Understanding No-Fault Insurance Laws in New York: What Every Driver Needs to Know
Understanding No-Fault Insurance Laws in New York: What Every Driver Needs to Know
If you’ve ever been in a car accident in New York, you probably remember the chaos: the screech of brakes, the sudden jolt, and the scramble to figure out what happens next. In those confusing moments, a term you may hear tossed around—perhaps for the first time—is no-fault insurance. It sounds reassuring. But what does it actually mean? And more importantly, how does it affect you?
At Hill & Moin LLP, we’ve spent decades helping accident victims navigate the maze of insurance claims and personal injury law in New York. No-fault insurance is one of those topics that comes up often—and understandably so. It’s a unique system, and like many things in the legal world, it has its nuances.
Let’s walk through what no-fault insurance really is, how it works in New York, and what you need to watch out for if you’ve been injured in a car accident.
What is No-Fault Insurance?
New York is one of just a handful of states that follows a no-fault insurance system. Essentially, it means that after a car accident, your own insurance company pays for your basic medical expenses, lost wages, and other reasonable costs—regardless of who caused the crash.
Yes, you read that right. Even if the other driver ran a red light, your insurance provider steps in to cover certain expenses. The system is designed to speed up the compensation process and reduce the number of lawsuits clogging up the courts.
But here’s the catch: no-fault doesn’t cover everything, and it doesn’t mean you can’t sue. We’ll get to that in a bit.
What Does No-Fault Insurance Cover?
Under New York’s no-fault law, your insurance company (not the other driver’s) must pay for certain “basic economic losses.” This includes:
- Medical bills: doctor visits, hospital stays, surgery, medication, rehabilitation, and more.
- Lost wages: up to 80% of your lost earnings, capped at $2,000 per month for up to three years.
- Out-of-pocket expenses: transportation to medical appointments, household help, and other reasonable costs related to your injury.
- A $2,000 death benefit: in tragic cases where someone dies as a result of the accident.
All of this is subject to a $50,000 limit per person, unless you’ve purchased additional coverage. These benefits are often referred to as Personal Injury Protection (PIP) coverage.
Importantly, no-fault insurance does not cover damage to your vehicle, pain and suffering, or expenses above the policy limit. Those are addressed separately, often through lawsuits or other insurance claims.
Who is Covered Under No-Fault?
New York’s no-fault law applies to:
- Drivers and passengers of insured vehicles
- Pedestrians struck by a car
- Cyclists, in some cases
It doesn’t apply to:
- Motorcyclists (a key exception)
- People injured while committing a felony or fleeing police
- Accidents outside of New York (with some exceptions)
If you’re unsure whether you’re covered, it’s best to speak with a knowledgeable personal injury attorney—like someone from our team at Hill & Moin—who can review your case and offer clear guidance.
What Happens After an Accident?
After an accident, time is of the essence. New York’s no-fault system has strict deadlines:
- You must file a no-fault application within 30 days of the accident. Miss this window, and you could lose your right to benefits.
- Medical providers must submit bills within 45 days of treatment.
- Lost wage claims must be submitted every 30 days with proof of disability.
These rules can feel overwhelming when you’re already dealing with pain, confusion, and disruption to your daily life. But missing a deadline can jeopardize your claim—and that’s where we often step in to help.
We recommend reviewing our What Makes a Good Case? guide to get a sense of how to preserve your rights early in the process.
Can You Still Sue the At-Fault Driver?
Here’s where things get interesting. While no-fault insurance covers basic economic losses, it doesn’t compensate you for pain and suffering or serious, long-term injuries. For that, you may need to file a personal injury lawsuit against the at-fault driver.
But under New York law, you can only sue if your injuries meet the “serious injury threshold”. What does that mean?
The law defines a serious injury as:
- A fracture
- Significant disfigurement
- Permanent limitation of a body organ or member
- Significant limitation of use of a body function or system
- Full disability for at least 90 of the 180 days following the accident
It’s not always clear whether an injury qualifies. For example, a herniated disc may not sound serious at first, but it can lead to chronic pain and missed work. In cases like these, our team carefully examines the medical evidence to determine whether your injury meets the legal criteria.
Common Pitfalls to Avoid
We’ve seen countless cases where well-meaning people unintentionally hurt their own claims. Some common mistakes include:
- Waiting too long to see a doctor
- Failing to file the no-fault application in time
- Downplaying injuries to insurers
- Posting about the accident on social media
Insurance companies—yes, even your own—may look for ways to deny or minimize your claim. That’s why it’s so important to document everything, follow medical advice, and speak to an attorney as soon as possible.
A Real-Life Story: Maria’s Case
Maria was a home health aide driving to a client’s apartment in Queens when another car rear-ended her at a stoplight. At first, she felt fine—just a little shaken. She didn’t go to the hospital. But over the next few days, her neck stiffened and the headaches started.
She finally saw a doctor and learned she had a cervical disc injury. By the time she filed her no-fault application, the 30-day deadline had passed. Her lost wages weren’t covered. Worse, her injury worsened, requiring physical therapy and injections.
When Maria came to Hill & Moin, we helped her gather the medical records and documentation needed to pursue a claim against the at-fault driver. Ultimately, she received a settlement that covered her pain and suffering and gave her a financial cushion while she healed.
When to Call an Attorney
If you’ve been in a car accident in New York, don’t try to figure this out alone. Between the tight deadlines, complex definitions, and insurance red tape, it’s easy to feel lost. That’s where we come in.
At Hill & Moin LLP, we take pride in helping real people—like Maria—get the care and compensation they deserve. We treat every case with compassion and tenacity, because we know how much is at stake.
Your story matters. Let us help you tell it—and fight for the outcome you need.
Call us today at (212) 668-6000 or schedule a free consultation.