No-fault insurance (Personal Injury Protection, or PIP) is how New York pays for injuries after a car accident. Your own auto insurance company covers your medical expenses and lost wages regardless of who caused the crash. The basic PIP policy provides up to $50,000 per person, including 80% of lost earnings, up to $2,000 per month, for up to three years from the date of the accident.
No-fault insurance aims to speed up claims and reduce lawsuits, but that speed comes with a trade-off. Because your own policy pays first, you can only sue the at-fault driver for pain and suffering if your injury meets New York’s “serious injury” threshold under Insurance Law ยง 5102(d), which was narrowed on May 26, 2026. Whether your injury clears that threshold is the first thing a New York car accident lawyer will assess.
The sections below cover who is protected, what no-fault does not pay for, the deadlines that apply, and when you can step outside the system and sue.
Key Takeaways
- New Yorkโs no-fault insurance system requires drivers to carry at least $50,000 in Personal Injury Protection (PIP) coverage.
- No-fault benefits cover medical expenses and 80% of lost wages up to $2,000 per month for three years, regardless of who caused the accident.
- Motorcyclists and intentional acts are excluded from no-fault coverage in New York, and losses above the $50,000 PIP limit are not paid by no-fault.
- Victims must file no-fault claims within 30 days of the accident and submit medical bills within 45 days of treatment to receive benefits.
- The โserious injury thresholdโ allows lawsuits for pain and suffering. As of May 26, 2026, eight categories qualify, such as a fracture, significant disfigurement, or a permanent loss of use.
What the May 2026 Changes Mean for No-Fault Claims
Your no-fault benefits did not change in 2026. PIP still pays up to $50,000 per person regardless of fault, and the filing deadlines are the same. What changed is your right to sue for pain and suffering on top of those benefits.
The serious injury threshold was narrowed, fault now carries more weight than it did before, and the rules apply based on when the lawsuit is filed rather than when the crash happened. A case filed before May 26, 2026, is still governed by the prior rules.
Our guide to the 2026 New York car accident injury claim rule changes covers all of it in detail.
Key Principles of No-Fault Insurance
Building on the concept of no-fault insurance in New York, we now explore its key principles. These principles form the foundation of this unique insurance system.
No-fault insurance aims to simplify accident compensation. It covers medical expenses, lost income, and other economic losses regardless of who caused the crash. This system requires all drivers to have Personal Injury Protection (PIP) coverage.
In New York, the law sets a minimum PIP coverage of $50,000 per person. This amount helps pay for medical bills and lost wages after an accident. The goal is to provide quick payment for these costs without the need to prove fault.
This approach speeds up the claims process and reduces lawsuits. It also ensures that injured parties get help faster, even if they caused the accident.
Basic Coverage Requirements in New York
New York law requires drivers to carry specific auto insurance coverage. All drivers must have Personal Injury Protection (PIP) and liability insurance. PIP covers medical costs and lost wages up to $50,000 per person.
It pays for 80% of lost earnings, capped at $2,000 monthly for three years. Liability insurance protects against claims if you cause harm to others.
In New York, PIP and liability coverage are not optional โ theyโre the law.
The state sets minimum liability limits at 25/50/10. This means $25,000 for bodily injury per person, $50,000 for bodily injury per accident, and $10,000 for property damage. These basic requirements aim to protect drivers and others on the road.
Drivers can choose higher limits for more protection. Raising Supplementary Uninsured/Underinsured Motorist (SUM) coverage adds a source of recovery when the at-fault driver has no insurance or not enough to cover your losses.
Who Is Covered by No-Fault Insurance?
New Yorkโs no-fault coverage applies to a broad range of people injured in accidents involving a covered motor vehicle. This includes the named insured, resident relatives, drivers, and passengers of the insured vehicle.
Pedestrians and bicyclists struck by a motor vehicle are also eligible for PIP benefits under the policy of the vehicle that hit them.
Not everyone is covered. Motorcycle operators and passengers are expressly excluded from no-fault benefits under Insurance Law ยง 5103(a)(1). However, a pedestrian hit by a motorcycle can still claim PIP as a pedestrian.
