Understanding New York State Car Insurance Requirements: What You Need to Know
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Getting ready to register a vehicle in New York? Understanding New York state car insurance requirements can help you make sure you’re meeting legal requirements and protecting your assets. New York requires a few different types of coverage, including liability, personal injury protection (PIP), and uninsured/underinsured motorist coverage.
Familiarize yourself with each of these types of coverage plus the required minimum limits below to make sure your car insurance policy is adequate. And stay up-to-date with New York insurance news to keep yourself covered.
The Necessity of Car Insurance in New York
If you have a vehicle registered in New York State or plan to in the future, having the correct types and amounts of car insurance is crucial. Not only do you want to make sure you’re driving legally to avoid fines and other penalties, but you want to protect yourself financially.
Meeting New York State car insurance requirements will ensure that you’re covered if you’re in an accident, both for injuries to yourself and others, plus any damage that might occur to your property or someone else’s. It would certainly be devastating for most people to get stuck paying these expenses out-of-pocket.
Minimum Coverage Requirements
The New York State minimum car insurance requirements include three types of coverage: liability coverage, personal injury protection (PIP), and uninsured/underinsured motorist coverage. You must obtain each of these with specific minimum limits to obtain a New York car registration.
New York state requirements for child car insurance are similar to the requirements listed below. However, minors cannot purchase their own policies. If you have minors in your household with access to your registered vehicles, you must add them to your policy.
Let’s take a look at each type of coverage and how much you’ll need.
Liability Coverage
Liability coverage will pay for any damages you cause to another person or their property while driving your vehicle or another person’s vehicle (as long as you have permission from the vehicle’s owner to drive the car).
Liability coverage includes two different limits — one for bodily injury liability and another for property damage liability. In New York, your liability limits must include at least:
- $25,000 for bodily injury per person, or $50,000 for injuries resulting in death, for one person in an accident
- $50,000 for bodily injury, or $100,000 for injuries resulting in death, for two or more people in an accident
- $10,000 for property damage per accident
This coverage is sometimes referred to as $25,000/$50,000/$10,000 or 25/50/10.
Personal Injury Protection (PIP)
Personal injury protection (PIP) is also required to cover expenses related to bodily injuries caused by your vehicle to you, your passengers, or pedestrians, regardless of who is at fault. It may cover medical expenses, rehabilitation costs, lost earnings from work, and other expenses. It will also provide a small death benefit if someone is killed during the accident. New York car insurance must include at least $50,000 of PIP coverage.
Uninsured/Underinsured Motorist Coverage
Uninsured/underinsured motorist coverage provides bodily injury coverage for you, members of your household, and passengers in your vehicle if they are injured by an uninsured or underinsured motorist. Uninsured motorist coverage provides coverage for the entire cost of expenses related to injuries up to the coverage limit, while underinsured motorist coverage will pay for expenses over the underinsured’s coverage limits.
Your uninsured/underinsured motorist coverage must include the same minimum for bodily injury liability — $25,000 per person and $50,000 per accident.
Understanding New York’s No-Fault Insurance System
New York is a no-fault state, which means that PIP coverage must be used to cover your own injury expenses before you can file a lawsuit against another driver for expenses that exceed your PIP coverage limits. Your PIP coverage will be the primary insurance for injuries caused to you, members of your household, or pedestrians, regardless of who is at fault. The purpose of the no-fault system is to ensure that injured parties are treated, rehabilitated, and protected financially as quickly as possible.
Penalties for Not Having Insurance
New York uses a system to detect uninsured vehicles, known as the Insurance Information and Enforcement System (IIES). All insurance companies are required to report changes to car insurance policies, such as cancellations, renewals, and new policies. The information is continuously updated in the IIES, so the Department of Motor Vehicles (DMV) can do its best to prevent drivers from getting on the road without insurance.
If the IIES detects changes in your auto insurance policy, you may receive a letter from the DMV asking you to confirm your insurance status. Even if you are confident that you’re meeting car insurance requirements for New York State, you should still contact the DMV or your insurance agent to respond to the inquiry.
If your policy lapses, you must turn in your registration and license plates. If you are caught driving without insurance, you may have your registration and license suspended, pay fines, have your vehicle impounded, and/or get arrested. If you are in an accident without auto insurance in New York, your license and registration may be suspended for at least a year, and you may pay fines up to $1,500 plus $750 to restore your license.
Responsibilities of Drivers Regarding Liability Insurance
New York drivers must obtain the minimum liability car insurance required in New York state, including $25,000 for bodily injury for one person, $50,000 for bodily injury for more than one person, and $10,000 for property damage per accident.
Because New York is a no-fault state, your liability coverage will be secondary insurance to another driver’s PIP coverage if they are injured. If you are deemed at fault in an accident, the injured party can then file a lawsuit to have your insurance company pay for expenses that exceed their PIP limits, as long as they have suffered a “serious injury” as defined by New York State law.
Get a Free Comparison on Insurance Today!
Car insurance prices can vary a lot across New York State. Other factors can also affect your insurance premiums, such as your driving history and vehicle information. The best way to make sure you’re getting the best coverage for your budget is to compare custom options with EverQuote. Start by entering your ZIP code to get a free quote for policies ranging from basic state requirements to comprehensive coverage.