Insurance Companies Removing Basic No-Fault Protections May 4, 2009

I have spoken with more and more clients recently about how insurance companies are allowing their insureds to opt-out from basic No-fault protections. No-fault protection was enacted by the New York State Legislature to provide medical and financial benefits to anyone who was injured through the use or operation of a motor vehicle. Every insurance policy written in the State of New York MUSTcontain these basic benefits,which include medical treatment and lost wages from work. It is apparent that for the sake of advertising lower insurance rates, companies are removing benefits, specifically lost wage reimbursement, from the basic New York insurance policy. Unfortunately, clients are not aware of how important this coverage is until after they have had a car accident and are unable to return to work. They should be receiving up to $2,000 a month for their lost time from work but instead receive a denial notifying them that their policy does not include this protection. The insurance companies remove this important benefit so they can advertise a cheaper rate – but by only $25! Clearly this does not benefit the insured but only the insurance companies and their bottom line. With online and TV advertising becoming the way insurance companies sell their policies, it has become increasingly difficult to compare two insurance policies. People buy insurance based on the bottom line and really don’t understand how insurance works until it too late.

Decker, Decker, Dito & Internicola, LLP is currently seeking a ruling from the American Arbitration Association that the insurance companies are not allowed to remove these basic benefits from their insurance policies. Please continue to check back here for updates on this very important issue.

If you have been hurt in a car accident and have been denied no-fault benefits, please contact Frank J. Dito, Jr. at (800) 310-5520 to discuss your legal rights or call for my free book, A Lawyer’s Guide to Car Insurance.

Frank Dito is a New York Personal Injury attorney specializing in New York real estate law , New York business law, and New York franchise law. You can visit his Law Firm Decker, Decker, Dito and Internicola website by clicking here, download his FREE New York Car Insurance book, or call him at 718-979-4300 or 1-800-310-5520 for a free case analysis.

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