When a car accident happens in a no-fault state like New York, injured parties can have certain medical expenses and lost wages paid by their own Personal Injury Protection (PIP) insurance. This is the case regardless of who is at fault for the accident.
This concept confuses many drivers wishing to get compensation for the full extent of accident injuries sustained.
At William Mattar Law Offices, we aim to empower New York drivers with the knowledge to fully understand no-fault insurance coverage and how it differs from a bodily injury liability claim against the at-fault motorist.
Our goal with this learning resource is to provide insight into what no-fault insurance means for your accident, what it covers, and how you can confidently pursue a personal injury claim for damages not covered by no-fault insurance with the help of a car accident lawyer.
How Does No-Fault Insurance Work?
No-fault insurance is designed to streamline the process of seeking compensation for car accident injuries.
Under no-fault insurance, each driver's own PIP coverage will pay for:
- Medical expenses
- Lost wages
- Other accident-related costs up to a certain limit
In New York, the minimum PIP coverage required is $50,000 per person.
This means that regardless of who was at fault for the accident, each individual involved can seek compensation for these damages up to that policy amount.
Understanding the Limits of No-Fault Insurance in New York
While no-fault insurance provides a convenient way to handle car accident claims, it does have its limitations. For example:
- No-fault insurance covers economic damages (medical expenses and lost wages), not non-economic damages like pain and suffering.
- Generally speaking, the accident must have occurred in New York and involve a motor vehicle to be eligible for no-fault insurance.
- Covered damages are only available up to the policy limit. So, if you suffer catastrophic injuries that total more than your policy is worth, you'll need to pursue other avenues for compensation, often through a third-party bodily injury liability claim against the responsible parties
Someone seriously injured in a motor vehicle crash may incur damages well in excess of no-fault’s basic economic loss of $50,000 This is where a personal injury lawyer can negotiate with the insurance company for the at-fault motorist to make up the difference between actual losses and what is covered by no-fault insurance.
With experienced attorneys combating insurance company tactics to diminish or deny a claim, you can focus on getting the treatment needed to recover from your injuries.
How To File a Personal Injury Claim Under New York No-Fault Laws?
Navigating the claims process is complex. It involves several steps and tight filing deadlines, including:
- Filing a claim with your insurance company within 30 days of the accident.
- Submitting medical bills and other records to the insurance company for review.
- Attending any required hearings or arbitration proceedings.
In addition to the steps required by insurance companies, you'll also need to follow any procedures required by the state of New York.
Opening a no-fault claim allows you to get the treatment you need after a New York crash. Once the claim is opened an experienced car accident lawyer in New York can help you pursue a third-party claim against the at-fault motorist. Securing their help immediately after an accident ensures you don't miss out on any potential avenues for compensation.
If New York Is a No-Fault State, Who Pays For My Injuries?
The term no-fault can be misleading, as it's not entirely accurate to say that no one is at fault for a car accident in New York.
Rather, no-fault insurance aims to provide a quicker and more efficient way to pay for limited medical expenses and lost wages without getting bogged down in legal proceedings.
This system was implemented to reduce the burden on the state court system and allow individuals involved in accidents to focus on their recovery.
However, you may be entitled to recover damages if your injuries meet the serious injury threshold defined by New York law. This includes broken bones, permanent disability, and significant disfigurement.
Working with an experienced personal injury lawyer in New York helps to give you the best chance of receiving maximum compensation.
Is It Only Car Accidents That Are Covered Under No-Fault Insurance?
No-fault insurance covers damages and injuries sustained in car accidents, including:
- Pedestrian accidents involving motor vehicles.
- Bicycle accidents involving motor vehicles.
- Accidents while riding in a taxi or bus.
- Using a company vehicle for work-related purposes.
Despite the different scenarios in which no-fault insurance can apply, it's important to remember that the same limitations and procedures discussed above still apply.
What does No-Fault Insurance cover?
When your no-fault claim is approved, the policy will also pay out 80 percent of lost wages, up to a maximum of $2,000 per month, for up to three years.
No-fault insurance policies will also cover up to $25 per day in necessary expenses, such as transportation to and from medical appointments for a period of time.
For surviving family members of fatal car accidents, PIP insurance will pay death benefits of up to $2,000.
What Are the Obstacles To Receiving a Fair Settlement With No-Fault Insurance?
Recovering from a car accident is already challenging enough. However, dealing with insurance companies can make the process even more difficult.
Some of the obstacles you may encounter when filing a no-fault insurance claim include:
- Delays in processing your claim or making payments.
- Denial of coverage for certain medical treatments or procedures.
What Should I Do After a Car Accident in New York?
Because insurance companies can use any delay or mistake on your part as a reason to deny or minimize your claim, it's a good idea to consider taking the following steps after a car accident in New York:
- Seek medical attention for any injuries sustained in the accident.
- Contact the police and file a report.
- Gather evidence from the accident scene, including photos and witness statements.
- Exchange information with the other party involved, including insurance information.
- File an accident report with the DMV within 10 days if necessary.
- Keep track of all expenses related to the accident, including medical bills, treatments, and lost wages.
- Contact an experienced car accident attorney as soon as possible to protect your rights and secure maximum compensation.
- Avoid posting on social media during the process.
- Forward all communications from the insurance company or defending party to your attorney.
Following these steps can strengthen your case and increase the likelihood of receiving a fair bodily injury liability settlement .
No-Fault Car Insurance in New York FAQs
Can I still recover compensation if I am partially at fault for the accident?
If you were partially at fault for the accident, you can pursue a PIP claim. If you need to pursue a third-party claim against the liable party, working with an experienced attorney can minimize any reduction in compensation for your share of liability.
What if the other driver doesn't have insurance?
Your lawyer can advise you on the best legal options to secure compensation from an uninsured or underinsured driver, including uninsured motorist (“UM”) and supplementary uninsured/underinsured motorist (“SUM”) insurance coverage. This likely means filing a personal injury lawsuit to recover damages.
Can I sue for pain and suffering under no-fault insurance?
No-fault insurance does not cover pain and suffering. You can pursue this claim against the at-fault motorist in a bodily injury liability claim.
Do I still need a lawyer if my insurance company pays for my medical bills and lost wages?
Yes, having an attorney when dealing with complex legal matters like personal injury claims is always wise. An attorney can protect your rights and help you recover fair compensation from all sources available.
How long does it take to receive compensation from a no-fault insurance claim?
This varies depending on case complexity and willingness of insurance companies to settle the claim. On average, it can take up to 30 days.
Can I get punitive damages in a no-fault insurance claim?
No-fault insurance is meant to quickly and easily compensate for losses, so it does not cover punitive damages. Punitive damages claims are designed to punish wrongdoers, and thus this claim can only be pursued against the at-fault motorist if warranted.
Hire a Car Accident Lawyer from William Mattar Law Offices To Help You Recover Maximum Compensation
If you were injured in a motor vehicle crash don't hesitate to contact an experienced car accident attorney from William Mattar Law Offices for help.
Our team has decades of experience handling these cases in New York. We will fight tirelessly to ensure you receive the maximum compensation from the liable parties.
Schedule a free case evaluation now.