You may have already heard of the no-fault law, which applies to motor accidents in New York. Here’s what you need to know about no-fault benefits and the importance of the No-Fault law.
How Does The No-Fault Law Work?
The No-Fault law affects you in different ways, depending on whether you’re a driver, a passenger in a motor vehicle, or a pedestrian or cyclist that was hit by a motor vehicle. To begin with, if you’re a driver of a car in an accident, your motor vehicle insurance will cover all your medical expenses for injuries caused by the accident with a limit of $50,000. This is regardless of who is at fault for the accident.
Similarly, if you’re a passenger in a motor vehicle accident, the insurance company of the motor vehicle you were in will pay up to $50,000 for your accident-related medical expenses, again, regardless of who’s at fault. This also applies to a pedestrian or bicyclist struck by a motor vehicle. The insurer of the motor vehicle will also pay up to $50,000 to cover the medical expenses incurred as a result of the accident.
No-Fault Law Coverage And Limits
As mentioned, New York’s No-Fault Law comes with a $50,000 limit on medical bills, and this is usually more than enough to cover most accident-related medical bills. Even the coverage is quite flexible since the insurer is on the hook for your medical bills for up to three days from the accident’s date. However, the insurer can still stop making payments if you have recovered and treatment is no longer necessary. The insurer will arrive at this decision by hiring their doctor to examine you to determine if you still require treatment.
Benefits of The No-Fault Law
According to statistics, sales for new and used car dealers in the US were to increase to 916 billion and $106.6 billion by 2020, respectively. With more cars on the road, the risk of auto accidents also increases, and more and more New York motorist drivers will appreciate the benefits of the No-Fault law.
To qualify for No-Fault benefits in New York, it’s important to keep in mind that you must file for benefits before the end of 30 days after the accident.
While it’s possible to still file after 30 days if you have a valid explanation, it’s safer to file earlier to receive the compensation you deserve. For the best results, hiring an experienced auto accident attorney is often recommended to help you navigate the process. Typically, the No-Fault law offers the following benefits to qualifying individuals:
- Medical expenses to treat injuries that happened as a direct result of the accident
- Up to $2,000 a month to cover 80% of lost wages for up to three years following the accident
- A maximum of $25 per day to cover other miscellaneous costs arising from the accident, such as home care and transportation to the doctor.
- Death benefits paid to the estate of a covered person that was deceased in a motor vehicle crash.
Why No-Fault Benefits Are Important
According to the National Association of Insurance Commissioners (NAIC) most recent statistics, car insurance expenses across the US increased by 2.7% from $889.01 to $865.34 between 2014 and 2015. This trend is expected to continue in New York with the No-Fault Law. This is a good thing because injuries are a common result of motor vehicle accidents. If you’re injured in a motor vehicle accident in New York, you can get the medical attention you need without worrying about whether you can afford treatment costs.
The $50,000 coverage limit is quite generous and doesn’t involve any copay or bills. Overall, New York’s No-Fault law will help save many lives as those injured in motorcycle accidents become more willing to visit the hospital and seek urgent care without having to pay their medical bills.