New York is one of the 12 states that have No-Fault coverage and is designed to pay for an injured party’s lost wages, medical bills and other medically-necessary expenses. The coverage was designed to ensure that regardless of fault; an insurance company will pay up to $50,000 for economic losses to the driver or passenger of a vehicle who was injured. Monthly wage loss is paid at 80% of gross wages, up to a maximum of $2,000 per month. No-Fault only covers drivers and passengers in a car, truck, bus or taxi; it does not cover motorcyclists. No-Fault does however cover cyclists and pedestrians who are struck by a vehicle.
Among the expenses that are covered under No-Fault are hospital and doctor bills, prescription drugs, x-rays and MRIs. Medical supplies such as wheelchairs and crutches, mileage to and from doctors, as well as payment for any household chores that cannot be performed, may be reimbursed as well. In most cases under No-Fault, the injuries party does not need a referral to see a specialist such as a neurologist, orthopedist, acupuncturist or chiropractor. However, a referral is needed for diagnostic tests such as x-rays, MRI and CAT scans, as well as physical therapy. Under No-Fault, the injured party may file a claim for lost earnings, but first must show proof of wages by having their employer fill out a No-Fault Wage Verification Report .
It is important to save all receipts as No-Fault will reimburse for out-of-pocket expenses for transportation and prescription costs. Medical bills must be submitted to the No-Fault carrier within 45 days of the date of treatment, otherwise the party could become personally responsible for the payment of the bill. Never assume that the bill is being taken care of. Be certain to submit all bills, including duplicates, immediately upon receipt. As long as medical providers have indicated treatment is needed beyond the first year from the date of the accident, then No-fault will continue to pay for medical treatment and prescriptions until the dollar amount is completely exhausted. Essentially, there is no expiration date or law that says your benefits expire after a certain amount of days, weeks or months.
Be aware that filing for No-Fault must be done relatively quickly as you only have thirty days from the date of the car accident to file the application for No-Fault benefits.
Minimum Car Insurance Requirements in New York
New York requires any operator of a motor vehicle to maintain certain amounts of insurance on their vehicle. Minimum requirements are:
- $25,000 liability coverage for bodily injury per person
- $50,000 liability total bodily injury coverage per accident (regardless of how many people were injured)
- $10,000 liability coverage for property damage per accident
- $50,000 in no-fault coverage
- Uninsured motorist coverage (for bodily injury)