What is No Fault Insurance in New York?

Whenever a crime is committed, whether willfully or due to negligence, there is clearly someone who is at fault. There are times however, particularly when it comes to motor vehicle accidents, where determining who contributed what to an accident is difficult to discern.

New York State implemented no fault insurance laws as a way to protect car accident victims. By ensuring that these victims were awarded some sort of cash settlement, the laws governing these payouts, often worth significant amounts of cash, were meant strictly as restitution for their pain and suffering.

What is No Fault Insurance?

No fault insurance was established in the 1970’s in order to protect both victims and offenders involved in auto accidents within New York State. The laws put in place enable victims and defendants to receive appropriate restitution, have their medical bills covered, and in essence, not end up living in poverty as a result of their accident.

The laws governing this coverage require all involved parties to notify their respective insurance companies if and when they have been in an accident. According to the laws that regulate no fault coverage, auto accident victims may sue for monetary compensation provided they meet criteria for the serious injury threshold set forth by New York State law. Meeting this requirement not only allows your NYC personal injury lawyer to gauge what monies you are owed, but informs all involved parties of the severity of damages both you and your vehicle have sustained.

Whose Fault Is It Anyway?

New York State is, overall, more invested in ensuring that medical bills are covered, lost income restored, and ancillary services provided for, rather than laying blame on any one party. No fault insurance in New York State is aimed at encouraging a restoration of functions and quality of life, instead of merely pointing fingers. That is not to say that private lawsuits claiming who was at fault cannot be filed. If they are though, they are not considered legally connected to the no fault claims.

Who is Entitled to No- Fault Coverage in New York State?

Individuals must meet specific conditions in order to access their no- fault coverage in New York State. Though no- fault insurance can be used to support automobile drivers, bicyclists, car passengers, or pedestrians who have been in an accident, the following criteria must be met:

1. The vehicle involved in the accident must have a valid insurance policy that was purchased in New York.
2. If the vehicle is legally issued to a company, the driver must also have valid New York State insurance.
3. The vehicle must be registered in New York.
4. The collision of vehicles and/ or people must have occurred within New York.
5. Lastly, the person injured has to have been a passenger or driver in the no- fault insured car, or be a bicyclist or pedestrian that was struck by the vehicle.

Who is NOT Entitled to No- Fault Coverage in New York State?

Despite the breadth of coverage afforded by no- fault insurance, there are individuals who are not, by law, entitled to it. These include:

1. Vespa drivers and scooter passengers.
2. Those who have out of (New York) state insurance.
3. Drivers under the influence of drugs or alcohol
4. Motorcyclists
5. Uncertain conditions that are unlikely to meet no-fault criteria.

This article does not necessarily reflect the opinions of the editors or management of EconoTimes.