecting federal Social Security disability benefits could alleviate your financial burdens.

The Social Security Administration (SSA) will evaluate your claim based on their criteria, including the severity and duration of your impairments and how these impact your ability to earn a living. A person may be eligible for disability payments and Social Security Income (SSI) simultaneously.

Besides monthly pay, your benefits could include Medicare, a federal health care coverage program.

Medicare insurance covers:

• Hospital stays
• Doctor’s appointments
• Prescription drugs
• Preventive services like health screenings, behavioral counseling, and annual wellness visits

Seek assistance from a qualified attorney experienced in Social Security disability claims to navigate the process effectively and increase your chances of approval. Though the aftermath of auto accidents can be overwhelming, professional assistance can help you take advantage of your benefits while you recover from your serious injury.

Deciding When You Need to File a Personal Injury Lawsuit

While a no-fault claim is designed to streamline the claims process and provide quicker reimbursement for medical expenses, it may only cover some of your losses. You might need to consider filing a personal injury lawsuit against the at-fault driver.

However, you can only file a third-party lawsuit under certain circumstances, such as when:

• Your serious injury exceeds the threshold of severity defined by New York laws
• Your medical expenses surpass the specified limit
• You suffered significant pain and suffering
• You will have ongoing treatment for your accident-related injuries

By seeking the guidance of a skilled attorney experienced in handling personal injury cases in no-fault states, you can protect your rights and pursue the full extent of compensation available to you.

Before the statute of limitations ends

In New York, there is a time limitation, known as the statute of limitations, for filing claims related to motor vehicle accidents. Individuals involved in motor vehicle accidents must be aware of this time constraint and take prompt action if they intend to pursue a lawsuit. Failing to file a claim within the statute of limitations can result in the loss of the right to seek compensation for injuries or damages sustained in the accident.

Seeking legal advice from Hill & Moin and initiating the claims process promptly after a motor vehicle accident can ensure that you preserve the opportunity to see an excellent outcome for your car accident case.

Before accepting an insurance company settlement offer

A settlement offer might seem attractive at first glance. Yet, these offers could fail to cover the cost of your full recovery. Why not seek legal counsel before signing away your rights?

A car accident attorney can assess the real value of your claim. Then, he or she can communicate with the insurance company, negotiating based on the specifics of your case. At Hill & Moin, our lawyers advocate for car accident victims, pursuing fair and just compensation for your losses.

Aim for Maximum Compensation

Crashes can throw your life off track, but it does not have to remain that way forever. Consulting a law firm can help you avoid potential pitfalls and ensure that you fully understand your rights and options before making any decisions that could impact your legal claim.

At Hill & Moin, we offer risk-free consultations so car accident victims can understand their insurance coverage and take full advantage of their no-fault benefits. Call (212) 668-6000 to schedule your free appointment and learn about your Personal Injury Recovery SolutionsⓇ. 

Don’t wonder about your rights!