Is New York a No-Fault State?

Mandatory Auto Insurance Requirements in New York

Under New York law, drivers must carry specific minimum insurance coverages to satisfy the financial responsibility requirements needed to register a car and obtain license plates:

• No-Fault (Personal Injury Protection): Pays for medical expenses, lost earnings, and other reasonable and necessary costs, such as transportation to medical providers.
• Liability Coverage: Protects against damages your vehicle, or a vehicle you operate with permission, might cause to other people or property.

Uninsured Motorists Coverage: Offers protection if you, your family members, or your passengers are injured by a hit-and-run driver or an uninsured vehicle.

Everyone in New York Is Required to Carry Insurance

Everyone is required to carry insurance. There are varying minimums for car insurance, homeowner’s insurance, and other applicable policies. For car insurance, you are required to have:

• $25,000 for bodily injury to one person in one accident
• $50,000 for bodily injury to all people in one accident
• $10,000 for property damage in one accident

Just because New York is a no-fault state does not mean that the other party is off the hook for your damages. Conversely, if you caused the accident, that does not mean that you escape liability, either.

How New York’s No-Fault Law Applies to You

Let’s look to the following scenarios to understand how New York’s no-fault system works:

• If you were a motorist who was hit by another car, you would file your claim with your own insurer before pursuing more money from the other driver.
• If you were a bicyclist struck by a motorist, you would file a claim with the at-fault driver’s insurance since you were not actively driving. The same goes for motorcyclists injured by car drivers. If the insurance company tries to minimize your claim or deny it altogether, you should seek help from a bicycle accident attorney in Long Island or a Floral Park motorcycle accident lawyer – depending on the accident’s location and circumstances. You could file a lawsuit against the at-fault party if negotiations don’t lead to a satisfactory settlement. Talk to your lawyer about your insurance coverage, your injuries, all the expenses and losses you suffered because of the accident, etc. A reputable law firm might be able to secure you the compensation you deserve.
• If you were injured as a passenger on a bus, you would file a claim with your car insurance carrier. If you did not drive a car and have insurance, then you would file your claim with the bus company’s provider.

If you were harmed as a motorcyclist, the no-fault rule does not apply to you. You can immediately begin pursuing damages from the negligent driver.

Benefits of New York’s No-Fault Insurance

The no-fault system in New York provides several significant advantages for car accident victims in Nassau County:

• Immediate Coverage: Medical bills, lost income, and certain incidental expenses are covered up to the PIP policy limit without proving fault.
• Reduced Litigation: Minor injury claims are processed without the need to sue the at-fault driver, minimizing court involvement.
• Predictable Benefits: Victims know in advance what expenses insurance will cover, helping them focus on recovery.

Exclusions From Receiving Benefits

Not every injured person qualifies for no-fault benefits in New York. Under New York’s No-Fault (PIP) system, most drivers, passengers, and pedestrians receive prompt payment for economic loss, but DFS notes ineligibility if any of the following applies:

• Operating a motorcycle or ATV as an operator or passenger (pedestrians struck by a motorcycle/ATV are covered);
• Driving while intoxicated or impaired by drugs and it contributes to the crash (emergency health services may still be paid subject to DFS rules);
• Intentionally causing injury;
• In a vehicle known to be stolen; or
• Owner of an uninsured vehicle.

These limits mean is New York a no fault state doesn’t guarantee PIP for everyone; alternative avenues (e.g., liability or UM/SUM claims) may be needed in excluded scenarios. See DFS’s consumer guide for the operative rules.

Can I Sue the Other Driver in a No-Fault State?

Yes, you can file a lawsuit in certain cases despite New York’s no-fault system. Under New York Insurance Law §5102(d), an injured person may pursue a personal injury claim against another driver if the injuries meet the state’s “serious injury” threshold. This legal standard includes:

• Fractures or significant disfigurement.
• Permanent loss of use of a body organ or system.
• Substantial limitation of a major bodily function.
• Medically determined impairment preventing normal daily activities for at least.
• 90 of the first 180 days after the crash.

Essentially, while New York is a no-fault state, this rule applies only to economic damages covered by PIP. Victims with severe or lasting harm may still seek compensation for pain and suffering and other non-economic losses through civil court.

Filing a No-Fault Insurance Claim in New York

Filing a no-fault claim involves strict deadlines and documentation requirements. Under Section 11 NYCRR 65-3.5 of New York regulations, claimants must:

• Insurers must send necessary verification forms within 10 business days after receiving a completed no-fault application (NYS Form NF-2) or similar notice.
• Additional documents must be requested within 15 business days of receiving the completed forms.
• If a claim is delivered to the wrong office, the deadline restarts once it reaches the correct office, but cannot be extended by more than 10 business days.
• Insurers must collect all required documents directly from the designated parties.
• If a medical exam is part of the verification, it must be scheduled within 30 calendar days after receiving the necessary paperwork.

When considering the aftermath of a collision, knowing whether New York is a no-fault state becomes essential. In Nassau County, this knowledge shapes how individuals file insurance claims, seek medical care, and explore compensation options after a car accident.

Damages You Can Recover under New York’s No-fault System

ICS §5102 says that you could be entitled to both economic and non-economic damages in the event of an accident.

Economic damages, which include your financial losses, can include:

• Medical bills: Including the cost of hospitalization, medications, physical evaluations, and lab tests
• Lost wages: From the time you could not work due to your injuries
• Loss of future earning capacity: If your injuries will prevent you from making money in the future
• Property damage costs: If you were injured in a motor vehicle accident

Additionally, you can recoup the cost of your non-economic damages, which can include:

• Pain and suffering: Which pays for the cost of your physical and emotional hardships
• Loss of consortium: If your accident affected your relationship with your spouse
• Disability: If your injuries will prevent you from working full-time or living independently
• Scarring and disfigurement: If your injuries will alter the way you look

Depending on the nature and cause of your accident, you could recover other losses.

The Statute of Limitations in Your Case

Per CVP §214, you generally have three years from the date of your accident to file a lawsuit. Very few exceptions toll this deadline. You could have even less time to file your claim, depending on the facts of your case.

The New York State Department of Financial Service says that you generally have 30 to 90 days to file your claim, although this timeline may differ based on your insurance coverage details.

Uncovered No-Fault Accident Expenses

Even with Personal Injury Protection (PIP), some costs remain outside New York’s no-fault system. According to the New York State Department of Financial Services, basic No-Fault pays promptly, regardless of fault, for medical and health expenses, 80% of lost earnings up to $2,000 per month for three years, and up to $25 per day for other necessary expenses for one year, with a $50,000 per-person cap. Coverage extends to drivers, passengers, and pedestrians injured by a vehicle’s operation in New York. However, PIP does not cover property damage or pain and suffering, unless the injury qualifies as serious under Insurance Law §5102(d). Victims may recover uncovered losses through health insurance, uninsured motorist protection, or a personal injury lawsuit.

Contact a Car Accident Lawyer for a Free Consultation

If you or a loved one was hurt in an accident, we can guide you through the process of recovering compensation for your losses. At the Law Office of Cohen & Jaffe, LLP we can review New York’s no-fault insurance laws and determine how they apply to your case.

We also work on a contingency-fee-basis, meaning we finance the legal proceedings until your case is successfully resolved. You do not pay our attorney’s fees if we do not win your case. To begin schedule a free case review.

Call a car accident lawyer near you:

• Car accident lawyer in Long Island
• Car accident lawyer in Nassau County 
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