No-Fault Insurance

• No fault insurance scheme is designed to divert relatively small-stakes auto accident cases from the negligence system.
• --Rather than litigating against the other insurance company, you just go to your own insurance company.
• --Can recover whether a one- or two-car accident, regardless of negligence.

Car specific. If a two car accident, all parties look to the policy applicable to their own car (or the car they were riding, etc).

• Covers personal injury costs.
• --Not damage to car (but you can go after other insurer for that).
• --Compensatory only. Never includes pain and suffering.

Portable. NY state policy and have an accident out of state; can still pursue your no-fault remedy.

• Owner’s no-fault policy covers:
• --Owner;
• --Other drivers;
• --Passengers;
• --Pedestrians.

• Does not cover:
• --Drunk drivers;
• --Drag racers;
• --Car thieves;
• --Fleeing felons.

Can collect under no-fault to the max of the policy limit. Minimum no-fault policy is $50k.

P demonstrates injuries exceed statutory threshold. Two thresholds:

(i) Suffered “serious injury.” Includes

--Death;

--Dismemberment;

--Significant disfigurement;

--Serious fracture;

--Permanent and total loss of a bodily organ or bodily function.

(ii) Damages in excess of “basic economic loss”

--= sum of medical expenses + lost income (to max of $2k/mo) + $25/day.

--The sum must be higher than $50k.

(Suing doesn’t mean you waive your right to access the no-fault policy proceeds.)