Is New York a No Fault State?

Curan & Ahlers
Sep 17, 2022
3 min read

Updated: May 15

Understanding New York No Fault Insurance Law

Many people may not know that New York is a no-fault state when it comes to car accidents or they may not know what a no-fault state is.

If you are one of these, read on to learn about New York no fault insurance.

What Does No Fault State Mean?

If you are wondering, "what is a no fault state," it means that drivers in these states are not typically held personally liable for accident damages, regardless of who caused the crash. In a no fault state, drivers do not need to prove that the other driver was responsible in order to receive compensation for medical bills and related expenses. Instead, each driver’s insurance covers their own damages. In this case, your no fault insurance (also called Personal Injury Protection or PIP) handles your immediate needs after an accident, regardless of fault.

What Are Some Benefits To No Fault States?

No fault states typically have lower insurance rates, as the insurance companies are not as likely to go to court over damages. Also, there is no delay in getting compensation after an accident. Your insurance should take care of you fairly quick. You typically don't have to go through a long legal battle for smaller amounts of compensation. No-fault systems provide several advantages:

Quicker insurance payouts
Fewer lawsuits over minor injuries
Less burden proving fault for basic compensation
In some cases, lower insurance premiums

In a no fault state NY drivers can typically expect their own insurance to step in and assist them promptly—often avoiding the need for a lengthy court case for minor claims.

Is New York a No Fault State?

Yes, New York is a “no-fault” insurance state. This means that insured person are typically reimbursed through their insurance company for any damage, regardless of who caused the accident (or was "at fault"). However, this doesn’t mean you can never sue. New York’s no-fault system has monetary thresholds. Once your injury claim exceeds the PIP limits or involves serious injuries, you may still file a personal injury lawsuit against the other driver. So, is New York a no fault state for car accidents? Yes—but with exceptions for severe injuries or high-cost damages.

New York No Fault Insurance Laws

In accordance with the New York no fault law, you are required to carry certain minimum levels of car insurance to register a vehicle and receive license plates in the state:

No-Fault (Personal Injury Protection or PIP) - this is insurance coverage to pay for any medical expenses, lost earnings, and other expenses for someone injured in an accident in or by your car.
Liability - this is insurance coverage to pay for any damage your car (or someone else's car that you are driving) may do.
Uninsured Motorists - this is insurance coverage to protect against any injuries you, your family, or your passengers may suffer in an accident with someone who doesn't have insurance.

The New York state no fault law requires that all registered motor vehicles have liability insurance with the following minimum coverage:

$25,000/$50,000 for bodily injury per person
$50,000/$100,000 for death
$10,000 for property damage per accident

If you're unsure whether New York is a no fault insurance state, know that the law requires every driver to carry PIP insurance for exactly this reason.

Is New York an At-Fault State?

Is New York an at fault state? No, New York is not considered an at-fault state for standard car accident claims. However, if your accident results in significant injuries that exceed no-fault thresholds, you may step outside the no-fault system and pursue damages from the other driver.

So, is NY a no fault auto insurance state? Yes—but only up to a certain point.

Contact Curan & Ahlers Today!

If you were in a car accident and have questions about your rights under New York no fault law, don’t wait. Contact the team at Curan & Ahlers. We’ll explain whether your case qualifies under no-fault or if you’re eligible to pursue a personal injury lawsuit. Having an experienced injury attorney at your side can make all the difference when it comes to recovering the compensation you deserve. At Curan & Ahlers, we've been helping New York residents with their injury cases since 1986. Contact us today for a free case consultation.