September 10, 2026

Paying Medical Bills After a Car Accident in New York City

Who Pays Medical Bills after a Car Accident in NYC?

In New York, your own auto insurance pays your medical bills first, no matter who caused the crash. This system is called “no-fault,” meaning fault does not determine who covers your treatment.

The payment order works like this:

Your no-fault Personal Injury Protection (PIP) covers you first, up to $50,000 per person, this applies to drivers, passengers, pedestrians, and cyclists hit by a car.

Your health insurance picks up any remaining bills after PIP is fully exhausted.

A personal injury lawsuit against the at-fault driver covers serious losses that go beyond what insurance pays.

How New York’s No-Fault PIP System Works

Personal Injury Protection (PIP) is the medical coverage that New York law requires in every auto insurance policy. Every policy must carry a minimum of $50,000 in PIP per person.

Because PIP pays regardless of who caused the crash, New York is called a “no-fault state.” Your doctors must bill your auto insurer before your health insurance, PIP is always the primary payer.

PIP also covers 80% of your lost wages up to a set limit, protecting your income while you recover, not just your medical expenses.

What Bills Does PIP Cover?

PIP covers all reasonable and necessary medical treatment directly related to your accident:

Ambulance transport and emergency room care

Hospital stays, surgery, and diagnostic imaging (MRIs, CT scans, X-rays)

Physical therapy, rehabilitation, and follow-up specialist visits

Prescription medications and medically necessary devices

Mental health treatment for accident-related trauma

Once a provider accepts no-fault payment, they cannot bill you directly for any remaining balance, this practice is called balance billing, and it is illegal under New York law. If you receive such a bill, do not pay it. Contact your no-fault insurer or our office immediately.

What Deadlines Apply to No-Fault Benefits in New York?

You have 30 days from the date of the accident to file your no-fault application. This is a hard deadline; miss it, and the insurer has grounds to deny every medical bill you submit.

The form is called the NF-2 Application for No-Fault Benefits. Do not confuse this with the deadline for bringing a personal injury lawsuit; the NF-2 is your most immediate priority.

How to File Your NF-2 Application

Contact the insurer for the vehicle you were in. If you were a pedestrian or cyclist, contact the insurer for the vehicle that struck you and request the NF-2 form.
Complete the form with your accident details, your injuries, and the names of all treating providers.
Attach a copy of the police report if you have one.
Send the form by certified mail with return receipt, this gives you proof of the delivery date.
Share your assigned claim number with every doctor, hospital, and pharmacy treating you so they bill the insurer directly, not you.

Does Health Insurance Pay after PIP Runs Out?

Yes, but only after your $50,000 in PIP has been completely exhausted. Once that happens, your private health insurance, Medicare, or Medicaid becomes responsible for what remains.

Never submit accident-related bills to your health insurer first. Your health plan charges copays and deductibles that PIP does not, and billing it first can trigger disputes that leave you personally responsible for bills that should have been covered.

Do You Have to Repay Health Insurance or Medicare from Your Settlement?

Yes, and many people don’t find out until they’re reviewing a settlement offer. If your health insurance or Medicare paid your accident-related bills, they have a legal right to be reimbursed from any settlement you receive.

Here’s how it works:

Subrogation: This is your health insurer’s right to recover money it paid on your behalf directly from your settlement proceeds.

Medical lien: This is a formal legal claim placed on your settlement by a hospital, health plan, Medicare, or Medicaid, ensuring they are repaid before you receive your share.

Insurance companies and lienholders will fight to take as much of your settlement as possible. At Grigor Law Injury & Car Accident Lawyers, we challenge those claims and negotiate liens down, so more money stays in your pocket.

What Is New York’s Collateral Source Rule?

The collateral source rule is a New York law that prevents you from being paid twice for the same expense. If PIP already paid a hospital bill, you cannot recover that same amount again from the at-fault driver.

But this rule does not prevent you from recovering future medical expenses, pain and suffering, or any other losses that PIP never covered, it limits double payment on specific bills, not the full value of your case.

Who Pays If You Were a Pedestrian or Cyclist?

If a vehicle hit you while you were walking, biking, or on a scooter, the no-fault insurance on that vehicle is responsible for your medical bills. You have the same right to $50,000 in PIP benefits as any car occupant.

If the driver had no insurance or fled the scene, the Motor Vehicle Accident Indemnification Corporation, a New York State fund, can act as your insurer of last resort.

What If the Driver Was Uninsured or Fled the Scene?

Two protections exist when the at-fault driver has no insurance or cannot be found:

Uninsured/Underinsured Motorist (UM/UIM) Coverage: This is part of your own auto policy that pays when the responsible driver has no insurance or not enough coverage for your full damages.

MVAIC: This state fund provides up to $50,000 in no-fault benefits for pedestrians, cyclists, and others with no available coverage, including hit-and-run victims.

MVAIC has strict requirements. For a hit-and-run, you must file a police report within 24 hours and submit a formal MVAIC application within 90 days; missing either step can permanently close your claim.

What If You Were Hurt While Driving for Work?

If the accident happened while you were on the job, driving a company vehicle, making a delivery, or running an errand for your employer, Workers’ Compensation is typically the primary payer for your medical bills and lost wages, not no-fault.

