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When buying car insurance, most of us don’t spend too much time getting into the details of our coverage. It may be surprising to learn that you have to go to your own insurance company first to pay for medical expenses, lost wages, and certain other costs. The reason why is simple: New York is a no-fault state.
Every driver in New York is required to carry personal injury protection (PIP) insurance as part of their auto insurance. Your insurance will cover up to $50,000 in medical bills and other “reasonable and necessary” expenses. If your medical expenses exceed your PIP coverage and/or if you suffer a serious injury, then you can file a lawsuit against the at-fault driver for your losses.
The Law Offices of Thomas L. Gallivan represents accident victims throughout New York who have been hurt in all types of crashes, including car accidents, pedestrian accidents, and truck accidents. We handle all cases on a contingency fee basis, which means that you’ll never pay a fee unless we recover money for you. To learn more or to schedule a free initial consultation with a New York personal injury attorney, reach out to our law firm today.
Is New York a Fault or No-Fault Accident State?
When it comes to car insurance claims, states are either fault or no-fault. Most states have a fault-based system, where the at-fault driver is responsible for the full scope of the accident victim’s losses. New York is one of just 12 states that uses a no-fault system of insurance.
To drive a motor vehicle in New York, you will need three types of insurance:
- No-fault (Personal Injury Protection) coverage pays for medical expenses, lost wages, and certain other expenses for drivers, passengers, and/or pedestrians injured in or by your car.
- Liability coverage pays for damage that you or your vehicle might do to other people and/or their property.
- Uninsured motorists coverage pays for losses that you may suffer in a collision with a hit-and-run driver or a driver who does not have car insurance.
The requirement of obtaining no-fault coverage is what makes New York a “no-fault state.” The goal of this type of insurance is to make sure that certain expenses are paid promptly, regardless of who was at fault in an accident. Basic no-fault coverage pays for up to $50,000 in economic losses, which includes medical expenses, lost earnings, and other reasonable and necessary expenses related to any injuries sustained.
No-fault insurance is primary to health insurance. This means that if you are hurt in a motor vehicle accident in New York, your no-fault policy will pay first. This can make it easier for many people to seek medical care, as they don’t have to worry about who will pay their medical bills.
No-fault insurance does not pay for car repairs or other property damage. It covers:
- Reasonable and necessary medical and rehabilitation expenses related to the accident;
- 80% of lost wages, up to a maximum of $2,000 per month for up to 3 years from the date of the accident;
- Up to $25 per day for up to a year after the accident for other reasonable and necessary expenses, such as transportation to and from medical treatment, related to the auto accident; and
- A $2,000 benefit (in addition to the $50,000 basic no-fault limit) to the estate of a person killed in a motor vehicle accident (i.e., a wrongful death).
This coverage will pay for these expenses up to the policy limit.
A no-fault policy will protect you and all relatives in your household from economic losses sustained in an accident anywhere in the United States and Canada. It will also cover any passengers injured in an accident while in your vehicle. All pedestrians who are hurt by a vehicle in New York are also included in no-fault insurance coverage.
While no-fault policies provide broad coverage, there are some exceptions. Specifically, insurance companies typically will not pay no-fault benefits if you:
- Were driving under the influence of alcohol and/or drugs at the time of the crash;
- Intentionally caused your own injuries;
- Were riding an ATV or motorcycle at the time;
- Were injured while committing a felony or while in a stolen vehicle; or
- Were in an uninsured vehicle.
If you were hurt in a motor vehicle accident, these insurance policies will serve as the primary way that you can get help immediately for your injuries. An experienced New York car accident attorney can help you determine if you may be able to pursue a claim for additional expenses.
Can You Still File a Lawsuit in a No-Fault State
In addition to ensuring that accident victims will have their economic expenses covered without regard to fault, no-fault systems are also designed to reduce litigation. After all, if all of the parties in a motor vehicle accident have their basic costs paid for through their own PIP insurance, there may not be a need to file a lawsuit. This raises an important question: is it possible to sue an at-fault driver for your car accident injuries in New York?
