Car Accident Insurance in New York

If you were seriously injured in a car accident in New York, the financial impact can be devastating. In addition to the physical pain and emotional toll, you may be faced with mounting medical bills, lost wages, and other out-of-pocket expenses. In serious cases, these losses can total hundreds of thousands or even millions of dollars. While it’s natural to assume the at-fault driver will cover the cost, as an experienced New York car accident lawyer can explain, the truth is that most compensation comes from insurance, not from the personal assets of the person who caused the accident.

New York uses a no-fault insurance system, which allows injured parties to receive limited benefits for medical expenses and lost wages, regardless of fault. However, no-fault benefits are capped, and the minimum required insurance often does not fully cover the losses from a serious injury. The good news is that there may be other insurance policies that can be accessed depending on the situation. To protect your rights and maximize your recovery, contact an experienced New York car accident lawyer to explore every available source of compensation.

In New York, if you are hurt in a car accident, your own car insurance will usually pay for your medical bills and part of your lost wages, even if someone else caused the crash. This is because New York uses a no-fault insurance system, which is designed to help people get benefits quickly without having to prove who was responsible. This coverage is known as Personal Injury Protection, or PIP. See N.Y. Ins. Law Art. 51.

Every vehicle registered in New York is required to have PIP coverage. If you are injured in a car crash, PIP is the first source of payment for your medical expenses and lost earnings. It applies regardless of fault. This means it pays before the other driver’s insurance and before any private health insurance, Medicaid, or Medicare.

For example, if another driver ran a red light and hit you, your own PIP coverage would still pay your initial medical bills and wage losses up to the policy limits. The other driver’s insurance would only come into play if your injuries are serious enough to qualify for a lawsuit under New York law.

That’s why medical providers often ask whether your injury is from a car accident—they need to know that PIP is the primary payer before billing other health coverage.

Under New York law, every registered vehicle must carry Personal Injury Protection (PIP) coverage of at least $50,000 per person. This requirement is part of New York’s minimum insurance standards, as set out in N.Y. Ins. Law § 5102 and § 5103.

PIP provides benefits for what the law refers to as “basic economic loss.” These benefits are available regardless of who caused the accident and include:

• Medical expenses for necessary treatment such as hospital visits, surgery, physical therapy, nursing care, dental services, ambulance transport, X-rays, prescriptions, prosthetics, and rehabilitation. These are covered without a time limit, as long as a medical professional determines within one year of the accident that continued treatment will be necessary.
• Lost wages, up to 80% of your gross income, capped at $2,000 per month, for up to three years from the date of the accident.
• Reasonable and necessary daily expenses, such as travel to medical appointments or help with household tasks, up to $25 per day for one year after the accident.
• A $2,000 death benefit, paid in addition to the $50,000 limit on basic economic loss.

No-fault insurance does not cover property damage or compensation for pain and suffering. These types of losses can only be pursued through a personal injury lawsuit if your injuries meet the serious injury threshold under N.Y. Ins. Law § 5102(d).

Because no-fault benefits are limited, and serious injuries often lead to losses far beyond what PIP covers, it is important to contact an experienced New York car accident lawyer. A lawyer can help identify whether you qualify for additional compensation and determine what other insurance options may be available.

Although no-fault insurance covers most people injured in car accidents in New York, there are specific situations where coverage does not apply. These disqualifications can prevent an injured person from receiving any no-fault benefits, even for medical treatment or lost income. See 11 N.Y.C.R.R. § 65-1.1(d); N.Y. Ins. Law § 5103(b).

Disqualifying situations include:

• Driving under the influence of drugs or alcohol
• Intentionally causing the accident
• Committing a felony at the time of the accident
• Operating a stolen vehicle
• Fleeing from police or the scene of the accident
• Operating your own vehicle without insurance
• Participating in a race or speed contest
• Riding a motorcycle (motorcyclists are generally excluded from no-fault benefits, though some may purchase separate medical coverage)

If any of these situations apply, the insurance company may deny your claim entirely. This can leave you responsible for your own medical expenses unless you have other insurance options. If you are unsure whether no-fault applies to your case, speak with an experienced New York car accident lawyer to understand your rights and explore other sources of coverage.

