New York No-Fault Auto Insurance Laws and Regulations
Last Updated on January 22, 2026
No-fault auto insurance (also called Personal Injury Protection, or PIP) is the part of a New York auto policy that pays certain injury-related costs after a crash—regardless of who caused it. Because it’s required for most registered vehicles, it’s a key piece of New York’s auto insurance laws and minimum requirements.
Important: This guide is general educational information, not legal advice. Rules and coverage details can vary by policy, and deadlines may have limited exceptions for good cause.
At a Glance
- $50,000 Basic PIP: New York no-fault generally provides up to $50,000 per person for “basic economic loss,” not vehicle repairs.
- Wage And Expense Caps: Lost earnings are commonly paid at 80% up to $2,000/month (up to 3 years), plus up to $25/day for other expenses (up to 1 year).
- Deadlines Matter: Many policies require notice within 30 days, medical bills within 45 days of treatment, and wage/expense claims within 90 days.
- Lawsuits Are Limited: Pain and suffering claims usually require meeting New York’s “serious injury” threshold or exceeding basic economic loss.
- How New York No-Fault Insurance Works
- When New York’s No-Fault Law Took Effect
- Basic No-Fault Benefits and Minimum Limits
- Who Is Usually Covered by No-Fault in New York?
- Key No-Fault Deadlines and Required Paperwork
- When Can You Sue Outside the No-Fault System?
- Avoiding Delays, Denials, and Fraud Red Flags
- How No-Fault Interacts With Other Coverages
- Choosing Coverage That Fits Your Risk
- References and Official Resources
- FAQs on New York No-Fault Auto Insurance
How New York No-Fault Insurance Works
New York’s no-fault system was designed to get medical bills and wage-loss benefits paid faster by reducing “who was at fault” fights for many routine injury claims. In most cases, you turn first to no-fault/PIP for “basic economic loss,” while liability insurance handles injuries you cause to others and other types of damage.
No-fault generally does not pay for vehicle repairs (that’s typically collision coverage) or pain and suffering (non-economic loss). Those issues are usually handled through other coverages or, in limited situations, a lawsuit (covered below).
When New York’s No-Fault Law Took Effect
The modern New York no-fault system became effective in the 1970s (the Comprehensive Motor Vehicle Insurance Reparations Act took effect on February 1, 1974). Since then, the New York Department of Financial Services (DFS) has updated regulations and claim-processing timelines to reduce delays and address fraud.
Basic No-Fault Benefits and Minimum Limits
New York law defines “basic economic loss” as up to $50,000 per person in combined benefits. This is why you’ll often see New York no-fault described as “$50,000 PIP.”
No-Fault Benefits and Limits at a Glance
| Benefit Type | What It Helps Pay For | Typical Basic Limit |
|---|---|---|
| Medical and Health Services | Necessary treatment related to the crash (subject to NY fee schedules and policy rules) | Part of the $50,000 combined limit |
| Work Loss (Lost Earnings) | Wage loss from inability to work due to crash injuries | 80% of lost earnings, up to $2,000/month, for up to 3 years |
| Other Reasonable Expenses | Transportation to treatment, household help, and similar out-of-pocket needs | Up to $25/day, for up to 1 year |
| Death Benefit | Payable to the estate of a covered person (separate from basic economic loss) | $2,000 |
Why the “80%” matters: New York’s statute reduces lost-earnings benefits by 20%, which is commonly explained as accounting for payroll taxes and withholdings. In practical terms, many claimants receive up to 80% of gross wages (subject to the monthly cap).
Optional higher limits: Many insurers offer additional PIP options (including Optional Basic Economic Loss coverage) that can extend benefits above the basic $50,000. If you’re shopping for coverage, compare add-on PIP options alongside price and service (see our roundup of best auto insurance companies).
Quick tip: Open a no-fault claim promptly even if you believe the other driver is 100% at fault—PIP deadlines are separate from liability claims.
Who Is Usually Covered by No-Fault in New York?
Eligibility depends on your role in the crash, the vehicle involved, and policy details. In many crashes, no-fault benefits are available to drivers and passengers of an insured vehicle, and to pedestrians or cyclists struck by an insured vehicle.
