Reviewed by Laurence P. Banville, Esq.Frequently asked questions
Does New York no-fault insurance cover accidents caused by rental car drivers?
Yes. New York is a no-fault state, so your own Personal Injury Protection (PIP) coverage pays your initial medical bills and lost wages regardless of who caused the accident. You can step outside no-fault and sue the rental car driver for pain and suffering only if your injuries meet the serious injury threshold under Insurance Law § 5102(d) — such as a fracture, significant disfigurement, or permanent limitation of a body part.
Can I sue the rental car company if one of their drivers hit me in New York?
The federal Graves Amendment (49 U.S.C. § 30106) generally shields rental car companies from vicarious liability simply because they own the vehicle. However, you can still sue the rental company if it was independently negligent — for example, if it rented a car with known brake defects or failed to properly maintain the vehicle. In those cases, the Graves Amendment does not protect the company.
What if the rental car driver was uninsured or underinsured?
Rental car companies in New York must carry minimum liability insurance under Vehicle and Traffic Law § 370. If that coverage is exhausted, your own uninsured/underinsured motorist (UM/UIM) coverage may apply. You should also check whether the rental driver purchased supplemental liability protection through the rental agency, which can provide additional coverage for injured third parties.
How long do I have to file a lawsuit after being hit by a rental car driver in New York?
New York's statute of limitations for personal injury claims is generally three years from the date of the accident under CPLR § 214. However, if you are filing a no-fault claim for medical benefits or lost wages, you must notify your insurer within 30 days and submit claims within 45 days. Missing these deadlines can jeopardize your recovery, so acting quickly is critical.