In the big apple, every driver must have a certain quantity of automobile insurance to ensure financial accountability in the event of an accident. This covers liability insurance, underinsured motorist coverage, and personal injury protection, as New York is a no-fault state. Familiarizing yourself with New York vehicle insurance regulations will help you not only avoid the legal and financial implications of driving without insurance, but also better understand how to protect yourself, your assets, and others on the road.
Car insurance laws in New York
Drivers in New York must acquire personal injury protection (PIP) in addition to liability insurance because the state has no-fault. The state also requires uninsured motorist coverage. Legal requirements for minimal car insurance in New York are as follows:
$25,000 bodily injury liability per person and $50,000 death liability per person
$50,000 bodily injury liability per accident and $100,000 death liability per accident
$10,000 property damage liability per accident
$50,000 personal injury protection (PIP)
$25,000 uninsured motorist bodily injury per person
$50,000 uninsured motorist bodily injury per accident
In 2023, New York passed a new insurance law requiring insurers to add supplemental spousal liability coverage in all plans unless the policyholder explicitly declines it in writing. Supplemental spousal liability, or SSL, coverage is included in the bodily injury liability component of your insurance policy and kicks in if your spouse causes an accident that injures you, the policyholder.
Furthermore, New York State car insurance rules require all motorists to have evidence of insurance when driving.
It is important to note that these are the minimal requirements for your insurance coverage. You may, however, acquire supplementary coverage to provide more protection.
Do I need a vehicle insurance photo inspection in New York?
Until 2024, residents in New York State were required to conduct a photo inspection of their car, also known as a CARCO inspection, in order to purchase a full coverage insurance policy that included collision and comprehensive coverage. As of May 15, 2024, these inspections are no longer required and may be waived by the insurer. The inspections were made optional by the Auto Insurance Consumer Relief Act, which Governor Hochul signed into law in 2023. The new law will be in effect until October 1, 2027.
Even while the need can be legally waived, it's always a good idea to maintain current images of your vehicle on hand, as they could be useful evidence when submitting an insurance claim, demonstrating that the damage did not exist previous to the accident.
Liability Insurance in New York
Liability automobile insurance protects against damage and injuries incurred by another driver and their passengers. However, this sort of coverage does not cover vehicle damage if you cause an accident. You may see New York's required liability insurance coverage written as 25/50/10, which stands for $25,000 of bodily injury liability per person, $50,000 of bodily injury liability per accident, and $10,000 of property damage liability per accident.
While it's a terrific place to start, New York's minimal vehicle insurance regulations may not provide adequate financial protection following a major accident. Consider the property liability portion, which has a minimum of $10,000. If the other driver's automobile was totaled and was very new or expensive, $10,000 may not be sufficient to replace it. Consider the bodily injury minimum of $25,000. If a passenger in the other car sustains major injuries that necessitate hospitalization and surgery, the $25,000 in coverage may not cover all medical expenses.
Many insurance experts recommend that you carry greater liability insurance than is required. This way, you're considerably less likely to find yourself in a poor financial situation after an accident.
Is New York considered a no-fault state?
New York is a no-fault insurance state. As a result, the legislation mandates drivers to obtain personal injury protection (PIP). PIP coverage allows you to file a claim against your own insurance policy if you are injured in an accident, regardless of who is at fault. In at-fault states, you normally rely on the other driver's bodily injury liability insurance to cover your medical expenses.
PIP often covers medical expenditures, missed pay, burial expenses (if necessary), and possibly other charges. The required New York PIP coverage pays up to $50,000 per person, but you can increase it for an additional cost.
Although New York is a no-fault state, culpability does exist in the case of property damage. No-fault insurance covers only medical expenditures, injuries, lost wages, and funeral expenses. If you are found to be at fault in an accident, you will most likely be responsible for paying for the other driver's vehicle repairs as well as any property damage you caused.
Penalties for Driving Without Insurance in New York
Driving without insurance in New York can lead to serious repercussions. If your coverage fails, your insurance carrier must notify the Department of Motor Vehicles (DMV). If you no longer have insurance, you must turn in your vehicle registration and license plates to the DMV and stop driving. If you drive, you may face the following penalties:
Arrest or ticket.
Suspended drivers' licenses and vehicle registrations
Fines
Impounded automobile
If you are driving without insurance and are involved in an accident in New York, the state may suspend your license and registration for at least one year, and you might face fines of up to $1,500, plus a $750 civil penalty to recover your driving rights.
Additional Auto Insurance Coverage Options in New York
In addition to liability, PIP, and uninsured motorist coverage, you may be eligible for other coverage alternatives. Costs for this form of coverage vary by insurer and are influenced by criteria such as the type of car you drive and your driving record, among others.
Collision: This extra coverage helps pay for damage to your car caused by a covered accident with another vehicle or a fixed object.
Comprehensive: covers non-accident-related mishaps such as a tree falling on your automobile in a windstorm, car theft, or vandalism. It is not required in New York state. Comprehensive and collision coverage are recommended if your vehicle is newer or more expensive. It may not be as crucial for older, lower-value vehicles.
Medical payments: is optional in New York and will supplement existing coverage, such as PIP, to assist pay for medical expenses incurred in an accident. These could include hospital stays, surgery, ambulance fees, or other medical expenses.
Gap coverage: If you have a new automobile and owe more on the loan than the vehicle is worth, gap coverage might assist you pay off the loan if it is stolen or totaled. This policy may be handy because your collision or comprehensive insurance will only pay for the car's depreciated worth.
New car replacement coverage: assures that if your automobile is totaled or stolen and is two years old or less (or one year old or less for some insurers), you will be able to purchase a new car of the same worth as your previous vehicle.
Roadside support: Similar to a AAA or other roadside assistance membership, this will cover the cost of repairs or towing if your vehicle breaks down on the road, runs out of gas, or has a flat tire. You can use it if you need a jump start or are locked out of your automobile.
Rideshare: If you drive for a ridesharing company such as Uber or Lyft, you must have rideshare insurance. Your personal auto insurance policy usually does not cover your car while driving for a rideshare business, but rideshare coverage does.
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