It is possible to file a lawsuit against a driver who caused your accident through their negligent, reckless, or intentional acts. You can do so if your medical bills are greater than your PIP coverage or if you suffer a serious injury in the accident.
A serious injury is any personal injury that results in:
- Death
- Dismemberment
- Significant disfigurement;
- A fracture;
- Loss of a fetus;
- Permanent loss of use of a body organ, member, function, or system;
- Permanent consequential limitation of use of a body organ or member;
- Significant limitation of use of a body function or system; or
- An injury or impairment that prevents a person from performing their normal daily activities for at least 90 of the 180 days following an accident or injury.
If you have a serious injury, you can file a lawsuit and recover compensation for more than just your medical bills and other direct financial losses. You could seek money for what is known as non-economic damages, such as pain and suffering, emotional distress, loss of enjoyment of life, scarring, and disfigurement. You could also seek punitive damages if the at-fault party caused your injuries intentionally or recklessly.
Many car accidents result in very minor injuries. You might walk away with a few bruises and bumps or even a relatively minor broken bone. In this situation, you will probably be limited to no-fault coverage for your medical expenses and lost wages. You can also seek property damages from the at-fault driver’s liability coverage.
However, if you suffered a more serious injury in a car crash, then it is a good idea to schedule a free consultation with a New York car accident attorney. They will listen to your story and offer you legal advice on your options for pursuing a claim. For cases involving severe injuries, then filing a lawsuit is the best way to get maximum compensation for your injuries.
How Our Law Firm Can Help
Being in a car accident can be scary, even if you suffered minimal injuries. In those situations, no-fault insurance will pay your initial expenses. If your injuries are more severe, our law firm can help you get the money that you deserve for your losses.
Based in White Plains, the Law Offices of Thomas L. Gallivan helps car accident victims get maximum compensation for their injuries. We offer free initial consultations and never charge a fee unless we recover money for you. To learn more or to schedule an appointment with a New York car accident lawyer, give us a call at 914-220-1086 or fill out our online contact form.
How Do You File a No-Fault Accident Claim?
If you were hurt in a car accident, you must file a written claim with the insurance company within 30 days. This claim should include details about the crash, including the date, time, and circumstances of the accident, plus the people injured. Within 5 days, your insurer will send you an application for benefits and the no-fault coverage available to you.
You should complete this form and return it as soon as possible. Medical bills must then be submitted within 45 days and lost wage claims sent in within 90 days. If your medical expenses exceed your no-fault coverage or if you have a serious injury, call the Law Offices of Thomas L. Gallivan to schedule a free consultation with a New York car accident lawyer.
What Happens If Your Medical Expenses Exceed $50,000?
If your medical bills are over $50,000, you could apply for additional no-fault insurance benefits. If there are no additional PIP benefits, your own health insurance company will pay for your medical expenses. You can also file a lawsuit against the at-fault party for your losses if your medical costs are over $50,000.
Filing a lawsuit does not mean that your case will go to trial. Most personal injury lawsuits are resolved outside of court. If you have been hurt in a crash, contact the Law Offices of Thomas L. Gallivan to talk to a New York car accident attorney.
What Medical Expenses Are Covered by No-Fault Insurance?
No-fault insurance will pay for any medical bills that are related to your accident, as long as they are reasonable and necessary. This may include everything from ambulance transport to x-rays and imaging tests, surgery, prescription drugs, dental expenses, physical and occupational therapy, and psychiatric treatment. Any professional health services that are needed within a year of the accident because of the crash will generally be covered.
If you suffered a serious injury or have medical expenses that exceed $50,000, you may be able to file a lawsuit against the responsible driver. Reach out to the Law Offices of Thomas L. Gallivan to schedule a free consultation with an experienced New York personal injury lawyer.
Related: How Long Will a NY Personal Injury Lawsuit Take?
