The Basics of Understanding New York State No-Fault Law

The Basics of Understanding New York State No-Fault Law

Generally speaking, when a person sustains injuries in a motor vehicle accident, they are entitled to have their medical bills, lost wages, and other reasonable accident related expenses paid for by the automobile insurance carrier of the vehicle that the person was occupying at the time of the accident.  On certain occasions, there are instances when another insurance carrier will be responsible for these expenses.  However, in the majority of accidents, it is the car that the person is occupying at the time of the accident that cover the above costs.

It is important to note that fault for the accident has no role in determining which insurance carrier pays for these expenses.  For example, a person can be sitting in their vehicle at a red traffic light when they get rear-ended.  It will still be the insurance carrier for the vehicle that the person is in when they were rear-ended that will pay for medical bills, lost wages and other reasonable accident related expenses.

Another important aspect of the No-Fault Law is the deadline for applying for the benefits.  There is a strict 30 day deadline for completing and mailing a No-Fault application (NYS Form NF2).  Failure to sign and return the form to the No-Fault insurance carrier may result in your No-Fault benefits being denied.  Some insurance carriers will make exceptions for a reasonable delay in returning the No-Fault application.  However, it is never good to be in a position of having to ask an insurance carrier for an exception.

Due to this extremely short deadline, it is recommended that you act quickly if you are involved in an accident wherein you sustain injuries.  It is usually best to contact an attorney that is familiar with No-Fault law immediately.  However, if you decide to handle the matter yourself, make sure that you contact your insurance carrier and request a No-Fault application right away.  Once received, complete the application and return it by mail, return receipt requested.  This way if there is ever a question of whether the application was returned on time, you will have the proof.

It is also important to mention that reporting the accident to the No-Fault insurance carrier by phone is not sufficient to satisfy the 30 day No-Fault deadline.  An Application must be completed and returned even if you notified the insurance carrier by another manner within the 30 days.

Another important feature of No-Fault law is that the person has the freedom to treat with any healthcare provider that accepts No-Fault insurance.  There are no networks to worry about and no need for a referral.  Further, there are no deductibles.

No-Fault insurance will also cover a majority of an individuals lost wages.  Generally speaking the No-Fault carrier will pay up to 80% of a person's lost wages.  There are some exceptions to this rule.  For example, there is a cap of $2,000 per month for lost wages.  Therefore, a high earning individual will hit this cap prior to receiving 80% of their lost wages.  In order to receive lost wages, employment must be verified and a doctor must state that the individual can not work due to accident related injuries.

Finally, there are other accident related expenses that No-Fault insurance will cover.  These include, but are not limited to, expenditures for gas and mileage related to medical treatment, and expenses for household help, if a person incurs such bills.

No-Fault insurance is a valuable resource for people injured in motor vehicle accidents.   However, it is often complicated by red tape.  The best way to insure that you receive all of the benefits that you are entitled to is to hire an attorney knowledgeable in No-Fault law.  Should you have any questions about No-Fault Law, feel free to contact me.  As always, the consultation is free.