X Close

Changes in New York's no-fault law?

New York state complies with a no-fault law for drivers involved in crashes. Attorneys as well as auto insurers are likely aware that some individuals attempt to submit fraudulent or exaggerated claims, taking advantage of the system.

Originally intended to benefit drivers involved in accidents by speeding up the compensation process, helping drivers get back on their feet after a minor accident. However, because of the exploitation of the service, New York's Department of Financial Services is limiting the rules.

Finalized Regulation

Recent news shows that out-of-state healthcare providers charging more than the average fee for services that insurers were expected to reimburse. Inflated healthcare rates for individuals seeking compensation for their injuries after an accident prompted the state's Department of Financial Services to enact the finalized regulation. This parameter will restrict the amount that the insured can reimburse when seeking no-fault healthcare out of New York.

Typically, this will only be in use in the case of emergency care. In non-emergent situations there would be little need for a New York resident to get medical assistance outside of the state. However, if a New York resident is injured outside of the state, the finalized regulation restriction will go into effect. When this occurs, DFS states that the insurance company must reimburse:

  • "The amount of the fee set forth in the region of this State that has the highest applicable amount in the fee schedule for that service
  • The amount charged by the provider
  • The prevailing fee in the geographic location of the provider"

Finalized regulation in New York will likely help auto insurers and defense attorneys avoid abuse of the no-fault law. 

No Comments

Leave a comment
Comment Information

let us help you

Hagelin Spencer LLC has offices conveniently located in Buffalo, Rochester, Syracuse, and Garden City. While our firm is large enough to have the resources necessary to satisfy even the largest corporate client, our attorneys do not lose sight of the importance of building a strong relationship with everyone we represent.

ofc1 ofc2 ofc3 ofc4 ofc5

Rochester, NY
The Powers Building
16 West Main Street, Suite 700
Rochester, NY 14614

Toll Free: 866-214-2591
Phone: 585-325-9000
Fax: 585-325-9007
Map & Directions

Buffalo, NY
135 Delaware Avenue, Suite 200
Buffalo, NY 14202

Toll Free: 866-214-2591
Phone: 716-849-3500
Fax: 716-849-3501
Map & Directions

Garden City, NY
1225 Franklin Avenue, Suite 325
Garden City, NY 11530

Toll Free: 866-214-2591
Phone: 516-240-8020
Map & Directions

Syracuse, NY
1000 7th North Street, Suite 120
Liverpool, NY 13088

Toll Free: 866-214-2591
Phone: 315-701-5768
Fax: 315-701-5770
Map & Directions

Jersey City, NJ
35 Journal Square, Suite 1030
Jersey City, NJ 07306

Toll Free: 866-214-2591
Phone: 201-653-3500
Fax: 201-653-3599
Map & Directions



To contact our law firm and discuss your legal concerns with an experienced attorney call 716-849-3500 or complete the contact form to the right.

Bold labels are required.

Contact Information

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.


Privacy Policy