New York is a “no-fault” insurance state. This means that when someone gets injured in a car accident, they can file a claim with their own insurance provider to seek compensation for their injuries, regardless of who was at fault. This insurance benefit is known as Personal Injury Protection (PIP).
What does PIP insurance cover?
In New York State, most types of motor vehicles are mandated to carry PIP insurance. The standard PIP coverage for basic economic losses is $50,000 per person.
Here are four types of damage that standard PIP insurance can cover:
- Medical costs: This covers all reasonable medical expenses — up to a certain limit. Five common examples include ambulance services, medical treatments, hospital stays, surgical costs and prescription medications.
- Lost wages: If the accident has caused you a temporary disability, it can provide compensation for your wage loss and may last for up to three years from the date of your crash. If you are self-employed, your PIP benefit can pay for your lost income.
- Replacement services: You can also use your PIP benefit to avail household cleaning services and/or childcare while you are in recovery.
- Funeral expenses: PIP insurance also offers a death benefit of $2,000, payable to the estate of the deceased.
You may also enhance your PIP coverage through Additional Personal Injury Protection (APIP) or Optional Basic Economic Loss (OBEL). These options help provide additional financial support in the event of a serious car crash.
Are there limitations?
While the state follows “no-fault” insurance laws, there are certain factors that can make a car accident not eligible for PIP benefits. Three factors include:
- When the driver is under the influence of alcohol or drugs
- When the driver is committing a felony
- When the driver is using a stolen car
To help ensure that your claims process is smooth, you must inform your insurance company about your crash within 30 days from the day it happened. If you miss this period, it can cause the denial of your PIP claim.
Your path to recovery should be easy
By availing a PIP insurance policy and understanding how it works, you can receive prompt medical care for your crash injuries without worrying about proving fault; helping you become more at ease while you focus on your recovery.