Understanding the Types of Auto Insurance in New York: A Complete Guide
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Owning and driving a vehicle is a major responsibility. When someone gets behind the wheel, there’s always the chance of getting into an accident. Luckily, that's where auto insurance comes in.
Auto insurance protects you from some of the financial risks of vehicle accidents. Some types of insurance also protect other people on the road in case you cause a crash that affects them.
However, finding the right insurance for your needs can be a challenge. Use this guide to understand the mandatory New York types of insurance and the optional ones that provide extra coverage for your peace of mind.
Introduction to Types of Auto Insurance in New York
In almost every state, drivers are required to carry at least one type of insurance: liability insurance. However, there are many other types of auto insurance policies. New York insurances can also include comprehensive coverage, collision coverage, and uninsured motorist coverage, among others.
As you’re shopping for car insurance in New York, evaluate all the different insurance policies to decide which ones you need. You can buy extra insurance coverage beyond the required minimums for more financial protection.
Required Auto Insurance Coverage in New York
To register and drive a vehicle in New York State, drivers have to carry auto liability insurance, uninsured/underinsured motorist coverage, and personal injury protection.
Keep in mind that your insurance has to be from an insurance company licensed by the New York State Department of Financial Services and certified by the New York State DMV. Out-of-state insurance will not fulfill the New York insurance requirements.
Keep your insurance card in your vehicle as proof of insurance. If a law enforcement officer pulls you over, they may ask to see it.
Liability Insurance
Liability coverage must meet the following minimum requirements:
- $25,000 for bodily injury and $50,000 for the death of one person
- $50,000 for bodily injury and $100,000 for the death of multiple people
- $10,000 in property damage liability per accident
Even if you’re not using the vehicle, you need to maintain your liability policy as long as the vehicle registration is valid.
Uninsured/Underinsured Motorist Coverage
Even though drivers are supposed to carry liability insurance under New York State law, some may not. Others may only have minimum coverage, which may not be enough for a more severe accident. Underinsured and uninsured motorist coverage will pay some of your expenses if you’re in an accident caused by someone without enough liability insurance to cover your medical expenses. The minimum required is $25,000 per person or $50,000 per accident.
Personal Injury Protection (PIP)
If you’re injured in an accident that you cause, PIP may cover some or all of your medical bill up to your policy limits. The minimum coverage for this policy is $50,000.
Optional Coverages to Consider
You just need the above three insurances to comply with New York auto insurance laws, but that might not be enough financial protection for you. To provide more comprehensive coverage that also provides financial protection when you are at fault, many choose to buy an insurance policy with additional coverage. Here are some of your options.
Collision Coverage
If you get into an accident, collision insurance may cover the cost of repairing or replacing your car. You will still need to pay your insurance deductible, but beyond that, collision coverage should protect you financially in vehicle accidents, even if you are at fault.
Comprehensive Coverage
Comprehensive auto insurance can help cover the cost of repairing or replacing your vehicle if it gets damaged by events like vandalism, theft, and extreme weather.
Roadside Assistance
If your vehicle breaks down, roadside assistance coverage will help tow your vehicle to a service station to be repaired.
Choosing the Right Coverage for Your Needs
When you’re shopping for auto insurance in New York, the first thing you need to do is select a policy that fulfills the state’s minimum requirements. It’s imperative to follow these laws.
Driving without proper auto insurance could land you a traffic court fine of up to $1,500. The New York DMV will also revoke your driver’s license and vehicle registration for at least a year if you are in a vehicle accident while driving a vehicle without insurance. At the end of that year, you’ll have to pay an extra $750 to get your driver’s license back.
Once you know you have fulfilled the minimum requirements, you can shop for additional coverage if you’re interested. Consider how much a vehicle accident or adverse event would cost you. You have to weigh those financial risks against the added cost of extra auto insurance coverage.
It’s a personal decision. For example, someone who is more risk-averse may prefer to pay a higher insurance premium each month for the peace of mind that collision insurance provides. While someone who does not drive often and is trying to save as much money as possible might just buy the minimum required insurances in New York.
Compare Insurance Quotes for the Best Rates
No matter how much coverage you choose, everyone wants to find a great deal on their auto insurance. The best way to find reliable, cheap car insurance in New York is to compare rates.
By shopping around, you’ll find the best deals from top insurance providers. But who has time to go looking for quotes from all of the insurance providers? That’s where EverQuote comes in.
On EverQuote, you can get a free custom comparison of all your auto insurance options in just a few minutes. Find your ideal auto insurance with EverQuote.