No Fault Insurance

Question 1

What is no-fault insurance?

Answer 1

It is compulsory in NY - the insured must purchase insurance with both the required liability coverage and the required no fault provisions. You cannot complete registration of your car without it.

Question 2

Who are covered persons?

Answer 2

This includes persons injured by the insured owner’s vehicle. These include the owner, operator, or occupants of the insured’s auto; pedestrians hit by the insured’s auto; and any other persons entitled first-party benefits.

Question 3

What is included in first party benefits? What is not included?

Answer 3

Covers basic economic loss - which includes medical expenses, lost earnings, and non-income producing expenses.

Limited loss incurred because of death - only includes a small benefit of $2000 for the estate of any covered person.

It does not cover non-economic loss (e.g. pain and suffering).