New York no-fault insurance was designed to minimize legal issues in a highly populated area with many cars on the road. Auto insurance regulations in NY sought to simplify the process with New York car accident law, however, no-fault insurance often leads to even greater confusion for accident victims.
Not all drivers realize that no-fault insurance means they must go through their own insurance company. Even fewer drivers know that no-fault insurance policies allow you to seek compensation from an at-fault driver in certain circumstances.
Auto accidents in New York may leave victims with injuries and countless questions on what to do for a no-fault claim. Mazzu Law is a law firm that provides comprehensive personal injury services for injured victims. In this blog post, we explain New York no-fault insurance and help you understand your options after a car accident.
Understanding New York Law and No-Fault Insurance
No-fault insurance is a type of insurance coverage that attempts to minimize the finger-pointing and blaming that tends to happen after auto accidents. Many drivers are confused about the meaning of no-fault coverage as they mistake it for meaning that they are not at fault.
Put simply, no-fault coverage means that each driver will go through their own insurance company to recover compensation for medical expenses, lost wages, and other losses.
After a car accident, you will start the claims process with your own insurance company because you have no-fault insurance. However, New York law also uses a pure comparative negligence rule, and this could cause you to be partially blamed for your own serious injury.
When you are blamed in a no-fault state, it reduces the amount of compensation you can receive. Since your medical bills and lost wages are likely already piling up, it is in your best interest to speak with an experienced car accident lawyer to find out more about your legal options.
Minimum Coverage Required by the Insurance Company
Like any other state, New York has specifications for the legal minimum requirement of satisfying your insurance coverage. Here is a look at what all New York drivers must have in place before getting behind the wheel:
Personal Injury Protection (PIP)
Personal injury protection, also known as PIP or no-fault insurance cover, is the type of no-fault insurance you are expected to carry as a driver in this state.
This no-fault insurance will cover you in an accident, no matter who was at fault, and provide compensation for medical expenses, lost wages, and other expenses related to your injuries. It covers you and your passengers with one exception – you cannot file a no-fault insurance claim if you were driving drunk.
With New York no-fault insurance coverage, you will be covered for accident-related medical bills and rehabilitative costs. Additionally, 80% of lost earnings will also be covered with payments of up to $2,000 per month for up to three years after your motor vehicle accident.
When you make a no-fault claim for your car accident through your own insurance company, you may also receive up to $25 a day for up to a year for your accident-related expenses. No fault benefits additionally include a limit of $50,000 per person for injuries sustained and $2,000 for death benefit if someone in your vehicle dies as a result of serious injury in this car accident.
Liability Coverage
Liability insurance is also required in New York if the other driver attempts to file a third-party claim. Keep in mind that for this personal injury coverage to be filed for a third-party claim, the other driver’s car accident injuries must be considered a serious injury, extensive personal property damages have occurred, or it has resulted in the death of one of their loved ones.
The minimum coverage you must have in place is $25,000 per person and $50,000 per car accident for bodily injury along with property damage liability of $10,000. Wrongful death liability must be covered with at least $50,000 per person and $100,000 per accident.
What Is the Difference Between a Fault and No-Fault Insurance State?
In a no-fault state such as New York, it is important to understand the difference between states that follow an at-fault model. How does no-fault insurance work? It is quite simple, as it allows both parties to recover reimbursement for their personal injury claims.
In at-fault states, the insurance company will typically determine who caused the accident. The driver responsible will be held liable for paying the damages. This is typically covered by their insurer, though the driver may wind up as a defendant in a personal injury lawsuit if their coverage is too low to pay for lost wages, medical appointments, auto body repair, prescription drugs, and other losses.
It is also important to note that whether you are in a no-fault state like New York or one of the other states that follow an at-fault model, a hit-and-run accident will require you to use your own insurance. No-fault benefits will cover you up to the maximum of your coverage, though if you are hit by an uninsured or underinsured driver or the at-fault party flees the accident scene, you may need to dip into your standard health insurance to get the medical treatment you need.
How Do I File a No-Fault Insurance Claim in New York?
To use your no-fault benefits in New York, you must follow proper procedures for filing personal injury claims so that the insurance company pays you accordingly. You may be denied receiving no-fault benefits if you make any errors in this process, which is why you should consult a personal injury lawyer to protect your legal rights.
This process requires that you submit the no-fault application and file it within 30 days of your accident. It is also necessary to notify the New York State Motor Vehicle Accident Indemnification Corporation. There are very few circumstances where you would be granted an extension on the time limit, making it imperative for victims to quickly file the necessary paperwork.
You can consult with a car accident lawyer if you were in the hospital and missed deadlines as it may be considered reasonable justification. Ultimately, it is best to take the steps required as soon as possible to avoid complications.
Can You File a Personal Injury Lawsuit in a No-Fault State?
The whole reason no-fault insurance was established was to protect drivers from lawsuits after a car accident. Still, if the driver that caused the accident was in an uninsured vehicle, caused you to incur bills from your medical providers that exceeded the PIP coverage in your insurance policy, or left you with catastrophic injuries, you can seek compensation through a lawsuit.
New York defines the types of serious injuries needed to move from the no-fault to a fault-based system as dismemberment, major disfigurement, loss of a fetus, permanent loss of function such as neurological disorders or blindness, permanent loss of a body part, impairment that makes it impossible for you to perform daily tasks for at least 90 to 180 days following the accident, or death.
You should fully understand what this entails, which is why it is best to speak with a lawyer first. Taking this step will mean that you will no longer deal with an insurance agent regarding this situation.
What Should I Do After My Accident?
Everything may seem confusing right after you have been in an accident, which is why you should know what you need to do.
Call the Police
Reporting your accident allows you to get the help you need from law enforcement as well as first responders. It also helps protect your legal rights since a police report will be filed, and if the other driver was issued a citation for their driving, it could help you as a form of evidence.
Get Medical Care
Many drivers are so shaken up after a crash that they do not fully realize they are hurt. If you are not bleeding, you may mistakenly assume that you are fine. It is best to get treated immediately to catch any hidden injuries and create medical records that document your treatments. It will help tremendously when making lost wage claims and can also be linked to your non-economic damages, helping you to get the full worth of your claim.
Gather Evidence
You should try to take photos and videos only if you are physically capable of this task after your accident. Talking to witnesses and getting their contact information can also be helpful. However, your first priority must be taking care of yourself. If you can not get the evidence on the scene, the next step is the most important one you should take to protect your legal rights after an auto accident.
Hire a Lawyer Who Represents Car Accident Victims
Most people do not know the state laws and their rights. Insurers know this and take advantage, allowing them to give you less for your economic and non-economic damages. When you hire an attorney, you have an advocate who can step in and make sure you are being compensated fairly for your injuries and other losses.
You should be focused on getting better and following your doctor’s orders for your recovery. You will find that to be much easier to do when you have someone looking out for your best interests. Contact Mazzu Law, PLLC to get a lawyer on your side.