Many people involved in car accidents know that they have no fault insurance, but have no idea what it actually means.
What Is It?
No fault insurance, also known as a “first party benefit,” is insurance to cover your basic economic losses immediately after an accident regardless of fault. Most insurance policies in New York cover up to $50,000.00 in no-fault coverage. No fault will pay for your medical expenses, lost wages and most out of pocket expenses related to an accident.
Almost anyone involved in a car accident will qualify for no-fault coverage. However, it is important to understand which vehicle covers this benefit for you.
Here are some examples:
- If you are a driver, your vehicle will pay your no-fault benefits.
- If you are a passenger-The vehicle you occupied will cover your no-fault benefits
- If you are a bicyclist or pedestrian-The vehicle that struck you will pay for your no-fault benefits.
Motorcyclists generally are not covered by no-fault insurance unless they opt for special coverage on their own insurance policy.
Is Your Entire Salary Covered?
No. Most policies in New York will pay up to 80% of your lost wages, not to exceed $2,000 per month. You also will need to apply for short term disability through your employer to cover additional lost wages.
Most insurance companies will give you the option to purchase supplemental coverage.
The Strict Thirty Day Deadline
In order to receive no-fault benefits, you must apply for them within 30 days of the accident. This is done by filing a form called an NF2. If you do not file this form timely, you are in danger of forfeiting your no-fault benefits.