New York No-Fault Insurance: What It Pays, What It Does Not, and How to File a Claim

New York no-fault insurance, also called Personal Injury Protection or PIP, pays eligible accident-related economic losses no matter who caused the crash. Basic coverage pays up to $50,000 per person for medical and rehabilitation expenses, 80% of lost earnings up to $2,000 per month for up to three years, and other reasonable expenses up to $25 per day for one year, plus a $2,000 death benefit, according to the New York Department of Financial Services (DFS) (opens in a new tab) and Insurance Law § 5102 (opens in a new tab). It does not repair your vehicle or pay for pain and suffering. Written notice generally has to reach the insurer within 30 days of the accident, so that is the first date to protect.

Do you need to file a no-fault claim even if the crash was not your fault?

Yes, because no-fault benefits are first-party benefits. They come from the insurer assigned by New York's priority rules, and nobody has to prove who caused the crash before they apply, according to the DFS no-fault FAQs (opens in a new tab) and Insurance Law § 5103 (opens in a new tab). The other driver does not pay your first medical bills.

The insurer to contact depends on your role. If you were driving or riding in a vehicle, the claim usually goes to the insurer covering that vehicle. If you were a pedestrian, it goes to the insurer of the vehicle that struck you. When the usual insurer is not available, a household policy, a bus insurer or the Motor Vehicle Accident Indemnification Corporation (MVAIC) may be the source, depending on the circumstances, as the DFS guide to filing claims under your own policy (opens in a new tab) explains.

What does the $50,000 basic economic-loss limit include?

The $50,000 is one combined limit per person, not a separate $50,000 for each category. Insurance Law § 5102 (opens in a new tab) defines what counts toward it:

• Medical and rehabilitation expenses. Necessary medical, hospital, surgical, nursing, dental, ambulance, X-ray, prescription-drug, prosthetic, psychiatric, physical-therapy, occupational-therapy and rehabilitation expenses, subject to statutory fee and treatment rules.
• Lost earnings. Up to $2,000 per month for no more than three years from the accident date. Benefits generally represent 80% of lost earnings because the statute deducts 20%, and offsets apply for items such as workers' compensation, disability benefits, Social Security disability and Medicare.
• Other reasonable and necessary expenses. Up to $25 per day for no more than one year, which can cover things like household help or transportation to treatment.

The $2,000 death benefit sits outside basic economic loss. Insurance Law § 5103(a)(4) (opens in a new tab) pays it to the estate of an eligible covered person in addition to basic economic loss.

Who is covered by New York no-fault insurance?

Coverage depends on your role and the vehicle involved, under Insurance Law § 5103 (opens in a new tab) and the DFS consumer guide (opens in a new tab).

• Drivers and passengers injured in a covered vehicle are generally covered for accidents arising from the use or operation of that vehicle in New York.
• Pedestrians injured by a motor vehicle generally file with the insurer of the vehicle that struck them.
• Named insureds and household members can have protection for certain accidents involving uninsured vehicles or vehicles outside New York, within the geographic limits in the statute and the policy.
• Bus passengers follow special priority rules. Their own auto policy or a household member's policy can provide benefits first, and the bus insurer can be responsible when no household policy applies.
• Motorcycle operators and passengers are generally excluded from ordinary first-party no-fault benefits. A pedestrian struck by a motorcycle can have a no-fault claim against the motorcycle's insurer, subject to the priority rules.
• People hit by an uninsured or unidentified vehicle can have a claim through a household auto policy or MVAIC.

Commercial vehicles follow the same statutory no-fault rules, though the policy terms and the source of the claim depend on the vehicle and the policy.

What does no-fault not cover?

No-fault is personal-injury coverage. It does not pay to repair your vehicle, to repair another vehicle or to replace other personal property, and it does not pay for pain and suffering. Those losses are handled separately, as the DFS consumer guide (opens in a new tab) and Insurance Law § 5104 (opens in a new tab) set out.

Who pays for car damage in New York?

Car damage runs through a separate claim. When the other driver is at fault, that driver's property-damage liability coverage can pay for damage to your car. Your own collision coverage can pay for damage to your vehicle from a collision, subject to the policy's terms and deductible. Comprehensive coverage handles specified non-collision losses such as theft, according to the DFS purchasing guide (opens in a new tab).

