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What is the ‘No Fault Law’ for Auto Insurance in New York?

One clause of New York law for automobile insurance is No-Fault Law. This law was introduced so that insurance companies are ensured that they would pay for loss associated with the car accidents that may include medical expense, damaged property and cost recovery, regardless of who was to blame. This law helped in speeding compensation process without focusing on the facts and causes of accident. The government enacted this law to provide renters and insured party with the benefits of compensations.

The No-Fault is designed for New York States. This law benefits all the parties whether they are involved directly or indirectly. Insurance companies are made to drivers, uninsured motorists, passengers and pedestrians who get affected by the accident. The compensation can be up to $50,000 for the economic losses. But later in 2002, a revised version of insurance regulation had several traps for the consumers of insurance policy to which they could easily feel prey.

No Fault or Personal Injury Protection law promptly pays to the people involved in the accident, regardless of the who to blame, who was at fault, how much the economic loss done. The law regulates the insurance companies to pay for every expense that is required from medical expenses to damage recovery. The purpose of enacting this law was to restore the loss and damage done in any accident. It just pays for the personal injury and does not involve automobile repairing of your vehicle or repairing of other party damage. It is particularly associated with the health insurance that means it pays for the personal loss only and facilitates the medical expenses.

Under this law, the insurance company secures your economic losses. It provides protection to you and your family from the injuries sustained in any accident anywhere in United States. It provides coverage for the loss encountered by the passengers. This includes people from other States who are not resident of that area, in particular. To avail the assistance provided by this law, the person must not have any other vehicle insurance policy.

Basic No-Fault auto insurance coverage includes:

•             Reasonable medical expense in accordance to the fee schedule designed for No fault Law. The medical treatment provided must by those that are essentially required.

•             The lost can be recovered up to 80%, and up to $2,000 per month can be paid for three years from the date of accident. This helps in recovering the loss coincided in accident.

•             Up to $25 a day, for up to a year from the date of the accident, to reimburse other reasonable and necessary expenses,

•             $2,000 as death benefit (besides $50,000 for No-Fault limit) for the dead person.

Auto Insurance companies in New York need the proof of the money you have spent for accident related loss from your own pocket. You should have receipts of everything that you have done for reimbursing the loss and damage. Submit the photocopies to insurance company on weekly basis. Such expenses are often ignored by the company when it comes to compensate the loss as a result of accident and also if the loss requires No Fault Law benefits. To recoup your expense you have to counteract.

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