In New York, if you’ve met with a car accident and are now looking to claim compensation for the damages suffered, insurance is your primary source of compensation. Your no-fault insurance coverage could very well be your salvation, which is why it is mandatory for all New York drivers to carry it as part of their auto insurance coverage. But what would happen if you don’t carry your no-fault insurance? In this post, the team at Gabriel Law will wear the hat of a car accident lawyer in the Bronx and explain everything you need to know about no-fault insurance, and the serious financial and legal consequences you can face without it.
What is no-fault insurance in New York?
New York is a no-fault state, meaning that insurance companies are required to compensate victims for any medical expenses, lost wages, and other related expenses that were the result of them being injured in a car accident. This compensation cannot be reduced or denied on account of a person’s fault in the accident; in other words, the person’s fault in the accident is irrelevant when receiving compensation.
No-fault insurance, in other words, Personal Injury Protection (PIP) insurance, is the type of insurance that facilitates these payments. In New York, an injured person must submit an insurance claim within 30 days of the accident and, in doing so, will be able to claim compensation up to $50,000. The damages that can be claimed through PIP insurance are strictly economical, as PIP insurance excludes coverage of non-economic damages such as pain and suffering and mental distress.
What is the penalty for not having no-fault insurance?
In New York, considering the importance of no-fault insurance, the state has made it a compulsory for all drivers to carry it with them at all times. If you operate a vehicle without proper no-fault insurance it can result in:
- Fines up to $1500
- The suspension of your drivers license and vehicle registration until proof of insurance is provided.
- The impounding of your vehicle
- Potential jail time for repeat or egregious offenses.
What are the financial implications of not having no-fault insurance?
Apart from the legal consequences we’ve mentioned above, there are serious financial ramifications for not having the proper no-fault insurance coverage.
Should you have the misfortune of meeting with an accident when not having no-fault insurance, you’ll have to personally bear all the responsibility for medical expenses and other relevant expenses, and you may not be able to recover any income or earnings lost during the recovery period. This can be a significant dent in your personal finances, and it will take quite a while for you to recover from it.
Following your accident, when you choose to renew your insurance, there is always the possibility that insurance companies can consider you a higher-risk driver and increase your insurance premiums. It’s unfortunate to be in a position where you have to pay more to receive the same benefits that another person receives for a lesser price.
Conclusion
While not having no-fault insurance in New York can have serious financial and legal ramifications, you should not let one mistake define your future. If you’re looking to move forward and need help with legal and insurance matters while building yourself up, the team at Gabriel Law is here to help. Contact us to schedule your free consultation with your car accident lawyer in Manhattan and experience unparalleled legal service like no other.
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