As New York is a state that requires drivers either provide proof that they can take financial responsibility in the event of a vehicle collision or purchase “No-Fault” insurance it is important to have an understanding of what this is. In essence, under this policy insurance companies must pay out the injured parties regardless of who is determined to be at fault for the accident. However, like any other policy of this sort, there are limitations and exclusions like if your injury is caused by driving under the influence or if you are driving a stolen vehicle. Here are three things that No Fault insurance will pay for:
Although your average fender bender will usually just leave you with a sore neck and an annoyed manager a serious car accident can leave you feeling lucky to be alive and prevent you from working for weeks, months, and even years. No-fault insurance in New York state will pay up to 80% of wages, up to $2,000 a month, for a limited amount of time. However, as many no-fault insurance policies will only cover up to the legally mandated minimum of $50,000 worth of expenses you should take into account your medical expenses before counting on lost wages payments for any extended period of time.
Hospital visits can be very expensive. In fact, unmanaged medical debt is the number one cause for bankruptcy filings in the United States. Therefore, in the event of a serious accident your first worry is likely to be your medical bills. No-fault insurance will pay for any “necessary expenses” incurred due to the accident. This includes not only the ambulance costs and hospital visit directly after the accident but any ongoing care that is needed after any acute issues are dealt with. This includes any extended nursing that is needed, as well as prosthetic devices, physical therapy, prescription medicines, and any specialist visits that are deemed necessary. For the most part the payment of medical expenses will last up to a year after the accident, but can be extended in extenuating circumstances.
Burial Expenses/Death Benefit
In a worst-case scenario, an accident resulting in the death of either the driver or a passenger, your no-fault insurance will pay towards expenses incurred because of the death. This will pay for any costs related to the handling of the body as well as burial and funeral costs. For sudden deaths, where no previous plans had been made by the deceased this can be a significant relief to their family and loved ones. No-fault insurance will also pay a $2,000 death benefit to the estate of the deceased which can be used towards other expenses incurred in the settling of their affairs
If you were involved in a collision and need help navigating your no-fault insurance claim contact us here and we will be more than happy to assist you.