Liability Auto Insurance: Nyc's Bus-Only Option

In New York, car insurance is essential for all drivers, and the state has strict requirements for the types of insurance that must be held. To register a vehicle in New York State, you must have New York State-issued automobile liability insurance coverage. This means that out-of-state insurance is not acceptable, and your insurance must be issued by a company licensed by the NY State Department of Financial Services. The minimum liability coverage required by law in New York is $25,000 for bodily injury and $50,000 for death for a person involved in an accident, $50,000 for bodily injury and $100,000 for death for two or more people in an accident, and $10,000 for property damage for a single accident. These minimum liability limits in New York are often referred to as 25/50/10.

Minimum liability insurance requirements in NYC

In New York, drivers must have a minimum of liability auto insurance to legally operate a vehicle. This insurance is mandatory to safeguard against potential financial losses from accidents.

The minimum liability insurance requirements in NYC are as follows:

• $25,000 for bodily injury liability per person and $50,000 per accident
• $50,000 for bodily injury and $100,000 for death for two or more people in an accident
• $10,000 for property damage liability per accident
• $25,000 uninsured motorist bodily injury per person and $50,000 per accident
• $50,000 personal injury protection (PIP) per person
• $50,000 death liability per person and $100,000 per accident

These minimum liability limits in New York are often referred to as "25/50/10" or "$25,000/$50,000/$10,000".

In addition to the above, New York also requires drivers to have No-Fault (Personal Injury Protection) insurance and Uninsured Motorists Coverage.

No-Fault insurance, also known as Personal Injury Protection (PIP), provides up to $50,000 per person for economic losses such as medical/health expenses, lost earnings, and other necessary expenses related to injuries sustained in an accident. It covers the driver, all passengers in the car, and any pedestrians injured by the car, regardless of who is at fault.

Uninsured Motorists Coverage provides bodily injury protection for you, your family members, and occupants of your car in the event of an accident with an uninsured or hit-and-run driver. The minimum amount required is the same as the bodily injury liability limits mentioned above, i.e., $25,000 per person and $50,000 per accident.

It is important to note that these are the minimum requirements, and you may choose to purchase additional coverage for more comprehensive protection.

The consequences of driving without insurance in NYC

Driving without insurance in New York is considered a criminal offense and can result in various consequences. Firstly, it is important to understand that New York State law requires all drivers to maintain a minimum level of auto insurance, known as the 25/50/10 policy. This includes $25,000 per person for bodily injury liability, $50,000 per accident for bodily injury liability, and $10,000 per accident for property damage liability. Additionally, New York drivers must also have $50,000 for personal injury protection (PIP) and underinsured/uninsured motorist coverage.

If you are caught driving without insurance in New York, you may face the following consequences:

• Fines: The state may fine you up to $1,500 for each incident of driving without insurance, with the severity of the fine depending on factors such as past offenses and the presence of an accident.
• License and registration revocation: Your driver's license and vehicle registration may be revoked for at least one year, and up to three years, if you are found to be driving without insurance.
• Additional fees: There is an additional fee of $750 to restore a revoked license, and you may also have to pay storage and towing fees if your vehicle is impounded.
• Imprisonment: Driving without insurance can result in jail time of up to 15 days, or up to 180 days for repeat offenders.
• Increased financial risk: If you are involved in an accident while driving without insurance, you may be responsible for paying for the other driver's medical bills, vehicle repairs, and legal fees out of pocket, in addition to your own expenses.
• Difficulty obtaining future insurance: A history of driving without insurance may make it more challenging to find an insurance company willing to cover you in the future.

It is important to note that even if you have a valid insurance policy, failing to provide proof of insurance during a traffic stop in New York can result in the assumption that you are uninsured. Therefore, it is crucial to always carry your insurance identification card and other relevant documents while driving.

No-fault insurance and its benefits

In the state of New York, car owners are required to register their vehicles with the state to obtain a license plate and legally drive on public roads. As part of the registration process, owners must provide proof of financial responsibility. This can be done by showing proof of insurance coverage or by demonstrating that they have enough money set aside to cover potential costs in the event of an accident.

