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If you have been injured in a car accident in New York, you will likely hear the term “no fault insurance” almost immediately. Unfortunately, many accident victims do not fully understand what no fault insurance actually covers, what it does not, or how quickly mistakes can jeopardize their benefits.
Understanding New York no fault insurance is critical to protecting your health, your income, and your ability to pursue additional compensation after a crash.
Below is a clear, practical guide from experienced New York car accident lawyers explaining how no fault works, common pitfalls to avoid, and when no fault benefits are not enough.
What Is No Fault Insurance in New York
New York is a no fault insurance state. This means that after most motor vehicle accidents, your own insurance company pays certain benefits regardless of who caused the crash.
The goal of the no fault system is to ensure injured drivers and passengers receive medical care and partial wage replacement quickly, without waiting for a lawsuit to be resolved.
For an overview of how New York handles accident claims, you can also review guidance from the New York State Department of Motor Vehicles.
However, no fault insurance is limited and highly procedural. Missing deadlines or failing to document injuries properly can result in denied benefits.
What New York No Fault Insurance Covers
No fault insurance typically covers basic economic losses related to an accident, as regulated by the New York State Department of Financial Services.
Medical Expenses
No fault pays for reasonable and necessary medical treatment related to the accident, including:
- Emergency room visits
- Hospital stays
- Doctor appointments
- Diagnostic testing
- Physical therapy
- Chiropractic care
- Certain prescription medications
Lost Wages
If your injuries prevent you from working, no fault may reimburse:
- A portion of lost income
- Up to statutory limits
- Subject to medical proof and employer verification
Transportation and Out of Pocket Costs
No fault may also cover:
- Transportation to and from medical appointments
- Certain medical supplies
- Other documented accident related expenses
These benefits are paid directly by your insurer, not the at fault driver’s insurance company.
What No Fault Insurance Does Not Cover
This is where many accident victims are surprised.
Pain and Suffering
No fault does not compensate for pain and suffering, emotional distress, or loss of enjoyment of life.
Full Lost Income
Wage reimbursement is capped and often does not replace your full earnings.
Long Term or Catastrophic Losses
Severe injuries often exceed no fault limits quickly, leaving victims undercompensated unless additional claims are pursued.
The Serious Injury Threshold in New York
To seek compensation beyond no fault benefits, New York law requires that your injuries meet the serious injury threshold defined under New York Insurance Law Section 5102.
Qualifying injuries may include:
- Fractures
- Significant disfigurement
- Permanent loss or limitation of a body function
- Significant limitation of use of a body system
- Injuries that prevent normal activities for at least ninety days
If this threshold is met, you may pursue a claim against the at fault driver for pain and suffering and additional damages.
Common No Fault Insurance Mistakes
Many valid no fault claims are denied due to avoidable errors.
- Missing Deadlines
- Delaying Medical Treatment
- Incomplete Medical Documentation
- Giving Recorded Statements
These mistakes can impact both your no-fault benefits and any future personal injury case.
When No Fault Insurance Is Not Enough
No fault insurance is often only the first step.
You should speak with a car accident attorney if:
- Your injuries are serious or long lasting
- You are unable to work for an extended period
- Your medical bills exceed no fault limits
- The insurance company is delaying or denying benefits
- The other driver was uninsured or underinsured
How a New York Car Accident Lawyer Can Help
An experienced lawyer can:
- File and manage all no fault paperwork
- Coordinate medical documentation
- Identify whether you meet the serious injury threshold
- Pursue claims against negligent drivers
- Maximize total compensation while protecting your benefits
If you were injured in a car accident and have questions about no fault insurance, we are here to help.
We Care. We Fight. You Win.
Call: (516) 741 4170 or contact our car accident attorneys for a free consultation.
