No-Fault Auto Insurance in New York and What Every New Yorker Should Know

Ron Trumbo Insurance Editor

Also referred to as Personal Injury Protection (PIP), New York requires that all drivers have No-Fault Personal Injury Protection, along with a minimum level of Liability Coverage and Uninsured Motorist Coverage.

Committed to protecting all consumers, New York’s PIP auto coverage intends to pay all of your medical bills and those of your passengers if you’re involved in an accident in New York. No-fault coverage will also replace any income that you may lose as a result of being out of work due to injuries sustained in an accident. New York requires that your PIP cover up to $50,000 for every injured passenger in your car — again, regardless of fault.

What is New York's No-Fault Car Insurance?

No-fault insurance only covers your medical bills and time lost from work, and is not offer property coverage. No-fault insurance will not pay for repairs to your car; other coverage options on your New York insurance policy should cover those. No-fault insurance generally pays for your medical expenses up to a certain limit before your health insurance is needed. Given that car insurance is very complicated, you must speak to a licensed New York insurance agent to truly understand the full details of New York’s no-fault personal injury protection coverages and laws.

According to the New York Department of Insurance, No-Fault auto coverage will protect New York policy holders regardless of where they involved in a car accident and subsequent insurance claim in the United States. Additionally, out-of-state passengers in your car are protected under your New York auto insurance policy if you’re in an accident in New York.

How New York’s No-Fault Auto Insurance Replaces Lost Wages

If you’re unable to go back to work in New York because of a car accident, the NY Dept. of Insurance website reports that New York’s PIP coverage will generally offset lost income by 80%, up to a maximum of $2,000/month for 3 years if needed.

Death Benefit of PIP Coverage

In New York, no-fault coverage generally pays a $2,000 death benefit for any passenger that is unfortunately killed in an accident. The state DOI reports that this benefit is additional to the $50,000/per passenger limit.

When New York’s No-Fault Coverage Becomes “Sorry No Dice”

New Yorkers are protected heavily by no-fault insurance, but the state is not about to let negligent drivers benefit from the coverage. No-fault coverage does not protect uninsured drivers. Separately, if you are injured in a New York car accident where you are either drunk or under the influence of drugs, you will most likely forfeit your no-fault injury protection benefits. Additionally, if you’re hurt in an accident where you’re in the process of committing a felony (determined by court conviction) such as a failure to stop for a police officer or driving a stolen vehicle, you will not benefit from New York’s PIP coverage.