No-Fault Insurance NY

No-Fault Insurance NY

According to the United States (U.S.) Census, passenger vehicles registered to residents of the five New York boroughs, including Brooklyn, Manhattan, the Bronx, Staten Island, and Queens, were over 2 million in 2021.

However, this statistic doesn’t account for commercial vehicles like the iconic yellow taxicab and the cars in the other cities and towns that make up New York state.

In other words, you can expect the total number of private and commercial automobiles in the entire state of New York to be significantly higher than you can imagine.

Interestingly, while various factors influence the car accident rate, more cars on the road generally lead to more auto-related mishaps, such as fender benders and head-on collisions.

The downside of experiencing road misfortunes in New York is that navigating the complexities of motor vehicle accidents and insurance claims can be as intricate as its namesake city’s subway map.

This article demystifies the elaborate landscape of auto insurance in the Empire State, from the fundamental principles of “no-fault” insurance to the nuanced regulatory changes that followed Revised Regulation 68 in 2001.

Do you need help traversing New York’s complex car accident legal system? Visit This valuable resource lets you find the most suitable law firms and advisors for your unique insurance claim.

New York Is a “No-Fault” State. What Does No-Fault Mean?

A state with a “no-fault” designation, such as New York, means that you and the other party involved can turn to your respective insurance providers to cover economic losses, such as medical expenses, in a motor vehicle accident.

Now, you may think, “Isn’t this process how insurance claims normally work?” No. Traditionally, you’ll want to seek compensation from the liable driver’s coverage provider.

However, a no-fault state lets you seek compensation from your insurance company via personal injury protection (PIP), regardless of who’s responsible for causing the car crash.

Does this mean you can’t sue the at-fault driver if you live in New York? You can, especially if you want to receive fair compensation for your incurred economic damages.

Auto insurance providers have payout limits. In short, insurance companies won’t pay a dollar over this monetary threshold. If the settlement isn’t enough to cover your financial losses, you may need to pursue legal action against the other party.

It’s also worth mentioning that no-fault insurance doesn’t cover every financial loss you sustained. For instance, you must purchase liability coverage to recover property damage losses from a motor-vehicular mishap.

However, understand that insurance laws and requirements vary significantly from state to state. If you need help understanding your state’s specific insurance claim process, visit

How Does No-fault Insurance Work?

No-fault insurance allows you to recoup the economic damages you or other passengers, such as a family member, sustained in a car accident from your insurance company, no matter who’s at fault.

You can use these benefits to cover car accident-related expenses, such as medical treatment, lost wages, and health insurance deductibles. However, some states require purchasing a PIP policy before you can claim compensation.

As of November 2023, the states that mandate you to carry no-fault coverage include the following:

FloridaMassachusettsNew York
HawaiiMichiganNorth Dakota
KentuckyNew JerseyUtah

Note that some no-fault states don’t require PIP coverage. Instead, they offer no-fault insurance as an optional policy. These “add-on no-fault insurance” states include the following:

DelawareSouth DakotaWashington, D.C.
New HampshireVirginia

Additionally, some U.S. states allow you to choose between traditional no-fault auto policy and typical auto insurance coverage. The states that fall under the “choice no-fault” category include the following:

KentuckyNew JerseyPennsylvania

At-Fault vs. No-Fault States

Unlike no-fault states, “at-fault” states require the party responsible for causing the car accident to pay for the damages incurred by the other driver.

In other words, if you’re the injured party and the other driver was entirely at fault for the road incident, you can file a claim against the liable party’s insurance company, even if you’re not the insurance carrier.

Unfortunately, proving the extent of another party’s fault can be challenging, particularly if you’re foreign with insurance laws and procedures in your state.

Enter, an invaluable resource that can help you find the most suitable personal injury attorney, regardless of whether you live in New York City or another U.S. territory.

Key Regulatory Changes in NY Auto No-Fault Insurance After Revised Regulation 68 in 2001

In 1974, the Department of Insurance implemented New York’s no-fault claim law. This law allowed car accident victims to pursue insurance benefits from their insurance companies without proving liability.

The Revised Regulation 68. When Did This Rule Take Effect?

In August 2001, the Department of State published the revised Regulation 68. This amendment primarily targeted no-fault claim filing timeframes to prevent extended no-fault insurance claims.

The changes included lowering the filing period from 90 to 30 days and submitting medical bills from 180 to 45 days. The revised Regulation 68 also stipulates a 90-day window to claim lost wages from car accident injuries.