New York is a "no-fault" state, meaning that your own insurance covers your medical bills and other losses after an accident, regardless of who caused the accident. This is often referred to as "personal injury protection" or PIP. The minimum amount of coverage required is $50,000 per person.

The benefits of no-fault insurance in New York include:

• Medical and rehabilitative costs: No-fault insurance covers reasonable and necessary accident-related medical and rehabilitative costs, such as x-rays, surgical interventions, nursing care, psychiatric treatment, physical and occupational therapy, and any necessary rehabilitation.
• Lost earnings: No-fault insurance covers 80% of lost earnings from work, up to a maximum payment of $2,000 per month, for up to three years from the date of the accident.
• Other reasonable and necessary expenses: No-fault insurance provides up to $25 per day, for up to a year from the date of the accident, to reimburse other reasonable and necessary expenses, such as household help and transportation expenses to and from medical treatment.
• Death benefit: In addition to the basic no-fault limit of $50,000 per person, a $2,000 death benefit is payable to the estate of a person eligible for no-fault benefits who is killed in a motor vehicle accident.
• Protection for drivers, passengers, pedestrians, and cyclists: No-fault insurance provides coverage for the vehicle owner/policyholder, anyone driving the vehicle with permission, passengers in the vehicle, pedestrians, and bicyclists.
• Prompt payment: The purpose of no-fault insurance is to restore individuals hurt in auto accidents to health and productivity as quickly as possible by providing prompt payment for economic losses, regardless of who is at fault.
• No need to determine fault: In a no-fault state, you do not need to rely on an insurance carrier to determine fault to collect on a claim. This can speed up the process of receiving compensation.

It is important to note that no-fault insurance does not cover vehicle damage claims or repairs. It only covers personal losses and injuries sustained in an accident. Additionally, there are certain exclusions from receiving no-fault benefits, such as motorcycle passengers, owners of uninsured vehicles, and those who are not residents of New York.

How to prove you have insurance in NYC

To prove you have insurance in New York City, you must have New York State-issued automobile liability insurance coverage. Out-of-state insurance is never acceptable. When you get insurance, your insurance company will issue proof of insurance in two ways:

• They will give you two original NY State Insurance ID Cards or provide you with access to your digital electronic NY State Insurance ID Card.
• They will send an electronic notice of insurance coverage to the DMV (this cannot be filed by your insurance agent or broker).

Your NY State Insurance Identification Cards and the electronic notice of insurance together verify your insurance coverage. You must bring one copy or form of your Insurance Identification Cards when registering your vehicle at the DMV. The DMV office will keep the paper card. Keep the other paper card with the vehicle as your proof of insurance. Anyone operating your vehicle must be able to provide proof of insurance while driving it.

You can check your insurance status online. You can also check the status of your driver's license and vehicle registrations through MyDMV. If your driver's license or vehicle registration is suspended because of a lapse in insurance coverage, you can provide proof that you now have insurance online or by mail.

Alternative ways to prove financial responsibility

In New York, drivers are required to show financial responsibility before registering their cars or hitting the road. While the easiest way to do this is by purchasing a car insurance policy, there are alternative ways to prove financial responsibility. These include:

• Security deposit with the DMV: You can choose to deposit $150,000 as cash or security with the DMV. This can be used to satisfy claims or judgments against you following an accident. If the commissioner believes the deposit isn't sufficient, they may ask for additional deposits.
• Surety bond: You can file a surety bond with the DMV, provided it's issued by a New York-licensed surety company. The commissioner will decide if the bond meets state standards and issue a certificate if it does. With a surety bond, you'll pay for any claims resulting from an accident. If you're unable to pay, the surety company will pay on your behalf and collect the money from you later.
• Self-insurance: If you own and have more than 25 cars registered under your name, you may be able to apply to become a self-insurer. You'll need to provide all the documents the commissioner requires to prove your financial ability, and pay an annual fee for each car listed under your self-insurance. The commissioner will issue a certificate once they believe you can pay out for accident claims for every vehicle, just as a traditional minimum liability policy would.

It's important to note that these alternatives are not common methods of proving financial responsibility and may not be widely available. The most common and straightforward way to comply with New York's financial responsibility law is by purchasing a car insurance policy with at least the minimum coverage limits.

Frequently asked questions