New York operates under a no-fault insurance system for car accidents, meaning that after a crash, your own insurance company covers your medical bills and lost wages—regardless of who caused the accident. While this system is designed to provide swift financial relief without needing to prove fault, it also imposes strict limitations on personal injury claims.
If you have been injured in an accident, understanding how no-fault laws impact your ability to seek compensation is vital. Consulting an experienced NYC personal injury lawyer can help you navigate these legal complexities and determine your best course of action.
Understanding New York’s No-Fault System
Under New York law, every motorist is required to carry Personal Injury Protection (PIP) insurance, which provides up to $50,000 in coverage for medical expenses, lost earnings, and other necessary costs arising from an accident. This coverage applies to drivers, passengers, bicyclists, and pedestrians involved in motor vehicle accidents. Because of this framework, injured parties typically cannot sue the at-fault driver for additional compensation unless their injuries meet the state’s “serious injury” threshold.
The no-fault system streamlines claims and reduces litigation, but it also means that victims are often unable to recover non-economic damages—such as pain and suffering—unless they can prove their injuries exceed statutory limits.
Additionally, PIP insurance does not cover property damage, meaning individuals seeking reimbursement for vehicle repairs must pursue a separate claim.
When Can You File a Lawsuit for Additional Compensation?
New York law allows victims to step outside the no-fault system and file a personal injury lawsuit against the at-fault party if they have suffered a “serious injury.” The state defines a serious injury as one that results in:
- Death
- Dismemberment
- Significant disfigurement
- Fractures
- Loss of a fetus
- Permanent loss of use of a body organ, member, function, or system
- Permanent consequential limitation of a body organ or member
- Significant limitation of use of a body function or system
- Injuries that prevent an individual from performing daily activities for at least 90 days within the 180 days following the accident
If your injuries meet these criteria, you may be entitled to pursue a personal injury settlement beyond what PIP insurance covers. A lawsuit allows you to seek damages for pain and suffering, emotional distress, and future medical expenses that PIP would not reimburse.
Challenges in Pursuing a Personal Injury Claim
Although stepping outside the no-fault system is possible, doing so requires strong medical evidence and legal expertise. Insurance companies often dispute the severity of injuries to minimize payouts, making it very important to gather comprehensive medical records, expert testimony, and other documentation to substantiate your claim.
Moreover, there are strict deadlines for taking legal action. Victims must file a no-fault application with their insurance provider within 30 days of the accident, while personal injury lawsuits typically must be filed within three years of the incident. However, claims against municipal entities have even shorter deadlines, requiring a notice of claim to be filed within 90 days. Missing these deadlines can jeopardize your ability to recover compensation.
Why You Need an NYC Personal Injury Lawyer
Navigating New York’s no-fault laws while pursuing a personal injury claim can be overwhelming. A skilled NYC personal injury lawyer can assess your case, determine whether your injuries qualify as “serious,” and fight to secure the maximum compensation you deserve. Legal representation is particularly vital when dealing with insurance companies that attempt to minimize payouts or deny claims outright.
In addition, an attorney can help you calculate the full extent of your damages, ensuring that you do not settle for less than what you are owed. While no-fault insurance provides immediate relief for medical bills and lost wages, it rarely accounts for the long-term consequences of severe injuries. Seeking a personal injury settlement through litigation may be necessary to cover future medical treatments, loss of earning capacity, and emotional suffering.
About the Firm
As a full-service personal injury firm, Sullivan Papain Block McManus Coffinas & Cannavo P.C.. specializes in all areas of personal injury. Our dedicated litigation support teams diligently and vigorously represent clients, including matters related to 9/11-related illness, personal injury, car accidents, construction accidents, medical malpractice, premises liability, product liability, and firefighter law. across New York City, Long Island, Nassau, and Suffolk counties, as well as New Jersey. To learn more about our firm or schedule a consultation with an attorney, contact us today.