Unfortunately, this modification to New York state’s pre-existing no-fault insurance law introduced payout limits. According to the revised Regulation 68, settlements can only be up to $50,000, which must cover medical costs and lost earnings.

No-Fault Insurance Claim vs. Personal Injury Lawsuit in New York: Which One to Choose?

If you’re facing the aftermath of a car accident in the state of New York, you must understand your compensation options. After all, filing an insurance claim isn’t your only choice to receive compensation for your damages.

You can pursue a traditional insurance claim through your coverage provider under no-fault insurance laws. However, you can also opt for a personal injury lawsuit, which lets you seek reparations from the at-fault party and their insurance company.

Who Receives the Benefits of No-Fault Insurance?

It makes sense that no-fault insurance benefits go to the individuals involved in a motor vehicle accident, such as the drivers and passengers. However, New York law allows other entities, like bicyclists and pedestrians, to pursue injury claims following a road mishap.

In other words, you can file an insurance claim for your sustained car accident injuries, even if you’re only a bystander caught in the incident.

That said, you must meet some requirements before you become eligible for no-fault insurance benefits. The two most significant prerequisites are that the accident must occur within New York’s borders and that the at-fault driver must carry a New York-issued PIP.

Exclusions From Receiving No-Fault Benefits

While New York’s no-fault insurance law includes other individuals besides automobile drivers and passengers, it excludes other entities from seeking a settlement for their incurred damages.

If you’re one of the following, you may find yourself outside the protection of no-fault insurance:

  • Motorcycle rider
  • Motorcycle passenger
  • An owner driving your uninsured motor vehicle
  • An owner operating your spouse’s uninsured automobile
  • A non-resident of New York state

Note that you may also be excluded from no-fault insurance coverage if you:

  • Deliberately caused your injury
  • Were intoxicated or under the use of a controlled substance
  • Were injured as a result of committing a felony
  • Occupied a known stolen vehicle
  • Sustained bodily harm racing or conducting a speed test

Benefits of New York’s No-Fault Law

The primary purpose of a no-fault insurance settlement is to cover the economic damages you suffered following a car accident. Fortunately, New York’s no-fault law encompasses various aspects, including the following:

Medical Expenses

Medical expenses are often the most significant loss you’ll incur after an auto accident. Fortunately, New York law considers the following as medical costs you can recoup through no-fault benefits:

  • Ambulance cost
  • Surgical interventions, X-rays, and nursing care
  • Dental expenses
  • Prescription drugs
  • Prosthetic devices
  • Psychiatric treatment
  • Physical and occupational therapy
  • Necessary rehabilitation

It’s worth mentioning that New York’s no-fault insurance law lets you choose non-medical remedial care and treatment for religious reasons, such as spiritual counseling and ritualistic healing.

Additionally, New York law makes necessary health services you employed within one year of the accident eligible for no-fault insurance coverage. This time limitation may be extended depending on your unique case.

Other Reasonable and Necessary Expenses

In New York, you can claim up to $25 daily for additional expenses besides medical costs. You can use this dollar amount to cover various expenditures, including transportation, appointments with medical providers, and household help.

Lost Wages

If your sustained car accident injuries stop you from returning to work and earning a living, you may be glad that New York’s no-fault insurance law allows you to claim lost wages. Although coverage also includes 80% of your missed earnings, they’re non-taxable.

Burial Expenses

Wrongful death occurs when someone perishes from another individual’s misconduct or negligence, such as during a motor vehicle accident.

New York awards death benefits to those who die from road mishaps like car collisions. These provisions include coverage for all burial- and funeral-related expenses.

New York state also requires insurance companies to provide compensation of up to $50,000 for every injured person. However, this settlement amount comprises all sources, including workers’ accident benefits.

Filing a No-Fault Insurance Claim

You must file a no-fault insurance claim to reap the benefits that New York provides to individuals involved in automobile mishaps. However, this process requires you to follow specific procedures.

Here’s a step-by-step guide:

  1. Submit a no-fault application form: NYS Form NF-2 is the document that serves as your formal request for no-fault benefits. Complete this form by supplying information, such as your name, address, policy number, and accident date.

  2. File your no-fault insurance claim within the time limit: The revised Regulation 68 reduced the filing period from 90 to 30 days. In short, you must submit your claim application within 30 days of the accident.

