No fault insurance law New York operates under a common fault based
system. Insurance organization makes payments according to each
individual’s degree of fault in a specific motor vehicle accident. But
expensive and long court fights are always needed to determine who is at
fault in most of the accidents. In trying to lessen this issue, New
York have adopted a substitute no fault insurance law New York system.
If you have been involved in the accident under this system, the
insurance company will pay for your damages by not considering about
fault. In exchange for this definite payment, you should give up certain
rights to file a law suit on the other driver who involved in the
accident. There are some factors of no fault insurance law New York like
property damage and medical payment are normally paid without looking
This insurance system is aimed to decrease the car insurance premiums
through lowering the amount of car accident cases in the courts, through
limiting recovery for the damages and through offering limited amount
for losses. In a pure no fault system, the insurance company pay for the
damages like lost income, medical expenses etc up to the insurance
policy limit and you will be fully restricted from suing the other
driver for non economic damages. Currently no state operate under a pure
no fault method of insurance.
Most of the states have not using the no fault system with small
modification. It shows that the insurance company still pays the amount
for the economic damages to the policy limit and you may be permitted to
sue the other driver for the non economic damages when the damages
amount cross the particular tort threshold. It can be monetary, verbal
or both and it is made to limits sue to the serious damages. There are
plenty of benefits one you can get from no fault insurance law New York.
There will fast payment of claims through removing the time and
expensive consuming litigation on the liability.
There will not be any splitting charges with the attorneys. It reduces
the insurance rates due to the costly non economic damages rewards and
legal charges needed to defend the claims of liability are removed. No
fault insurance law New York decreases the amount of lawsuits in the
state, there are no subsidizing uninsured car owners, and the insurance
company covers the medical expenses. This system reduces a rate that is
car insurance is accessible to the people of reduced ways. There are
also some disadvantages one can see in the no fault insurance law New
There is no compensation for suffering or other non economic damages.
Bad drivers are protected on pure no fault insurance systems because
they cannot be sued and so there is no incentive. Under no fault
insurance law New York, the rates are costly and they are 25 percent
higher. There is no reduction in the litigation amount and no fault
states contain limits on liability and so people forced to pay for the
unpaid medical expenses.