New York’s 2026 motor vehicle law changes did more than remove the 90/180-day serious injury category and create a new comparative-fault exception for certain cases.

Part EE of the 2026 budget legislation also added a limited $100,000 cap on non-economic damages for a narrow group of injured people in motor vehicle personal injury lawsuits subject to Article 51 of the Insurance Law.

That cap does not apply to every car accident case. It does not apply to every injured driver. It does not itself limit No-Fault benefits. And it does not replace New York’s serious injury threshold or the new CPLR § 1411(b) comparative-fault rule.

Instead, the new Insurance Law § 5104(d) cap applies only in specific circumstances involving certain at-fault injured people who are still allowed to recover under New York’s updated comparative-fault rules.

If you were injured in a New York motor vehicle accident and questions about fault, insurance coverage, impaired driving, or serious injury are already part of the case, the new law may affect how your claim is evaluated. Contact The Rothenberg Law Firm for a free consultation to discuss your case and understand your options.

What Changed Under Part EE of New York’s 2026 Motor Vehicle Law Update?

Part EE amended several parts of New York’s motor vehicle injury framework, including Insurance Law § 5102(d), Insurance Law § 5104, and CPLR § 1411.

Those changes work together, but they are not the same rule.

The 2026 update included three related groups of changes:

Insurance Law § 5102(d) removed the former 90/180-day non-permanent impairment category from New York’s definition of “serious injury.” Insurance Law § 5104(a) also added procedural sequencing for Article 51 non-economic-loss actions: the trier of fact must determine the party or parties at fault before deciding whether an injury is a serious injury, and liability for non-economic loss cannot be fixed unless a serious injury is found.
CPLR § 1411(b) added a modified comparative-fault rule for personal injury actions subject to Article 51 of the Insurance Law.
Insurance Law § 5104(d) added a limited $100,000 cap on non-economic loss in certain serious-injury actions brought by at-fault injured motor vehicle operators who are not barred from recovery under CPLR § 1411. The cap does not apply to actions for damages for injuries resulting in death.

Part EE took effect on May 26, 2026 and applies to actions and proceedings commenced on or after that date.

The first group affects the serious-injury definition and the order of determinations. The second may bar recovery based on comparative fault in covered Article 51 personal injury actions. The third limits non-economic loss in the narrower circumstances described below.

This article focuses on the third group: the $100,000 cap under Insurance Law § 5104(d).

What Is Insurance Law § 5104(d)?

Insurance Law § 5104 is part of New York’s No-Fault framework, also known as Article 51 of the Insurance Law.

In general, § 5104 addresses when a person injured in a motor vehicle accident may bring a personal injury lawsuit for certain damages. Under New York’s No-Fault system, people injured in covered motor vehicle accidents may receive first-party benefits for basic economic loss, subject to statutory rules, deadlines, and policy limits.

A personal injury lawsuit for non-economic loss is different.

Non-economic loss refers to harms that do not come with a simple bill or receipt. These damages may include pain and suffering, including emotional consequences, physical limitations, and loss of enjoyment of life.

The 2026 update added § 5104(d), which limits recovery for non-economic loss to $100,000 in certain circumstances.

What Does the New $100,000 Cap Apply To?

The new cap applies to non-economic loss in certain covered motor vehicle personal injury cases.

That means it is focused on damages such as:

Pain and suffering including loss of enjoyment of life
Emotional distress
Physical limitations caused by the injury
The day-to-day impact of living with serious injuries

The cap applies only to non-economic loss. It does not itself determine the amount of first-party No-Fault benefits or whether medical expenses, lost earnings, or other economic losses are recoverable in the lawsuit. Those questions remain subject to separate Article 51, insurance-coverage, and damages rules.

The key point is that § 5104(d) limits only non-economic loss, and only when all of the statute’s requirements are satisfied.

Who Is Affected by the $100,000 Non-Economic Damages Cap?

The new § 5104(d) cap applies only to specific categories of injured people.

