No-Fault Insurance

Front 1

What is No-Fault Insurance in NY?

Back 1

NY No Fault Insurance is a scheme designed to divert small stakes auto cases from the courts and let injured people have a simple and straightforward claim against an insurance company.

Front 2

How does no-fault insurance work?

Back 2

All injured parties in auto cases will simply look to their insurers. You don't need to prove fault, so even a faulty party can recover.

Front 3

What is the task on the bar with respect to no-fault insurance?

Back 3

Determine:
1) When you have a valid no-fault claim against your insurance company;
2) When your right to sue in negligence is barred
(These are mutually exclusive)

Front 4

What is the underlying assumption of the scheme?

Back 4

Doesn't work unless people have insurance; therefore, auto insurance in NY is mandatory.

Front 5

What types of insurance coverage do you need in NY?

Back 5

1) Liability coverage (for big accidents); and
2) No-fault coverage (for small accidents).

Front 6

What types of damages does no-fault scheme apply to?

Back 6

Only to personal injuries, NOT to property damage.
NOTE: can also have collision insurance for property damage, or you can bring a negligence claim for property damage.

Front 7

Who can claim a no-fault claim in a small accident?

Back 7

1) Owner of car;
2) Any other authorized driver's of driver's car;
3) Any passengers in driver's car;
4) Any pedestrian hit by driver.

Front 8

Who can NEVER claim no-fault?

Back 8

1) Drunk drivers;
2) People engaged in drag racing;
3) Car thieves and fleeing felons.

Front 9

What is the dividing line b/t big and small accidents?

Back 9

Either of two circumstances:
1) First, basic economic loss - if you have only basic economic loss, it's a no-fault claim and if you have more than that, you go to court.
2) Serious injury - defined qualitatively.

Front 10

What is basic economic loss?

Back 10

$50,000 or less.

Front 11

How is basic loss calculated?

Back 11

By adding together:
1) Medical expenses +
2) 80% of lost earnings to a maximum of $2000/month +
3) Miscellaneous charge of $25/day.
If sum is less than $50,000, you have a no-fault claim; but if it's more than $50,000, you can file a negligence claim.

Front 12

What does serious injury include?

Back 12

1) Death;
2) Dismemberment;
3) Significant disfigurement;
4) Serious fracture;
5) Total and permanent loss of a bodily organ or function.

Front 13

What do no-fault payments NOT include?

Back 13

No-fault payments do NOT include any payments for paind and suffering.

Front 14

Where does NY no fault insurance cover you?

Back 14

It is portable - it follows you whereever you go. So, if you are a NY party and you have an accident out of state, you will have a claim.