No-Fault Insurance Defined
You probably know that New York is one of around a dozen states with a no-fault insurance system. But what does that even mean? The details of no-fault insurance laws vary from state to state, but generally, it means that your insurance company will cover you for any injury claim made after a car accident without regard to fault.
How Does No-Fault Insurance Work?
In order to reduce liability claims and lawsuits in minor accidents, insurance companies offer no-fault insurance. The victim’s insurance company pays his or her medical bills and compensates for lost wages. Your policy dictates the limit that the insurance company will pay; it’s called the personal injury protection limit, or PIP limit.
No-Fault Has its Own Faults
No-fault simplifies and speeds up the payment process, whether they’re covering the payment of medical expenses, lost wages or other expenses included in the policy. They don’t care who was at fault in the crash; they just want to get things over with and move on (and probably raise your rates).
However, all of this speed and simplicity comes at a cost:
- Personal injury protection generally only pays for lost income and medical bills
- There is a cap on PIP benefits. PIP benefits, especially on minimum coverage policies, can fall short of full reimbursement for some injuries.
- PIP provides no compensation for pain and suffering, inconvenience or emotional stress
So… I Can’t File a Personal Injury Claim if I Have PIP?
In many cases, even if you have personal injury protection, you can still file a lawsuit against the responsible party. No-fault claims cover minor injuries resulting from an auto accident. If you suffer more extensive injuries, you may have the option to file a personal injury lawsuit against the driver who caused or significantly contributed to the accident. Such injuries may include:
- Bone fracture
- Permanent disfigurement
- Loss of, or permanent injury to, a limb or an organ
- Significant limitation of a bodily function
- Full disability for more than 90 days
How Do I Know if I Can Make a Claim?
When in doubt, get in touch with a Brooklyn car accident lawyer. Your attorney can tell you if your injuries qualify you to shed the confines of the no-fault system and file a personal injury case against the at-fault driver.