Under New York’s no-fault insurance law, every motor vehicle must have minimum coverage that will help pay the cost of expenses for the driver and anyone in the vehicle, regardless of who is at fault for the accident. This includes reimbursement for a portion of the insured’s medical costs and other losses. No-fault benefits are for the most part limited unless the insured purchases additional coverage.
What is personal injury protection (PIP)?
No-fault insurance is also called PIP insurance, as there is a minimal amount of PIP coverage required for motorists who live in a no-fault state. PIP is a form of coverage for medical expenses that is purchased as part of an auto insurance policy.
New York is one of 12 no-fault states, and one of six in which PIP insurance is required by law. In New York, PIP insurance also covers economic losses and death benefits. The minimum amount that an insured can purchase is $50,000, and the amount purchased is the maximum to which the insured is entitled to recover.
PIP in New York will cover most medical costs caused by a car accident, as well as:
- hospital expenses
- diagnostic, dental, ambulatory or surgical services
- psychiatric or physical rehabilitative expenses
PIP in New York also covers economic losses of up to $2,000 per month or 80% of the insured’s monthly wages, whichever is less, for up to three years after the accident. Death benefits of up to $2,000 for an eligible insured driver are also part of PIP insurance.
How do I file a claim?
It is important to note that in order to collect no-fault benefits, the injured party must act to file a claim within 30 days of the accident. If a claim is denied, the injured can submit medical bills to their private insurance.
If the other vehicle is uninsured, or if the injury occurred in an uninsured car, the no-fault claim must be filed with the insured’s insurance company. Drivers or their family members who did not have insurance at the time of the accident may still file a claim for no-fault benefits.
It is important to know also that no-fault insurance does not cover compensation for pain and suffering. The injured party can file a separate liability suit for compensation where the other party is at fault. Having skilled personal injury attorneys serving New York City who are knowledgeable in insurance law can make the process much smoother, and also advise you of your options.