Under Insurance Law § 5104(d), the $100,000 cap applies only when all of the following requirements are satisfied:

The action or proceeding was commenced on or after May 26, 2026;
Recovery is sought for non-economic loss in a case involving a serious injury;
The action is not for damages for injuries resulting in death;
The injured person was at fault;
The injured person is not barred from recovery under CPLR § 1411; and
At the time of the accident, the injured person was operating a motor vehicle and fell within one of the following three categories:

Category	What the Statute Requires
Operating an uninsured motor vehicle they were responsible for insuring	The injured person was operating an uninsured motor vehicle and was responsible under Article 6 of the Vehicle and Traffic Law for insuring it. The cap does not apply under this category when the lack of coverage resulted from a lapse lasting less than 30 days.
Operating while impaired and convicted	The injured person was operating a motor vehicle while impaired by alcohol or drugs at the time of the accident and was convicted of the applicable offense.
Operating during a felony or immediate flight and convicted	The injured person was operating a motor vehicle during the commission of a felony, or during immediate flight from that felony, at the time of the accident and was convicted of that felony.

These categories are narrow. All three require the injured person to have been operating a motor vehicle. Therefore, a person who was injured solely as a passenger, pedestrian, or bicyclist—and was not operating a vehicle legally classified as a motor vehicle—does not fall within these three § 5104(d) categories. The claim may still involve other Article 51 issues, but the person does not become subject to this cap merely because a covered motor vehicle was involved.

The Cap Applies Only If the Claim Is Not Already Barred by CPLR § 1411

The new $100,000 cap must be understood alongside New York’s updated comparative-fault rule.

Under CPLR § 1411(b), an injured claimant in certain personal injury actions subject to Article 51 may be barred from recovery if their culpable conduct is greater than the culpable conduct of the person they sued, or greater than the combined culpable conduct of the people from whom they seek recovery.

That rule is separate from the $100,000 cap.

If CPLR § 1411(b) bars the injured person from recovery, there is no recovery to limit under § 5104(d).
If Part EE applies based on when the action or proceeding was commenced, and the injured person is at fault but is not barred under CPLR § 1411, has sustained a serious injury, is bringing an action other than one for injuries resulting in death, and falls within one of § 5104(d)’s three operator categories, the person’s recovery for non-economic loss is limited to $100,000.
If the injured person was not at fault or does not fall within one of the three operator categories, the § 5104(d) cap does not apply.

Section 5104(d) does not state a minimum percentage of fault. Its text appears to permit the cap to apply when some fault is attributed to the claimant, so long as CPLR § 1411(b) does not bar recovery and the statute’s other requirements are met. Because § 5104(d) is new, courts may further define what “at fault” means in this context.

This distinction matters because the new comparative-fault rule and the new damages cap are connected, but they do different jobs.

The $100,000 Cap Does Not Apply to Death Cases

Insurance Law § 5104(d) excludes actions for injuries resulting in death from the $100,000 non-economic damages cap.

That means fatal motor vehicle accident claims require separate legal analysis. Wrongful death and survival claims involve different damages, different beneficiaries, and different procedural requirements.

If your family lost someone in a New York motor vehicle accident, you should not assume the new $100,000 cap controls the claim. The facts of the crash, the parties involved, the type of claim being brought, and the applicable deadlines all need attorney review.

How Does the New Cap Relate to the Serious Injury Threshold?

New York’s No-Fault law limits when an injured person may bring a lawsuit for non-economic loss after a covered motor vehicle accident.

Insurance Law § 5104(d) expressly applies only in a case involving a “serious injury.” The serious-injury analysis and the damages-cap analysis are separate legal questions, but a serious injury is a required element of the new cap.

Part EE also changed the order in which the trier of fact addresses these issues in an Article 51 action seeking non-economic loss. The trier of fact must determine the party or parties at fault before determining whether the injury is a serious injury.

