Short answer: yes. New York is one of about a dozen no-fault auto insurance states in the United States. That single fact changes almost everything about how you get paid after a car accident in New York — who covers your medical bills, how fast it happens, and whether you can sue the other driver.
What 'no-fault' actually means in New York
In a no-fault state, your own auto insurance pays for your medical treatment and lost wages after a crash — regardless of who caused it. You don't have to prove the other driver was at fault to get your bills covered.
In New York, this coverage is called PIP (Personal Injury Protection), and every registered vehicle is required to carry at least $50,000 of it. The point of the system is speed: get injured people treated and paid quickly, without waiting years for a fault determination.
What no-fault covers (and what it doesn't)
NY no-fault pays for reasonable and necessary medical expenses, 80% of lost wages up to $2,000 per month for up to 3 years, and a small daily allowance for other reasonable expenses like transportation to medical appointments.
It does NOT cover pain and suffering, property damage to your car, or injuries from motorcycle accidents. Those fall under different parts of NY insurance law.
Can you still sue the other driver?
Sometimes. New York lets you step outside the no-fault system and sue for pain and suffering only if your injury meets the state's 'serious injury threshold' — broken bones, significant disfigurement, permanent loss of use of a body organ, or being unable to perform daily activities for at least 90 of the first 180 days after the accident.
If your injury doesn't clear that bar, no-fault is the entire system you have access to.
Why this matters for arbitration
When an insurance carrier denies or underpays a no-fault claim — for example, after an Independent Medical Examination (IME) or a peer review — the dispute usually goes to AAA arbitration. That's where most no-fault fights actually get decided in New York, and where having a well-prepared file makes the biggest difference in the outcome.
Frequently Asked Questions
Is New York a no-fault state for car insurance?
Yes. New York requires every registered vehicle to carry at least $50,000 in no-fault Personal Injury Protection (PIP) coverage.
Does no-fault apply to motorcycles in NY?
No. Motorcycles are excluded from New York's no-fault law. Motorcycle accident claims follow traditional fault-based rules.
How long do I have to file a no-fault claim in New York?
You must file written notice (the NF-2 form) with the insurance carrier within 30 days of the accident. Medical providers must submit bills within 45 days of treatment.
Need expert help on your case?
Dealing with a no-fault denial or heading into arbitration? We help NYC law firms, providers, and billing companies prepare winning AAA arbitration files. Get in touch.
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