New York is a no-fault state when it comes to car insurance.
Under this system, insurance companies generally reimburse their policyholders for damages due to injuries regardless of who was at fault or responsible for the accident.
Additionally, New York sets minimum coverage amounts that a registered vehicle owner must purchase to satisfy the financial responsibility requirements to obtain a license plate.
In New York, motor vehicle owners must maintain several types of insurance coverage.
No-Fault (Personal Injury Protection)
No-fault, or PIP, compensates insureds after an accident regardless of fault. No-fault coverage provides payments for economic losses such as medical expenses, lost income, and other reasonable and necessary expenses.
This insurance covers any harm the driver’s car imposes on other people or their property. The coverage extends to any vehicle the driver operates with the owner’s permission.
Uninsured motorist coverage protects against injuries the driver, their family, or passengers might experience in a hit-and-run collision or any accident with an uninsured motorist.
Further, the minimum liability insurance amounts are as follows:
- $25,000/$50,000 for bodily injury per person,
- $50,000/$100,000 for death and
- $10,000 for property damage per accident.
The liability coverage must remain active while the registration is valid, even if the driver does not use the vehicle; however, certain exceptions may apply for motorcycles.
Further, the insurance must be issued by an insurance company licensed by the NY State Department of Financial Services and certified by the NY State DMV. Finally, the liability insurance must be in the name of the vehicle’s registrant.
Limitations of No-Fault Insurance Coverage in New York
In New York, injury victims can only pursue car accident lawsuits for economic and non-economic damages that exceed the state’s no-fault benefits.
Further, no-fault coverage does not pay for the insured’s or other party’s auto body repair costs. Moreover, in most cases, a person will be ineligible for no-fault benefits if they engaged in certain conduct, such as
- Driving while intoxicated,
- Intentionally causing their injuries,
- Riding an all-terrain vehicle, or
- If their injuries occurred while committing a felony.
Those who suffer severe injuries in a New York car accident should consult a personal injury lawyer to discuss how to secure compensation for the full extent of their losses.
No-Fault Insurance and Car Rentals
While car rental agreements can vary among agencies, all companies must provide minimum coverage requirements under New York law.
Generally, those insured under a valid New York auto insurance policy who are renting a car for 30 days or less does not need to purchase Collision Damage Waiver (CDW), also known as “Optional Vehicle Protection” (OVP).
The information provided on this page speaks in general terms. Of course, there are often exceptions that apply in certain situations.
For a complete list of all exceptions, please consult the Consolidated Laws of New York. Attorney Ted Naima is also happy to answer any questions about your injuries or your ability to pursue a claim against the responsible party.
Discuss Your Questions at the Law Offices of Theodore A. Naima
If you have questions about how New York’s no-fault laws apply to an accident you were involved in, the Law Offices of Theodore A. Naima can help.
We can also determine if you might have a claim for financial compensation against the at-fault party.
Ted Naima has more than 25 years of experience working to recover meaningful compensation on behalf of accident victims and their families, and he knows what it takes to get his clients exactly what they deserve for what they’ve been through.
To learn more and to schedule a free consultation, call 516-980-3096 today. You can also reach us through our online contact form.