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What is Personal Injury Protection or No Fault Insurance?

What is Personal Injury Protection or No Fault Insurance?

There are several forms of auto insurance drivers in New York need to have in order to own a car, including what’s known as no-fault benefits or Personal Injury Protection (PIP) insurance. This type of insurance is intended to provide you with immediate financial assistance, no matter who caused the crash. While it doesn’t cover any property damage, PIP insurance provides up to $50,000 per person – the driver, their passengers, and any pedestrians injured by your vehicle – for economic losses including lost wages, medical bills, and other necessary and reasonable injury-related expenses.

Why Do I Need PIP Insurance?

PIP insurance’s primary function is to allow people injured in an accident to heal and return to being productive and active members of society as soon as possible. Under New York’s No-Fault law, the only way someone can pursue an auto accident lawsuit is if their economic losses are greater than the $50,000 provided under PIP, if you suffered a serious injury, or if you plan to sue for non-economic damages like pain and suffering.

PIP insurance’s reach extends beyond New York roads – if you, any relative living under your roof, or pedestrian suffers economic losses from injuries caused by an auto accident anywhere in the United States, any of its possessions or territories, or in Canada. This coverage also extends to any passenger injured while driving in New York, and expands to cover injuries caused by an auto accident anywhere in the United States, any of its possessions or territories, or in Canada as long as they aren’t covered under a separate New York State auto insurance policy.

Basic PIP insurance covers:

  • As much as $25 per day in order to reimburse the injured person for necessary and reasonable expenses, including transportation to and from medical treatment, assistance around the house, etc. This payment lasts for up to a year from the day the accident occurred.
  • Necessary and reasonable rehabilitation and medical expenses related to injuries suffered during the accident.
  • 80 percent of wages lost, up to $2,000 per month, due to the accident for up to three years from the day the accident occurred. These payments are subject to statutory offsets for Federal Social Security, Worker’s Compensation, and New York State disability benefits.
  • On top of the $50,000 limit, another $2,000 death benefit to be paid to the estate of someone killed in the auto accident.

Someone may not qualify for PIP insurance benefits if:

  • They were driving under the influence at the time of the accident. This does not include emergency health-related services performed by a paramedic or in a hospital. However, your insurer may be able to recover the full amount provided in this situation if the driver is convicted of driving under the influence.
  • They intentionally injured themselves.
  • They were driving or riding on a motorcycle or an ATV. Injured pedestrians are still covered.
  • They sustained their injuries while committing a crime.
  • They were injured while driving or a passenger in a stolen vehicle.
  • Their vehicle was not insured.

Medical bills accumulate quickly, and PIP insurance benefits may not be enough to cover them all depending on the severity of your injury. If you were injured in a crash due to someone else’s negligence, you may be able to file a claim to secure compensation. Contact the New York City injury attorneys at The Perecman Firm, P.L.L.C. today to discuss your claim by calling us at (212) 577-9325, or by filling out the form on our website to begin your free case evaluation.

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