When pedestrians or cyclists sue for pain and suffering, they are subject to the same โserious injuryโ threshold and comparative-fault rules that apply to drivers and passengers.
Benefits of No-Fault Insurance
No-fault insurance offers several key benefits to drivers in New York. It covers economic losses after an accident, regardless of who caused it. This means injured parties can get help faster, without waiting for fault to be determined.
The system provides a minimum of $50,000 in benefits per injured person. This includes coverage for medical bills and lost wages, up to 80% of gross wages or $2,000 per month.
Another major advantage is the simplified claims process. Injured parties don’t need to prove negligence to receive benefits. This speeds up the process and reduces legal costs. The guaranteed benefits also provide peace of mind, knowing that basic needs will be covered after an accident.
Overall, no-fault insurance aims to protect drivers financially and ensure quick access to needed care.
Limitations of No-Fault Insurance
While no-fault insurance offers many benefits, it also has limits. New York law sets strict rules on who can get these benefits and how much they can receive. For example, motorcyclists and their passengers can’t claim no-fault benefits after an accident.
This leaves them open to higher costs if they get hurt.
Time is also a factor in no-fault claims. Accident victims must file their claims within 30 days. If they miss this deadline, they may lose their chance to get help. Lost wage benefits come with a catch too.
No-fault pays 80% of your lost earnings, not 100%, and that payment is capped at $2,000 a month for up to three years. This means injured workers do not get their full pay while they heal.
Serious Injury Threshold in New York (Updated May 2026)
The serious injury threshold decides whether you can sue for pain and suffering. If your injury does not meet it, no-fault benefits are generally your only remedy, though you can still sue for medical bills and lost earnings above the $50,000 no-fault limit.
Under Insurance Law ยง 5102(d), eight categories qualify:
- Death
- Dismemberment
- Significant disfigurement
- A 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 ninth category was removed in 2026. It covered temporary injuries that kept you from your usual daily activities for at least 90 of the first 180 days after the crash. For lawsuits filed on or after May 26, 2026, that path is closed, so objective medical evidence tying your injury to one of the eight remaining categories now carries more weight.
Meeting the threshold is not the whole picture. If your share of fault is greater than the combined fault of the drivers you are suing, you recover nothing for pain and suffering, even with a qualifying injury. Our guide to how comparative negligence works in New York car accident cases explains how fault is now decided.
Exclusions From No-Fault Benefits
Moving from the serious injury threshold, we must consider the exclusions from no-fault benefits in New York. No-fault insurance doesnโt cover all situations. Motorcyclists donโt get these benefits after accidents.
Instead, they can sue for their losses without having to meet the serious injury threshold at all, because they sit outside the no-fault system. Deciding whether to settle or go to court is a separate judgment call in those cases.
No-fault coverage also doesnโt apply to intentional damage. If someone causes harm on purpose, the victim canโt claim no-fault benefits. The law wants to stop people from abusing the system.
In these cases, victims might need to file a lawsuit against the at-fault driver to recover their losses.
Filing a No-Fault Insurance Claim
Limitations of no-fault insurance can impact your claim process. Filing a no-fault insurance claim in New York requires attention to detail and timely action.
- Submit Form NF-2 within 30 days of the accident to start your claim.
- Include all details about the incident and injured parties in your claim form.
- Contact the New York State Motor Vehicle Accident
- Indemnification Corporation to notify them of your claim.
- Send medical bills to your insurance company within 45 days of treatment.
- Gather and keep all relevant documents, such as police reports and medical records.
- Provide a clear account of the accident and your injuries to support your claim.
- Follow up with your insurance company regularly to track the progress of your claim.
- Be prepared to provide additional information or documentation if requested.
- Know your coverage limits and what expenses qualify for reimbursement.
- Seek legal advice if you face challenges or delays in the claims process.
Keep every medical record and treatment note. Now that the 90/180-day category is gone, objective medical proof tying your injury to one of the eight remaining categories is what decides whether you can sue for pain and suffering at all.
