New York is a no fault state, meaning that all parties involved receive compensation regardless of who was at fault in an accident. However, an injured party may pursue additional damages against those at fault if their injuries prove significant.
This insurance system relies on Personal Injury Protection or PIP coverage to reimburse both you and anyone living with you for economic losses due to accidents.
Personal Injury Protection (PIP)
Personal Injury Protection, or PIP, is an insurance coverage designed to pay medical expenses and certain costs associated with car accidents. It can cover drivers, passengers and pedestrians injured due to vehicle use that the driver caused or is using themselves; PIP also pays for essential services that help people perform basic activities they cannot perform due to injuries; benefits may be subject to maximum amounts per person and time limits may apply as well.
Most no fault states require drivers to carry at least some PIP coverage. This policy helps simplify the insurance process, reduce legal fees and court costs, speed up case resolution timeframes, and avoid placing blame for accidents that were not their responsibility.
if you are involved in an at fault accident in New York, PIP covers medical expenses of up to $50,000 for you and your family, such as necessary x-rays, surgeries and prescription. Furthermore, transportation costs (bus or taxi fare if applicable) to medical appointments will also be reimbursed; plus up to $25 daily reimbursement can be given towards food expenses, household help costs or miscellaneous expenses.
However, you have the option to increase your PIP coverage. Your state requires this so that if your injuries exceed state-regulated thresholds you are able to pursue additional damages against at-fault drivers.
As part of your auto insurance policy, Med Pay may also be beneficial. Although not required in most no fault states, Med Pay provides medical expenses coverage and could even help cover other expenses such as lost wages or household services that might come up due to an accident.
Bodily Injury Liability
As its name implies, bodily injury liability coverage provides coverage for injuries you or your passengers experience in an accident regardless of who was at fault for it. It also covers your legal fees should an accident result in legal action being filed against you; bodily injury limits typically range from $50,000 per person up to $300,000 total per claim up to a total maximum of $500,000.
Each state imposes minimum coverage amounts that you must carry as part of a no-fault car insurance policy, with PIP being one such coverage type. Some insurers combine both types into one policy offering PIP and bodily injury liability together as one package, while some states even permit drivers to opt for traditional fault-based policies instead.
Submitting a claim under this part of your policy requires an assessment by your insurer who will cover medical expenses, lost income due to injuries that prevent you from working, funeral costs or damages for permanent disability or disfigurement – among others – accordingly.
Critics may claim that no-fault systems boast some of the highest auto insurance premiums nationwide, yet this may simply reflect increased collision risks in that region and not because of no-fault itself. Their chief worry with no-fault is that it allows dangerous drivers to evade paying damages they cause without consequences, leading to higher premiums for all drivers involved and ultimately increased rates and risk ratings for everyone.
No-fault car insurance laws can vary widely from state to state and many have passed or repealed them at different points in time. At present, 12 states plus Puerto Rico are considered true no-fault states while most other states either set either a monetary threshold for pain and suffering damages or set qualitative verbal thresholds that define certain injuries as severe enough warranting legal action.
When purchasing no-fault insurance policies, it is advisable that the maximum limit exceeds your net worth so as to protect all your assets should a claim arise that finds you responsible.
Property Damage Liability
New York is a no-fault state, yet all drivers still must carry property damage liability coverage in order to register their vehicles. This covers any damage you cause to other cars or personal property during driving activities.
Under insurance law, your insurer is legally obliged to compensate up to $50,000 for each person injured in an accident caused by you – regardless of who was at fault. No Fault coverage also includes lost wages, medical expenses and funeral costs and is intended to quickly get you and your family back to normal life as quickly as possible.
The no-fault system streamlines your return to work and life after an accident by eliminating the need to prove fault and hastening settlement of claims by car insurance companies. It also gives victims more time and space to focus on healing without worrying about legal proceedings as much.
You have options if your losses exceed what is covered by a no fault policy; such as filing a personal injury suit to recover noneconomic damages as well as pain and suffering damages; however, please keep in mind that no fault claims do not cover emotional distress damages or punitive compensation.
Determining who was at fault in an accident usually requires an investigation by police and/or insurance companies involved, which may impede settlement of your claims and could affect how much compensation is received as a result.
No-fault systems accelerate your return to work while helping your car insurance provider settle claims more quickly. They may also reduce premiums by eliminating jury trials and cutting litigation costs.
Under most no-fault systems, it is mandatory for you to carry personal injury protection (PIP) and property damage liability coverage. Additional limits can be purchased for an affordable premium; stack multiple policies so as to qualify for multiple no-fault benefits.
Medical Payments
If you reside in New York or another no fault state, Personal Injury Protection or PIP covers medical costs and losses related to an accident up to $50,000 per person and covers drivers, passengers and members of their households – as well as potential pedestrian victims caused by your vehicle.
No-fault insurance aims to quickly restore injured parties back to health and productivity while simultaneously reducing disputes over who caused an accident. While no-fault may help, it doesn’t solve all issues of fault; third-party claims against negligent drivers for losses above your PIP limits remain available, and you may bring a lawsuit for non-economic damages like pain and suffering should certain thresholds set by state laws (see below) be met (See “Thresholds” below).
To successfully sue an at-fault driver for personal injuries, you must establish that they were negligent. Proving negligence requires police reports, witness statements and photographs of damage to your car – not only can this take time but the other party may fight your claims too!
Most states offer some form of no-fault car insurance; however, there are a few that do not. If this applies to you, liability coverage must be purchased so as to file a suit against any negligent drivers for injuries or property damages you sustain as a result of an accident.
No-fault auto insurance can help reduce the amount you need to spend after an accident, but it should never replace having full liability coverage in place – we offer assistance with reviewing policies and describing different options available to you if any questions arise about coverage for you or someone in your household. Contact us now by phone or email and get covered today.