After a car accident, New York drivers may be entitled to “no-fault” benefits from a car insurance company. That is because New York is a no-fault state. After a motor vehicle accident, in most cases, the applicable no-fault insurance carrier will pay for certain economic losses regardless of fault. “Basic economic loss” includes medical expenses, lost wages, and other reasonable and necessary expenses, in an amount of up to $50,000. In most cases, the applicable no-fault insurance carrier will pay for these items. That may seem counterintuitive, for your own insurance company to pay for harm caused by another, but that is normally how it works after a car accident in New York state.
One major exception is motorcyclists, who are generally exempted from New York no-fault insurance. Another exception is motor vehicle accidents in other states. By its plain terms, the no-fault insurance system only applies to injuries arising from accidents in New York State. However, every situation is unique, warranting a close examination of the facts.
If economic damages exceed basic economic loss, claims can be made to the insurance carrier who issued an Additional Personal Injury Protection (APIP) or Optional Basic Economic Loss (OBEL) coverage. In addition, claims can be asserted against the at-fault motorist, whose bodily injury liability insurance company may be required to indemnify its insured.
The concept of no-fault insurance is important after a New York motor vehicle accident. If no-fault insurance applies, then certain accident-related expenses will be paid by the no-fault insurance carrier. If no-fault insurance does not apply to cover those expenses, other insurance coverage should be identified.