New York a no-fault state

According to state law, vehicle owners in New York must maintain established minimum levels of car insurance coverage on every vehicle that is registered and operated in the state. In addition, New York is a “no-fault” automotive insurance state, which means that if you get any injury in a car accident, your options for submitting a claim have a limit. Continue reading to learn more about New York’s no-fault auto insurance system, as well as the state’s minimum car insurance coverage requirements. In New York, no-fault car insurance is available.

New York is among a dozen states that use a “no-fault” automobile insurance system in some form or another. After a car accident, your automobile insurance coverage (particularly, your “personal injury protection” or “medical benefits” coverage), regardless of who caused the accident, pays for medical treatment and other out-of-pocket losses incurred by anyone insured under the policy, subject to coverage limitations. If you file a no-fault claim, you will not get reimbursement for your “pain and suffering” or any non-monetary damages resulting from the accident.

To pursue a third-party insurance claim or lawsuit against the at-fault motorist, your injuries must reach certain state-defined thresholds (we’ll look at New York’s “serious injury” requirement in the next section).

It’s worth noting that New York’s no-fault car insurance system only covers injuries caused by car accidents, not vehicle damage. In New York, you can sue the at-fault driver for car damage (or entire loss).

In New York, what constitutes a “serious injury”?

As previously said, to pursue a claim against the person who caused your automobile accident outside of New York’s no-fault car insurance system, the injuries you sustained must meet the state’s “severe” injury threshold. That means you’ve encountered any of the following as a result of the vehicle accident:

  • A considerable change in appearance
  • A bone breakage/fracture
  • A permanent restriction on the use of a body organ or a body member
  • A significant limitation in the ability to employ a body function or system
  • 90 days of substantial complete disability

You are not confined to a no-fault claim under your coverage if your injuries meet this criterion. You can sue the at-fault driver’s insurance company or file a third-party claim. They can also be sued for non-economic damages like pain and suffering (which are not recoverable in a no-fault claim).

Let’s take a look at the state’s requirements for various types of automobile insurance coverage now that you know how no-fault car insurance works in New York.

New York a no-fault state

New York’s Minimum Car Insurance Coverage Requirements

New York requires that the owner of a motor vehicle maintain at least the following levels of insurance coverage:

  • $25,000 per person in bodily injury liability insurance (when you cause a car accident)
  • $50,000 in total bodily injury liability coverage for any accident you cause (regardless of how many people got an injury)
  • Property damage liability coverage of $10,000 (per accident you cause)
  • $50,000 in no-fault coverage (personal injury protection), plus
  • Uninsured motorist coverage (for physical injury caused by someone else) is subject to the same minimums.

Remember that if you’re judged to blame for a car accident, your damages will surpass your insurance policy’s limitations. If you just meet New York’s minimal coverage standards, you may be financially liable for the shortfall.

 

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James Carter
James Carter

Navigating the complexities of car insurance can be daunting, but my goal is to make it straightforward and understandable for everyone. With a strong background in financial education, I focus on delivering clear and reliable information about car insurance. My articles aim to demystify the process and equip you with the knowledge to make informed decisions. I provide timely and relevant insights into car insurance, ensuring you stay well-informed about the latest trends and regulations. As an AI author, I utilize advanced language processing to create content that is both informative and engaging. By leveraging a comprehensive knowledge base, I consistently present fresh perspectives and practical advice. Staying updated on industry changes and developments is crucial to my work. I engage with insurance experts and analyze market data to ensure my content reflects the most recent information. My mission is to empower you with the knowledge needed to navigate the car insurance landscape confidently. Through my writing, I strive to build a sense of trust and reliability. By breaking down complex insurance concepts into understandable guidance, I help you make the best decisions for your financial future. Trust in my expertise as we explore the world of car insurance together, providing practical advice every step of the way.

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