New York drivers are required by law to have auto insurance and to comply with insurance laws in order to drive legally in the state. New York State has higher insurance limits than many states, but the minimum requirements may not provide enough protection.
Nearly 500,000 traffic accidents occurred in New York in 2019, killing 881 people. The average payout for an insurance claim was $6,360 for him, but accidental injuries can end up costing hundreds of thousands of dollars, and a solid insurance policy is your best bet against costly direct costs. is a defense of
new york auto insurance law
New York is considered an unleveraged state, so drivers are required to have personal injury insurance (PIP) in addition to liability insurance. The state also mandates coverage for uninsured drivers. Here is a complete list of New York auto insurance requirements:
- $10,000 property damage in one accident
- $25,000 personal injury to one person in an accident
- $50,000 personal injury per accident (if two or more people are injured)
- $50,000 for Personal Protection (PIP)
- $25,000 per person / $50,000 per uninsured road accident involving personal injury
Please note that these are the minimum requirements that an insurance policy must meet. However, you can purchase additional covers for added protection.
Your car insurance provides so-called proof of financial liability. Your insurance card tells others that you can pay for damages and injuries caused by accidents. By filing after the accident, you indicate that you are able to pay for expenses incurred as a result of the accident.
There is a lesser known alternative, also known as the Alternative Financial Liability Test, offered in some states. With this option, you can instead meet state requirements and receive a certificate that replaces your insurance card. To do this, you have three options:
- Deposit $150,000 into the DMV as a security that can be used to settle claims against you after an accident.
- Submit a security deposit to the DMV. This means that the surety company will pay the claim and recover the money from you.
- Self-insurance only if you own 25 or more vehicles and are self-insured
However, according to New York’s DMV, insurance is required. To determine if you are eligible for the Alternative Financial Accountability Test, you should contact your local DMV.
new york liability insurance
Third party liability is a part of insurance that covers costs related to accidental injury to passengers or accidental damage. New York third party liability insurance is usually written as 25/50/10. This is the minimum amount required to legally drive in the state, as outlined above.
But is the bare minimum enough? In the event of a serious accident, the minimum amount may not cover all costs. Consider a property liability portion with a minimum amount of $10,000. If the other driver’s car is added up and it is a relatively new or expensive car, then $10,000 may not be enough for him to replace the car.
Or consider the $25,000 minimum for personal injury. Her $25,000 could be quickly spent if another car passenger sustains serious injuries requiring hospitalization and surgery.
That’s why it’s important to get as much liability insurance as possible. Many experts recommend considering at least 100/300 for personal injury liability. You are much less likely to suffer financially after an accident.
Is New York a debt-free state?
Twelve US states, including New York, are considered no-fault states. New York’s no-fault law stipulates that you can make a claim under your policy after an accident regardless of who is at fault. So if another driver runs a red light and hits you, you can still bill your own insurance company, not the other driver’s provider.
The part of the policy that protects you in this case is called Personal Injury Protection (PIP). PIP covers medical expenses, lost wages, funeral expenses if necessary, and some additional costs. PIP pays her up to $50,000 per person, with the option to increase for an additional fee.
PIP is mandatory in New York, as all states have it without exception. Driving without insurance in New York can result in fines and even jail time.
Penalties for uninsured driving in New York
Driving in New York without insurance can have serious consequences. Insurers are required to notify the DMV when their policy expires. If you do not have insurance, you must return your license plate to Detran and refrain from driving. Driving can result in the following penalties:
- Fines that increase over time
- confiscated vehicle
- After 90 days, your driver’s license may be revoked.
- You may be arrested or fined
If you drive without insurance and get into an accident in New York, your license and registration can be suspended for at least one year, with fines of up to $1,500 and civil penalties of $750 to reinstate your license. There is a possibility.
Additional New York Auto Insurance Coverage Options
In addition to liability, PIP, and uninsured auto insurance mandated in New York, there are other coverage options you can include to better protect yourself. The cost depends not only on the insurance company, but also on the vehicle data and your own driving skills.
- collision: This optional coverage helps pay for damage to your car after a collision with another vehicle, vehicle, or stationary object. The only type of collision not insured here is with animals, which is covered by comprehensive insurance.
- Contains: Example Comprehensive coverage, often purchased in conjunction with a collision, covers all non-accidental accidents, from a tree knocked over your car in a storm to vehicle theft and vandalism. Not required in New York State. Comprehensive coverage and crash protection are good coverage if your car is a newer or higher-end model.
- Payment of medical expenses: MedPay coverage, which is optional in New York, enhances other coverage, including: B. Help pay for PIP and medical expenses incurred in the event of an accident. This may include hospitalization, surgery, ambulance costs, or other medical expenses.
- Funding Gap: If you have a car loan and your car is stolen or wrecked, this option can help you pay off your loan. Collision or comprehensive insurance first pays for vehicle depreciation. But if your loan is more than that, you don’t have to pay copays and deductibles because Gap Compensation pays for the excess.
- Exchange for a new car: Your car was stolen or stolen and it was within the last 2 years (within a year for some insurers), a new car replacement guarantees you enough money to buy a new car with the same value as your old one.
- Roadside assistance/towing and occupational safety: Similar to membership in AAA and other roadside service companies, this covers the cost of repairs and towing if your car gets stuck on the road, runs out of gas or has a flat tire. Can be used when jumping if needed or locked out of the car.
- Shared transport: Include this coverage if you ride with a rideshare company such as Uber or Lyft. Personal auto insurance generally does not cover business use. You should protect this additional coverage option while driving to your rental car.
Frequently Asked Questions
What is the best auto insurance?
The best car insurance is different for everyone. Due to many factors, the company offering the best price may not be able to offer another driver. Read our review of the best auto insurance companies for 2020 to get your search started.
What is Financial Liability?
Financial liability means being able to prove that you have money to make repairs, pay medical bills or legal fees after an accident. In New York State, you prove your financial responsibility by showing your insurance card to police and other drivers after an accident.
How much liability insurance do you need?
New York State has a minimum liability of 25/50/10, but if you are involved in a serious accident, this minimum coverage may not be enough. Experts recommend that, ideally, he has $100,000/$300,000 for personal injury and he has $50,000 for property damage, with all the insurance he can afford.