New York Auto Insurance: Understanding State-Mandated Coverage

New York has strict requirements for auto insurance, and drivers must carry a minimum amount of liability coverage to legally operate a vehicle. The state's minimum coverage requirements include bodily injury liability, property damage liability, uninsured motorist bodily injury, and personal injury protection. These requirements safeguard drivers from potential financial losses in accidents, covering medical expenses, property damage, and legal liability. New York is a no-fault state, meaning insurance companies cover losses regardless of who is at fault in an accident.

Minimum insurance requirements

To register a vehicle in New York State, you must have New York State-issued automobile liability insurance coverage. If you do not maintain this coverage, the New York Department of Motor Vehicles (DMV) can suspend your vehicle registration and your driver's license.

The minimum liability coverage required by law in New York State is:

• $25,000 for bodily injury (not resulting in death), or $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, or $100,000 for any injuries resulting in death sustained by two or more persons in any one accident (subject to the above per-person limits).
• $10,000 for property damage per accident.

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

In addition to the above, New York's no-fault system requires personal injury protection (PIP) of $50,000, ensuring your costs are covered regardless of who caused the accident. PIP, also known as No-Fault insurance, pays for economic losses such as medical/health expenses, lost earnings, and certain other reasonable and necessary expenses related to injuries sustained, up to $50,000 per person.

Uninsured motorist coverage is also mandatory in New York State. This coverage provides protection against injuries you, your family, or your passengers might suffer in a hit-and-run accident or an accident with an uninsured vehicle. The minimum amount of uninsured motorist protection required to be provided is the same as the minimum bodily injury limits as required for liability insurance, i.e., $25,000 per person and $50,000 per accident.

Proof of insurance

To register a vehicle in New York State, you must have New York State-issued automobile liability insurance coverage. If you do not maintain coverage, the New York Department of Motor Vehicles (DMV) can suspend your vehicle registration and driver's license.

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 (your insurance agent or broker cannot file this notice).

Your NY State Insurance Identification Cards and the electronic notice of insurance together verify your insurance coverage. You must register your vehicle at the DMV within 180 days of the effective date on your insurance ID card. Bring one copy or form of your Insurance Identification Cards with you. 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.

If your driver's license or vehicle registration is suspended because of a lapse in automobile liability insurance coverage, you can provide proof that you now have insurance online or by mail. After you provide your proof of insurance, the DMV will verify your coverage with your insurance company.

When you register your car with the New York DMV, you will need to present a valid New York State insurance ID card. This will be matched to the digital record on file. If you are pulled over on the road, you can show a paper or electronic version of your insurance card to prove coverage.

No-fault insurance

Under no-fault insurance, your insurance company will pay for your own medical bills following a car accident, up to a certain limit. This includes hospital visits, psychiatric care, physical therapy, rehabilitation, and long-term professional health services. If you are unable to work due to your injuries, you are also entitled to 80% of your lost income, up to a maximum of $2,000 per month for up to three years, as well as a daily stipend of $25 to cover necessary household expenses for up to a year. In the unfortunate event of death, no-fault insurance will cover funeral expenses up to $2,000.

It is important to note that no-fault insurance does not cover vehicle repairs or damage to property. Additionally, there are certain exclusions from receiving no-fault benefits, such as motorcycle passengers, owners of uninsured vehicles, and non-residents of New York.

To file a no-fault insurance claim in New York, a written claim must be submitted to the insurance company within 30 days of the accident, unless a valid reason for a delay is provided. This claim should include as many details as possible about the accident, including the date, time, circumstances, and information about each person who was injured.

While no-fault insurance covers personal losses and economic damages, it does not cover pain and suffering. If you wish to sue for pain and suffering, you must reach the no-fault threshold, which typically requires a "serious injury" as defined by New York law. This includes significant injuries such as fractures, permanent injuries, or significant disfigurement.

Uninsured motorist coverage

The minimum amount of uninsured motorist protection required in New York is $25,000 per person and $50,000 per accident, which is the same as the minimum bodily injury limits mandated for liability insurance. This coverage can be extended to out-of-state accidents for a small additional charge.

If you or your passengers are injured by an uninsured or hit-and-run driver, a claim should be filed with your auto insurance company under this coverage. Additionally, if you or a family member is injured while occupying an uninsured vehicle or as a pedestrian, a claim can be filed with your insurance company. If you do not have your own insurance policy, you may be able to file a claim under a relative's policy or with the Motor Vehicle Accident Indemnification Corporation (MVAIC).

It is important to note that failure to maintain the required insurance coverage in New York can result in the suspension of your vehicle registration and driver's license, as well as monetary penalties.

Collision and comprehensive coverage

Collision Coverage

Collision coverage will pay for the damage repairs to your vehicle or, if it is a total loss, give you the cash value. This policy specifically covers your vehicle when you are at fault and hit another object. Collision coverage will apply in the following scenarios:

• Your car is damaged after an accident that you caused.
• Damage from hitting an object with your car, such as a guard rail or telephone pole.
• Possible damage to your vehicle if hit by someone else.

Comprehensive Coverage

Comprehensive coverage is often described as "acts of God" in insurance paperwork. This type of coverage includes vehicle damage that does not involve a collision and is often unpredictable and unpreventable. For example, a tree falling on your car, hail damage, or vandalism. Comprehensive coverage includes:

• Animal-related crashes.
• Falling trees, branches, and other objects.

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 extreme weather, including hurricanes and blizzards. These factors create a case for carrying both collision and comprehensive policies in addition to your liability coverage.

Frequently asked questions