What is No-Fault Insurance in New York, and What Does It Cover?
In the State of New York, those who are injured in motor vehicle accidents are entitled to make a claim to the insurance company of the vehicle they were in for “no-fault” benefits.
This coverage is also known as Personal Injury Protection or “PIP”. Additionally, pedestrians and cyclists injured as the result of being hit by another vehicle are entitled to bring a claim for no-fault benefits against the insurance company for the driver of the vehicle who hit them.
The no-fault insurance company must pay for certain medical expenses and lost wages according to the statute requirements.
Important No-Fault Facts
- The no-fault insurance carrier will pay drivers, passengers, pedestrians and cyclists up to fifty thousand ($50,000) dollars for medical treatment, lost wages and other expenses.
- The application for no-fault insurance benefits needs to be filed with the insurance company within thirty (30) days after the accident.
- No-fault insurance does not cover property damage, such as the damage to a vehicle, nor does it cover pain and suffering.
- A no-fault claim is separate and distinct from your personal injury claim.
- By making a no-fault claim an injured person can still seek compensation for their pain and suffering and other economic damages from the driver that was responsible for causing the accident.
Benefits Provided by the No-Fault Carrier:
- The no-fault insurance carrier will pay for all of your accident related medical treatment, including hospital, doctor, diagnostic testing, therapy, rehabilitation and other healthcare costs up to statutory limits.
- If you are unable to work as a result of the accident the no-fault insurance carrier will reimburse you for lost wages if you are unable to work because of injuries sustained in the accident. Your Lost Wages are to be paid as follows: If you are entitled to short term disability coverage from your employer, your employer’s short-term disability insurance carrier will pay you after the first week at a rate of ½ your gross salary to a maximum of $175.00 per week for 26 weeks. Thereafter, the no-fault insurance carrier will pay 80% of your salary up to Two Thousand ($2,000.00) Dollars per month with a set-off for what you are entitled to receive from the short-term disability carrier.
- No-Fault insurance coverage entitles you to receive reimbursement of your transportation expenses to and from medical providers with a maximum of $25.00 per day for a period of one year from the date of the accident. If you are driving yourself to medical providers, the no-fault carrier will reimburse you based upon the amount of miles you travel.
- If you are unable to perform your usual household duties and hire someone to help you the no-fault insurance carrier will reimburse you a maximum of $25.00 per day for a period of one year from the date of the accident.
Securing Compensation from No-Fault Insurance
Handling a no-fault claim is difficult and complex. The no-fault insurance carrier often takes an adversarial position when it comes to paying medical bills and lost wages. There are many deadlines that have to be observed and forms that are required to be completed. Failing to comply with one element may destroy your rights to collect benefits.
Having a law firm that routinely handles these matters is essential if you want to have all your medical bills paid and your lost wages reimbursed.
We have been assisting motor vehicle accident victims with their no-fault claims since 1974 the year that the no-fault law was first enacted in New York. To learn more, please call us at (631) 543-8811 to schedule a free, no-obligation appointment.