Is New York a No-Fault State for Auto Insurance?

New York is a no-fault state, so drivers involved in an accident each file a claim with their own car insurer, regardless of who’s at fault.

Anna Baluch
Written byAnna Baluch
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Anna BaluchInsurance Writer
  • 4+ years writing insurance and personal finance content

  • MBA from Roosevelt University

Anna leverages her personal finance and insurance knowledge to create educational content that helps people make smart financial decisions.

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Katie Powers
Edited byKatie Powers
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Katie PowersSenior Editor
  • Licensed auto and home insurance agent

  • 3+ years experience in insurance and personal finance editing

  • NPN: 20564519

Katie uses her knowledge and expertise as a licensed property and casualty agent in Massachusetts to help readers understand the complexities of insurance shopping.

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New York is a no-fault state for car insurance. This means New York drivers can file a claim with their own car insurance company, regardless of fault. The state also requires drivers to buy personal injury protection (PIP) coverage to help pay for medical expenses after an accident. For this reason, car insurance tends to be more expensive in New York and other no-fault states.[1]

Here’s what you should know about how fault works after an auto accident in New York.

New York is a ‘no-fault’ car insurance state

New York’s no-fault car insurance system requires drivers to carry PIP insurance. This allows both parties to file a claim with their car insurance company, regardless of who caused the car accident.

If you’re a driver in New York, your car insurance company may help cover the costs of medical bills, therapy, medications, rehab, and other healthcare expenses related to the accident. New York also requires uninsured motorist coverage, which can provide additional protection if an uninsured driver hits your vehicle or you have an injury from a hit-and-run accident.

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What are shared fault rules in New York?

In New York, you may be able to receive compensation even if you’re partially responsible for a car accident due to the state’s pure comparative negligence rule. But the amount of money you can recover will depend on your portion of the fault. For example, if the accident led to $50,000 in damages, and you’re 50% liable for it, you’ll likely receive $25,000.

The less responsible you are for an accident, the more money you may potentially collect from the other at-fault parties, and vice versa. Note that other states use a contributory negligence system that doesn’t allow victims to recover compensation for their losses if they’re liable for an accident — even if they’re only 1% to blame, for example.[2]

At-fault vs. no-fault car insurance

In a no-fault state like New York, car insurance companies pay claims for their own policyholders. But in an at-fault insurance or tort state, the insurer of the at-fault driver covers the cost of the other party’s property damage and injuries.[3]

Here’s a brief overview of how these two systems differ.

Insurance Factor
sort ascsort desc
At-Fault
sort ascsort desc
No-Fault
sort ascsort desc
Whose policy pays in case of an accident?The insurance company of the driver who caused the accidentYour insurer, regardless of who caused the accident
Can you sue the at-fault driver?Yes, if you sustain an injury after a car accidentIn most cases, you can’t but a few exceptions exist
Do drivers need PIP coverage?Most at-fault states don’t require PIP coverage but it may be optionalYes, no-fault states require PIP insurance to cover some or all of their medical expenses after an accident

The following 12 U.S. states currently operate under a no-fault system for car insurance:

  • Florida

  • Hawaii

  • Kansas

  • Kentucky

  • Massachusetts

  • Michigan

  • Minnesota

  • New Jersey

  • New York

  • North Dakota

  • Pennsylvania

  • Utah

Minimum car insurance requirements in New York

To drive legally in New York, you must at least have the following auto insurance coverages:

  • Bodily injury liability: Drivers need $25,000 per person ($50,000 for the death of one person) and $50,000 per accident ($100,000 for the death of two or more people) in bodily injury liability coverage.

  • Property damage liability: New Yorkers need $10,000 per accident in property damage liability coverage.

  • Personal injury protection: Drivers in the state need to carry $50,000 in PIP coverage per accident.

  • Uninsured motorist: In New York, drivers need uninsured motorist coverage in equal amounts to their liability coverage.[1]

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Optional car insurance coverages in New York

Depending on your vehicle and financial situation, you may want to buy additional coverage beyond the minimum coverage required in New York.

Here are a few optional coverages to consider:

  • illustration card https://a.storyblok.com/f/162273/150x150/0ee044afbd/car-and-driving-96x96-orange_039-car-accident.svg

    Collision coverage

    Collision insurance will allow you to receive compensation for damage to your car after an accident with another vehicle or object.

