Understanding The Minimum Auto Insurance Requirements In New York State

In the state of New York, drivers are legally required to carry a minimum amount of auto insurance, known as liability insurance, in order to operate a vehicle. This insurance is designed to protect against financial losses in the event of an accident, covering damage to both people and property. The specific requirements for minimum auto insurance in New York include:

- $25,000 for bodily injury liability per person and $50,000 per accident.

- $10,000 for property damage liability per accident.

- $25,000 for uninsured motorist bodily injury per person and $50,000 per accident.

- $50,000 for personal injury protection (PIP) per person.

- $50,000 for death liability per person and $100,000 per accident.

No-Fault (Personal Injury Protection)

The minimum coverage amount for PIP in New York is $50,000 per person, known as 'basic No-Fault coverage'. This includes reasonable and necessary accident-related medical and rehabilitation expenses, in accordance with established fee schedules. It also covers 80% of lost earnings from work, up to a maximum of $2,000 per month for up to three years from the date of the accident. Additionally, it provides up to $25 per day for other reasonable and necessary expenses, such as household help and transportation to medical appointments, for up to a year from the date of the accident. There is also a $2,000 death benefit payable to the estate of a person eligible for No-Fault benefits who dies in a motor vehicle accident.

The purpose of No-Fault insurance is to restore individuals injured in auto accidents to health and productivity as quickly as possible. Due to New York's No-Fault law, lawsuits arising from auto accidents can only be brought for economic losses that exceed No-Fault benefits and for non-economic damages, such as pain and suffering, if a "serious injury" is sustained as defined in the Insurance Law.

It is important to note that No-Fault insurance does not cover auto body repairs or damage to another party's vehicle or property. It is also primary to health insurance, meaning it pays first in the event of an injury due to an auto accident.

Liability

In New York State, drivers must have liability insurance to protect against harm caused by their vehicle to other people and their property. This is a requirement to register a vehicle in New York.

The minimum liability coverage for most vehicles in New York State 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
• $50,000 for bodily injury and $100,000 for death for two or more people in an accident

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

In New York, liability insurance must be issued by a company licensed by the New York State Department of Financial Services and certified by the New York State DMV. The insurance must be issued in the name of the vehicle registrant and remain in the registrant's name at all times.

Failure to maintain liability insurance coverage in New York can result in the suspension of the insured's vehicle registration and driver's license.

Uninsured Motorists

In New York State, uninsured motorist coverage is a mandatory feature of your auto insurance policy. This coverage protects you, your family members, and any occupants of your car from injuries caused by an uninsured or hit-and-run driver. This coverage only applies to accidents occurring within New York State and does not cover damage to your car or other property.

The minimum limit for uninsured motorist coverage in New York is $25,000 per person and $50,000 per accident. This coverage is designed to protect you and your loved ones in the event of an accident with a driver who does not have insurance and, therefore, may not be able to pay for any injuries they cause.

If you are involved in an accident with an uninsured motorist, it is important to exchange information with the other driver, if possible. Record their insurance policy number, phone number, and license plate number. You should also call the police and file a report, and then contact your auto insurance carrier to open a claim.

If you are the victim of a hit-and-run, you may not have much information about the other driver. In this case, you should still call the police and provide as many details as you can remember. You should also contact your insurance carrier and open a claim.

In addition to the mandatory uninsured motorist coverage, New York State also offers Supplementary Uninsured/Underinsured Motorist (SUM) coverage. This optional coverage provides protection beyond the required uninsured motorist coverage and includes injuries caused by underinsured motorists. An underinsured motorist is someone whose liability limits are too low to cover the injuries they cause. SUM coverage protects you and your family anywhere in the United States, its territories, and Canada, whereas the base UM coverage only applies within New York State.

Insurance ID Cards

In New York State, you must have insurance liability coverage to register a vehicle. The minimum amount of liability coverage for most vehicles 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.

When you get insurance, your insurance company will issue proof of insurance in two ways: they will give you two original New York State Insurance ID Cards or give you access to your electronic New York State Insurance ID Card. 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 ID Cards with you. The DMV office will keep the paper card, and you should keep the other paper card with the vehicle as proof of insurance. Anyone operating your vehicle must be able to provide proof of insurance.

Your health insurance ID card will let you know the type of plan you have. The plan type determines how you can get care and what providers you can visit. Some of the types of plans you may see on your card include:

• HMO (Health Maintenance Organization): In an HMO, you choose a primary care provider (PCP) who coordinates your care. To avoid high out-of-pocket costs, make sure to get a referral from your PCP so that you can see a specialist, and use specialists in your plan’s provider network.
• POS (Point-of-Service) plan: In a POS plan, you also choose a PCP in your network. If you need to see a specialist, you can decide to use one who is in-network or out-of-network at the time you need care. But remember, your costs will likely be higher if you go outside your network.
• PPO (Preferred Provider Organization): In a PPO, you can visit any doctor without getting a referral from a PCP first. But, like a POS plan, you will generally pay more if you go out-of-network.

Your health insurance ID card may also show that you have vision, dental, and prescription drug benefits if they are part of your health plan.

Collision and Comprehensive Coverage

In the state of New York, drivers are required to have a minimum amount of auto insurance coverage to register their vehicle and obtain license plates. This includes No-Fault (Personal Injury Protection), Liability, and Uninsured Motorists Coverage.

While Collision and Comprehensive Coverage are not required by state law, they are both optional types of insurance that can provide additional protection for your vehicle.

Collision Coverage

Collision coverage protects your vehicle in the event of a collision with another vehicle or object, regardless of fault. It covers the cost of repairs or a full replacement of your vehicle if needed. For example, if you rear-end another car and need to replace your bumper, collision coverage would apply. It's important to note that collision coverage only applies to your vehicle or a vehicle you are operating with the owner's permission and does not cover damage to other vehicles.

Comprehensive Coverage

Comprehensive coverage, on the other hand, protects your vehicle from damage not related to a collision. This includes incidents like natural disasters, storms, fires, vandalism, damage caused by animals, and more. For instance, if a tree falls on your car during a storm, comprehensive coverage would come into effect. Like collision coverage, comprehensive coverage only applies to your vehicle and not to other vehicles that may be involved.

Choosing Coverage

When deciding whether to opt for Collision and Comprehensive Coverage, it's important to consider factors such as the value of your car, the likelihood of accidents in your area, and your current savings. If you have a high-value car or live in an area with a higher risk of vehicle damage, purchasing this additional coverage can provide financial protection in the event of unexpected incidents.

Additionally, it's worth noting that if you finance or lease your vehicle, your lender may require you to carry both Collision and Comprehensive Coverage. While these coverages are optional, they can provide valuable protection and peace of mind, ensuring you're prepared for a range of situations that could cause damage to your vehicle.

Frequently asked questions