Understanding New York’s No-Fault Laws

New York’s No-Fault Law was enacted in the 1970s as a way to expedite the compensation process. Prior to the No-Fault Law, the litigation process was drawn out as fault was decided in the court of law. Opposing parties would extensively argue their cases, prolonging the process for months on end. New York is currently one of 12 states that have implemented the No-Fault Law. Parties are now offered quick payments for their expenses and restrictions are set on lawsuits that can be filed for pain and suffering.

The No-Fault coverage that you receive when you are injured in a New York car accident comes from the insurance company associated with the vehicle you rode in, drove in, came in contact with, or were hit by. This law requires insurance companies to pay at least $50,000 per accident to the afflicted party for legitimate economic losses regardless of fault. Legitimate economic losses refer to bills you may have accumulated as a direct or indirect result of an accident. Examples of legitimate economic losses are:

  • Prescription drugs
  • Hospital expenses
  • Diagnostic tests
  • MRIs
  • Therapeutic services
  • X-rays
  • Lost wages

It is important you aware that No-Fault is completely separate from a bodily injury claim. Any pedestrian, passenger, cyclist, or driver that is injured in an accident has the right to file a bodily injury claim. This claim covers any injury or pain and suffering experienced in a car accident. The same insurance company that is paying out your No-Fault claim will also be be responsible for paying the judgement or settlement for your bodily injury claim, but keep in mind that these are two separate claims. Each of these claims have their own standards of proof and available compensation.

Who Gets No-Fault Coverage

Passengers, drivers, cyclists, and pedestrian are all entitled to No-Fault coverage. A few conditions that may affect No-Fault coverage are:

  • The vehicle must be a truck, car, taxi, or bus
  • The vehicle cannot be a motorcycle
  • The vehicle must be registered in New York
  • The insurance policy attached to the vehicle must be sold in New York or by a company licensed in New York

Who Doesn’t Get No-Fault Coverage

Motorcyclists, scooter riders, and individuals who were operating a motor vehicle under the influence do not get No-Fault coverage. Any condition listed above are also examples of what may interfere with someone receiving No-Fault coverage.

It is important that all individuals commuting in New York are keen to the specifics of the No-Fault Law. For additional legal assistance, seek the counsel of an experienced New York car accident attorney. Car Accident Cases can get you in contact with a car accident lawyer in your area that can help you seek compensation for your injuries. Contact us for a free consultation today!