Everything You’ve Ever Wanted to Know About No-Fault The “New York Comprehensive Automobile Insurance Act,” which most people call the “no-fault statute,” was enacted in 1973 and went into effect the following year. The purpose of the law was to limit the amount of personal injuries claims for car accidents, as many politicians had this agenda on their platforms. The no-fault statute was groundbreaking in that it provided for immediate payment for medical care, lost earnings and other reasonable out of pocket expenses incurred as a result of injuries from a motor vehicle accident. The law provides that these expenses must be paid up to $50,000 per person. These payments are what’s known as “first party benefits” or “basic economic loss.” The reason it’s called no-fault, is that these payments are made regardless of fault. If you lose control of your car and drive into a tree, you still get these payments. If your medical bills, lost earnings and/or out-of-pocket expenses t