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Is New York a No-Fault State for Car Accidents, and What Does That Mean?

Is New York a No-Fault State for Car Accidents, and What Does That Mean?

A fender-bender on Sunrise Highway or a rear-end on the LIE can turn your week upside down. The last thing you need is a fight over who pays your first medical bill. New York’s no-fault system is meant to prevent that. After most crashes, your own auto insurance steps in to cover your reasonable medical care and certain economic losses right away—regardless of who caused the accident. That’s the core idea behind “no-fault.”

The Short Answer

Yes, New York is a no-fault state. Every registered vehicle must carry Personal Injury Protection (PIP) insurance. Basic PIP typically provides up to $50,000 per person for combined medical expenses and other covered economic losses after a crash. It also pays a portion of lost wages and certain out-of-pocket costs, like rehabilitation, so you can focus on getting better instead of waiting for a lengthy liability investigation.

What No-Fault (PIP) Actually Covers

PIP benefits are designed to move quickly. They usually include:

  • Medical care that is reasonable and necessary to treat crash-related injuries, up to policy limits.
  • Wage reimbursement of 80% of your earnings, capped per month, for up to three years if crash injuries keep you out of work.
  • Limited daily reimbursement for essential expenses—things like transportation to medical appointments or help with household tasks during recovery.

You can also choose to carry extra protection. Optional Basic Economic Loss (OBEL) adds an additional layer of coverage, and Additional PIP (APIP) can increase benefits beyond the basic $50,000. These add-ons can be invaluable when injuries are more serious or treatment lasts longer than expected.

Who Files the Claim and Who Is Covered

Generally, you file your no-fault claim with the insurer for the car you occupied at the time of the crash. Passengers use the policy covering the vehicle they were riding in. Pedestrians struck by a vehicle typically file with the insurer of the car that hit them. Special rules can apply for rideshares, commercial vehicles, and out-of-state policies, so it’s wise to confirm the right insurer before you send in forms.

Motorcycle riders and passengers are a major exception: they are not covered by New York no-fault benefits. If you were on a motorcycle, you may pursue the at-fault driver without first going through PIP, but you won’t receive PIP wage or medical benefits.

What No-Fault Does Not Cover

No-fault pays economic losses only. It does not pay for pain and suffering or other non-economic damages. It also does not pay for vehicle repairs or rental cars. Property damage is handled under the at-fault driver’s property damage liability coverage or your own collision coverage, depending on your policy and the circumstances.

The 30-Day Rule and the Forms You’ll See

Timing matters. To open a no-fault claim, you must give written notice—most commonly by submitting the NF-2 “Application for No-Fault Benefits”—within 30 days of the crash. Miss that window without a strong, well-documented reason and you risk a denial. Your medical providers will submit their own bills on special forms, and the insurer may request independent medical examinations (IMEs) or additional documentation. Keep copies of everything, and don’t skip scheduled appointments or insurer requests without talking to a lawyer.

When You Can Step Outside No-Fault

New York restricts lawsuits between people covered by PIP to prevent small disputes from clogging the courts. However, there are two important pathways beyond no-fault:

  1. Economic loss above the basic limit: If your medical expenses and lost wages exceed available PIP (including any OBEL/APIP you purchased), you can pursue the at-fault driver for the excess.
  2. Non-economic damages for a “serious injury”: To seek pain and suffering and similar damages, your injuries must meet New York’s “serious injury” threshold.

The “Serious Injury” Threshold, in Plain English

The law lists specific categories that count as serious injuries. Some are straightforward—like fractures, significant disfigurement, or loss of a fetus. Others require medical proof, such as a permanent consequential limitation or significant limitation of a body function or system. There’s also a time-based category: if a medically determined injury keeps you from performing your usual daily activities for at least 90 of the first 180 days after the crash, you may qualify. Meeting any one of these categories allows you to bring a claim for non-economic damages against the at-fault driver.

Common Scenarios We See

  • Your bills are piling up fast. If treatment costs run past $50,000 and you don’t have OBEL/APIP, you may need to pursue the at-fault driver for the additional medical expenses and lost wages.
  • You’re missing more work than expected. Wage benefits under PIP are capped. If your paychecks are significantly higher than the cap or your time out of work is lengthy, an excess economic loss claim may be necessary.
  • You’re sent to an IME and benefits get cut off. Insurers can stop paying if their examiner says further treatment isn’t necessary. That decision can be challenged, but the process benefits from prompt legal guidance.
  • You’re a pedestrian who was hit. Your initial claim will go through the car’s insurer, not your own health insurance, in most cases. If there are coverage complications—like a hit-and-run—there may be backup options.
  • You were on a motorcycle. You won’t have no-fault benefits, so documenting liability and damages promptly is vital to protect your claim.

How Palermo Law Helps

No-fault is supposed to be simple, but anyone who has navigated the forms, deadlines, and medical exam requests knows it can get complicated quickly. Our team has handled Long Island car accident cases for more than three decades. We help clients:

  • File the NF-2 and supporting documents correctly and on time.
  • Coordinate with medical providers to keep treatment authorized and bills flowing to the right place.
  • Evaluate whether OBEL/APIP is available and how to best use remaining benefits.
  • Challenge improper denials or premature IME cutoffs.
  • Assess whether your injuries meet the serious injury threshold and, when appropriate, pursue a claim against the at-fault driver for full compensation, including pain and suffering and economic losses beyond PIP.

Bottom Line

New York’s no-fault system gets essential medical care and wage benefits started without waiting to prove fault. But it has limits. If your injuries are significant, if your costs exceed PIP, or if an insurer is pushing back on needed treatment, you still have options. Careful documentation, on-time filings, and a clear strategy make a big difference.

If you were hurt in a Long Island car accident, contact Palermo Law for a free consultation. There are no upfront costs and no fee unless we win. We’ll review your benefits, safeguard your deadlines, and fight for every dollar you’re entitled to—so you can focus on healing.