Every New York driver hopes they’ll never be in a car accident—but when it happens, having the right coverage matters, especially if the other driver is uninsured or flees the scene. In New York, two important programs provide essential protection in these situations: Personal Injury Protection (PIP) and the Motor Vehicle Accident Indemnification Corporation (MVAIC).
If you’re injured in a Binghamton car crash, these programs could be your financial and medical safety net. Below, we break down how they work, what they cover, and who qualifies.
What is PIP in New York?
Personal Injury Protection (PIP), also known as No-Fault Insurance, is mandatory for all drivers in New York. It ensures that if you’re injured in an auto accident, your own insurance pays for basic economic losses, regardless of who was at fault.
How Much Does PIP in NY Pay?
New York State law requires all auto insurance policies to include a minimum of $50,000 per person in PIP coverage.
PIP pays for:
- Medical expenses (hospital bills; surgeries; rehab)
- Lost wages (up to 80% of income, capped at $2,000/month for up to 3 years)
- Essential services (such as household help, up to $25 per day)
- Death benefits (up to $2,000 in case of death due to the accident)
What are PIP’s Limitations in NY?
No-Fault insurance does not cover auto body repair or damage to other vehicles or property. Further, lawsuits for non-economic damages like pain and suffering are only allowed if a “serious injury” is sustained, as defined by New York law. This includes conditions such as significant disfigurement, bone fractures, permanent limitation of use of a body organ or member, or substantial disability lasting at least 90 days.
Who Is Covered by PIP in NY?
- The policyholder (you, the insured driver)
- Passengers in your insured motor vehicle
- Pedestrians injured by your vehicle
This $50,000 coverage is the maximum standard PIP limit in NY. Drivers can purchase Additional PIP (APIP) coverage for higher limits. However, PIP no-fault coverage has limits, and it may not fully address your lost earnings in more serious accidents — especially if the other party drives an uninsured vehicle.
When PIP Isn’t Enough: Uninsured and Hit-and-Run Accidents
What happens when you’re faced with a serious injury and the at-fault driver has no insurance— or worse, they flee the scene? Your PIP automobile insurance may cover some immediate costs, but if your damages exceed that $50,000 cap, you could be left with unpaid bills. This is where MVAIC comes in. If no other forms of insurance exist to pay your claim, New York has created a backup plan.
Introducing MVAIC: The Last Resort Coverage
The Motor Vehicle Accident Indemnification Corporation (MVAIC) is a New York state-established non-profit organization designed to help people injured in motor vehicle accidents caused by uninsured or unidentified (hit-and-run) drivers. MVAIC acts as a “last resort” insurer—offering compensation when:
- You were injured by a driver in a hit and run
- The at-fault driver had no insurance
- You don’t have your own auto policy to fall back on
How Much Does MVAIC Pay?
MVAIC may pay up to $25,000 per person for bodily injury, and up to $50,000 per accident, similar to the minimum bodily injury liability limits in New York. In wrongful death cases, it may provide $50,000 per person for fatal injuries and $100,000 per accident (if more than one person died). MVAIC can pay for:
- Medical bills
- Lost wages
- Pain and suffering (in certain cases)
Unlike PIP, MVAIC is not automatic. You must meet certain criteria and file the correct paperwork within strict deadlines to qualify for benefits.
Who Is Covered by MVAIC?
To be eligible for MVAIC, you must meet the following conditions:
- You were injured in New York State
- You are a New York State resident
- The accident involved a motor vehicle (like cars, trucks, motorcycles, and buses)
- The at-fault driver was uninsured, unknown, or left the scene
- You have no other source of insurance (your own or a household member’s policy) that would cover the accident
- You reported the accident to the police within 24 hours
- You file your claim with MVAIC within 90 days
The following individuals could each be covered by MVAIC:
- A pedestrian hit by an unknown or uninsured motorist
- A bicyclist struck by a stolen or unregistered vehicle
- A passenger in an uninsured vehicle
- Anyone injured in a qualifying accident with no access to auto insurance coverage
Applying for MVAIC Coverage: Step by Step
To begin the process, you must file a Notice of Intention to Make a Claim (NOI). It’s important to provide supporting documentation, including proof of New York residency, police reports, medical records, and evidence of lost income. Once these documents are submitted, you must cooperate with the Motor Vehicle Accident Indemnification Corporation’s (MVAIC) investigation as they review your claim and determine your eligibility for benefits.
Tip: Be sure to meet all deadlines to avoid denial of your claim.
How PIP and MVAIC Work Together
PIP in NY is your first line of defense after an accident. If you qualify for PIP, your insurance pays first — up to the $50,000 limit. But if your damages exceed PIP limits, or if you’re not covered under any auto policy, MVAIC may provide additional support.
For example:
- You’re injured in a hit-and-run accident.
- Your medical costs and lost wages exceed $50,000.
- You’re not covered under any active auto policy.
In this case, PIP pays first, and MVAIC may cover the remaining expenses, depending on your eligibility and situation.
Why Understanding These Programs Matters
Many New Yorkers don’t realize how vulnerable they are to uninsured and hit-and-run accidents — until it’s too late. Knowing your rights under Personal Injury Protection in NY and understanding how the Motor Vehicle Accident Indemnification Corporation works can make a major difference in your financial recovery.
These programs exist to ensure that victims aren’t left without options, but strict timelines and documentation requirements make it essential to act quickly in seeking assistance.
Injured in a car accident? Call the Binghamton car accident lawyers at Munley Law
Getting hit by an uninsured driver or victimized in a hit-and-run can feel overwhelming. But New York’s PIP and MVAIC programs are here to protect you — even when the other driver can’t or won’t. In the event of a car accident in Binghamton, rely on Munley Law as your trusted law firm to fight by your side. Our experienced attorneys will ensure you receive the compensation you deserve.
