What is No Fault Coverage in New York

mike crowley

New York State No-Fault

Do you understand New York State No-Fault Coverage? Don’t worry, most people don’t. It sounds more like coverage for when someone hits you and you are NOT at fault in the accident. The problem is, New York State No-Fault Coverage is a term that is used but not actually what the coverage in the policy is called.

New York State no-fault coverage is another name for your personal injury protection.

Personal injury protection is a mandatory coverage in the state of New York with a base limit of $50,000 per person. This coverage includes limits for Work Loss and Death Benefits.

Your auto insurance policy should have another coverage called additional personal injury protection or PIP. This allows you to increase the base coverage’s up to higher amounts.

When is PIP used

New York State no-fault coverage is what pays for any injuries that arise out of your vehicle for you or your passengers in the event there is an accident, no matter if you’re at fault or if the other person’s at fault, New York State no-fault/personal injury protection coverage pays initially.

This is very confusing and it doesn’t necessarily seem right either. Somebody runs a red light and hits into your vehicle. All the injuries that arise out of your car get paid by your insurance policy.

You must understand that and you know that you need to increase and max out your personal injury protection or New York State no-fault to make sure that you have the most coverage possible to pay for your medical expenses or your passengers.

Work Loss

When maxing your additional personal injury protection coverage, you are also increasing and maxing out your Work Loss Coverage.

If you’re out of work due to this injury form an accident, you want to make sure that you have the most amount of coverage to replay loss wages.

Coverage Limits

Coverage limits for New York No-Fault or Personal Injury Protection start at $50,000 per person. With Work Loss of $2,000 and Death Benefit of $3,000

Additional Personal Injury Protection coverage allows you to increase by either $25,000, $50,000 or $100,000 and also doubles your work loss.

Some insurance carriers use coding and don’t necessarily spell out how much additional coverage you have. Make sure you discuss this with your insurance professional to see what it means.

Other things to look out for is to make sure you have Out of State Coverage or you don’t have a deductible on it.

A few insurance carriers are known to slide in a $200 deductible on this coverage. That deductible applies to all injured parties. So if you, your spouse, and 3 kids all need to get checked out by the doctors after you get rear-ended, you will be out $200 per person or a $1,000 total.

What’s Next?

When a No-Fault Claim gets filed with your New York State Auto Insurance Carrier, they will send you a lot of paperwork to fill out. This paperwork can be confusing, so make sure you reach out to your agent for assistance.

Working with an independent insurance agent will help you understand what you need to do in the event an accident happens.

If you don’t have a relationship with an agent or want a review of your insurance?

Click below to learn more about how to proceed.

 

Mike Crowley

Hi I'm Mike! I am the Vice President of Crowley Insurance Agency. I am here to help any way I can. Please reach out and contact me for anything you need and be sure to connect with us on social as well :)

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