File both a workers’ compensation claim and a no-fault application at the same time. Coverage disputes between these two systems are common, and filing both protects your right to every dollar available.

Can You Sue the At-Fault Driver for More Than PIP Covers?

Yes, but only if your injuries meet New York’s serious injury threshold. This is the legal standard that allows you to step outside the no-fault system and file a personal injury lawsuit against the driver who caused your crash.

Injuries that qualify include:

Death or dismemberment

Significant disfigurement

A bone fracture

Loss of a fetus

Permanent loss of use of a body organ, member, function, or system

Significant limitation of use of a body function or system

An injury that prevents you from performing normal daily activities for at least 90 of the first 180 days after the accident

If your injuries qualify, you can recover damages that PIP never touches, future medical expenses, full lost wages, and compensation for pain and suffering. Insurance companies know we will take a case to trial, and that knowledge forces them to put fair money on the table.

What Compensation Can You Recover in a New York Lawsuit?

New York personal injury law allows you to recover two categories of damages:

Special Damages (Economic)	General Damages (Non-Economic)
Past and future medical expenses	Pain and suffering
Lost wages and earning capacity	Mental anguish and emotional distress
Rehabilitation and therapy costs	Loss of enjoyment of life
Property damage	Loss of consortium

Special damages are economic losses with a calculable dollar amount. General damages compensate you for the human cost of your injury that no receipt can fully capture.

What If You Were Partly at Fault?

New York follows pure comparative negligence, meaning you can still recover compensation even if you were partly responsible for the crash. Your recovery is reduced by your percentage of fault, but you are not cut off from compensation entirely.

If your damages total $100,000 and you were 30% at fault, you still collect $70,000. Do not let an insurance adjuster use partial fault as a reason to walk away from your claim.

What Deadlines Govern Your New York Car Accident Claim?

Different parts of your claim carry different deadlines, and missing any one of them can end your right to recover:

Claim Type	Deadline
No-Fault NF-2 Application	30 days from the accident
MVAIC Hit-and-Run Police Report	Within 24 hours
MVAIC Formal Application	Within 90 days
Personal Injury Lawsuit	3 years from the accident
Claim Against a NYC-Owned Vehicle	Notice of claim within 90 days
Workers’ Compensation Notice to Employer	Within 30 days

Every day you wait is another day the insurance company spends building its case against you.

Steps to Protect Your Medical Coverage after an NYC Crash

Taking the right steps immediately after your accident protects both your health and your right to full compensation.

Get medical care the same day, even minor symptoms can point to serious injuries, and gaps in treatment give insurers a reason to deny your claim.
File a police report and request a copy.
Submit your NF-2 application right away, do not let the 30-day window close.
Give your no-fault claim number to every doctor, hospital, and pharmacy treating you.
Never give a recorded statement to the at-fault driver’s insurance company, their adjusters are trained to use your words against you.
Keep every medical bill, receipt, and record of missed workdays.
Call a New York injury attorney before you sign anything or accept any settlement offer.

Injured in NYC? Call Grigor Law Today

The no-fault system was built to move fast, and so are the insurance companies working to underpay your claim. At Grigor Law, we fight back hard.

Founded in 2015 by Chrissy Grigoropoulos, Esq., we serve injured New Yorkers from our offices in Ridgewood, The Bronx, and Hempstead, covering all five boroughs, Long Island, and Westchester. If you can’t travel to us, we come to you. You pay nothing unless we win a financial recovery for you.

Insurance companies know we will take a case to trial, and that changes what they offer.

Call Grigor Law Injury & Car Accident Lawyers for a free consultation.

Frequently Asked Questions

Will Filing a No-Fault Claim Raise My Car Insurance Rates?

Under New York law, your insurer generally cannot raise your premium for a no-fault claim when you were not at fault for the accident, though specific policy terms may vary.

Can a Doctor Bill Me Directly after Accepting No-Fault Payment?

No, once a provider accepts no-fault payment, they are legally prohibited from billing you for any remaining balance, so if you receive a bill, contact your no-fault insurer or our office right away.

What Happens If I Miss the 30-Day NF-2 Deadline?

Missing the deadline gives the insurer grounds to deny your no-fault benefits entirely, though limited exceptions exist for documented reasonable cause, contact an attorney immediately to see if your claim can still be saved.

Can I Choose My Own Doctor under New York No-Fault?

Yes, New York no-fault law allows you to see any licensed medical provider, as long as the treatment is medically necessary and billed under the state fee schedule.

Does Medicare Need to Be Repaid from a Car Accident Settlement?

Yes, federal law requires Medicare reimbursement for any accident-related treatment it covered, but we work to negotiate that repayment amount down before your settlement is finalized.

Does a MVAIC Hit-and-Run Claim Require a Police Report?

Yes, MVAIC requires a police report filed within 24 hours for hit-and-run accidents, and the formal MVAIC application must be submitted within 90 days.

Who Pays Medical Bills If I Was Injured in a Work-Related Car Crash?

Workers’ Compensation is the primary payer when a car accident occurs during the course of your employment, but you should also file a no-fault application immediately to preserve all available coverage.