New York Auto Insurance: Understanding The Empire State's Regulations

New York has strict auto insurance laws and regulations. All drivers in the state are required to show proof of financial responsibility before getting behind the wheel or registering their vehicles. The easiest way to do this is by purchasing a car insurance policy with liability and no-fault coverage. The minimum requirements in New York include bodily injury liability of $25,000 per person and $50,000 per accident, as well as $10,000 for property damage liability. As a no-fault state, New York also mandates personal injury protection (PIP) of at least $50,000. Uninsured motorist coverage is also legally required in New York.

Minimum liability coverage

In the state of New York, drivers are required by law to carry a minimum amount of liability coverage, which is often referred to as "25/50/10". This means that drivers must have:

• $25,000 of bodily injury liability coverage per person and $50,000 of bodily injury liability coverage per accident. This includes $25,000 for bodily injury (not resulting in death) and $50,000 for any injury resulting in death, sustained by any one person in any one accident.
• $50,000 for bodily injury (not resulting in death) sustained by two or more persons in any one accident, and $100,000 for any injuries resulting in death sustained by two or more persons in any one accident.
• $10,000 of property damage liability coverage per accident, which is the minimum limit of coverage required by law for property damage liability protection.

These minimum liability limits in New York are sometimes referred to as "$25,000/$50,000/$10,000" or "25/50/10". It is important to note that these are the minimum requirements, and it is recommended to purchase additional coverage for increased protection.

In addition to the minimum liability coverage, New York drivers are also required to have personal injury protection (PIP) and uninsured motorist coverage. PIP coverage pays for medical costs, lost wages, and other related expenses for the driver and passengers injured in an accident, regardless of fault. The minimum PIP coverage required in New York is $50,000 per person. Uninsured motorist coverage protects against injuries caused by an uninsured or hit-and-run driver, and the minimum limits for this coverage are $25,000 per person and $50,000 per accident.

Uninsured/underinsured motorist coverage

The minimum limit for uninsured motorist coverage in New York is $25,000 per person and $50,000 per accident. This is the same as the minimum bodily injury limits required for liability insurance.

Supplemental spousal liability (SSL) coverage is also available, which covers you if your spouse causes an accident that injures you.

In addition to the mandatory uninsured motorist coverage, you can also purchase supplemental uninsured/underinsured motorist (SUM) coverage. This provides protection beyond the basic uninsured motorist coverage and covers injuries from underinsured motorists. SUM coverage also protects you outside of New York State, in the rest of the United States, its territories, and Canada.

If you are injured by an uninsured or underinsured driver, you should file a claim with your auto insurance company.

Personal injury protection (PIP)

PIP covers most medical costs stemming from a car accident, including psychiatric and physical rehabilitative costs, diagnostic services like X-rays, and treatment in accordance with a recognised religion. It also 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. It will also reimburse other reasonable and necessary expenses, such as household help and transportation expenses to and from medical treatment, up to $25 per day for up to a year from the date of the accident.

If an eligible insured driver is killed in an accident, the estate of the driver is entitled to $2,000 to help pay for funeral and burial costs.

When filing a PIP claim in New York, you will have 45 days after the start of treatment to submit written proof to your insurance company that details the nature and extent of the injuries and treatment received. You will have 90 days to submit written proof of lost earnings. Your insurance company will then have 30 days to pay you once they have received the forms.

If you've filed a PIP claim and want to file a liability claim against the at-fault driver, you may be restricted unless you meet the serious injury criteria as defined in Section 5102(d) of New York's insurance law. This includes dismemberment, serious disfigurement or a fracture, permanent or significant limitation of use of a body organ, function or system, and significant disability for at least 90 days.

Collision and comprehensive coverage

Collision coverage is an optional insurance policy in New York State for vehicles owned outright, but it is highly recommended if you want your vehicle covered and protected. This policy covers damage to your vehicle when you are at fault and hit another object, such as a guard rail, telephone pole, or another car. It also covers possible damage to your vehicle if hit by someone else. Financed or leased vehicles must have collision coverage.

Comprehensive coverage is also optional and not required in New York State for vehicles owned outright. It covers damage to your vehicle from non-collision incidents, such as natural disasters, fires, vandalism, and damages caused by hitting an animal. Comprehensive coverage is also required for financed or leased vehicles.

While these coverage plans are not mandatory, living in New York comes with certain risks. There are hundreds of thousands of drivers on the state's roadways, a large population of wildlife, and weather extremes, including hurricanes and blizzards. These factors alone make a strong case for carrying both collision and comprehensive policies in addition to your liability coverage.

Proof of coverage

In New York, drivers must carry proof of insurance while driving. This can be done by keeping two original NY State Insurance ID Cards with you or by having access to your digital electronic NY State Insurance ID Card. The latter can be accessed via your insurance company's website or app.

The NY State Insurance ID Cards will contain the following information:

• Effective date of your liability insurance coverage
• Policy number of your liability insurance coverage
• 3-digit code of your insurance company

If your driver's license or vehicle registration is suspended due to a lapse in insurance coverage, you can provide proof of insurance online or by mail. To do so, you will need to provide the following:

• The bottom part (tear strip) of your insurance letter
• Your NY State Insurance Identification Card (a legible photocopy is acceptable)
• Your name and address on the DMV records must match those on the insurance identification card

It is important to note that you cannot provide proof of insurance by phone or at a DMV office.

Frequently asked questions