What Is A No-Fault Insurance Claim and How Does The Process Work?
In order to legally drive, you need to register your vehicle with the state. It’s the only way to get on the road. And in order to register your vehicle, you’ll need to provide proof of insurance and financial responsibility in the event of an accident. Some states follow a no-fault model of insurance coverage. Under a no-fault model, drivers rely on their insurer to receive compensation for their accident-related costs, but there’s one key difference under the no-fault model than with regular insurance claims.
The no-fault law is structured so that the insurance company is responsible for paying out economic losses to anyone injured in the car accident--no matter who is determined to be at fault. Anyone who was injured in the car accident can apply for benefits under the no-fault policy, without needing to prove the other party’s negligence. This structure is intended to streamline injury claims, reduce time to payment and ultimately aid the injured faster and with less hassle.
As with any rule, there are some exclusions and limitations to these benefits. In some cases, injured plaintiffs can also initiate a personal injury claim against the person who is at fault for the accident for additional financial compensation for pain & suffering. Unfortunately the personal injury process can be long and time-consuming, and you may be kept waiting several months or even a year for your settlement.
If you cannot afford to wait after a car accident, apply for pre-settlement funding with Bridgeway Legal Funding and buy the time you and your attorney need in order to fight for the full settlement you deserve.
Is New York A No-Fault Insurance State?
Yes, New York is a no-fault insurance state. Because of this, New York state requires that all drivers carry no-fault car insurance with at least $50,000 worth of coverage for each person injured in the accident. These benefits are also sometimes referred to as personal injury protection (PIP) or “medical benefits” coverage. Refer to the New York State Department of Financial Services for frequently asked questions about this type of insurance coverage.
Who Can Receive No-Fault Benefits?
Under New York’s No-Fault system, those covered and eligible for benefits are:
- Owner & named insured of the car
- All passengers in the car
- Any member of the insured’s household if injured as a pedestrian
- Those injured in an accident where the at-fault did not have insurance
Who Cannot Receive No-Fault Benefits?
- Motorcycle riders & passengers
- Drivers without their own insurance
- Those who intentionally cause their own injury
- Drivers who are intoxicated or under the influence of a controlled substance
- Driving or passenger in a stolen car or in the act of committing a felony
- Non-residents of New York
What Kind Of Benefits Can I Receive From A No-Fault Insurance Claim?
Since New York is a no-fault state, as an accident victim, you are eligible to receive benefits that cover the cost of the following expenses:
- Medical treatment (including psychiatric, dental, physical therapy and more)
- Prescription drugs
- Ambulance and emergency room costs
- Lost wages (benefit pays 80% of your wages, not taxable)
- Funeral costs
- Reasonable expenses related to the accident (travel to medical appointments, home health care)
No-fault benefits are available to injured motorists typically for 1 year after your accident but can also be extended in certain circumstances. However, benefits can be closed or cut-off if the injured party fails to appear for appointments or timely respond to information requests.
As you can imagine, getting these benefits is crucial to recovering from your accident. You should not have to be burdened with these increasingly high expenses after an accident. After you file for no-fault benefits, however, remember that you could be waiting quite a while for that money. Your best option for a fast recovery (and to get cash in your hand faster) is to contact Bridgeway Legal Funding to apply for a non-recourse cash advance (sometimes referred to as a lawsuit loan or pre-settlement funding). We can help you get an advance on your settlement money so you’re not stuck paying out of pocket while you wait for compensation.
Get the cash you need now after your car accident from Bridgeway Legal Funding.
A pre-settlement advance or “lawsuit loan” from Bridgeway can generally get you 10-20% of your future settlement value now and you only have to pay the money back if you win your case.
After a bad accident, you need time and money to recover. If you have been waiting too long to get the money you need & move on after an accident in New York, apply for a cash advance now with our team at Bridgeway Legal Funding.