  3. Inform the New York State Motor Vehicle Accident Indemnification Corporation (MVAIC): New York’s no-fault insurance law lets you file a claim from your insurance company. But what if you or the other driver aren’t auto policyholders?

The MVAIC’s job is to cover your claim when you can’t recover compensation from the other party. Notifying this institution ensures you can recoup your damages traditionally.

Obtaining the AAA Form AR1 for NY No-Fault Insurance Law Arbitration Requests

Insurance companies will try to deny liability as much as possible. Fortunately, New York offers solutions if insurance providers don’t respond to your no-fault claim within 30 days or reject it.

One of these answers is filing for arbitration, which objectively settles disputes between claimants and insurance companies by considering the evidence presented by both parties.

To obtain an American Arbitration Association (AAA) request form (AAA Form AR1), visit the AAA New York Insurance ADR Center’s website. On the webpage, you can upload supporting case documents that may help you receive a favorable resolution.

New York Minimum Car Insurance Coverage Requirements

Driving a motor vehicle on the often confusing roads of New York comes with responsibilities. One of the most significant is carrying the necessary minimum insurance coverage.

Here are the minimum coverage requirements you must follow to legally operate a motor vehicle in the state of New York:

Basic No-Fault Auto Insurance Coverage Includes:

New York’s no-fault auto insurance system ensures that you and other eligible individuals, such as bicyclists and pedestrians, receive prompt compensation for your economic losses.

The state accomplishes this task by requiring automobile drivers to carry basic coverage that includes the following:

  • Reasonable medical and rehabilitation expenses for accident-related injuries
  • 80% of lost earnings from work, up to a maximum payment of $2,000 monthly for up to three years from the accident
  • Up to $25 daily for up to a year to reimburse other reasonable and necessary expenses from the auto accident
  • A $2,000 death benefit for the killed individual eligible for no-fault benefits

Liability Insurance-Bodily Injury and Property Damage

Liability insurance protects you when a third party claims your alleged negligence or fault in a motor-vehicular incident.

This coverage makes payments to the injured party on your behalf. It also gives you legal defense against fault claims without lowering your policy’s liability limits.

Under New York’s vehicle and traffic law for injury liability, the minimum coverage, also known as “25/50/10,” includes the following:

  • $25,000 for bodily harm or $50,000 for any injury resulting in death per person involved in the accident
  • $50,000 injury coverage or $100,000 for physical impairments leading to fatalities of two or more individuals in the motor-vehicular mishap

Uninsured Motorists Coverage

An uninsured motorists insurance policy gives you, same-household family members, and occupants of your insured automobile injury protection from a car accident caused by an uninsured vehicle or a hit-and-run motorist.

This type of insurance coverage mirrors the minimum bodily injury limits New York requires you for liability insurance. In other words, you must carry “25/50/10” to legally drive within the state.

Types of Damages to Pursue in a New York Auto Accident Case

As mentioned, New York’s no-fault insurance law allows you to recover economic damages sustained in a car accident. However, auto claims in the state also let you seek compensation for non-economic losses, including mental anguish from the loss of a fetus.

Let’s discuss some damages you can claim in a New York State auto accident case.

Non-economic Damages

Economic damages cover quantifiable expenses like medical bills. On the other hand, non-economic losses are intangible costs affecting your life, such as pain and suffering and loss of companionship.

Unfortunately, non-economic damages are subjective, and insurance companies will avoid paying for these losses. Fortunately, hiring an experienced accident lawyer can raise your odds of receiving non-financial losses in your settlement.

However, if you’re pursuing a personal injury claim, a personal injury lawyer is the most suitable legal aid to make a case for non-economic damages. Visit to get a free consultation on your car accident case.

Punitive Damages

If you’ve been in a car collision caused by an individual who demonstrates extreme recklessness and indifference to your well-being, consider a punitive damage claim.

Although you can’t typically pursue punitive reparations through an insurance claim, you may be able to do so via a lawsuit. Nevertheless, a successful punitive damage suit will award you additional compensation meant to punish the defendant.

Insurance Information and Enforcement System (IIES)

As cited, New York requires you and other drivers to maintain minimum coverage to legally utilize the state’s roadways. But who enforces this rule? The answer is the Department of Motor Vehicles (DMV).

The DMV’s Insurance Information and Enforcement System (IIES) ensures compliance with insurance regulations. This system accomplishes this task by requiring insurance providers to report coverage information.

