no-fault benefits: personal injury protection (pip)
No-fault protection, also called personal injury protection (PIP), is designed to pay promptly, regardless of fault or negligence, for financial losses (i.e., health/medical expenses, loss of profits and certain other reasonable and necessary expenses related to the injuries sustained), up to $50,000 per person (“basic no-fault coverage”), for the driver and all passengers injured in your car, as well as any pedestrians injured by your car, due to use or operation in the state of new york.
The purpose of no-fault insurance is to restore the health and productivity of people injured in auto accidents as quickly as possible. Due to New York’s no-fault law, auto accident lawsuits can be brought only for economic losses in excess of no-fault benefits and for non-economic damages (such as pain and suffering) only if a “serious injury” (as defined in insurance law) holds.
No-Fault is personal injury coverage and does not pay for repairs to your auto body or damage to another’s motor vehicle or other personal property. No-fault insurance is also primary to health insurance, meaning it pays first in the event the injury is due to a car accident.
Under this coverage, your insurer provides you and all family members residing in your household with protection against economic loss resulting from injuries sustained in automobile accidents anywhere within the United States, its territories and possessions, or Canada. also provides coverage for any passenger injured in accidents in the state of new york while in your vehicle, as well as any guest passenger who is a resident of the state of new york injured in your vehicle anywhere in the united states, its territories and Possessions, or Canada, if not covered by another auto insurance policy in New York State.
all pedestrians injured by motor vehicles in new york state are also protected at no fault.
Basic no-fault auto insurance coverage includes:
- Reasonable and necessary accident-related medical and rehabilitation expenses (based on established rates);
- 80% of lost earned income, up to a maximum payment of $2,000 per month for up to three years from the date of the accident; subject to new york state disability statutory compensation, worker’s compensation, and federal social security disability benefits.
- up to $25 per day, up to one year from the date of the accident, to reimburse other reasonable and necessary expenses (for example, household help and transportation costs to/from medical treatment) resulting from the auto accident; and
- a death benefit of $2,000 (in addition to the $50,000 basic no-fault limit), payable to the estate of a person eligible for no-fault benefits who is killed in an automobile accident.
However, under most insurance policies, a person will not be eligible for no-fault benefits if:
- Driving while intoxicated or under the influence of the use of a drug that contributed to the accident, except for emergency health-related services performed in a general hospital or by an ambulance worker outside of a general Hospital. however, the no-fault insurer is entitled to recover from the drunk or disabled driver the full amount of no-fault payments made by the automobile insurer for emergency services provided to the driver if the driver is convicted of driving while intoxicated or impaired by the use of alcohol or drugs.
- intentionally causing their own injuries;
- riding an all-terrain vehicle (ATV) or motorcycle as the driver or passenger (a pedestrian struck by a motorcycle or ATV is covered);
- injured while committing a felony;
- injured while in a vehicle known to be stolen; or
- vehicle owner without insurance.
liability insurance-bodily injury & property damage
This liability coverage protects you (and anyone driving your car with your permission), if another person (“third party”) files a claim against you, alleging that you were negligent or at fault. therefore, this coverage will make payments on your behalf to that injured third party, in the event your car is involved in an accident that results in serious injury or death to others or damage to their property.
In addition, your insurance company must provide you with a legal defense against such claims, without reducing the liability limits of your policy.
the minimum limits of third party bodily injury liability coverage required by new york vehicle and traffic laws are:
- $25,000 for bodily injury (not resulting in death), or $50,000 for any injury resulting in death, sustained by any person in any accident;
- $50,000 for bodily injury ( not resulting in death) sustained by two or more persons in any one accident, or $100,000 for any injury resulting in death sustained by two or more persons in any one accident (subject to the per-person limits above).
Because the minimum coverage limit required by law for property damage liability protection for damage to the automobile or the property of another party is $10,000 per accident, these minimum limits of liability in new york are sometimes referred to together as “$25,000/$50,000/$10,000” or “25/50/10”.
However, if your vehicle is used or operated in another Canadian state or province that requires higher liability limits than the above New York mandatory limits or what is purchased, your policy will provide coverage for the limits required by that another jurisdiction.
If you are injured in a car accident or if your car is damaged due to someone else’s negligence, you may be able to make a claim against that other person’s auto insurance policy for bodily injury and property damage liability. the property. must establish that the other party was at fault. You have the right to sue another party involved in the car accident for pain and suffering, only if you suffered a “serious injury” as defined by insurance law. You can also go to court against a third party for property damage and, where bodily injury has occurred, for other economic losses not covered by or in excess of your no-fault coverage.
Suing another party would be your own personal action and does not involve your insurance company under the provisions of your policy. If you decide to sue someone else, your insurer under its own policy is not required to provide or pay for an attorney you may want or need to handle your claim against another party.
Although your auto liability insurance policy provides coverage for all passengers in your vehicle injured in an accident caused by driver negligence, it most likely will not provide any liability coverage when the injured passenger is your spouse, unless you purchase supplemental liability insurance. . however, your spouse would still be eligible for basic no-fault coverage as mentioned above. When shopping for insurance, check with your insurance company, agent, or broker to see if your policy offers bodily injury liability coverage for your spouse.
uninsured motorist coverage
another important feature of your auto insurance policy is bodily injury protection for you, all family members residing in your home, and the occupants of your car, in the event you or they are injured as result of negligent actions by an uninsured person. hit-and-run vehicle or motorist. This mandatory coverage applies only with respect to bodily injury due to accidents occurring in the state of new york, and does not cover damage to the body of your automobile or damage to other property.
for new york accidents, the amount of uninsured motorist protection that must be provided is the same minimum amount of bodily injury that is required for liability insurance. For a small additional charge, this uninsured motorist coverage can be extended to provide coverage for out-of-state accidents by endorsement, so check with your agent, broker or insurer if you want this coverage extension.
If someone in your car is injured by an uninsured driver or a hit-and-run motorist, a claim must be filed with your auto insurance company under this coverage. Similarly, you should file a claim with your auto insurer if you or a family member are injured while occupying an uninsured vehicle without knowing it, or if you are injured as a pedestrian by an uninsured or hit-and-run motorist . If you don’t own a car, but a relative in your household does, you can file a claim under that policy.
if you do not have your own policy and are not covered by a family member’s policy in your household and if you are injured as a pedestrian by an uninsured vehicle or a hit-and-run driver or as an occupant of an uninsured vehicle vehicle in new york state, you may still be eligible for uninsured motorist protection and no-fault coverage. You or your representative must immediately report the accident to the proper authorities and then (because there are strict time limits) file a claim with the Motor Vehicle Accident Compensation Corporation (MVAIC), located at 110 William Street, Floor 19, new york, new york 10038 (tel: 646-205-7800) (fax: 212-732-1826). additional information on the mvaic website.