Report the vehicle damage on its own, even if your no-fault claim is already open. If your car is financed, ask your lender what physical-damage coverage the loan requires.

How quickly must you report a New York no-fault claim?

Written notice has to be given as soon as reasonably practicable and no later than 30 days after the accident, per the DFS no-fault FAQs (opens in a new tab) and 11 NYCRR Part 65 (Regulation 68) (opens in a new tab). A late notice can be excused when you submit written proof that gives a clear and reasonable justification, so a missed 30-day window does not automatically end the claim.

After it receives notice, the insurer generally sends the NF-2, the prescribed application for motor vehicle no-fault benefits, unless it will pay the claim as submitted. Regulation 68 also lists the supporting forms you may see: the NF-3 provider verification, the NF-6 employer wage verification, the NF-7 self-employment income verification and the NF-10 denial of claim, among others. The full set is on the DFS no-fault forms page (opens in a new tab).

The prescribed claim materials set the next deadlines:

• Health-care bills generally go in within 45 days after treatment.
• Lost-earnings claims generally go in within 90 days after the loss is incurred.
• Other reasonable and necessary expenses generally go in within 90 days.

The form materials also contain older or policy-specific language about returning the NF-2, so follow the current form and the insurer's instructions for your policy. If you miss a deadline, a late submission can still be accepted when you send the insurer a written explanation with supporting records.

What happens after you submit the claim?

The insurer may ask for verification, such as provider forms, wage records or an examination. Once it has proof of claim, it generally has 30 calendar days to pay or deny, under Insurance Law § 5106 (opens in a new tab) and 11 NYCRR § 65-3.8 (opens in a new tab). Overdue benefits generally earn interest at 2% per month under § 5106(a). An insurer can pay part of a claim and deny the rest.

If benefits are denied or delayed, you can complain to DFS, request no-fault arbitration or bring a court action. Arbitration is available when the insurer denies all or part of a claim, pays late or never issues a timely denial. The DFS filing guide (opens in a new tab) describes it as a fast process whose results are final and binding except on limited grounds of review. The prescribed arbitration request form (opens in a new tab) names the American Arbitration Association as the starting point. Your request generally includes the NF-10 denial or the approved request form, your reasons for contesting the decision, and a detailed list and calculation of the disputed expenses, with a copy sent to the insurer.

What are OBEL and additional PIP?

Both are optional coverages you buy on top of basic no-fault. Additional PIP provides benefits above the basic amount under your policy, and it can be used after basic benefits are exhausted, according to the DFS no-fault FAQs (opens in a new tab). Its amount and scope depend on the endorsement you selected.

OBEL stands for Optional Basic Economic Loss. Regulation 68 (opens in a new tab) describes it as an additional $25,000 that sits above the basic $50,000. When OBEL is available and basic benefits are likely to run out, you can choose where the extra amount applies: basic economic loss generally, lost earnings, therapy and rehabilitation, or a combination of lost earnings and therapy or rehabilitation. Neither coverage extends the three-year limit on lost-earnings benefits.

When can an injured person sue for non-economic loss?

Insurance Law § 5104(a) (opens in a new tab) bars recovery for non-economic loss, such as pain and suffering, in an action between covered persons over a New York motor vehicle accident, unless the person suffered a serious injury. Basic economic loss is not subject to that bar. No liability for non-economic loss is fixed until the trier of fact decides that a serious injury exists, and under the current statute the trier of fact decides fault before deciding whether the injury is serious.

Insurance Law § 5102(d) (opens in a new tab) defines serious injury as a personal injury that results in:

• death;
• dismemberment;
• significant disfigurement;
• a fracture;
• loss of a fetus;
• permanent loss of use of a body organ, member, function or system;
• permanent consequential limitation of use of a body organ or member; or
• significant limitation of use of a body function or system.

The 2026 amendments took effect May 26, 2026 and removed the former category covering inability to perform substantially all customary daily activities for at least 90 of the first 180 days, according to DFS Circular Letter No. 3 (2026) (opens in a new tab). That is statutory language, not a judgment about any particular injury. A lawyer can tell you whether your facts meet the definition.

Can a not-at-fault accident raise your premium?

