Liability Insurance in New York: What Drivers Need to Know
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Auto insurance can be a complex topic, especially in New York, a no-fault state that still requires liability insurance to protect the insured and other drivers.
So, what is liability insurance in New York State, and how does it work? Below, we explore this topic, including coverage limits, the minimum liability insurance required, and the consequences of driving uninsured.
Keeping on top of all the New York car insurance laws and the latest insurance news in New York ensures you always remain compliant. Let’s dive in.
What Is Liability Insurance?
Liability insurance is a critical component of auto insurance policies that helps protect drivers from financial loss if they are at fault in an accident. In New York, this insurance covers bodily injury and any property damage the insured driver causes.
New York is a no-fault car insurance state, meaning regardless of who is at fault in an accident, each driver’s insurance policy covers their medical expenses and other losses. This liability insurance kicks in to cover property damage and any medical expenses above a driver’s coverage limits when another driver is found at fault for an accident.
The minimum liability coverage limits in New York are:
- $25,000 per person for bodily injury and $50,000 per accident for total bodily injury
- $50,000 per person for bodily injury resulting in death and $100,000 per accident for total bodily injury resulting in death
- $10,000 per accident for property damage
These limits ensure drivers have a basic level of protection. However, some drivers choose coverages exceeding these minimums to protect themselves from a potential financial burden if the property and medical costs end up higher than expected.
For example, if you’re in an accident, the injured party can file a claim against you as the at-fault driver to recover medical costs, lost wages, and pain and suffering. If the victim’s medical costs were $50,000, and you only had the minimum $25,000 in bodily injury coverage, the victim could sue you for the remaining $25,000.
Optional Coverage Options for Drivers
Liability insurance is mandatory in New York, but personal and commercial auto insurance policies often offer optional coverages for additional protection. Let’s review these options and what they cover.
Comprehensive Coverage
Comprehensive insurance coverage pays for damages from something other than a collision with another vehicle or object, such as a tree falling on your vehicle or a rock breaking your windshield. It also covers vandalism and theft.
Collision Coverage
Liability insurance only covers other people and their property, not your vehicle. Collision coverage is what you need if you want your insurance to help repair your vehicle after an accident, regardless of fault.
Personal Injury Protection (PIP)
New York requires a minimum amount of PIP coverage by law, but you can add more to your coverage for more protection. You can increase this medical compensation insurance from the state-required $50,000 to upward of $100,000 per accident or more.
Penalties for Non-Compliance
Driving without the minimum liability insurance in New York is dangerous and can lead to severe financial and legal repercussions.
You can receive up to a $1,500 fine for operating your vehicle without the state minimum insurance coverage. The same penalty applies if you allow someone else to operate it without the state minimum insurance coverage.
On top of the fine, you will suffer a suspended license, including any special licenses you have, for one year if you or someone else causes an accident without the minimum insurance coverage. Plus, you’ll have to pay a $750 fee to get your license reinstated after the suspension ends.
Coverage for Other Drivers Using Your Vehicle
New York general liability insurance extends to any licensed driver you allow to operate your vehicle. So, if someone else causes an accident while driving your insured car, your liability insurance should cover any damages up to the policy limits.
Keep in mind that coverage only extends to the driver if they use the vehicle “within the scope of the permission.” If the driver uses the vehicle in a way you didn’t permit or without your permission, the insurance policy may not cover any damages.
Navigating the Insurance Landscape
Auto insurance in New York can feel overwhelming because of all the companies, policy options, and prices to wade through. Fortunately, EverQuote is here to help. You can compare multiple New York auto insurance policy premiums for free and find the one that suits you.