Understanding New York’s No-Fault Insurance System

This article will explain how New York’s no-fault insurance system works and what it means for accident victims. It will clarify what expenses are covered and when you can step outside the no-fault system to pursue further compensation.

1. What Is No-Fault Insurance? New York’s no-fault insurance system requires that your insurance company cover medical expenses and lost wages regardless of who was at fault for the accident. This system is designed to ensure quick compensation for accident victims.

2. What Does No-Fault Cover? No-fault insurance typically covers medical bills, rehabilitation costs, lost earnings up to a certain limit, and other necessary expenses like transportation to medical appointments. It does not cover pain and suffering or property damage.

3. When Can You Sue Outside the No-Fault System? If you sustain a "serious injury" as defined by New York law—such as a fracture, significant disfigurement, or an injury leading to disability—you may step outside the no-fault system and file a lawsuit against the at-fault driver for additional compensation, including for pain and suffering.

4. Filing a No-Fault Claim: There is a strict deadline to file a no-fault claim, typically within 30 days of the accident. Missing this deadline could result in a denial of benefits, so it’s crucial to act quickly.

5. The Role of a Lawyer: Navigating the no-fault system and determining whether you have a case to step outside it can be complicated. A personal injury lawyer can help you understand your rights and ensure you receive the compensation you deserve.