New York is one of 12 states in the country that has No-Fault insurance. Also known as Personal Injury Protection (PIP), this law means that the car owner’s insurer is responsible for covering accident-related costs — regardless of who was at fault in the car crash.
What does PIP insurance cover?
The main purpose of this system is to provide the injured parties with a quick and easy way to claim their compensation. The standard PIP coverage in New York is $50,000 per person and this coverage is mandatory. Here are four types of damage covered by PIP:
- Medical expenses: This covers all your medical expenses up to a certain limit. This could include ambulance services, hospital stays, surgical treatments, physical therapy and prescription medications.
- Lost wages or self-employment income: This covers up to $2,000 per month or 80% of your lost wages, whichever is less. If you are self-employed, PIP insurance can provide coverage for your lost income.
- Replacement services: This covers reasonable living expenses such as household services and childcare.
- Funeral expenses: This covers a death benefit of $2,000, payable to the estate of the deceased.
You can also file for additional coverage, either through Additional Personal Injury Protection (APIP) or Optional Basic Economic Loss (OBEL). This provides support if your damages exceed the limit for PIP coverage.
Are there limitations to the PIP benefits?
There are certain factors that make a vehicle collision not eligible for a PIP insurance. Some of them include:
- When the driver is under the influence of alcohol or drugs.
- When the driver is committing a felony.
- When the driver is using an uninsured vehicle.
- When the driver is using a stolen vehicle.
- When the driver is using a motorcycle.
It is important to note that you need to notify your insurance company within 30 days of the date of the accident. Failing to do so within the given period can result in the denial of your claim.
How much time do I have to file my PIP claim?
New York’s statute of limitations has a three-year time limit that begins from the date of the accident. Submitting a claim past this period means that you will no longer be able to seek fair compensation for the injuries that you have sustained from the car crash.
With PIP insurance, you can receive medical treatment without worrying about fault.
