Every year, New York’s Governor signs a new state budget. This budget sets the rules and funding for the upcoming fiscal year, including how the state pays claims, funds courts, and regulates personal injury lawsuits. This year, on May 28th, Governor Kathy Hochul signed the 2026-2027 state budget into law. The budget includes major changes to how New York handles car accident cases. The state is officially moving to a modified comparative negligence system for motor vehicle accident cases, which changes the way fault and compensation work. To learn how New York’s 2026 motor vehicle accident reforms affect your case, contact a legal expert at Shaevitz & Shaevitz!
New York’s 2026 Motor Vehicle Accident Reforms
Si estás en un car accident in New York State, these changes may affect your eligibility for compensation. While New York still offers no-fault benefits for eligible parties through your Seguro de protección contra lesiones personales (PIP), these changes may still affect compensation for non-economic damages:
- From pure to modified negligence: The statute C.P.L.R. § 1411 establishes New York State’s comparative fault system. This system used to operate under pure comparative negligence, meaning plaintiffs could recover even if they were mostly at fault. But with the addition of section “b,” a plaintiff cannot recover compensation if they’re more than 50% at fault.
- Changes to the serious injury threshold: Insurance Law § 5102 establishes el umbral de lesiones graves, which plaintiffs must meet to be eligible for compensation beyond no-fault benefits. However, the 2026 state budget amends subsection (d), eliminating the ’90/180 day’ category of serious injury. Now, a plaintiff cannot satisfy the serious injury threshold with a non-permanent injury that keeps them from performing usual daily activities for at least 90 of the 180 days following the accident.
- New sequencing of fault and serious injury: Insurance Law § 5104(a) now requires the jury to determine fault before assessing whether the serious injury is met. If the jury finds the plaintiff more than 50% at fault, they will not assess the level of injury or award non-economic damages.
- Recovery cap for those engaged in unlawful conduct: Insurance Law § 5104 also includes subsection (d), which caps non-economic loss for certain car accident victims. This $100,000 cap only applies if you were operating an uninsured vehicle (with the exception of lapses in coverage for fewer than 30 days), impaired while driving, or in the middle of (or fleeing) a felony.
Breaking Down the Changes
| Old Rule | New Rule | |
|---|---|---|
| Comparative Fault System | As a pure comparative negligence system, NYS allowed you to recover compensation regardless of fault. Even at 99% fault, you could pursue 1% of damages if you surpassed the serious injury threshold. | NYS now has a modified comparative negligence system. Under this rule, you’re not eligible for compensation beyond prestaciones sin falta if you’re over 50% at fault for the accident. |
| Umbral de lesiones graves | The serious injury threshold used to include “a non-permanent medical injury that prevents them from performing their usual daily activities for at least 90 of the 180 days following the accident.” | The threshold for serious injury is now narrower. It includes dismemberment, significant disfigurement, fracture, loss of a fetus, death, permanent loss of an organ, member, or function, or permanent limitation of an organ, member, function, or system. |
| Order of Operations | A jury used to be able to determine whether your injuries met the serious injury threshold antes de considering fault. | Now fault must be determined antes de the jury considers the serious injury threshold. If the plaintiff is more than 50% at fault for the accident, they are automatically barred from pursuing non-economic damages. |
| Recovery Cap for Law Breakers | When in a car accident in NYS, there was no cap on how much you could recover for non-economic losses, even when partially at fault. | According to the new subsection in Insurance Law section 5104, non-economic loss recovery is now capped at $100,000. But only for those who fall into three specific groups: those operating an uninsured vehicle, those impaired while driving and convicted of that offense, and those committing a felony or fleeing a felony during the accident, with a conviction of said offense. |
How New York’s Motor Vehicle Accident Reforms Affect Your Case
If you’re in a car accident, we recommend booking a free consultation with an experienced attorney. Not only is legal expertise a big help, but you may also need help keeping track of these changes! For any lawsuit filed on/after May 26, 2026, New York’s motor vehicle accident reforms could potentially impact your case.
As your car accident lawyers, Shaevitz & Shaevitz will assess your situation and determine what your case may be worth by estimating your percentage of fault.
If you’re 51% at fault for the accident, you will not be eligible for compensation for non-economic damages. But any economic damages may be covered by your PIP insurance through no-fault benefits! As your attorneys, we will help you file a no-fault claim with the appropriate insurance company.
However, these insurance agents will try to minimize your payout. We recommend avoiding all contact with the insurance company until the case is over. Instead, trust us to talk to the insurance agents on your behalf. We will estimate your percentage of fault and negotiate your compensation.
If you were operating an uninsured vehicle outside of the 30-day lapse exception, impaired while driving, or committing a felony during the accident, your recovery will have a cap of $100,000. But it’s important to note that if the accident resulted in death, this cap does not apply.
Trust a Legal Expert To Guide You in Queens, NY
New York’s 2026 motor vehicle accident reforms bring major changes to the way we handle car accident cases. If you’re in a motor vehicle accident, we recommend trusting attorneys like those at Shaevitz & Shaevitz. With our extensive knowledge of the New York legal system and our understanding of the new reforms, we can help you build a case that protects your interests. To learn how changes to the serious injury threshold and the comparative negligence system may affect your eligibility for compensation, book a free case review with Shaevitz & Shaevitz today.
Síguenos en Instagram y Facebook to discover our past verdicts and settlements.
