New York is a no-fault auto-insurance state. Your own PIP pays first; suing the other driver requires meeting a threshold.
Published May 6, 2026
## Is New York a no-fault state for car accidents?
When someone gets hurt in a car accident, who pays for the medical bills depends on what kind of state you're in. Every state falls into one of four categories.
### New York's system
**Mandatory no-fault state.** Drivers must carry Personal Injury Protection (PIP) coverage. After a crash, your own PIP pays your medical bills and lost wages regardless of who caused the accident. You can sue the other driver for pain and suffering ONLY if your injuries cross a statutory threshold (monetary, verbal, or both).
- **Minimum PIP:** $50,000 PIP
- **Tort threshold:** Verbal: death, dismemberment, significant disfigurement, fracture, loss of fetus, permanent loss/limitation of body function, significant limitation of body function, or 90/180-day disability rule.
## What PIP covers
When PIP applies (in no-fault, choice, or add-on states), it typically pays:
- **Medical expenses** — emergency room, hospital, doctor visits, physical therapy, prescriptions
- **Lost wages** — usually a percentage of your normal income, up to a cap
- **Replacement services** — costs of household tasks you can't do (childcare, lawn care, etc.)
- **Funeral expenses** in fatal cases
- **Survivor's benefits**
Each state caps these benefits, and the caps run from $5K (low end) to unlimited (Michigan's pre-2019 system).
## What PIP does NOT cover
- **Pain and suffering** — never paid by PIP; only by tort claim against at-fault driver
- **Property damage** — vehicle damage is handled by collision/property insurance, not PIP
- **Punitive damages**
- **Damages above the PIP cap** — the rest can be recovered in a tort claim if eligible
## When you can sue in a no-fault state
In no-fault states, you can step OUTSIDE the no-fault system and sue if your injuries cross the state's tort threshold. Two types of thresholds:
- **Monetary threshold** — your medical bills exceed a dollar amount (e.g., $4,000 in MN, $2,000 in MA)
- **Verbal threshold** — your injuries fall into a defined serious-injury category (death, dismemberment, fracture, permanent injury, significant disfigurement)
Some states use one, some use the other, and a few use both.
## Property damage works differently
Even in no-fault states, **property damage** (vehicle repair) is usually handled on a fault basis — you sue (or claim against) the at-fault driver's insurance for car repair. PIP/no-fault rules apply to bodily injury only.
## The reform landscape
No-fault systems have been heavily reformed in recent decades:
- **Connecticut** repealed no-fault in 1994
- **Colorado** repealed no-fault in 2003
- **Pennsylvania, New Jersey, Kentucky, DC** offer choice systems
- **Michigan** kept unlimited PIP from 1973 to 2019, when it added a tiered-choice system
- **Florida** has had multiple PIP reform attempts
The general direction has been to scale back no-fault — costs got hard to control with mandatory medical-only coverage.
## What you should do
Whether New York is no-fault, fault, or somewhere in between, the immediate steps after a crash are the same: get medical care, document the scene, notify your insurance, and don't talk to the other driver's insurance company without a lawyer. The legal system gets technical — talk to a New York car accident attorney before signing anything or accepting a settlement. Most offer free consultations and work on contingency.
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*This guide is general information about New York law as of early 2026 and is not legal advice. No-fault and tort thresholds have many edge cases — particularly around what counts as a "serious injury" under each state's verbal threshold. Talk to a licensed New York attorney about your specific situation.*
This guide is for general information only and does not constitute legal advice. Laws change and outcomes depend on your specific situation — talk to a licensed attorney before acting on anything you read here.