How Does PIP Car Insurance Work in New York State?

New York drivers are required by law to carry personal injury protection insurance coverage (PIP). New York’s no-fault insurance laws require PIP insurance coverage. PIP insurance covers medical expenses. Drivers typically purchase PIP insurance as part of a comprehensive auto insurance policy. New York is a “no-fault” insurance state. No-fault insurance coverage compensates for the victim’s injuries, regardless of who was at fault for the car accident. Along with other “no-fault” states that require drivers to maintain PIP insurance, New York has its own set of special regulations and laws. Learn more about how our team at Stanley Law can help below.

What Does PIP Insurance Cover? 

All New York drivers must carry a certain minimum amount of PIP insurance. This type of insurance covers three main categories of expenses — economic losses, medical costs, and death benefits. Drivers must purchase at least $50,000 of PIP insurance. However, many drivers choose to purchase higher amounts of insurance coverage. The higher the amount you purchase, the greater the maximum amount of compensation you are entitled to recover through a PIP claim. 

You can purchase additional types of PIP insurance, which is often worthwhile. If you suffer a severe injury in a car accident, your expenses will likely be well over $50,000. For example, if you suffer a severely broken leg and require surgery, the surgery and rehabilitation could cost 

well over $100,000. If you receive certain public benefits, such as Social Security disability payments, disability payments from New York state, or certain types of wage continuation plans from your employer, the benefits you receive from PIP will be reduced accordingly. 

Who is Covered by My PIP Insurance? 

What happens if you are the driver in a car accident and do not become injured, but your passengers suffer serious injuries? In that case, your passengers have a right to file a claim for compensation through your PIP insurance benefits policy. The insured driver, any passengers who were riding in the vehicle at the time of the car accident, and the insured driver’s household members are all entitled to PIP benefits. PIP insurance coverage will also compensate you for injuries sustained in a car accident if you’re a pedestrian injured by an MTA train, subway, or bus. 

Medical Costs Covered by PIP Insurance in New York 

If you become injured in a car accident, you have a right to file a claim with your personal injury

protection insurance. Your insurance company must cover all of the following types of medical expenses, up to your policy limit: 

  • Medical services
  • Ambulance service
  • Treatment in accordance with a recognized religion
  • Diagnostic services, such as x-rays
  • Physical rehabilitative cost and psychiatric treatment
  • Surgical services
  • Hospital expenses
  • Dental services

Economic Costs Covered by PIP Insurance 

In addition to medical expenses, PIP insurance also covers other economic losses suffered by car accident victims. For example, if you cannot go to work due to your injuries, PIP insurance will cover your lost wages, up to $2,000 per month, or 80% of your monthly earnings, whatever amount is less. PIP insurance will only cover your lost wages for up to three years after your car accident and only up to the policy limit. For example, if you earn $5,000 per month, you will be entitled to $2,000 of lost wages per month until you reach your policy limit. 

Claimants are also entitled to $25 each day to take care of routine activities that they may no longer be able to do. The $25 per day is intended to pay for home maintenance and laundry services. It is wise to consider increasing the $50,000 PIP limit to $5,000 by purchasing basic economic loss insurance (OBEL), which is an optional addition to your plan. You can also increase additional PIP insurance if you are concerned about not being able to pay your bills should you become injured. 

PIP Death Benefits 

The third type of benefit provided by PIP insurance provides death benefits. The surviving family members of eligible insured New York drivers killed in a car accident are entitled to $2,000 to pay for their funeral and burial costs. Most states with no-fault insurance laws provide this benefit. 

Tips for Filing a PIP Claim in New York 

If you have been injured in a severe car accident, you are likely concerned about filing a claim. After all, obtaining compensation for your medical expenses and the economic costs associated with your car accident is crucial. You may not be able to return to work while you recover, and you need to be able to pay your bills. You have 45 days after you begin medical treatment to submit written proof to your insurance company regarding your medical costs. You will need to provide details about the type of injuries you have and the scope of treatment you have been receiving. 

You have a longer time frame to submit proof of lost earnings. If you’re unable to return to work due to your car accident injuries, you have 90 days to provide the insurance company with proof. We recommend submitting these claims as soon as possible. Your insurance company is not required to pay out benefits until they receive all of the forms from you. Keep in mind that the insurance company has a 30-day buffer period to pay you. They typically request that the injured individual submit more details or proof of their claims in some cases. 

The Benefits of Consulting With a New York Personal Injury Lawyer 

If you’ve been injured in a car accident, hiring a car accident lawyer is an excellent first step in obtaining the compensation you deserve. The experienced lawyers at Stanley Law Offices will help you navigate the process of filing a claim for PIP benefits. Contact us today to schedule your free initial consultation.