Is New York a No-Fault Insurance State? What Does that Mean?
The term “No fault” has proven to be a bit confusing to people who have never dealt with this type of claim, however.
The important thing to know is that it does NOT mean that nobody can be held at fault for a car crash, nor does it mean that you get money for injuries even if you caused the accident.
No fault is simply medical insurance coverage for persons injured in a car crash.
No-fault coverage is almost counter-intuitive. The reason is because if you are in an accident and it’s not your fault, then it doesn’t make sense that your own insurance company is going to be paying for your medical bills. But that is the rule.
The purpose is to make sure that people who are injured and need treatment can get the treatment. Doctors who did not know how they were going to be paid would refuse to offer treat. No fault was designed to provide certainty to those who are injured and the doctors who treat them.
So who pays no-fault after an accident?
- If you were driving a car or a passenger in a car, that car’s auto insurance is the no-fault carrier;
- If you were a pedestrian struck by a car, the auto insurance for the car who struck you is the no-fault carrier;
- If you were riding a bicycle and were struck by a car, the auto insurance for the car who struck you is the no-fault carrier;
- If you were a passenger on a bus, then your own household car insurance is the no-fault carrier. If neither you nor any household family members own a car, then the bus is responsible to provide no-fault coverage;
Our no-fault system is intricate and has highly specialized rules. The most important rules to be aware of involve filing and submission deadlines, as they are hard deadlines and almost always unforgiving. A no-fault application must be filed with the appropriate no-fault provider within 30 days of an accident.
All medical bills must be submitted to the no-fault carrier within 45 days of the treatment. Other expenses, such as out of pocket costs for transportation and prescriptions, lost wages or household help must be submitted within 90 days of being incurred.
This is only the tip of the proverbial iceberg when it comes to no-fault, but provides an outline of what no-fault is here in New York.