Did You Know: No-Fault Insurance in New York

If you are involved in a motor vehicle crash in New York – whether as a driver or passenger of a motor vehicle in a rear-end collision, as a pedestrian who is struck by a motor vehicle while lawfully crossing the street within a crosswalk, or as a cyclist struck by a motor vehicle while lawfully riding a bike in a bike lane – you may be entitled to No-Fault Insurance.

What is No-Fault Insurance?

In New York, No-Fault insurance (also referred to as Personal Injury Protection, or PIP) is a type of coverage which covers the medical expenses, lost wages, out-of-pocket expenses, and potentially other expenses of a person who is involved in a motor vehicle crash, regardless of who was at fault for the crash.

No-Fault insurance covers "basic economic loss," which includes up to $50,000 in certain types of financial losses resulting from a motor vehicle crash. This includes reasonable and necessary rehabilitation and medical expenses, as well as 80% of lost income (up to $2,000 per month) for up to three (3) years after the crash. Additionally, No-Fault insurance provides up to $25 per day for other reasonable and necessary expenses within the year following the crash, such as transportation costs. However, it does not cover non-economic damages, such as pain and suffering, emotional distress, and loss of enjoyment of life.

Who is Eligible for No-Fault Insurance in New York?

To qualify for No-Fault insurance in New York, the crash must take place within New York State, and the injured person must be either a driver or passenger of an insured motor vehicle, a pedestrian, or a bicyclist hit by an insured vehicle. The insured vehicle, in turn, must also be registered in the state of New York.

By way of example, if you are a New York City resident who does not own a motor vehicle and who, while riding your bike on a side street in midtown, gets hit by a cab driver opening their drivers-side door, causing you to suffer injuries as a result, you would be entitled to No-Fault Insurance through the insurance carrier of the cab driver.

Note that motorcycles are not covered by No-Fault Insurance. Further, an e-bike may be covered under No-Fault, depending (at least in part) on the top speed of the e-bike.

What is Required in order to be Covered by No-Fault Insurance?

In New York, victims of a motor vehicle crash who may be entitled to No-Fault insurance must complete and submit a No-Fault Application within thirty (30) days of the crash. A blank No-Fault Application form is accessible here. If you were involved in a motor vehicle crash as either a driver or passenger of a motor vehicle, as a pedestrian, or as a bicyclist, you would submit this No-Fault application either with the insurance of the driver that hit you (e.g. if you were a pedestrian or on a bicycle) or with your own motor vehicle insurance (e.g. if you owned a vehicle and were the operator of the vehicle at the time of the crash). Failing to meet the thirty (30)-day deadline can result in the denial of benefits, leaving you responsible for your medical bills and other expenses as well. It is crucial to act quickly and ensure this form is completed, signed, and submitted within this time frame to secure the benefits you are entitled to under No-Fault insurance. In addition, the insurance company that provides you with No-Fault may request that you appear for medical examinations to determine whether you still require medical treatment. For example, if you suffered a fractured knee as a result of the car door striking you, the insurance company may have an orthopedist examine you to determine whether you still need physical Failure to appear for a No-Fault medical examination may lead to a cessation of your No- therapy. Fault benefits.

Am I Prohibited from Filing a Lawsuit in New York State if I File For No-Fault?

The short answer is No. Filing a No-Fault application to receive No-Fault benefits does not preclude you from filing a lawsuit against the driver of the motor vehicle that crashed into you and caused your injuries and damages. However, in order to recover for pain and suffering in a lawsuit as a result of bodily injuries you suffered in a motor vehicle crash, the plaintiff – i.e., the victim who filed the lawsuit – must demonstrate that he or she suffered a serious injury within the meaning of Insurance Law §5102(d).1

Helpful Links

New York State Insurance Department Regulation No. 68 (11 NYCRR 65), “Regulations Implementing the Comprehensive Motor Vehicle Insurance Reparations Act”, as initially promulgated, is accessible here.

The New York State Department of Financial Services’ “Consumer FAQs About No-Fault Insurance” is accessible here.

The New York State Department of Financial Services’ “Minimum Auto Insurance Requirements” page is accessible here.

If you or someone you know was involved in a motor vehicle crash and was injured as a result, contact Farber Balsam Papain Ferrari LLP today to get the support you deserve and successfully navigate your personal injury claims.

Visit our website at www.newyorktrial.com or call us at (212) 972-7040.

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1 Insurance Law §5102(d): “Serious injury” means a personal injury which results in death; dismemberment; significant disfigurement; a fracture; loss of a fetus; permanent loss of use of a body organ, member, function or system; permanent consequential limitation of use of a body organ or member; significant limitation of use of a body function or system; or a medically determined injury or impairment of a non-permanent nature which prevents the injured person from performing substantially all of the material acts which constitute such person’s usual and customary daily activities for not less than ninety days during the one hundred eighty days immediately following the occurrence of the injury or impairment.