New York’s “no-fault” auto insurance system often leads to misunderstandings about accident victims’ rights. While it mandates drivers turn to their Personal Injury Protection (PIP) after an accident for initial medical bills and lost wages, many mistakenly believe it prohibits lawsuits against the at-fault driver. Please continue reading as we clarify no-fault laws, explain when legal action remains an option, and highlight the crucial role of our experienced Westchester County Auto Accident Attorneys in protecting your interests.
What Does “No-Fault” Insurance Actually Mean in New York?
No-fault insurance simplifies accident claims by using PIP to cover initial medical costs, lost income, and necessary household services, regardless of fault. While designed for quick compensation and fewer minor injury lawsuits, PIP generally excludes non-economic damages such as pain and suffering, often prompting victims to pursue further legal action.
In New York, no-fault laws were implemented to make the claims process faster, reduce court backlogs, and ensure quick compensation for accident victims, especially in minor incidents. However, this system can cause considerable confusion when an injury victim’s expenses exceed their PIP policy limits.
How Does New York’s “No-Fault” Insurance Law Limit My Right to Sue?
New York employs a “serious injury threshold” in its no-fault auto insurance system. This threshold restricts an injured party’s ability to sue for non-economic damages, such as pain and suffering, unless their injuries fall into certain categories. These categories include death, dismemberment, significant disfigurement or scarring, a displaced fracture, loss of a fetus, or a permanent injury (meaning the body part or organ has not healed to function normally and will not heal to function normally with further medical treatment). If your injuries meet the state’s serious injury threshold, you retain the right to pursue legal action against the at-fault driver.
It is important to understand that no-fault laws typically apply only to bodily injury, not property damage. This means you can usually still file a claim against the at-fault driver’s property damage insurance for vehicle repairs.
How Does Fault Still Matter in a No-Fault State?
New York adheres to comparative negligence rules, which means a victim’s partial fault can directly influence the amount of compensation they receive in a personal injury claim. If it is determined that the injured party contributed in some way to the accident, their awarded damages may be reduced proportionally to their degree of fault. This means that while they can still receive compensation, the final amount will be adjusted downwards based on their percentage of fault.
While no-insurance states limit the ability to file lawsuits, they do not entirely remove your right to sue. This is especially true in cases involving severe injuries or when PIP benefits are insufficient to cover all damages. At Hausman & Pendzick, we are prepared to assess the extent of your injuries, clarify your legal rights, and help ensure you receive the maximum compensation you are rightfully owed. Connect with our firm today to schedule a consultation.