Dramatic Increase in NY No-Fault Auto

Losses in Personal Injury Protection (PIP) claims rose by 79 percent from 1995 to 2000 in New York compared to 25 percent in all no-fault states, according to a new study by the Insurance Research Council (IRC). This increase in New York was fueled by growth in the number of claims and in the average amount paid per claim. The number of PIP claims per 100 insured cars increased by 9 percent in New York for the 1995-2000 period. Over the same period, the average amount paid per PIP claim in New York rose 65 percent, with a 20 percent jump in 2000. Claimants in New York State, and particularly in the New York City metropolitan area, reported more extensive medical treatment than claimants in all no-fault states, even though they reported similar injuries. Attorneys played a more significant role in the claims process in New York than in all no-fault states.