Auto Insurance In New York: What's The Law?

New York state law requires all drivers to have auto insurance before registering their vehicles. The minimum insurance requirements include liability coverage, no-fault coverage, and uninsured motorist coverage. Liability coverage includes $25,000 for bodily injury per person, $50,000 per accident, and $10,000 for property damage per accident. No-fault coverage, also known as personal injury protection (PIP), includes $50,000 per accident. Uninsured motorist coverage includes $25,000 for bodily injury per person and $50,000 per accident.

Minimum auto insurance requirements in New York

In the state of New York, auto insurance is mandatory. To register a vehicle in New York, you must have New York State-issued automobile liability insurance coverage. If you do not maintain coverage, the DMV can suspend your vehicle registration and your driver's license.

The minimum amount of liability coverage for most vehicles in New York is as follows:

• $10,000 for property damage for a single accident
• $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

In addition to the above, New York also requires drivers to have the following minimum coverages:

• No-Fault (Personal Injury Protection) - This coverage pays for medical expenses, lost earnings, and other reasonable and necessary expenses for a driver or passenger injured in an accident, regardless of who is at fault. The minimum coverage limit for No-Fault insurance in New York is $50,000 per person.
• Liability Insurance - This coverage protects you if a claim is made against you by another person alleging that you were at fault in an accident. The minimum limits for third-party bodily injury liability coverage in New York are $25,000 per person and $50,000 per accident. For property damage, the minimum coverage limit is $10,000 per accident.
• Uninsured Motorists Coverage - This coverage protects you and your family members if you are injured in an accident with an uninsured or hit-and-run driver. The minimum coverage limits for uninsured motorist protection in New York are the same as for liability insurance: $25,000 per person and $50,000 per accident.

It is important to note that these are the minimum requirements, and purchasing additional coverage can provide greater financial protection in the event of an accident.

Proof of auto insurance in New York

In the state of New York, it is mandatory to have auto insurance to register a vehicle and obtain license plates. The minimum insurance coverage required by law includes liability insurance, no-fault insurance (personal injury protection), and uninsured motorist insurance.

Proof of Insurance Requirements

When registering a vehicle in New York, you must present a valid New York State Insurance ID card, which matches the digital record on file. This card can be in paper or electronic format and must be issued by a company licensed by the New York State Department of Financial Services. The name on the insurance card must match the name on the vehicle registration.

If you are pulled over while driving, you can show either a paper or electronic version of your insurance card to prove coverage. The electronic version must meet specific technical requirements and be capable of being displayed on a portable electronic device.

Minimum Insurance Coverage

The minimum amount of liability coverage for most vehicles in New York is as follows:

• $10,000 for property damage per accident
• $25,000 for bodily injury and $50,000 for death per person involved in an accident
• $50,000 for bodily injury and $100,000 for death for two or more people in an accident

In addition to liability insurance, New York also requires no-fault insurance (personal injury protection) with a minimum coverage of $50,000 per person. This insurance covers medical expenses, lost earnings, and other necessary expenses resulting from an accident, regardless of who is at fault.

Uninsured motorist insurance is also mandatory in New York, protecting you and your family members in the event of an accident with an uninsured or hit-and-run driver. The minimum coverage limits for this insurance are the same as for liability insurance.

Alternative Proof of Financial Responsibility

If you choose not to obtain auto insurance, there are three alternative ways to satisfy the financial responsibility requirements under New York state law:

• Security deposit with the DMV: You can deposit $150,000 in cash or security to satisfy claims or judgments against you in the event of an accident.
• Surety bond: You can file a surety bond with the DMV, issued by a New York-licensed surety company. You will be responsible for paying any claims resulting from an accident, but the surety company will pay on your behalf if you are unable to do so.
• 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 by providing financial documentation and paying an annual fee for each vehicle.

Uninsured motorist coverage

In the state of New York, auto insurance is mandatory. Uninsured motorist coverage is an important feature of your auto insurance policy that provides bodily injury protection for you, your family members, and your passengers. This coverage is applicable when any of the aforementioned parties are injured due to the negligent actions of an uninsured or hit-and-run driver.

The minimum amount of uninsured motorist protection that is required to be provided in New York is $25,000 per person and $50,000 per accident. This coverage only applies to accidents occurring within the state of New York and does not extend to cover damage to your car.

If you or your family members are injured in an accident involving an uninsured or hit-and-run driver, you should immediately report the incident to the proper authorities and file a claim with your auto insurance company under this coverage. If you do not have your own insurance policy and are not covered by a family member's policy, you may still be eligible for uninsured motorist protection and No-Fault coverage. In this case, you would need to promptly file a claim with the Motor Vehicle Accident Indemnification Corporation (MVAIC).

Supplementary Uninsured/Underinsured Motorist coverage, or SUM coverage, is an optional coverage that you can purchase to extend your protection beyond the state of New York. SUM coverage also includes protection against underinsured motorists, which are drivers whose liability limits are too low to cover the injuries they cause.

It is important to note that uninsured motorist coverage does not include physical damage to your car. If you want to include protection for your vehicle, you will need to purchase collision coverage separately.

Personal injury protection (PIP)

PIP covers three things: medical costs, economic losses, and death benefits. Medical costs covered by PIP include psychiatric and physical rehabilitation costs, diagnostic services such as X-rays, and treatment in accordance with a recognized religion. If you are unable to work due to your injuries, PIP will also cover lost wages, up to $2,000 per month or 80% of your monthly earnings (whichever is less), for up to three years after the accident. You can also receive $25 per day to cover routine household activities that you are unable to do, such as laundry and home maintenance.

If an eligible insured driver is killed in an accident, their estate is entitled to $2,000 to help pay for funeral and burial costs. This benefit is common in most states' no-fault insurance laws.

You can purchase additional PIP insurance if you wish, which is worth considering as medical expenses after an accident can be significant. You can also increase your PIP limit by purchasing Optional Basic Economic Loss (OBEL) insurance, which provides an additional $25,000 worth of no-fault insurance benefits that can be allocated for medical expenses, earnings losses, psychiatric or rehabilitation costs.

To file a PIP claim in New York, you must submit written proof to your insurance company within 45 days of starting treatment. This proof should detail the nature and extent of your injuries and treatment received. For lost earnings, you have 90 days to submit written proof to your insurance company.

Penalties for driving without insurance in New York

Driving without insurance in New York is considered a criminal offense. If you are caught driving without insurance, you could be fined, arrested, or have your vehicle impounded. The penalties for driving without insurance in New York include fines of up to $1,500, a civil penalty fee of $750 to reinstate your license, and jail time of up to 15 days. Your license and registration may also be revoked for up to three years.

If you let your insurance lapse, you will be subject to daily fees of $8 per day for the first 30 days, $10 per day for days 31-60, and $12 per day for days 61-90. If your insurance has lapsed for more than 90 days, you will need to surrender your vehicle registration and plates, and your driver's license will be suspended for the same number of days as your registration suspension. To get your license back, you will need to pay a $50 fee to the DMV.

If you are involved in an accident while driving without insurance in New York, the penalties can be even more severe. The New York Department of Motor Vehicles will revoke your registration and license for at least one year after the crash, and you will be responsible for paying for any injuries and damages resulting from the accident. You will also be fined up to $1,500 and pay a civil penalty of $750 to restore your license.

In summary, driving without insurance in New York can result in steep fines, jail time, and the loss of driving privileges. It is always best to keep your insurance coverage up to date and to drive with a valid license and registration.

Frequently asked questions