The no-fault application process includes strict deadlines that must be followed to preserve your right to benefits:

• NF-2 Form: You must file Form NF-2 (Application for No-Fault Benefits) with the correct insurance company within 30 days of the accident. The insurer is usually your own if you were driving, the vehicle owner’s if you were a passenger, or the striking vehicle’s insurer if you were a pedestrian. This deadline is set by 11 NYCRR 65-2.4.
• Medical Bills: Medical bills must be submitted to the no-fault insurer within 45 days of each treatment. Include details about the injury, diagnosis, and services received.
• Lost Wages: If you are claiming lost income, you must provide wage verification (typically Forms NF-6 or NF-7). Self-employed individuals may need to provide business records or tax returns.
• Medical Exams: he insurer may require you to attend independent medical examinations (IMEs) to verify your injuries. However, the insurer must provide reasonable notice, and repeated or improperly scheduled exams may be challenged. Failure to attend a properly noticed exam may result in denial of benefits. See 11 N.Y.C.R.R. § 65-3.5(e).
• Cooperation: You must cooperate with reasonable requests for information related to your claim.

If your claim is denied, you may request arbitration through the American Arbitration Association or pursue a court claim depending on the reason for the denial. Arbitration is mandatory for most medical and wage disputes under N.Y. Ins. Law § 5106(b).

Victims of car accidents can only sue the at-fault driver for pain and suffering or other non-economic losses if their injury meets the serious injury threshold under N.Y. Ins. Law § 5102(d). New York defines a serious injury as one of the following:

• Death
• Dismemberment
• Significant disfigurement
• Fracture
• Loss of a fetus
• Permanent loss of use of a body organ, member, function, or system
• Permanent consequential limitation of use of a body organ or member
• Significant limitation of use of a body function or system
• A medically determined injury or impairment that prevents you from performing substantially all of the material acts of your usual and customary daily activities for at least 90 out of the 180 days immediately following the accident

If your injury meets one of these definitions, you may bring a lawsuit against the at-fault driver to recover damages not covered by no-fault insurance, including compensation for pain and suffering, future medical expenses, and other out-of-pocket losses.

In Toure v. Avis Rent A Car Sys., Inc., 98 N.Y.2d 345 (2002), the New York Court of Appeals clarified how plaintiffs can meet the serious injury threshold. The court ruled that a plaintiff may succeed by presenting either objective medical evidence (such as MRI results) or a physician’s sworn qualitative assessment, as long as it is based on a review of the patient's medical history and observations. This case remains a key precedent for establishing serious injury in car accident lawsuits.

Determining whether your injury meets the legal standard is not always straightforward. A qualified New York car accident lawyer can help assess your medical records, coordinate expert evaluations, and build a strong claim for compensation if litigation is appropriate.

According to N.Y. Veh. & Traf. Law § 31, all vehicle owners must carry minimum insurance coverage. The required coverages include:

• Liability Insurance: Covers injuries or property damage you cause to others. Minimum limits:
  • $25,000 for bodily injury per person
  • $50,000 for bodily injury per accident
  • $10,000 for property damage per accident
• PIP Coverage: At least $50,000 in no-fault coverage per person
• Uninsured Motorist (UM) Coverage: Covers injuries to you and your passengers caused by a driver with no insurance. Minimum limits are $25,000 per person and $50,000 per accident

Failing to carry the required insurance can result in serious consequences. Your vehicle registration and driver’s license may be suspended, and you could be personally liable for any injuries or damage caused in an accident. Additionally, you may be disqualified from receiving no-fault benefits if you are injured while driving an uninsured vehicle that you own.

Drivers are encouraged to purchase additional coverages beyond the required minimums. These optional policies can provide additional financial protection and help ensure that victims receive full compensation when losses exceed basic coverage. See N.Y. Ins. Law §§ 5102, 5103, and 3420.

• Collision Coverage: This pays for repairs to your own vehicle after a crash, even if you were at fault. Without it, you may need to rely on the other driver's insurance, which might not fully cover your losses. See N.Y. Ins. Law § 3420(f)(3).
• Comprehensive Coverage: Covers damage caused by theft, vandalism, fire, flood, or falling objects. It allows you to recover for property damage unrelated to a collision, which is not covered by liability or PIP.
• Additional Personal Injury Protection (APIP): APIP increases your no-fault benefits beyond the $50,000 basic PIP limit required under N.Y. Ins. Law § 5103. This additional coverage is helpful when serious injuries result in high medical bills or extended time off work.
• Underinsured Motorist (UIM) Coverage: UIM steps in when the at-fault driver has liability insurance, but not enough to fully compensate you. This coverage can help bridge the gap so you do not have to absorb uncovered losses. See N.Y. Ins. Law § 3420(f)(2).
• Supplemental Spousal Liability (SSL): SSL allows an injured spouse to sue the other spouse when injured as a passenger in the insured vehicle. As of August 1, 2023, SSL is automatically included in policies unless waived in writing. See Chapter 220 of the Laws of 2022 and N.Y. Ins. Law § 3420(g).
• Medical Payments (MedPay): MedPay covers additional medical costs not paid by PIP. While less common in New York, it can be useful in situations where PIP does not apply, such as for motorcyclists or passengers in out-of-state vehicles.
• Rental Reimbursement: This pays for a rental car while your damaged vehicle is being repaired. It prevents disruption to your daily life and avoids out-of-pocket expenses that may not be reimbursed under standard coverage.
• Towing and Labor: Covers emergency roadside services and towing after an accident. While it does not increase compensation for injuries, it can reduce immediate financial strain after a crash.