A covered motor vehicle injury action may therefore involve the following questions:

Does Part EE apply based on when the action or proceeding was commenced?
Is the personal injury action subject to Article 51 of the Insurance Law?
Which party or parties were at fault, and how is fault allocated?
Is the injured person barred from recovery under CPLR § 1411(b)?
If the claim is not barred, does the injured person satisfy the current serious-injury definition under Insurance Law § 5102(d)?
If a serious injury exists, does the injured person fall within one of § 5104(d)’s three operator categories?
Is the action excluded from the cap because it involves injuries resulting in death?

A case may turn on any one of these questions. That is why serious motor vehicle claims in New York now require careful evaluation from the beginning.

Why Fault Is Now Even More Important in Covered New York Motor Vehicle Cases

Fault has always played a major role in motor vehicle accident cases. After Part EE, fault allocation carries even greater consequences in certain Article 51 personal injury actions.

Under the amended framework, fault may affect:

Whether the injured person may recover at all under CPLR § 1411(b)
Whether the injured person’s damages are reduced by their percentage of fault
Whether § 5104(d)’s $100,000 non-economic damages cap may apply
How the case is presented if multiple parties share responsibility
How serious injury and non-economic loss are evaluated in litigation

Insurance Law § 5104(a), as amended, also addresses the order of determinations in certain non-economic loss actions. The trier of fact must determine fault before determining serious injury.

That sequencing is important. A case may involve a serious injury, but fault still must be addressed carefully and early.

Examples of Cases Where the $100,000 Cap May Come Up

Every case depends on its facts. Each example below assumes that:

Part EE applies based on the commencement date;
The action seeks non-economic loss based on a serious injury;
The action is not for injuries resulting in death;
Some fault is attributed to the injured operator; and
The operator is not barred from recovery under CPLR § 1411.

Uninsured Vehicle Scenario

A driver is injured while operating an uninsured motor vehicle that the driver was responsible under Article 6 of the Vehicle and Traffic Law for insuring. If the statutory exception for an insurance lapse lasting less than 30 days does not apply, § 5104(d) may limit the driver’s recovery for non-economic loss to $100,000.

The cap does not determine whether the person is entitled to first-party No-Fault benefits or whether any medical expenses, lost earnings, or other economic losses may be recovered. Those issues require separate analysis.

Impaired Driving Conviction Scenario

An injured driver was operating a motor vehicle while impaired by alcohol or drugs at the time of the accident and was convicted of the applicable offense. If the remaining statutory requirements are met, the driver’s recovery for non-economic loss may be limited to $100,000.

The conviction requirement is important. An allegation, arrest, traffic citation, or unresolved criminal charge by itself does not satisfy the statute’s express conviction requirement.

Felony or Immediate Flight Scenario

An injured driver was operating a motor vehicle during the commission of a felony, or during immediate flight from that felony, at the time of the accident and was convicted of the felony. If the remaining statutory requirements are met, the $100,000 cap may apply to the driver’s recovery for non-economic loss.

This is a narrow category. The precise offense, the conviction, the timing of the conduct, and whether the accident occurred during the felony or immediate flight require case-specific review.

Cases Where the Cap Does Not Apply or Requires Separate Analysis

The § 5104(d) cap does not apply when:

The action or proceeding was commenced before May 26, 2026 and is therefore not governed by Part EE;
The action seeks damages for injuries resulting in death;
The injured person did not sustain a serious injury. In an action governed by Insurance Law § 5104(a), that generally means there is no right to recover non-economic loss, rather than that the claim becomes uncapped;
No fault is attributed to the injured person;
The injured person does not fall within one of § 5104(d)’s three operator categories; or
The only potentially applicable § 5104(d) category is the uninsured-vehicle category, and the lapse in coverage lasted less than 30 days.

A lapse lasting less than 30 days prevents the cap from applying under the uninsured-vehicle category. It does not prevent the cap from applying under the impaired-driving or felony category if the separate requirements of one of those categories are independently satisfied.