The system will issue penalties if you don’t maintain liability limits. Punishments for failing to follow New York’s insurance law include vehicle registration and driver’s license suspensions and substantial fees.

When You Rent a Car

Auto renters’ insurance requirements vary by state and car rental company. In New York, rent-a-car providers offer Optional Vehicle Protection (OVP), also known as Collision Damage Waiver (CDW).

If you have existing New York auto insurance and rent a vehicle for 30 days or fewer, you may not need to purchase OVP. Otherwise, the rental service may charge you the total value of a stolen, lost, or damaged rental automobile.

Can I Sue the Other Driver in a No-Fault State?

While no-fault states like New York aim to streamline compensation through insurance claims, there are circumstances where you may need to file a lawsuit against the at-fault driver.

As mentioned, legal action against the other party is necessary when the coverage is insufficient to compensate for your economic losses. Another is when you’ve suffered a “serious injury” from a car accident.

If you sustained any or a combination of the following injuries following a motor-vehicular mishap, you meet the threshold to file a personal injury claim:

  • Bone fractures
  • Loss of limb
  • Loss of organ
  • Loss of body or brain function
  • Significant disfigurement
  • Permanent disability
  • Disability lasting at least three months
  • Death

Reimbursement and Documentation

If you want to receive fair compensation for the damages you’ve incurred post-car accident, you must build a robust claim. This process involves documenting all your expenses, such as compiling original receipts and itemizing your financial losses.


1. How long is the time limit to file a lawsuit against the at-fault party for your incurred car accident injuries in New York?

According to the revised Regulation 68, you have 30 days from the date of the accident to file a no-fault insurance claim. However, if you want to exit the no-fault system and seek a personal injury claim, you have until three years.

2. What can I do if my expenses exceed the $50,000 available under no-fault?

You have several options if you feel New York’s $50,000 no-fault coverage limit is too restrictive. For one, as mentioned, you can file a personal injury claim against the at-fault party.

Alternatively, you can purchase an additional PIP auto policy, increasing the limit to $175,000. Other steps you can take if your expenses exceed the no-fault limit include filing a health insurance claim or applying for Federal Social Security Disability benefits.

3. What if the vehicle involved was a motorcycle?

Unfortunately, if you’re a motorcyclist or a motorcycle passenger involved in a car accident, you won’t be eligible for no-fault benefits under New York insurance law, regardless of who’s at fault.

4. Can insurers add new no-fault endorsements to current policies before expiration?

Insurance companies can only issue endorsements with new policies or at the renewal of an existing policy issued after April 5, 2002. In short, no.

5. What do I do if payment is delayed after a no-fault arbitration award?

As mentioned, no-fault arbitration settles insurance claim disputes. While the arbitrator’s award is binding, some may not honor it.

In this situation, the Department of Financial Services (DFS) advises you to follow up with the other party regarding your payment. If you don’t receive a timely response, you can contact the DFS.

6. Do insurance rates increase after a no-fault accident in New York?

The state of New York restricts insurance companies’ ability to charge additional fees on policyholders after a motor vehicle accident. That said, the average annual cost of coverage following one accident is $1,320.

7. What is no-fault insurance disadvantage?

Yes, New York’s no-fault status makes it easier to resolve insurance claims post-auto accident. However, this system does come with its fair share of disadvantages.

The most significant is that insurance companies have a $50,000 payout limit. No-fault states also make it challenging to file personal injury lawsuits unless you’ve suffered a severe injury.

For these reasons, you may want to seek legal counsel from experienced professionals who value attorney-client relationships over a potential payday. Visit to help you decide whether a no-fault claim is the best move for your unique situation.


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  4. No-Fault States
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  6. Understanding The Basics of No-Fault Insurance In New York State
  7. Legal History of No-Fault Regulation 68
  8. The No-Fault law and how Insurance Regulation 68 revised it
  9. Do Insurance Rates Go Up After No-Fault Accidents in New York?
  10. Is New York a “No-Fault” State and What Does That Mean?
  11. How Does No-fault Insurance Work in New York?
  12. Wrongful Death Law
  13. What Is The New York State Motor Vehicle Accident Indemnification Corporation?
  14. Why It’s Difficult to Receive Compensation for Your Soft-Tissue Injury in Austin
  15. No-Fault Claims and Arbitration
  17. New York No-Fault Law
  18. How Much does Car Insurance Go Up After an Accident In New York?

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