Short answer: New York no-fault coverage, or personal injury protection, pays up to $50,000 per person in basic economic loss after a car accident, regardless of fault. It covers medical bills, most lost wages and some other expenses. You generally must notify the insurer in writing within 30 days. Pain-and-suffering lawsuits are limited to serious injuries.
What basic economic loss includes
According to the New York Department of Financial Services (DFS) and the no-fault law (Insurance Law §5102), basic economic loss covers up to $50,000 per person for:
- Necessary medical and rehabilitation expenses, paid under fee schedules
- Lost earnings: 80% of lost earnings, up to $2,000 a month, for up to three years, subject to offsets
- Other reasonable and necessary expenses: up to $25 a day for up to one year
- A death benefit, as provided by law
Some policies include optional basic economic loss (OBEL) of an additional $25,000, which you can direct toward specific benefits.
Who pays your no-fault claim
According to DFS:
- If the accident happened in New York, you generally file with the insurer of the vehicle you were in, or, if you were a pedestrian, the insurer of the vehicle that hit you.
- If you were injured outside New York in someone else's vehicle, file with your own insurer.
- Bus passengers generally claim under their own or a household member's auto policy, and if no one in the household has auto insurance, the bus's insurer.
The Motor Vehicle Accident Indemnification Corporation (MVAIC) may help in some uninsured situations.
Deadlines
- Written notice of claim: as soon as reasonably practicable, and no later than 30 calendar days after the accident, unless you can show clear and reasonable justification for late filing. A completed NF-2 application can serve as notice.
- Medical bills: generally within 45 days of treatment.
- Lost wage claims: generally within 90 days.
Missing deadlines can lead to denial, so act quickly.
Health care providers and fee schedules
No-fault pays medical bills according to prescribed fee schedules, which providers must accept as full payment. Tell providers your treatment is for an auto accident.
When you can sue
No-fault limits lawsuits for pain and suffering. You can sue the at-fault driver for non-economic damages only if you have a serious injury as defined by law, such as death, dismemberment, significant disfigurement, fracture, or certain significant or permanent limitations. You can also sue for economic losses above no-fault benefits.
Property damage isn't no-fault
No-fault covers injuries, not vehicle damage. Vehicle damage claims go against the at-fault driver's property damage liability, or your own collision coverage. See what car insurance do I need.
Required coverage in New York
New York requires no-fault coverage along with liability and uninsured motorist coverage. See New York minimum car insurance requirements.
Disputes
If an insurer denies or delays benefits, you may request arbitration through the no-fault arbitration process or go to court. DFS provides consumer help.
Common scenarios
You're a passenger in a friend's car that's rear-ended in Queens. File with the insurer of your friend's car.
You're hit as a pedestrian in Manhattan. File with the insurer of the vehicle that struck you.
You miss work for two months. No-fault may pay 80% of lost earnings, up to $2,000 a month, subject to offsets.
Your medical bills exceed $50,000. Health insurance, OBEL or a claim against the at-fault driver may apply for excess economic loss.
Key terms
- No-fault / PIP: first-party coverage that pays injury losses regardless of fault.
- Basic economic loss: the $50,000 per-person benefit package.
- OBEL: optional additional economic loss coverage.
- NF-2: the application for no-fault benefits.
- Serious injury threshold: the standard you must meet to sue for pain and suffering.
Bottom line
New York no-fault is designed to pay injury costs quickly, but the deadlines are strict. After any accident, notify the right insurer in writing right away, tell providers it's an auto injury, and keep copies of every form. Consider OBEL and higher liability limits for more protection.
Contact Alishahi Insurance or call (877) 711-4545. See insurance in New York.
Frequently asked questions
How much does New York no-fault pay?
Up to $50,000 per person in basic economic loss, including medical expenses, most lost wages and other necessary expenses.
What's the deadline to file a New York no-fault claim?
Written notice is generally due within 30 calendar days of the accident, unless you can justify late filing.
Which insurer pays my no-fault claim?
Generally the insurer of the vehicle you were in, or the vehicle that hit you if you were a pedestrian.
Can I sue after a car accident in New York?
You can sue for pain and suffering only if you meet the serious injury threshold, and for economic losses above no-fault benefits.
Does no-fault cover car damage?
No. Vehicle damage is handled through property damage liability or collision coverage.
Alishahi Insurance · 439 N Canon Dr, Penthouse, Beverly Hills, CA 90210 · (877) 711-4545 · CA License #4348151. General information only. This isn't legal, tax or financial advice or a coverage determination. Coverage depends on policy language and underwriting, and rules vary by state.