People exchanging insurance details on a clipboard. No-fault insurance.

Who Pays After a Car Accident: New York’s No-Fault Insurance Explained

Getting into a car accident is a stressful experience for everyone involved, especially when you’re figuring out who’s at fault and whether to sue the other driver. New York is one of the few “no-fault” states, which means its laws differ slightly from those in other parts of the country. Learn more about what “no-fault” means in a legal context and how it may affect your case.

What Does “No-Fault” Mean in New York?

When a state has no-fault laws, they require you to file your injury claims with your own insurance company. You also need to have your own personal injury protection (PIP) or no-fault insurance by law.  This covers essentials such as medical bills, regardless of who was at fault in the accident.

If you’re caught driving without insurance, you could face serious penalties, including fines, license suspension, and higher insurance premiums.

What Does No-Fault Insurance Cover?

Medical Costs

One of the main things insurance covers is any relevant medical treatment. This includes:

  • Emergency care
  • Hospital stays
  • Surgeries
  • Ongoing therapy or medications
  • Medical equipment
  • Transportation to and from appointments

Depending on which insurance carrier you use, your PIP benefits pay healthcare providers directly. This feature prevents you from needing to pay for any large healthcare costs upfront while recovering.

Lost Wages

New York’s no-fault benefits typically cover any lost wages during this time. As of 2026, you can receive up to 80% of lost earnings with a maximum amount of $2,000 per month. You may also qualify for a daily allowance of $25 if you can’t handle basic tasks, including cleaning or home repairs.

What Does No-Fault NOT Cover?

Unfortunately, PIP is only the first step in getting compensation for your accident. It doesn’t cover additional issues such as:

  • Vehicle damage
  • Property damage
  • Emotional damages
  • Pain and suffering

Also, no-fault coverage is limited by whatever your policy cap is. So if you only have the state minimum ($50,000), you may need to file another lawsuit to receive more compensation.

When Can You File a Claim Against the Other Driver?

If you’re planning on pursuing further lawsuits against the other party, you need to cross New York’s “serious injury” threshold. This is when your bodily harm goes beyond minor injuries, such as fractures, disfigurement, or severe limitation of any body functions. Your injury must also prevent you from returning to your usual activities for at least 90 of the first 180 days of the accident.

Additionally, any injury that exceeds the threshold can file a personal injury claim for other damages that aren’t included under the no-fault system. This includes emotional damages, pain and suffering, or other non-economic losses.

Why Hiring A Lawyer Can Help Your Case

Even if your PIP covers certain expenses, it rarely ends there. Know that you’re entitled to sue for additional damages in case of a serious accident. Our Long Island accident lawyers are here to guide you through this process. We’ll analyze your case’s details and build a strong argument to ensure you win the compensation you deserve. Please contact us online or at (866) 442-0513 to schedule a free case review today.