If CPLR § 1411(b) bars the injured person from recovery, the cap is not reached because the person is barred from recovering damages in the action.

Because every § 5104(d) category requires the injured person to have been operating a motor vehicle, an injured passenger, pedestrian, or bicyclist who was not operating a statutory motor vehicle does not fall within the three listed categories.

Premises liability claims, construction accidents, medical malpractice cases, product liability claims, and other actions outside the motor vehicle framework addressed by § 5104(d) are not subject to this cap.

Motorcycle cases also require separate analysis. Article 51’s definition of “motor vehicle” excludes motorcycles. As a result, an injured motorcycle operator ordinarily does not fit § 5104(d)’s three categories requiring the injured person to have been operating a motor vehicle. Mixed-vehicle cases and unusual vehicle-classification questions should still be reviewed individually.

Frequently Asked Questions about the $100,000 Cap

Does the new $100,000 cap apply to every New York car accident case?

No. The cap is not a general damages limit for every New York motor vehicle accident claim. For actions and proceedings commenced on or after May 26, 2026, it applies only to non-economic loss in a case involving a serious injury when the injured motor vehicle operator was at fault, was not barred from recovery under CPLR § 1411, and was:

Operating an uninsured motor vehicle the person was responsible for insuring, unless the lack of coverage resulted from a lapse lasting less than 30 days;
Operating while impaired at the time of the accident and convicted of the applicable offense; or
Operating during the commission of a felony or immediate flight from that felony and convicted of the felony.

The cap does not apply to an action for damages for injuries resulting in death.

Does the cap limit No-Fault benefits?

The § 5104(d) cap concerns recovery for non-economic loss in a personal injury action. It does not itself set or reduce the amount of first-party No-Fault benefits.

However, separate provisions of Insurance Law § 5103 may affect No-Fault eligibility, exclusions, or reimbursement rights in certain intoxication or drug-impairment, felony, and owner-uninsured-vehicle situations. No-Fault coverage and the § 5104(d) damages cap therefore require separate legal analyses.

What are non-economic damages?

Non-economic damages refer to the human impact of an injury. These damages may include pain and suffering, emotional distress, loss of enjoyment of life, and physical limitations. They are different from economic losses such as medical bills or lost income.

Does the cap apply if someone dies in a motor vehicle accident?

No. The statute excludes actions for injuries resulting in death from the $100,000 non-economic damages cap. Fatal accident cases involve separate wrongful death and survival claim issues that should be reviewed by an attorney.

How does the cap relate to New York’s serious injury threshold?

They are separate but connected legal questions. Insurance Law § 5104(d) applies only in a case involving a serious injury. Under amended Insurance Law § 5104(a), however, the trier of fact must first determine the party or parties at fault and may not decide whether the injury is a serious injury until that fault determination has been made. If the claimant is not barred from recovery under CPLR § 1411(b), a serious injury is found, and the remaining requirements of § 5104(d) are satisfied, the cap applies.

When did these changes take effect?

Part EE took effect May 26, 2026, and applies to actions and proceedings commenced on or after that date. The timing of when the lawsuit or proceeding was commenced may affect which rules apply.

How The Rothenberg Law Firm Helps After a New York Motor Vehicle Accident

The 2026 changes make early case preparation even more important in New York motor vehicle accident claims.

A serious crash may now involve several overlapping questions: whether the case is subject to Article 51, whether the injuries meet the updated serious injury definition, how fault should be allocated, whether CPLR § 1411(b) bars recovery, and whether the limited § 5104(d) cap applies.

The Rothenberg Law Firm represents injured people and families after car accidents, truck crashes, rideshare accidents, pedestrian collisions, bicycle accidents, bus accidents, motorcycle crashes, and other serious injury cases throughout New York, New Jersey, and Pennsylvania.

New York’s $100,000 Non-Economic Damages Cap for Certain At-Fault Drivers