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Quick Answer
Understanding No-Fault Accident NY Laws
If you drive in New York state, you've probably heard of no-fault protection. This bit of text in New York's code of law can offer much-needed relief to those who've been injured in a car accident. That said, the dense web of exclusions and regulations could give anyone a headache. Mighty's AI handles New York no-fault claims as part of building your case file — applying the state-specific framework automatically so you don't have to decode the rules yourself.
That’s why we’ve gone ahead and performed a swan-dive into the rules of the road in NYC—breaking down the jargon and legalese and what no-fault means for drivers.
Your rights shouldn’t be behind a wall of incomprehensible text. Here’s everything you should know about no fault accident NY laws.
New York’s No-Fault Insurance Laws Explained
New York is one of the states that operates under a no-fault insurance system. It doesn't matter who caused the car accident, your insurance company will cover your medical expenses and lost wages.
The No-Fault insurance laws are designed to ensure that injured parties are able to receive prompt medical attention and treatment, without having to prove fault.
This was designed because in the past, doctors would refuse treatment, since they had no guarantee that they would be paid.
What is No-Fault Insurance?
New York state law has something called Mandatory Personal Injury Protection, (also known as no-fault insurance). This means that your car insurance company is required to reimburse you for any money you lost due to injuries sustained in a car accident.
Unlike with other policies, whether or not you were at fault for the motor vehicle accident is irrelevant under no-fault protection. The injured person is entitled to the same benefits from the same company either way.
Who (and What) Does No-Fault Insurance Protect?
Now let’s break down how this policy actually works. Here are the nuances of personal injury protection and how they can affect you as a driver.
Who is Eligible for No-Fault Protection?
Put simply: This policy protects anyone who is insured or is hurt by an insured vehicle.
Note that this doesn’t apply to motorcyclists (who have different laws), drivers who were intoxicated, or anyone engaging in felonies while driving. Laws also get fuzzier if you’re driving outside of NY state.
Also note that your insurer is allowed to raise your rates after the accident if you were at fault, even if you’re receiving no-fault benefits.
What’s Covered Under No-Fault Protection?
While it depends on the exact policy you decided to purchase, the law entitles you to up to $50,000 for “basic economic loss.” Covered expenses include:
- Medical bills such as surgeries, X-rays, dental, therapy, etc.
- Up to $2,000 a month for lost wages for up to three years after the accident
- Up to $25 a day for a year to cover other expenses, like rideshares
- Up to $2,000 to cover the funeral expenses of the deceased
Who Pays After an Accident in New York?
In a no-fault states such as NY, the insurance coverage responsibility falls on the following:
- If you were driving a car or a passenger in a car, that car’s insurance is the no-fault carrier;
- If you were a pedestrian or cyclist hit by a car, the insurance for the car that hit you is the no-fault carrier; or
- If you were a passenger on a bus, then your household car insurance is the no-fault carrier, or the bus company’s insurance is responsible if you do not own a car.
These details determine which carrier your claim opens with. Mighty's AI identifies the correct no-fault carrier based on your situation and opens the claim accordingly.
How to Apply for No-Fault Insurance Benefits
If you and your expenses are eligible for these benefits, you’ll need to go through the process of filing a claim and proving your needs. Here’s what you should know.
When to File
NY no-fault benefits have strict deadlines:
- 30 days after the accident to notify the insurance company
- 45 days after each medical treatment to submit proof of medical expenses
- 90 days after you lose work to submit proof of work losses and other expenses
Missing these deadlines can disqualify your claim. Mighty's AI tracks all three deadlines automatically and gathers the documentation needed to meet each one — including fetching medical records directly from your providers.
Where to File
File your insurance claim with the company that covers the vehicle in which you were injured. If you were a pedestrian, file with the company that insures the vehicle that hit you.
If you were injured as a pedestrian either in a hit-and-run or by an uninsured vehicle, you can still apply. File your claim with the company that covers you or another driver in your household.
If there’s no policy in the household, then file with the Motor Vehicle Accident Indemnification Corporation.
What to Expect Next
After your claim is opened, the insurance company sends an application for benefits. Mighty's AI completes and returns the application on your behalf, then submits proof of medical expenses and work losses as they accrue.
Your insurer might request additional documentation, but if they don't, they have 30 days to provide reimbursement. After the 30 days are up, you're entitled to interest — and Mighty's AI tracks this and pushes back if the insurer is late.
Complications in NU no-fault claims
NY no-fault benefits provide important financial support, but the process has limitations:
- Expenses that exceed $50,000 require additional claims against the at-fault driver's insurance
- Missed deadlines can disqualify your claim immediately
- Insurance companies may underpay or pay late
- Pain and suffering isn't covered by no-fault — those damages require a separate liability claim
- Filing the no-fault claim typically falls on the injured person, despite recent trauma and life upheaval
- Filing a lawsuit against the other driver requires meeting the state's "serious injury" threshold
Mighty's AI handles all of this for you — no-fault claim filing, deadline tracking, documentation gathering, and pushback on insurance underpayment or delays. For damages beyond the $50,000 no-fault limit or for pain and suffering claims that require pursuing the at-fault driver's liability coverage, Mighty's AI handles those claims too. For cases that meet the serious injury threshold and need to proceed to litigation, Mighty's marketplace surfaces a vetted lawyer paid only on the increase to your existing offer.
Mighty Has Your Back
Open the claim — but use Mighty to do it. Mighty's AI builds your case file, opens your claim with the insurance company, negotiates a settlement for you to approve, and routes you your payment if the offer is fair. For most accident claims, that's all you need — and you keep 100% of your settlement.
Only hire a lawyer when you need one, which is rarely in the first month or two after an accident. Waiting has two big advantages. First, you may not need one at all, in which case avoiding their fees leaves you with 33% to 40% more of your settlement. Even if you do need one, waiting until you have more information about your case — including an offer from insurance — gives you leverage to negotiate the lawyer's fee down from the standard rate.
A lawyer is genuinely necessary when injuries are serious, liability is disputed, multiple parties are involved, or the insurance company refuses to engage. For those cases, Mighty's marketplace helps to match you with a vetted lawyer who only gets paid on the increase to your existing offer.
Sources
- New York State Department of Financial Services. Filing Claims Under Your Own Policy. https://www.dfs.ny.gov/consumers/auto_insurance/filing_claims_under_your_own_policy
- Thomson Reuters Westlaw. 11 CRR-NY 169.1. https://govt.westlaw.com/nycrr/Document/I500cf068cd1711dda432a117e6e0f345?viewType=FullText&originationContext=documenttoc&transitionType=CategoryPageItem&contextData=(sc.Default)
- Thomson Reuters Westlaw. 11 CRR-NY 65-1.1. https://govt.westlaw.com/nycrr/Document/I5008f8d2cd1711dda432a117e6e0f345?viewType=FullText&originationContext=documenttoc&transitionType=CategoryPageItem&contextData=(sc.Default)&bhcp=1
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About the author
Luke is a warm-hearted and highly skilled legal operations expert with an impressive 8-year track record in the personal injury field. As the Client Operations Lead at Mighty, he is dedicated to providing exceptional support, transparent communication, and genuine empathy to clients during their challenging journey. His expertise in streamlining processes and implementing cutting-edge technology makes him an indispensable ally for clients, case managers, and attorneys in their pursuit of justice.