Common Mistakes After a Car Accident in New York
Car accidents in New York can be stressful and confusing. Knowing the common mistakes to avoid can help protect your rights and strengthen your claim.
- Not calling the police: Failing to report the accident to law enforcement can weaken your case due to a lack of official documentation.
- Skipping medical care: Delaying or avoiding medical treatment makes it harder to link injuries to the accident.
- Forgetting to gather evidence: Not taking photos of the scene, damage, and injuries can hurt your claim later.
- Admitting fault: Saying โIโm sorryโ or accepting blame can be used against you by insurance companies.
- Neglecting to get witness information: Failing to collect contact details from witnesses can leave you without key support for your case.
- Talking too much to insurance adjusters: Giving detailed statements without legal advice may harm your claim.
- Accepting quick settlements: Agreeing to early offers without knowing the full extent of damages can leave you short-changed.
- Missing filing deadlines: Failing to submit claims within New Yorkโs legal time limits can bar you from compensation.
- Not documenting expenses: Failing to keep records of medical bills, lost wages, and other costs related to the accident can reduce your recovery.
- Posting on social media: Sharing details or photos of the accident online can be used to dispute your claim.
Tips for Choosing an Attorney for No-Fault Claims
Choosing an attorney for No-Fault claims can greatly impact your case outcome. Here are key tips to help you select the right legal representation:
- Look for experience in No-Fault insurance cases. A lawyer who knows New Yorkโs $50,000 mandatory PIP coverage laws will serve you better.
- Check the attorneyโs track record with insurance disputes. Successful outcomes show their skill in handling complex claims.
- Ask about their approach to No-Fault claim resolution. A good lawyer will explain how they plan to recover your full compensation.
- Confirm the attorneyโs familiarity with PIP coverage claims. This knowledge is crucial for getting the most from your insurance benefits.
- Inquire about their fees and payment structure. Clear terms help avoid surprises later in your case.
- Assess their communication style. You want a lawyer who explains legal terms in ways you can understand.
- Consider the size of the law firm. Larger firms like Raphaelson & Levine may have more resources for your case.
- Read client reviews and testimonials. These give insight into the attorneyโs reputation and client satisfaction.
- Schedule a consultation to discuss your case. This meeting helps you gauge the lawyerโs interest and expertise.
- Ask about their strategy for dealing with insurance companies. An effective approach can lead to faster claim resolution.
When to Talk to a Car Accident Lawyer
No-fault benefits are usually straightforward to claim. Where cases get difficult is everything after that: an insurer cutting off benefits after an IME, a threshold question that decides whether you can sue at all, and a fault percentage that now determines whether you recover anything for pain and suffering.
Those three things are worth a conversation before you give a recorded statement or accept an offer. Call (866) 288-9529 for a free case review.
No-Fault Insurance FAQs
What Expenses Does No-Fault Insurance Cover?
No-fault covers accident-related medical treatment and rehabilitation, 80% of lost earnings up to $2,000 per month, and up to $25 per day in other necessary expenses such as household help or travel to medical appointments. All of it draws from the same $50,000 per person limit. A separate $2,000 death benefit is paid on top of that limit in fatal accidents.
How Are My Medical Bills Paid in a No-Fault Claim?
Your provider bills the no-fault insurer directly, so you should not be paying out of pocket for covered treatment. The insurer may schedule an Independent Medical Examination to assess whether continued care is necessary. If the IME concludes it is not, the insurer can cut off further payments, which is one of the most common disputes in no-fault claims.
What Happens if My Costs Go Past $50,000?
You have options beyond basic PIP. Additional Personal Injury Protection extends your own coverage if you bought it. Health insurance can pick up remaining medical bills. You can also sue the at-fault driver for economic losses above the $50,000 limit, separately from any pain and suffering claim. Keep records of every bill and every day of missed work, because that documentation is what supports the claim.
Can I Sue for Pain and Suffering Under a No-Fault System?
Only if your injury meets the serious injury threshold under Insurance Law ยง 5102(d), which lists eight qualifying categories. Fault matters too: if your share is greater than the combined fault of the drivers you are suing, you recover nothing for pain and suffering even with a qualifying injury.