  • illustration card https://a.storyblok.com/f/162273/x/665da91bf7/comprehensive-coverage.svg

    Comprehensive coverage

    Comprehensive coverage can cover replacement or repair costs if your vehicle sustains damage due to a non-collision event, like theft or vandalism.

  • illustration card https://a.storyblok.com/f/162273/x/2d92436d68/protection-for-your-car.svg

    Gap coverage

    Gap insurance will cover the difference between your vehicle’s fair market value and what you owe on your car loan if you total your car or someone steals it.

  • illustration card https://a.storyblok.com/f/162273/150x150/951095b2b4/car-service-96x96-blue_014-tow-truck.svg

    Roadside assistance coverage

    Having roadside assistance coverage provides access to roadside services if you need them unexpectedly. For example, roadside assistance plans can include coverage for jump-starts, tire changes, fuel delivery, and more.

What to do in case of a car accident in New York

It’s important to know what to do in the event of a car accident. Understanding what steps you should take can make it easier for you to contact your local law enforcement and your insurance company and provide relevant information.

You can follow these steps after a car accident in the Empire State.

1. Seek medical attention if necessary

If you or a passenger has an injury from a car accident, it’s a good idea to receive a medical examination as soon as possible. This can occur at the scene of the incident or at a nearby hospital, depending on the severity of the injury. Even if you think you’re fine or your injury isn’t serious, medical care is essential, as it may take a few days for your symptoms to appear or fully develop.

2. Document the damage

Use your smartphone to take photos and videos of the accident scene and vehicle damage. The more evidence you have, the easier it’ll be for you to recover the fair and full compensation you may deserve.

3. Call the police

If the accident leads to an injury or death, New York law mandates that you call the police right away. But even if the accident doesn’t cause injuries, it’s in your best interest to contact the police. Law enforcement can file a police report that outlines the details of the accident. You may use this report to support your claim to your insurance company.

4. Reach out to your car insurance company and file a claim

Report the car accident to your insurance company as soon as possible, no matter who’s responsible. You can typically file a claim online or over the phone. While the claim process varies by car insurance company, you’ll likely need to share details about the accident and the other driver. For this reason, you should exchange information with the other driver.

5. Wait for your insurer

Lastly, your insurance company will review your claim and ask for further information if necessary. The insurance company will also distribute funds from your PIP coverage so you can pay for your medical expenses.

New York car insurance FAQs

The following information can help answer your remaining questions about no-fault car insurance in New York.

  • What if an at-fault driver is uninsured in New York?

    If an at-fault driver in New York is uninsured, you may file a lawsuit and recover compensation for their damages. You can also use your required uninsured motorist coverage to file a claim with your car insurer.

  • Is New York a 50/50 state in car accidents?

    No. New York isn’t a 50/50 state for car accidents. It follows a pure comparative negligence rule that can allow you to collect compensation, even if you’re partly or mostly responsible for the vehicle accident. Most states follow a different modified comparative negligence rule.

  • Will your New York car insurance rate go up if you’re not at fault in an accident?

    It’s possible. Your car insurance premiums may increase in New York even if you didn’t cause an accident. It depends on your insurance company and the particular circumstances of the accident.

  • Should you hire a lawyer after an accident in New York?

    It might make sense to hire a car accident lawyer following an accident in New York in some cases. For example, if an uninsured motorist hits your vehicle, you may want legal representation to help you receive compensation for medical bills and loss.

Sources

  1. New York State Department of Financial Services. "Minimum Auto Insurance Requirements."
  2. Progressive. "What's the difference between at-fault and no-fault accidents?."
  3. Insurance Information Institute. "Background on: No-fault auto insurance."
Anna Baluch
Anna BaluchInsurance Writer

Anna Baluch is a Cleveland-based personal finance and insurance expert. With an MBA from Roosevelt University, she enjoys writing educational content that helps people make smart financial decisions. Her work can be seen across the internet on many publications, including Freedom Debt Relief, Credit Karma, RateGenius, and the Balance. Connect with Anna on LinkedIn.

Anna has been a contributor at Insurify since December 2022.

Katie Powers
Edited byKatie PowersSenior Editor
Photo of an Insurify author
Katie PowersSenior Editor
  • Licensed auto and home insurance agent

  • 3+ years experience in insurance and personal finance editing

  • NPN: 20564519

Katie uses her knowledge and expertise as a licensed property and casualty agent in Massachusetts to help readers understand the complexities of insurance shopping.

Featured in

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