What is No-Fault Insurance and What Role Does it Play in a Car Accident Case?

Depending on where a car accident occurs across the United States, an accident victims’ medical bills, lost earnings and reasonable related expenses will be handled in different ways. In New York State, our system of first-party benefits is called No-Fault Insurance or Personal Injury Protection (PIP).

This No-Fault system requires all automobile insurance policies issued by insurers in New York State to provide a minimum of $50,000.00 per person in benefits to cover an accident victim’s basic economic loss.

Basic Economic Loss includes the following:

(1) All necessary doctor and hospital bills and other health service expenses, payable in accordance with fee schedules established or adopted by the New York State Department of Financial Services;

(2) 80% of Lost Earnings up to a maximum monthly payment of $2,000.00 for up to three years following the date of the accident;

(3) Up to $25.00 per day for period of one year from the date of the accident for other reasonable and necessary expenses the injured person may have incurred because of an injury resulting from the accident, such as the cost of hiring a housekeeper or necessary transportation expenses to and from a health service provider; and

(4) A $2,000.00 death benefit, payable to the Estate of a covered person, in addition to the $50,000.00 coverage for economic loss described above.

** These amounts may be higher depending upon your specific insurance policy.

In order to successfully obtain no-fault insurance benefits in New York State, you must be a covered person, which “means any pedestrian (walker/bicyclist) injured through the use or operation of, or any owner, operator or occupant of, a motor vehicle which has in effect the financial security required by...the vehicle and traffic law...”.2

Lastly, one cannot obtain New York No-Fault Insurance benefits without submitting the Application for Motor Vehicle No-Fault Benefits Form, commonly known as a Nf2 within thirty (30) days.

Here at Hassin Law Group, we assist every personal injury client we represent in the filing of the required no-fault insurance forms in a timely fashion as well as the securing of all available no-fault benefits at NO COST. Call our office today for a free consultation.

Sources: New York State Insurance Law § 5102.