How Does New York State’s “No-Fault” Insurance System Work

by William Mattar | May 13th, 2022

Close Inspection of Insurance DocumentsTypically, when an motor vehicle  accident happens, the insurance companies of the drivers involved try to figure out who is to blame. It makes sense that someone responsible for an accident should have their insurance company pay for it. But when it comes to medical expenses and lost wages after a New York car accident, that is not always the case.

New York is a “no-fault” state, meaning that the insurance company for the motorist who caused the car accident may not necessarily cover certain damages. No-fault insurance offers a compromise: fast reimbursement for “basic economic losses” in exchange for a limited ability to sue for pain and suffering.

Is No-Fault Insurance Necessary in New York State?

No-fault insurance is compulsory in New York. The rationale for the state’s no-fault system is to save time, money, and other resources following an accident. It is believed that when an injured person is covered by no-fault insurance, he or she can get the money they need to pay for medical care much faster.

“No-Fault” Insurance Misconceptions

Contrary to what some think, when you get into an accident, having no-fault insurance does not mean that no one is to blame. It simply means that when an accident damages your car or injures you, you can turn to the no-fault insurer to receive “basic economic losses” without resorting to the court system.

This is true whether you were at fault for the accident or not, but when someone is responsible for causing a motor vehicle accident, that person can still be responsible for economic losses which exceed “basic economic loss,” as well as pain and suffering.  

Can a No-Fault Claim Have an Impact on My Insurance Premiums?

It is important to ensure that insurance coverage is in place. You pay insurance premiums to have insurance coverage, and those premiums can, unfortunately, increase after any car accident. Insurance companies consider an array of factors when setting premium rates but must uphold their end of the insurance agreement when a claim is eventually made.    

Hurt in a Car? Call William Mattar

No-fault insurance protects injured pedestrians and motorists after a car accident, regardless of fault. In New York, no-fault insurance is mandatory for all drivers and offers a number of benefits, including certain coverage for medical expenses and lost wages, as well as death benefits.

If you are involved in an accident in New York, it is important to understand how no-fault insurance works and what benefits are available to you. You may also be entitled to make a claim for pain and suffering. 

If you were injured in a car accident, you may contact William Mattar, P.C. to speak to an experienced New York car accident attorney at call us at (844) 444-4444. You may also visit one of our offices across New York. We have a team of seasoned attorneys that can advocate for you.