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- 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.
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.
NY state policy and have an accident out of state; can still pursue your no-fault remedy.
When Injured Party Can Collect Under No-Fault Policy
- Owner’s no-fault policy covers:
- --Other drivers;
- 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.
When Injured Party May Sue In Tort
P demonstrates injuries exceed statutory threshold. Two thresholds:
(i) Suffered “serious injury.” Includes
--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.)
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