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How does no-fault insurance work?

On Behalf of | Jun 7, 2021 | Motor Vehicle Accidents |

New York is a no-fault insurance state. As a driver, it is essential you understand what this type of insurance is and how it works. 

No-fault insurance is where everyone carries their own insurance on their own vehicles, and if there is an accident, each person makes a claim to his or her own insurance. According to the New York Department of Financial Services, you still have the ability to hold someone else responsible for damages from an accident, but only in certain situations. 

Initial claims

After an accident, you will make your initial insurance claim to the insurance company covering the vehicle in which you were driving or riding. The policy limit for no-fault insurance in the state is $50,000. 

Excessive expenses

If your claim is more than the $50,000 limit, you can then take the other party who was responsible for the accident to court. You will have to prove your case in court by providing evidence and showing fault on behalf of the other driver. 

In addition, if you have a serious injury, the law allows you to sue the other party. There are some specific definitions of serious injury that apply in this situation. However, generally speaking, a serious injury will result in expenses that exceed the $50,000 limit, so you will already have grounds to take the other party to court. 

With no-faulty insurance, it is important to remember that you will make a claim first with your insurer or the insurer of the car in which you were in at the time of the accident. After making that claim, you may then be able to go to court.