New York settles the question of who pays differently than most states, and after a crash that difference decides what you can collect and from whom. The short version: New York is a no-fault state. Your own insurer pays your medical bills and part of your lost wages first, no matter who caused the crash, and you can only sue the other driver for pain and suffering if your injury clears a bar set by statute.1 Here is how each piece works in New York, with the numbers and deadlines that decide most claims.
Your own insurer pays first
Every New York auto policy carries no-fault coverage, formally called personal injury protection, or PIP. It pays up to $50,000 per person for a crash, regardless of who was at fault.23 That $50,000 covers medical treatment with no time limit as long as the need is documented, lost earnings, and other necessary costs like transportation to appointments.2
Lost earnings are paid at 80% of what you would have made, because of a 20% statutory offset, up to $2,000 a month, for as long as three years from the crash.24 Other reasonable expenses are covered at $25 a day for up to a year.2 If you're out of work a long time or your bills are large, the basic $50,000 can run out, which is why many drivers buy additional PIP coverage on top of it.
The hard part of no-fault is the deadlines, and they're short. Under Regulation 68, you have to give your insurer written notice of the claim within 30 days of the accident.4 Medical bills have to reach the insurer within 45 days of treatment, and lost-wage claims within 90 days.4 Miss those windows without a good excuse and the insurer can deny benefits you would otherwise be owed. File the no-fault application quickly.
When you can sue the other driver
No-fault pays your basic costs, but it doesn't pay for pain and suffering, and it doesn't let you pursue the at-fault driver for those damages unless you meet the serious injury threshold in Insurance Law 5102(d).12
New York defines serious injury narrowly. It means an injury that results in death; dismemberment; significant disfigurement; a bone fracture; loss of a fetus; permanent loss of use of a body organ, member, function or system; permanent consequential limitation of use of a body organ or member; significant limitation of use of a body function or system; or a non-permanent injury that keeps you from performing substantially all of your usual daily activities for at least 90 of the 180 days right after the crash.2 That last category, the 90/180 rule, is one of the most heavily litigated parts of New York injury law, and whether soft-tissue injuries qualify is often the entire dispute.
Clear the threshold and you can sue for pain and suffering. Economic losses above what no-fault paid, like wages over the $2,000 monthly cap, can be pursued against the at-fault driver either way, but non-economic damages depend on 5102(d).1
How New York divides fault, and a 2026 change
Once you can sue, New York asks how much of the crash was your fault. For decades the rule was pure comparative negligence: your damages drop by your share of fault, but you recover something even if you were 99% to blame.5 That's still the rule for property damage claims, wrongful death claims, and every case that isn't a motor vehicle injury.5
Motor vehicle injury claims changed in 2026. A tort reform law (L.2026, ch. 58, Part EE) added CPLR 1411(b), a modified comparative negligence rule for personal injury claims under Article 51.5 Now, if your share of fault is greater than the other driver's, or greater than the combined fault of all the defendants, you recover nothing. At 50% or less you still recover, reduced by your percentage.5 A driver found 40% at fault with $100,000 in damages collects $60,000; a driver found 55% at fault collects nothing. The change took effect May 26, 2026.
Because fault now decides whether you recover at all, documentation matters more than it used to. The police report, photos, and witness names can be the difference between 49% and 51%. New York requires a crash to be reported to the DMV when anyone is injured or killed, or when property damage tops $1,000, and the report is due within 10 days.6 You can request New York crash reports through thatcarhitme.com's New York crash report page.
A new cap on damages for some at-fault drivers
The same 2026 reform added Insurance Law 5104(d), a $100,000 cap on non-economic damages. It's narrow. It applies only to an injured person who was at fault and who, at the time of the crash, was driving uninsured (with an exception for a coverage lapse under 30 days), was convicted of driving while impaired, or was committing or fleeing a felony.1 It doesn't apply to death claims, and it doesn't touch an innocent claimant. If you were insured, sober, and not committing a crime, this cap isn't your concern.
Coverage limits, and drivers with no insurance
New York's minimum liability limits are 25/50/10: $25,000 for injury to one person, $50,000 for all injuries in one crash, and $10,000 for property damage.3 Those are floors, and a serious injury routinely costs far more.
That gap is what uninsured and underinsured coverage is for. New York makes uninsured motorist (UM) coverage mandatory at the 25/50 minimum, and you can't waive it.7 Supplementary uninsured/underinsured coverage (SUM), which pays when the at-fault driver's policy is too small for your injuries, has to be offered up to your own liability limit, though you can decline or reduce it with a signed written waiver.7 Carrying SUM up to your liability limit is one of the cheapest protections against the many New York drivers who carry only the state minimum.
If a drunk driver hit you, New York's Dram Shop Act adds another possible defendant. Under General Obligations Law 11-101, a person injured by someone who was intoxicated can sue whoever unlawfully sold that person the alcohol, and can recover both actual and punitive damages.8
Deadlines that end claims
Two clocks run at the same time. No-fault benefits carry the 30, 45, and 90-day filing deadlines above.4 The lawsuit against the at-fault driver has its own statute of limitations: three years from the date of the crash for personal injury, and three years for damage to your vehicle.9 Claims against a government entity, say a city bus or a dangerous road condition, often require a notice of claim within 90 days, so those move much faster.
If your car was totaled or lost resale value, the property-damage side of your claim runs on that same three-year clock,9 and you can read about recovering a vehicle's lost market value on thatcarhitme.com's New York diminished value page.
Fault in New York comes down to two questions: no-fault covers your immediate costs, and the serious injury threshold plus the 2026 comparative fault rules decide whether and how much you can recover from the other driver. Filing the no-fault paperwork on time and preserving proof of who did what protects both. If your injuries are serious or fault is contested, it's worth talking to a lawyer early, and you can find one through thatcarhitme.com's legal directory.
This is general information about New York law, not legal advice. For guidance on your specific situation, consult a licensed New York attorney.
Sources
-
New York Insurance Law § 5104 (no-fault threshold; § 5104(d) damages cap). https://www.nysenate.gov/legislation/laws/ISC/5104
-
New York Insurance Law § 5102 (basic economic loss; § 5102(d) serious injury definition). https://www.nysenate.gov/legislation/laws/ISC/5102
-
New York Department of Financial Services, minimum auto insurance requirements FAQ. https://www.dfs.ny.gov/faqs/consumer-auto/how-much-auto-insurance-must-i-carry
-
New York Department of Financial Services, No-Fault Regulation 68 FAQ (11 NYCRR 65). https://www.dfs.ny.gov/apps_and_licensing/property_insurers/nofault_faqs_reg68
-
New York CPLR § 1411 (comparative negligence; § 1411(b) added by L.2026, ch. 58, Part EE). https://www.nysenate.gov/legislation/laws/CVP/1411
-
New York Vehicle and Traffic Law § 605 (accident reporting; $1,000 threshold, 10-day deadline). https://www.nysenate.gov/legislation/laws/VAT/605
-
New York Insurance Law § 3420(f) (mandatory uninsured motorist coverage; SUM offer and waiver). https://www.nysenate.gov/legislation/laws/ISC/3420
-
New York General Obligations Law § 11-101 (Dram Shop Act). https://www.nysenate.gov/legislation/laws/GOB/11-101
-
New York CPLR § 214 (three-year limitations for personal injury and injury to property). https://www.nysenate.gov/legislation/laws/CVP/214