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How does New York’s no-fault coverage work?

On Behalf of | Mar 22, 2023 | Car Accidents

Many states only require that drivers carry liability insurance. However, New York has a higher standard for insurance coverage than other states. Specifically, drivers need to carry a combination of both no-fault protection and liability coverage.

Most people don’t worry about the details of how no-fault coverage works until they get hurt in a crash. Then, they suddenly need to know how to make use of their insurance protections. What does no-fault coverage do for those who have been involved in a crash in New York?

No-fault coverage pays for medical care and lost wages

The basic function of no-fault coverage is to help cover the injury-related costs someone could suffer in a crash. Without no-fault coverage, anyone injured in a wreck would be completely dependent on the other driver’s insurance. Those hurt by someone without coverage would have few options other than going to court if they need help paying their bills.

Basic no-fault coverage in New York can provide up to $50,000 of support for medical bills and a portion of someone’s lost wages. A driver and other occupants of their vehicle will have the option of making a claim against no-fault coverage after a crash regardless of who actually caused the wreck.

No-fault coverage campaign for all of someone’s medical care costs, as long as they are not higher than the policy limit. No-fault coverage can also help replace lost wages. There are limits to such coverage. People can only receive up to 80% of their lost wages. Even that amount is subject to a maximum monthly benefit of $2,000.

Multiple claims may be necessary after a crash

Drivers with significant injuries that require major medical intervention or lengthy leave of absence from work may need to file a complex insurance claim after the crash. In addition to seeking compensation from the liability coverage of the other driver, they may also need to make a claim against their own coverage.

In extreme cases, it may also be an option for someone to go to civil court in pursuit of medical expenses and lost wages. Learning more about New York insurance requirements with the assistance of a knowledgeable legal professional can help those who have been affected by a recent car crash.