Whom Does New York’s No-Fault Insurance Law Cover? A Detailed Explanation of New York State’s No-Fault Coverage October 6, 2010

New York’s No-Fault Insurance Law offers benefits (quick payments for expenses) and restrictions (on lawsuits for pain and suffering). New York is one of 12 states that have a No-Fault auto insurance program.  As the name suggests, under the No-Fault law, insurance coverage does not depend upon who is to blame in an accident.

New York State’s No-Fault law requires your insurance company to pay up to $50,000 for accident-related medical expenses, lost earnings and incidental costs, no matter who is at fault. The coverage includes not only medical costs, but lost wages for up to three years and related expenses. It does not include compensation for pain and suffering. Payments for pain and suffering and compensation beyond No Fault benefits must be pursued through a separate claim or lawsuit. (You might want to read the article, “Do I need a Lawyer After a Car Accident?”)

Whom Does New York’s No-Fault Insurance Program Cover: The Simple Version

In its simplest form, the New York No-Fault Law applies to any drivers, passengers, bicyclists or pedestrians injured by a motor vehicle in New York where the car is registered in New York and has insurance as required by New York State Law. Here are the conditions that must be met to qualify for No-Fault coverage:

• The accident occurred in New York.
• The injured party was the driver or a passenger or a bicyclist or pedestrian hit by the motor vehicle.
• The vehicle must be a car, truck, bus, taxi (not a motorcycle) or other vehicle covered by New York No-Fault law.
• The vehicle is registered in New York.
• The vehicle has an insurance policy sold in New York.

If you are injured in a car accident in New York, the No-Fault coverage you receive comes from the vehicle you drove, rode in or was hit by.

Special Provisions that Provide No-Fault Insurance to Nearly Everyone Else Injured in a Motor Vehicle Accident in New York

It is easy to understand how New York’s No–Fault coverage applies if you are a driver or passenger in a car registered and insured in New York or if you are a pedestrian or bicyclists hit by a car registered and insured in New York. The wrinkles come when you are a driver or passenger in a car not registered in New York or if the car lacks insurance. In most all cases, you will receive No-Fault benefits, the question is from whom and how.

Here are the provisions for covering drivers, passengers, pedestrians and bicyclists injured in or by a motor vehicle that is either not registered in New York or does not have insurance purchased in New York:

• Out-of-State Vehicles that Have Insurance Sold by Companies Licensed to Sell Auto Insurance in New York: New York No-Fault benefits will still apply if all of the following conditions are met:
  • The accident occurred in New York.
  • The injured party was the driver or a passenger or a bicyclist or pedestrian hit by the motor vehicle.
  • The vehicle is a car, truck, bus, taxi (not a motorcycle) or other vehicle covered by New York No-Fault law.
  • The vehicle has insurance coverage sold by a company that also has a license to sell auto insurance in New York.

Under these special circumstances, the out-of-state auto policy will abide by the New York State No-Fault rules and provide No-Fault coverage.

• Out-of-State Vehicles that Have Insurance, but It Has Not Been Sold by a Company Licensed to do Business in New York and the Injured Person Lives in a Household with a Vehicle Registered and Insured in New York: Under New York State insurance regulations, all motor vehicle insurance policies sold in New York must have a provision for coverage when a person is injured by an uninsured vehicle. If a person is injured in or by a motor vehicle that lacks New York State insurance, but the person lives in a household with a car registered and insured in New York, then the injured person will receive coverage through the insurance policy of the car registered in the household. The uninsured coverage of the policy kicks in under these circumstances: 
• The accident occurred in New York.
• The injured party was the driver or a passenger or a bicyclist or pedestrian hit by the motor vehicle.
• The vehicle is a car, truck, bus, taxi (not a motorcycle) or other vehicle covered by New York No-Fault law.
• The vehicle in which the injured person drove or rode or by which the person was hit lacks insurance or has out-of-state insurance that does not provide for New York No-Fault coverage.
• The injured person lives in a household where a member of that household has registered a car in New York and has auto insurance in New York.

If all of these conditions are met, then the injured person will receive No-Fault Insurance Coverage through the policy covering the vehicle registered to that household. For example, if a young man was travelling in a car driven by an out-of-state friend, is injured in an accident and the friend’s car lacks No-Fault coverage, then the young man’s parent’s policy would provide the No-Fault coverage.

• When the Vehicle Has No Insurance and there is No Vehicle Registered to the Household of the Injured Person: New York State requires all vehicles to have insurance. If a vehicle lacks the required insurance and if the injured person does not live in a New York household where an insured vehicle is registered, then New York State’s Motor Vehicle Accident Indemnification Corporation (MVAIC) will provide the No-Fault coverage. MVAIC is a public corporation established to provide auto insurance for uninsured inured parties.

When Does New York No-Fault Not Apply?

New York No Fault does not apply in the following circumstances:

• Drivers and passengers on a motorcycle and pedestrian and bicyclists injured by a motorcycle.
• When injuries occur in a state other than New York. In those cases, the laws of that state apply.

I hope you found this information helpful. If you have questions about injuries suffered in a car accident or other motor vehicle accident, you may want to consult a New York personal injury attorney experienced with car accidents. I will be glad to answer your questions and assist you. You can call me at 1-800-660-1466 or email me. You can also visit my website or read more on my blog, New York Law Thoughts. .

Carol L. Schlitt
New York Personal Injury Attorney
www.SchlittLaw.com
1-800-660-1466
Carol@SchlittLaw.com

This material is intended for informational uses only. It is not meant as legal advice. To receive legal advice, you should consult an attorney.