New York No-Fault Insurance Explained: What Drivers Need to Know
October 15, 2025
If you’ve been in a car accident in New York, you’ve probably heard the term “no-fault insurance.” But what does it actually mean — and how does it affect your right to compensation?
New York’s no-fault insurance system was created to make sure crash victims can get medical care and basic financial support without waiting for an investigation into who caused the accident. But there are important limits, deadlines, and exceptions every driver should understand.
Here’s a complete guide — from coverage basics to when you can step outside the no-fault system and file a lawsuit.
What Is No-Fault Insurance in New York?
“No-fault” insurance, also called Personal Injury Protection (PIP), is mandatory for all drivers in New York. After an accident, your own insurance company pays for your medical bills, lost wages, and certain other expenses — no matter who was at fault.
This helps accident victims get care faster and keeps minor cases out of the courtroom.
Learn more:
- New York DMV – Insurance Requirements
- New York Consolidated Laws – Insurance Law §5102–5104
What Does New York No-Fault Insurance Cover?
Under New York law, standard no-fault coverage includes:
- Medical costs — hospital bills, doctor visits, therapy, rehabilitation
- Lost wages — up to 80% of your income (capped at $2,000/month)
- Essential services — such as housekeeping if you’re unable to work
- Transportation — for travel to medical appointments
- Death benefits — if a covered person passes away from crash injuries
The minimum coverage is $50,000 per person, but you can purchase additional PIP (APIP) coverage for more protection.
Learn more:
- NY Department of Financial Services – No-Fault Explained
- DMV – Financial Security Act Overview
Who Is Covered by No-Fault?
No-fault coverage typically applies to:
- The driver and passengers of the insured vehicle
- Pedestrians or bicyclists struck by that vehicle
- Family members of the policyholder living in the same household
However, motorcyclists and their passengers are excluded from no-fault coverage in New York and must rely on their own medical insurance or pursue claims against at-fault parties.
Learn more:
- DFS – Who’s Covered by No-Fault Insurance
- Vehicle & Traffic Law Reference
When No-Fault Benefits Don’t Apply
You cannot receive no-fault benefits if you were:
- Driving under the influence of alcohol or drugs
- Intentionally injuring yourself
- Operating a stolen vehicle
- Injured while committing a felony
In these cases, your insurance company can legally deny PIP benefits.
Learn more:
When You Can File a Lawsuit Beyond No-Fault
While no-fault laws limit small claims, you can step outside the system and file a personal injury lawsuit if your accident caused a “serious injury” under New York law.
A “serious injury” may include:
- Fractures or dismemberment
- Significant disfigurement
- Permanent loss or limitation of a body part
- Major limitation of a body function
- Injuries that prevent you from normal activities for 90 of the 180 days after the crash
If you meet these criteria, you may seek pain and suffering, emotional distress, and other non-economic damages not covered by no-fault.
Learn more:
- Insurance Law §5102(d) – Serious Injury Definition
- NY Courts – Serious Injury Threshold
How to File a No-Fault Claim (and Meet Deadlines)
To qualify for no-fault benefits:
- Submit Form NF-2 (No-Fault Application) to your insurer within 30 days of the accident.
- Include all medical documentation and wage verification forms.
- Keep a detailed record of medical visits, bills, and lost wages.
If you miss the deadline or fail to include documentation, your claim could be denied or delayed.
Learn more:
- DMV – Accident Reporting Requirements
- Filing a No-Fault Claim
Key Takeaways for New York Drivers
- New York’s no-fault system covers your medical bills and lost wages, regardless of fault.
- Standard PIP covers up to $50,000 per person, with the option to buy more.
- You must file your claim within 30 days of the accident.
- You can sue outside the no-fault system if you’ve suffered a serious injury.
Why You Should Talk to a
New York Car Accident Lawyer
Even though New York is a “no-fault” state, insurance companies often limit or deny claims — especially when serious injuries are involved. An experienced personal injury attorney can help you:
- File your no-fault claim properly
- Challenge unfair denials or underpayments
- Determine if your injuries meet the serious injury threshold
- Pursue full compensation for pain, suffering, and future losses
At LFK Law Practice, P.C., we help New York drivers navigate the no-fault system and fight for the compensation they deserve after a crash.
Contact us today for a free consultation — and let us handle the insurance while you focus on recovery.
Bottom Line
New York’s no-fault insurance law is meant to protect drivers — but it can be confusing. Acting fast, understanding your rights, and getting the right legal guidance can make all the difference in recovering the benefits and compensation you’re entitled to.