UM and UIM coverage are key protections for people injured in crashes involving drivers who have no insurance or not enough insurance.

• Uninsured Motorist (UM) Coverage: Pays for your injuries if the at-fault driver is uninsured, flees the scene, or has an out-of-state policy that does not meet New York requirements. To pursue a hit-and-run claim, you must report the incident to the police within 24 hours or as soon as practicable. UM coverage is required by N.Y. Ins. Law § 3420(f)(1).
• Underinsured Motorist (UIM) Coverage: Applies when the at-fault driver’s insurance policy limit is not enough to fully cover your losses. For example, if their policy covers only $25,000 and your damages are $100,000, your UIM coverage may make up the $75,000 difference, subject to your own policy limits.

To protect your right to UIM, you must:

1. Notify your insurer promptly, ideally within 90 days;
2. Prove the at-fault driver’s policy is fully exhausted; and
3. Get written consent from your insurer before accepting any settlement from the other driver.

These types of coverage can make a substantial difference in how much compensation you receive.

In serious car accident cases, the mandatory insurance coverage may not be enough to cover all of your losses. However, additional insurance policies could provide further compensation. A New York car accident lawyer can help identify and access all available coverage. See N.Y. Ins. Law §§ 3420, 5102, 5103; N.Y. Veh. & Traf. Law § 311.

• Optional Basic Economic Loss (OBEL): Provides an extra $25,000 in coverage that can be applied to medical expenses, lost earnings, or other necessary costs beyond the standard $50,000 PIP. See 11 N.Y.C.R.R. § 68.1(a)(6).
• Owner’s Liability Coverage: When someone other than the car’s owner causes the crash, the vehicle owner’s policy may still provide liability coverage if the driver had permission to use the vehicle. See N.Y. Veh. & Traf. Law § 388(1).
• Owner’s PIP Coverage:
  The no-fault coverage on a vehicle may apply to passengers or pedestrians involved in an accident. See N.Y. Ins. Law § 5103(a)(1).
• Spouse’s Auto Insurance (Resident Relative): If you live with a spouse, you may qualify for coverage under their UM or UIM policy, even if their vehicle was not involved. See N.Y. Ins. Law § 3420(f)(1)-(2).

• Parent’s Auto Insurance: Minor children and other resident dependents may qualify for UM, UIM, or MedPay under a parent’s policy depending on household status and policy language. See N.Y. Ins. Law § 3420(f); N.Y. Ins. Law § 5103.

  In Worcester Ins. Co. v. Bettenhauser, 95 N.Y.2d 185 (2000), the Court of Appeals addressed a claim by a young adult injured while driving his own vehicle, who then sought UIM benefits under his parents’ policy. The insurer argued the vehicle was not covered and the claimant was not a named insured. The court held that the claim was excluded under the policy but that the insurer was still liable because it failed to timely disclaim coverage under Insurance Law § 3420(d). The decision reinforces that insurers must promptly raise exclusions or risk being bound to pay.

• Household Auto Policies (Resident Relative): If you are a resident of the household of a relative who carries auto insurance, you may be eligible for benefits under their policy. See N.Y. Ins. Law § 3420(a)(3); § 3420(f)(1).

  For example, in Carlino v. Lumbermens Mutual Casualty Co., 74 N.Y.2d 350 (1989), the New York Court of Appeals addressed whether an insurer could limit coverage when it issued two separate excess auto liability policies to a married couple residing in the same household. Each spouse, James Carr and Rose Carr, had purchased their own policy from Lumbermens Mutual Casualty Co., each with a $75,000 excess liability limit, and each policy covered their son, a household member, who was involved in a car accident while driving another person’s vehicle. The insurer argued that only one policy should apply based on a “two or more auto policies” clause. The court rejected this limitation, holding that both policies must contribute under the “other insurance” clause and that limiting coverage violated 11 N.Y.C.R.R. § 60.1(g), which requires ratable contribution from valid excess policies.

  However, not all household-based claims succeed. To qualify for benefits under a relative’s auto policy, the claimant must typically reside in the same household as the named insured. When this requirement is not met, courts will deny coverage, even if the claimant is a close family member or listed as a driver for informational purposes.

