What is the no-fault auto insurance law in NY?
Asked by: Grayce Wiegand | Last update: July 17, 2025Score: 4.9/5 (58 votes)
How does NYS no-fault insurance work?
No-Fault, also called Personal Injury Protection (PIP), is designed to pay promptly, regardless of who is at fault or whether there was any negligence, for economic losses (meaning medical/health expenses, lost earnings, and certain other reasonable and necessary expenses related to injuries sustained), up to $50,000 ...
What are the rules for no-fault billing in NY?
All no-fault bills should be mailed to the appropriate insurance carrier within 45 days of the date that medical services were provided. If a bill is not mailed within those 45 days, a late submission may be excused upon reasonable justification.
Who pays for car damages in a no-fault state?
In no-fault states, each party carries insurance that pays for their own injuries, while the at-fault party typically pays for everyone's property damage.
What is the new law in NY about car insurance?
New Law: Auto Policies To Include Supplemental Spousal Liability Coverage. UPDATE: On March 24, 2023, New York Gov. Kathy Hochul signed into law a bill that made two changes to this law: The effective date is pushed back to August 1, 2023.
Understanding No-Fault Law in New York - The Maurer Law Firm
How does no-fault auto insurance work?
No-fault insurance refers to how injuries are covered by car insurance. In a no-fault insurance state, if you're injured in an auto accident, you would file a claim with your own insurance company to pay for related medical costs. This is regardless of fault.
What is Article 79 of the New York Insurance Law?
Article 79 exempts the business of service contracts from all other provisions of the Insurance Law and establishes a framework by which service contract providers must be registered with, and subject to the jurisdiction of the Superintendent. N.Y.
Does a no-fault accident affect insurance?
In addition, certain states, such as California and Oklahoma, don't allow insurance companies to increase rates after a non-fault claim.
Should I file a claim if I'm not at fault?
Always File a Claim, Regardless of Who Was At-Fault
One of the primary questions we receive from clients who have been in an accident is whether they should report the accident to their own auto insurance carrier, particularly when the accident was not their fault. And the answer to that question is: always.
What happens if I hit my car with my other car?
If you damage your own car, can you claim it on your insurance? If you have collision coverage, you're typically covered for damaging your own car. For instance, if you run into an object or other vehicle (even another of your vehicles), you can claim it on your insurance like any other car accident.
What are the cons of no-fault insurance?
CONS: Fewer legal options: In most states, drivers with no-fault policies are restricted from suing unless the injuries meet a certain severity threshold. Potentially higher premiums: Some say no-fault insurance may lead to higher premiums due to more claims being filed.
What are the first party benefits of the no-fault law in New York State?
Under New York no-fault insurance law, each injured victim of an auto accident is entitled to payment for certain first party benefits. These benefits include all medical expenses up to a limit of $50,000 and lost wage benefits for up to three years.
Does your insurance go up after a claim that is not your fault in NY?
Yes, insurance rates may go up even if the accident is not your fault, depending on the circumstances of the accident, the types of coverage you have, and your claims history. However, the increase may not be as significant as it would for an at-fault accident.
What happens after a no-fault accident?
A no-fault state is one where drivers involved in a car accident are required to file claims with their own insurance companies, regardless of who caused the accident. This system relies on Personal Injury Protection (PIP) coverage, which compensates for medical expenses and lost wages up to a state-determined limit.
What happens if someone sues you for more than your insurance covers?
You may face a lawsuit for the uncovered amount when damages exceed your policy limits. The injured party could attempt to seize your personal assets, which may include: Savings accounts. Wages (via wage garnishment)
How long do you have to file a no-fault claim in NY?
Don't Miss a Deadline after a Car Accident
In general, an accident victim in New York must act within these time limits: File accident report: 10-day deadline. File no-fault claim: 30-day deadline. File for lost wages: multiple deadlines.
Do I call my insurance if I'm not at fault?
Yes. Regardless of fault, it is important to call your insurance company and report any accident that involves injuries or property damage. It is a common myth that you needn't contact your insurance company if you aren't at fault.
Is it better to use your insurance or theirs?
After a car accident, you should notify your insurance company and file a claim, and not deal with the other driver's insurer. Except in rare circumstances, it is not wise to contact them. Your insurance company represents you, and the other driver's insurance company represents them.
When someone hits you, do you call your insurance or theirs?
For example, if your car repair damage is $19,000 and the other driver's insurance covers up to $15,000, you still have to pay $4,000 in repair bills. In this case, your car insurance company may cover the costs resulting from this underinsured driver. This is why you should call your insurance if someone hits you.
Do you get money from no-fault insurance?
So let's start with a basic definition: no-fault insurance, sometimes referred to as personal injury protection insurance (PIP), can help cover you and your passengers' medical expenses and loss of income in the event of a covered accident, regardless of who is found at fault.
How long does a no-fault accident stay on your record?
In California, accidents typically stay on your driving record for a period of three years from the date of the accident. During this time, the accident will be considered a public record and, therefore, accessible by insurance companies, potential employers, and law enforcement agencies.
Will my insurance go up if I get hit by an uninsured driver?
However, under California's proposition 103, insurance companies are not allowed to raise rates or drop a person because they made an uninsured motorist claim.
What is New York Insurance Law 4105?
Domestic stock companies; declaration and payment of dividends. (a) Except as provided in subsection (c) of this section no domestic stock property/casualty insurance company shall declare or distribute any dividend to shareholders except out of earned surplus.
What is Section 312 of the New York insurance law?
Report on examination to be forwarded. (a) The superintendent shall forward to every insurer or other person examined a copy of the report on examination as filed for public inspection, together with any recommendations or statements relating thereto which he may deem proper.
What is NY insurance law 4216?
A policy on which no part of the premium is to be derived from funds contributed by the insured persons specifically for their insurance must insure all eligible persons, excluding any as to whom evidence of individual insurability is not satisfactory to the insurer.