New York is one of several states that follow a no-fault car insurance system. This system is intended to streamline the process of obtaining basic compensation and reduce the number of lawsuits arising from minor accidents. However, it can create challenges when claimants attempt to pursue compensation for their damages.

What Does No-Fault Car Insurance Cover?

This is how no-fault insurance, also known as personal injury protection (PIP), works: After a motor vehicle accident, individuals typically seek compensation for medical bills and certain economic losses from their own insurance company, regardless of who caused the crash.

This insurance generally covers a range of economic losses, like medical expenses, lost earnings up to a certain limit, and reasonable and necessary costs such as transportation to medical appointments. PIP benefits typically extend to the policyholder, passengers in the vehicle, and, in some cases, pedestrians injured by the insured vehicle.

This coverage does not pay for damage to vehicles or compensation for pain and suffering. Vehicle repair claims must be filed separately, often based on fault and under different portions of the auto insurance policy. To seek additional compensation beyond the no-fault limits, a person must meet specific legal thresholds related to the severity of their injuries.

Who Is Eligible for No-Fault Benefits in New York?

No-fault benefits are available to drivers, passengers, bicyclists, and pedestrians who are injured in motor vehicle accidents involving covered vehicles in New York. The injured person must file a no-fault claim within thirty days of the incident. Failure to meet this deadline may lead to a denial of benefits.

Certain individuals are excluded from no-fault coverage. These may include motorcyclists, individuals injured while driving under the influence, or those injured during the commission of a felony. Additionally, out-of-state accidents involving New York-insured vehicles may not qualify for no-fault protection under certain conditions.

What Is the Serious Injury Threshold?

New York law defines a “serious injury” as one that meets specific medical or legal standards. This threshold must be met in order to bring a personal injury lawsuit against the at-fault party for non-economic damages, such as pain and suffering.

Examples of serious injuries under state law include:

  • Significant disfigurement.
  • A fracture.
  • Permanent loss of use of a body organ or member.
  • Injuries that prevent an individual from performing usual daily activities for at least 90 days during the 180 days following the accident.

Meeting this threshold allows an injured person to pursue legal action outside the no-fault system. Determining whether an injury qualifies may require a detailed evaluation of medical records and related documentation.

How Does No-Fault Affect Lawsuits in Brooklyn Car Accidents?

Because the no-fault system limits lawsuits for minor injuries, it can reduce the number of claims that go to court. However, individuals who suffer serious injuries or who experience losses beyond what PIP covers may still have the right to file a lawsuit. This could involve seeking compensation for pain and suffering, future medical treatment, or lost earning potential.

A careful review of the facts, medical records, and insurance policies is necessary in these cases. New York courts will only allow personal injury lawsuits related to car accidents when the statutory serious injury threshold has been met.

Key Takeaways

  • New York is a no-fault insurance state, meaning injured parties typically file claims with their own insurance provider, regardless of who caused the crash.
  • Personal Injury Protection (PIP) covers medical expenses, lost wages, and related costs—but not vehicle damage or pain and suffering.
  • Eligibility for no-fault benefits extends to most drivers, passengers, bicyclists, and pedestrians, but some groups—like motorcyclists or those involved in criminal activity—may be excluded.
  • To sue for non-economic damages, such as pain and suffering, the injured person must meet the state’s serious injury threshold.
  • Even in a no-fault system, those with serious injuries or expenses beyond PIP limits may still have the right to pursue a personal injury lawsuit.

Experienced Brooklyn Car Accident Lawyers at Rubenstein & Rynecki Can Explain Your Legal Options After a Crash

If you have questions about no-fault insurance legal claims, our Brooklyn car accident lawyers at Rubenstein & Rynecki can identify the options based on your situation. To schedule a free consultation, call us at 718-522-1020 or complete our online form. Located in Brooklyn, we serve clients throughout New York City, including Brooklyn, The Bronx, Manhattan, Queens, and Staten Island.