  In Matter of State Farm Mut. Auto. Ins. Co. v. Russell, 29 A.D.3d 761 (2d Dep’t 2006), the court held that the claimant was not entitled to uninsured motorist benefits under a policy issued to his aunt. Although his father was listed as a licensed driver in a renewal notice, neither he nor the claimant lived with the named insured. Because the policy required a relative to reside in the same household as the named insured to qualify as an insured, and the accident did not involve a covered vehicle, the court granted the petition to stay arbitration.

• Workers’ Compensation: If the accident occurred while you were working, workers' compensation may cover medical bills and wage loss, regardless of fault. See N.Y. Workers’ Comp. Law § 10(1); § 2(7).
• Employer’s Auto Insurance: If you were operating a company vehicle or performing work duties at the time of the crash, the employer’s commercial auto policy may offer primary or excess coverage. See N.Y. Ins. Law § 5103(a)(1).
• Commercial Vehicle Policy (Third-Party): If the at-fault driver was operating a business-owned vehicle, the company’s commercial policy may have higher liability limits than a personal policy. See N.Y. Veh. & Traf. Law § 388; N.Y. Ins. Law § 3420.
• Rental Car Company Insurance: Rental car companies often offer optional insurance products, including collision damage waivers (CDW) or loss damage waivers (LDW), as well as supplemental liability coverage. CDW and LDW generally apply only to damage to the rental vehicle itself and do not cover injury-related liability. If liability insurance is offered and purchased, it may provide coverage for bodily injury or property damage to third parties. See N.Y. Gen. Bus. Law § 396-z.
• Umbrella or Excess Liability Policy: Some individuals or businesses carry umbrella insurance that provides additional protection beyond regular policy limits. This can be an important source of compensation in high-value claims. See N.Y. Ins. Law § 3420(a)(2).
• New York Motor Vehicle Accident Indemnification Corporation (MVAIC): MVAIC may provide compensation if you were injured by an uninsured or hit-and-run driver and have no other insurance options. To qualify, you must be a “qualified person” under N.Y. Ins. Law § 5202(b), and the accident must be reported to the police within 24 hours, unless the delay is reasonably justified. See N.Y. Ins. Law §§ 5201–5225.

1. Get Medical Help: Seek medical attention right away. Even if you feel fine, injuries like concussions or soft tissue injuries may appear later. Medical documentation helps support your insurance claim.
2. Call the Police: Report the accident. If the police do not file a report, file a Form MV-104 with the DMV within 10 days.
3. Exchange Information: Collect names, addresses, driver’s license numbers, license plates, insurance details, and vehicle information from all drivers.
4. Document the Scene: Take photos of the vehicles, accident location, road signs, skid marks, and your injuries. Get contact information from any witnesses.
5. Notify Your Insurance Company: Report the accident promptly. Be accurate, but avoid giving a recorded statement without legal guidance.
6. Submit the NF-2 Form: Send the Application for No-Fault Benefits to the correct insurer within 30 days. Attach documentation for medical treatment, lost income, and related expenses.
7. Speak With a Lawyer: An experience New York car accident lawyer can help you determine if your injuries meet the serious injury threshold and whether you are entitled to pursue compensation beyond no-fault.

Although insurance may be the main source of financial recovery after an accident, it is important to remember that insurance companies are not in the business of paying full value on every claim. They often try to settle quickly for as little as possible. Having experienced legal guidance can help ensure your rights are protected and that you pursue the full compensation you deserve.

If you were injured in a car accident and are considering filing a lawsuit, it’s important to understand the deadlines that apply. These time limits depend on who the defendant is and the type of claim. A experienced car accident attorney in New York can help you determine the correct deadline based on the facts of your case.

• Standard personal injury claims: You have three years from the date of the accident to file a lawsuit for personal injuries. See CPLR § 214(5).
• Claims against a municipal entity (such as the City of New York or the MTA):
  • You must file a Notice of Claim within 90 days of the accident. See Gen. Mun. Law § 50-e(1)(a).
  • You must file the lawsuit within one year and 90 days from the accident date.
    See Gen. Mun. Law § 50-i(1)(c).
• Wrongful death claims: A wrongful death action must generally be filed within two years of the date of death. See EPTL § 5-4.1.

Missing these deadlines could prevent you from recovering compensation, so it’s important to take legal action promptly.

At Stephen Bilkis & Associates, our experienced car accident attorneys serving New York are ready to help you understand your rights and pursue the compensation you deserve. Whether you need help applying for no-fault benefits, filing a lawsuit for serious injuries, or dealing with a denied claim, we will advocate for your interests every step of the way.

Contact us today at 1-800-NY-NY-LAW (1-800-696-9529) to schedule a free, no obligation consultation. We represent clients throughout New York, including the Bronx, Brooklyn, Manhattan, Queens, Staten Island, Nassau County, Suffolk County, Westchester County, and Long Island.