Auto Insurance In Ny: What Is Permissive Use?

New York state law requires all drivers to have auto insurance. The minimum amount of liability coverage is $10,000 for property damage, $25,000 for bodily injury, and a total of $50,000 for death for a person involved in an accident, and a total of $100,000 for two or more people in an accident. This coverage must remain in effect while the driver's registration is valid, even if they are not using the vehicle. In New York, your car insurance policy follows your car, not you as a driver. This means that if you give someone permission to drive your car, your insurance will cover them.

In New York, car insurance follows the car, not the driver

If you let someone borrow your car and they cause an accident, your property damage liability insurance should cover the damage done to other vehicles. If the damages are very high and exceed your policy's limits, your friend's liability coverage can help fill in the gaps. Any damage to your car would be covered under your collision and comprehensive insurance. This optional coverage doesn't matter if you weren't driving at the time of the crash. However, the car accident claim will be filed on your policy, not your friend's.

If you don't have collision and comprehensive coverage, you might have to pay for your car's repairs out of pocket unless your friend voluntarily covers your losses. Alternatively, if you can prove that the other driver caused the crash, the repair costs will come out of that driver's property damage liability insurance coverage.

In New York, all drivers are required to show financial responsibility before hitting the road or even registering their cars. Buying car insurance with liability and no-fault coverage is the most common way to meet this requirement. The minimum amount of liability coverage you need in New York is $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, and $50,000 for bodily injury and $100,000 for death for two or more people in an accident. This coverage must remain in effect while your registration is valid, even if you're not using the vehicle.

No-fault insurance covers medical expenses and lost earnings

No-fault insurance, also known as Personal Injury Protection (PIP), is designed to cover the policyholder's medical expenses and lost income in the event of a car accident, regardless of who was at fault. It is mandatory in some states, including New York, and optional in others.

In the case of an accident, a No-Fault insurance policyholder would file an injury-related claim with their own insurance company, providing details of the accident, the extent of their injuries, and documentation of their medical expenses or lost wages. The insurance company would then evaluate the claim and pay out damages based on the extent of the policyholder's financial losses.

In New York, No-Fault insurance covers up to $50,000 per person for medical expenses and other related costs, such as rehabilitation. It also covers up to 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. This amount is subject to statutory offsets for New York State disability, Worker's Compensation, and Federal Social Security disability benefits. Additionally, No-Fault insurance provides up to $25 per day for one year from the date of the accident to reimburse other reasonable and necessary expenses, such as household help and transportation to and from medical appointments.

No-fault insurance is intended to streamline the process of seeking compensation after a car accident and reduce the burden on the court system by minimising lawsuits. It ensures that individuals injured in car accidents can receive compensation for their medical expenses and lost income promptly and efficiently, helping them restore their health and productivity as quickly as possible.

New York requires drivers to have personal injury protection (PIP)

New York is a No-Fault state, which means that drivers are required to carry Personal Injury Protection (PIP) insurance. This is a mandatory form of auto insurance for all drivers in the state. PIP insurance covers medical costs, economic losses, and death benefits. The minimum amount of PIP coverage in New York is $50,000 per person, and it is designed to pay out promptly, regardless of who is at fault for an accident. This means that PIP will cover the costs of all injuries sustained by drivers and passengers, as well as pedestrians injured by a vehicle.

PIP insurance in New York covers medical costs such as psychiatric and physical rehabilitation, diagnostic services like X-rays, and treatment in accordance with a recognized religion. It also covers economic losses, including lost wages for those unable to work due to their injuries. PIP provides up to $2,000 per month or 80% of monthly earnings (whichever is less) for up to three years after the accident, up to the policy's limits. Additionally, PIP provides a daily allowance of up to $25 to cover routine activities that an injured person can no longer perform, such as household chores and transportation to medical appointments.

In the unfortunate event of a death, PIP provides a $2,000 death benefit to the estate of the insured driver to help cover funeral and burial costs. This benefit is common in most states' no-fault insurance laws.

To file a PIP claim in New York, it is important to submit written proof of medical costs and lost earnings within specified time frames. For medical costs, written proof must be submitted to the insurance company within 45 days of starting treatment. For lost earnings, New York's no-fault insurance policies allow 90 days for submitting written proof.

It is worth noting that New York's no-fault insurance law has certain limitations. If an individual wishes to file a PIP claim and also pursue a liability claim against the at-fault driver, they must meet the serious injury criteria defined in Section 5102(d) of New York's insurance law. This includes dismemberment, serious disfigurement, fracture, significant disability lasting at least 90 days, or a permanent or significant limitation of a bodily organ, function, or system.

In summary, New York's requirement for drivers to carry Personal Injury Protection (PIP) insurance provides financial protection for medical costs, lost wages, and other expenses related to injuries sustained in an automobile accident, regardless of fault. The minimum coverage of $50,000 per person helps ensure that individuals can access the necessary resources for their recovery without incurring excessive out-of-pocket expenses.

The minimum liability coverage for property damage is $10,000

In the state of New York, you must have New York State-issued automobile liability insurance coverage to register a vehicle. The minimum amount of liability coverage for property damage in the state is $10,000 for a single accident. This means that if you are found to be at fault in an accident, your insurance will cover the cost of repairing or replacing the other person's property, up to $10,000. This includes damage to their car, buildings, fences, or other structures.

Property damage liability insurance is important because it protects you from being held financially responsible for damage to other people's property. In the event that the costs of repairing the damage exceed your coverage limit, you will be personally liable for the remaining balance. In such cases, the other party may sue you, putting your savings and assets at risk. Therefore, it is recommended that you purchase the maximum amount of property damage coverage that you can afford to hopefully prevent this scenario. The ideal situation would be to have coverage limits that are equal to your net worth, protecting your assets in the event that you are sued.

It is worth noting that property damage liability insurance never covers damage to your own vehicle or property. If you want to cover the cost of repairs to your own car, you would need to purchase collision or comprehensive coverage. Additionally, property damage liability insurance does not cover injuries you cause in a crash.

Uninsured motorist protection is mandatory

In the state of New York, uninsured motorist protection is mandatory. This means that if you are injured as a result of the negligent actions of an uninsured driver or are involved in a hit-and-run accident, your insurance policy will cover you, your family members, and any passengers in your vehicle. This coverage is designed to protect you financially in the event of an accident with an uninsured driver, as they likely won't be able to pay for any injuries or damages caused.

The minimum amount of uninsured motorist protection required in New York is $25,000 per person and $50,000 per accident for bodily injury liability coverage. This coverage only applies to accidents occurring within the state of New York and does not cover any damage to your vehicle or other property. If you want to extend your coverage to include out-of-state accidents or damage to your vehicle, you can purchase additional endorsements from your insurance provider.

It is important to note that uninsured motorist protection is separate from your standard liability insurance, which protects you if you are at fault in an accident. In New York, the minimum liability insurance requirements are $25,000 for bodily injury, $50,000 for death, and $10,000 for property damage for a single accident. These minimum liability limits are often referred to as "25/50/10."

To register a vehicle in New York, you must have valid automobile liability insurance coverage that meets the state's minimum requirements. Failure to maintain continuous insurance coverage can result in the suspension of your vehicle registration and driver's license, as well as monetary penalties.

In addition to uninsured motorist protection and liability insurance, New York also requires drivers to have No-Fault (Personal Injury Protection) insurance. This coverage pays for medical expenses, lost earnings, and other reasonable expenses up to $50,000 per person, regardless of who is at fault in the accident.

Frequently asked questions