A driver who was 100% not at fault cannot be surcharged for a no-fault injury, according to DFS Opinion No. 07-01-07 (opens in a new tab). Surcharges are permitted for specified at-fault accidents involving bodily injury or property damage above $2,000 and for certain traffic convictions, per the DFS automobile FAQ (opens in a new tab) and 11 NYCRR § 169.1 (opens in a new tab). The amount of a no-fault payment is not the basis for a surcharge.

Your premium can still move for other reasons, such as the insurer's rating, renewal, territory, vehicle and driving-record rules. Ask your insurer how its filed rating plan treats your specific accident.

What happens if your insurance lapses?

New York requires the minimum no-fault coverage as part of its financial-responsibility system for covered vehicles. A lapse in coverage can bring DMV consequences, including civil penalties of $8 per day for days 1 to 30, $10 per day for days 31 to 60 and $12 per day for days 61 to 90, according to the New York DMV (opens in a new tab). The DMV's insurance lapse page (opens in a new tab) lists the current lapse and suspension procedures. For the full set of coverage minimums, see our guide to New York car insurance requirements.

Questions to ask an agent, broker or insurer

When you buy or review a policy, these questions get you specific answers, based on the DFS purchasing guide (opens in a new tab) and the NAIC consumer guide to auto insurance (opens in a new tab):

• Is the basic economic-loss limit $50,000 per person, and what are the policy's limits for lost earnings and other expenses?
• Are additional PIP or OBEL available, and how is OBEL allocated?
• Which household members and passengers are covered?
• What happens if the accident occurs outside New York, or involves a bus, rideshare or commercial vehicle?
• Does the policy treat motorcycle occupants differently?
• How do I submit medical bills, wage-loss claims and other expenses, and what are the insurer's claim-reporting instructions?
• How does the insurer handle a not-at-fault accident, and what is its surcharge policy?
• Which coverage handles damage to my vehicle, and which handles damage my vehicle causes to someone else's property?
• What are the collision and comprehensive deductibles, and what will my lender require?
• Is the agent or insurer licensed in New York?

If you would like to talk these through with someone local, our agency directory is a place to start. A Connecticut agency is not necessarily licensed for New York products, so confirm that with the agency before you share policy details.

Claim checklist

Use this list in the first weeks after an accident:

• Write down the accident date, location, vehicles, occupants and injuries.
• Identify the insurer covering the vehicle you occupied, or the vehicle that struck you if you were a pedestrian.
• Give written notice as soon as reasonably practicable, and within 30 days when you can.
• Complete and return the NF-2.
• Keep copies of the NF-2, NF-3, NF-6, NF-7, bills, wage records and all correspondence.
• Submit medical bills within 45 days of treatment and lost-earnings and other expense claims within 90 days.
• Provide employer or self-employment verification for wage-loss claims, and answer verification requests.
• Review any NF-10 denial, and consider a DFS complaint or no-fault arbitration if benefits are denied or delayed.
• File a separate vehicle-damage claim under property-damage liability or collision coverage.

For the general claim process beyond no-fault, read how to file a car insurance claim, and see whether personal injury protection is worth it for a broader look at PIP outside New York's specific rules.

FAQ

Is New York still a no-fault state?

Yes. New York requires no-fault Personal Injury Protection on covered vehicles, and basic economic loss is up to $50,000 per person under Insurance Law § 5102 (opens in a new tab). You can still sue for non-economic loss when the injury meets the serious-injury definition in § 5102(d).

Who pays for car damage in a no-fault state like New York?

No-fault does not pay for vehicle damage. The at-fault driver's property-damage liability coverage or your own collision coverage handles it, subject to policy terms and your deductible.

Are motorcycle riders covered?

Motorcycle operators and passengers are generally excluded from ordinary first-party no-fault benefits under Insurance Law § 5103 (opens in a new tab). A pedestrian struck by a motorcycle is treated under different priority rules and can claim against the motorcycle's insurer.

Does my insurance go up after a claim that was not my fault?

Not for the no-fault injury, if you were 100% not at fault, according to DFS (opens in a new tab). Other rating rules can still affect your renewal, so ask your insurer how it treats your accident.

Does no-fault pay lost wages?

Yes, at 80% of lost earnings up to $2,000 per month for up to three years, subject to statutory offsets. Your employer or, if you are self-employed, you will need to complete the wage verification form for the insurer.