Understanding New York’s No-Fault Insurance Laws for Car Accidents

The last thing anyone wants to do when they are on the road is to get into an auto accident. The experience can be extremely daunting and it’s perfectly understandable to feel a little lost on what to do after a road accident. New York has a no-fault insurance system in place that you need to know about if you are someone who uses New York roads a lot.

Drivers, pedestrians, and passengers involved in a car accident should be aware of how to receive deserving compensation. In this guide, you will learn how to file a no-fault insurance claim and the importance of getting legal help from a car accident attorney NYC to ensure that your rights are protected.

What is the New York No-Fault Insurance Law?

In a no-fault state like New York, you can collect compensation for lost income and medical expenses after a car accident without having to determine who is at fault. This means that a no-fault insurance claim should be filed directly with your own insurance firm no matter who the fault party is. Since an additional step of proving fault is eliminated, the compensation process is expedited.

Under the no-fault insurance law, every driver in the New York state is required to own “No-Fault Coverage" called Personal Injury Protection (PIP) as part of their auto insurance policy.

Steps to File a No-Fault Insurance Claim

The most important thing to remember about filing a no-fault insurance claim is that you need to submit the application within 30 days of the accident.

Follow these steps to file a no-fault insurance claim:

  1. Check on your health and your passengers’ safety. If anyone needs medical attention, seek help. Try to keep records of the medical treatment you receive.
  2. Next, file a police report. Although this is not a must, you will need it to collect compensation if your insurance company denies it.
  3. Soon afterward, contact your insurance company and inform them of the details of the car accident.
  4. If you feel unsure about what to do and feel like you need help, contact a trusted car accident attorney in NYC who can consult your insurance agent for you.
  5. Get the no-fault application (NF-2) from your insurance company and fill out the details carefully.
  6. Make sure that you submit the NF-2 form within 30 days of the accident.

In addition, you will also have to submit proof of medical expenses and lost wages. So, collect copies of medical bills and request your employer to provide a letter confirming your lost income.

You can also log all your communications with the insurance company and regularly check with them to see if they are processing your application. By hiring a car accident lawyer in NYC, you can make this complicated process less frustrating. 

Benefits of No-Fault Insurance

No-fault insurance covers payments for economic losses in terms of medical expenses, lost income, and burial expenses. As no-fault insurance is faster than third party insurance offered by at-fault insurance policies, accident victims are supported.

The other advantage is that no-fault insurance covers all the individuals involved in the accident. This means that more people do not have to worry about paying medical bills during their difficult time.

No-fault insurance covers a range of medical expenses such as ambulance costs, dental treatment, prosthetics, and prescription drugs. Psychiatric services, rehabilitation, and other therapy treatments are also covered by no-fault insurance.

Other related expenses like transportation for medical treatments and household changes to accommodate accident victim/s are included in no-fault insurance coverage.

In addition, lost income is covered where 80% of the salary is provided without taxation. 

If there is a death caused by an auto accident, no-fault insurance covers all burial and funeral expenses.

Who Cannot Receive No-Fault Coverage?

The New York no-fault policy has exceptions. You cannot claim no-fault insurance if you face an accident as a motorcycle rider or a motorcycle passenger. However, a pedestrian who is a victim of a motorcycle accident can claim no-fault insurance through the bike driver’s insurance company.

Owners who drive uninsured vehicles and drivers using their spouse’s uninsured vehicle are also not eligible to claim no-fault insurance.

In addition, only residents of New York can apply for no-fault coverage.

Even though you are legally eligible to claim at-fault insurance for an auto accident, sometimes insurance companies can make exceptions based on their insurance policies. For example, if the driver is drunk or using drugs, the insurance company may withhold no-fault coverage.

At Alex Yadgarov & Associates, our trusted car accident attorneys will readily travel to you anywhere around New York City to help you protect your legal rights after a car accident.

Call 866-995-9035 to book a free consultation now.