Eligibility Snapshot
| Situation | Usually Eligible for No-Fault? | Notes |
|---|---|---|
| Driver or Passenger in an Insured Car | Yes | Benefits are for injury-related economic loss, not vehicle repairs. |
| Pedestrian or Cyclist Hit by an Insured Car | Often | Coverage details can vary by how the crash is reported and which policy is primary. See more on claims involving pedestrians. |
| Passenger in a Taxi, Bus, or For-Hire Vehicle | Often | Claims can involve multiple policies; document the vehicle information carefully (including medallion/plate). Related: NYC taxi basics. |
| Motorcyclist (While Riding) | Usually No | New York’s no-fault statute excludes occupants of motorcycles from first-party benefits in most circumstances. |
| Operating Your Own Uninsured Vehicle | Often No | Driving uninsured can lead to coverage problems and penalties. Learn more about uninsured driving penalties. |
| Impaired/Intoxicated Driver | Maybe Limited | Policies may exclude benefits when intoxication contributed to the crash, with an important exception for necessary emergency hospital services. |
If your crash involves uninsured driving, it’s worth reviewing what happens after an accident without insurance, since coverage and recovery options can change quickly depending on the facts.
If you have questions about how wage-loss documentation works, see our guide to car insurance and lost wages.
Key No-Fault Deadlines and Required Paperwork
No-fault claims are deadline-driven. Missing time limits can trigger delays or denials—especially if you can’t show a good reason for the late submission. As a practical matter, treat these as “hard” deadlines and keep proof of mailing or submission.
Common No-Fault Time Limits
| Step | Typical Deadline | What to Do |
|---|---|---|
| Submit Written Notice of Claim (often via NF-2) | Within 30 days of the accident | Notify the correct insurer and keep confirmation of delivery. |
| Submit Health Care Bills | Within 45 days of treatment (commonly submitted by providers) | Ask providers how and when they bill no-fault; request copies for your records. See how car insurance pays for medical bills. |
| Submit Wage Loss and Other Expense Claims | Within 90 days | Provide employer verification and paystubs; keep receipts for transportation/household help. |
| Insurer Payment Timing After Proof Is Supplied | Generally due within 30 days after proof of loss is provided | If benefits are overdue, interest may apply and dispute options may be available. |
Forms: The starting point for many claims is the Application for Motor Vehicle No-Fault Benefits (the NF-2 form). If you don’t receive it quickly, request it directly from the insurer handling the claim.
Quick tip: Keep a single folder (digital or paper) with your crash report, NF-2, medical notes, mileage/transport receipts, and wage verification—missing documentation is a common reason claims get delayed.
When Can You Sue Outside the No-Fault System?
No-fault limits lawsuits for pain and suffering (non-economic loss). In New York, you generally need to meet the legal “serious injury” threshold to pursue non-economic damages in a car accident lawsuit. The law also allows claims above $50,000 when basic economic loss is exceeded and other requirements are met.
Examples of “serious injury” categories in the statute include (among others) fracture, significant disfigurement, permanent loss of use, and a medically determined injury that prevents you from performing substantially all of your usual activities for a significant period of time.
Avoiding Delays, Denials, and Fraud Red Flags
No-fault insurers routinely verify treatment and wage-loss claims, and they may require additional documentation. Missed appointments or incomplete paperwork can lead to benefit suspensions or denials. If you’re dealing with a denial, start with a clear timeline, copies of submissions, and the insurer’s stated reasons (see what to do when a car insurance claim is denied).
Fraud in the no-fault system can drive scrutiny and delays. If your claim feels stuck, ask (in writing) what specific documentation is needed, and keep a log of every call and letter (related reading: insurance fraud trends).
How No-Fault Interacts With Other Coverages
No-fault is just one part of a New York policy. Depending on your policy and situation, other coverages may also matter—especially if you hit the $50,000 limit, have passengers with significant injuries, or you’re in a category that may not qualify for no-fault (such as many motorcycle scenarios). If you carry it, Medical Payments (MedPay) coverage may help in some cases, and health insurance may also coordinate with certain medical costs.
Choosing Coverage That Fits Your Risk
Price matters—but so do claim service, optional PIP limits, deductibles, and how an insurer handles disputes. If you’re comparing premiums, use a short list of carriers and confirm you’re comparing the same coverages and limits (start here: cheapest auto insurance companies in New York).
References and Official Resources
- NY Department of Financial Services: No-Fault Consumer FAQs
- NY Insurance Law § 5102 (Definitions / Basic Economic Loss)
- NY Insurance Law § 5103 (Entitlement to First-Party Benefits)
- NY Insurance Law § 5104 (Limits on Lawsuits / Serious Injury Threshold)
- NY Insurance Law § 5106 (Claim Payment Timing, Interest, Arbitration)
Safety note: Driving impaired can affect both coverage and legal exposure. For background on DUI in New York, see New York DMV drunk driving rules.
