No-Fault Insurance

What is No Fault Insurance?

* Scheme designed to divert small stakes automobile accidents from the courts. Injured parties in minor auto accidents will look to their insurers. Don't need to prove fault. Then are barred from litigating for personal injury. 1) If No Fault applies, suit for negligence is barred! 2) To own a car in NY, you must have two kinds of automobile INSURANCE (mandatory): -Liability insurance: $25,000 per person and $50,000 per occurrence minimum. -No Fault insurance: $50,000 policy minimum.

when are you still permitted to go to court despite no-fault statute?

* if you can demonstrate that your injuries exceed a statutory threshold. Two ways: 1) you can sue if you have more than "basic economic loss" -mathematical calculation: if (medical expenses + 80% of lost wages up to $2000/month + $25/day) is more than $50,000 for the course of a year, the injured can bring a lawsuit. 2) you can bring a claim if you have a "serious injury" -death -dismemberment/amputation -significant disfigurement -fracture or broken bone -loss of a fetus -permanent loss of a bodily organ -permanent consequential limitation on the use of either a limb or a bodily organ -non-permanent injury which prevents you from performing all of your usual activities for a period of more than 90 days *if you have any of these, you can sue, but your ability to sue is no good unless it is a multi-party accident, and the other part can be shown to be negligent

Who has a claim?

*Can recover even if you are at fault (but must have insurance). The following have a claim against the car owner's no-fault insurance: (1) The owner; (2) Authorized drivers; (3) Passengers; (4) Pedestrians hit by the car.

Miscellaneous Attributes

*Only applies to personal injury (medical bills). Does not apply to damage to the car—if car is banged up, you must get collision insurance or sue in negligence. 1) if you have a NY policy, you can get benefits even if the accident does not happen in NY 2) SOL: beings to run on the date of the accident, not when plaintiff discovers his injuries.

What do you get if you are injured?

1) Basic economic loss → covered by no fault. (More than basic economic loss → negligence suit) 2) Assuming you are entitled, you get: -you cannot get more than your policy limit -medical expenses (as little or as much as they may be) -lost wages (but capped in two ways: you can't get more than $2000/month, and the benefit only continues for 3 years) -you get NOTHING for pain and suffering. 2) Serious injury: includes death, dismemberment, significant disfigurement, serious fracture, or total and permanent of a bodily organ or function → skip no fault and go to a negligence suit.

Who does NOT have a claim?

1) Drunk drivers; (2) Drag racing/speed test; (3) Car thieves and fleeing felons.