Minimum Coverage Requirements for New York Drivers

Mandatory New York Auto Insurance Coverage Levels

New York State mandates all drivers carry minimum liability insurance and additional protections designed to safeguard both motorists and accident victims. These requirements exceed those of many other states, reflecting New York’s commitment to financial responsibility.

1. Bodily Injury (BI) Liability

Minimum Coverage: $25,000 per person / $50,000 per accident
Purpose: Covers medical expenses, lost wages, pain and suffering, and legal fees for individuals injured in an accident you cause.
Key Consideration: These limits apply per accident. If three people sustain injuries totaling $80,000, your insurer pays only $50,000 (the per-accident limit). You’d be personally liable for the remaining $30,000.

2. Property Damage (PD) Liability

Minimum Coverage: $10,000 per accident
Purpose: Pays for repairs or replacement of vehicles, fences, buildings, or other property damaged in an at-fault crash.
Real-World Impact: With average new car prices exceeding $48,000 (as of 2023), $10,000 often proves inadequate. Repairing luxury vehicles or multiple cars could quickly surpass this limit.

3. Personal Injury Protection (PIP / No-Fault)

Minimum Coverage: $50,000 per person
Purpose: Covers medical expenses, 80% of lost wages (up to $2,000/month), and essential services (e.g., childcare) for you and passengers, regardless of fault.
Coverage Scope:
- Applies within New York State and to out-of-state accidents if the insured vehicle is registered in NY.
- Covers pedestrians and bicyclists struck by your vehicle.
- Does not require proof of fault to access benefits.

4. Uninsured/Underinsured Motorist (UM/UIM)

Minimum Coverage: $25,000 per person / $50,000 per accident
Purpose: Protects you if an at-fault driver lacks insurance (Uninsured) or carries insufficient coverage (Underinsured).
Supplementary UM (SUM):
- Required Offer: Insurers must offer Supplementary Uninsured Motorist coverage (minimum $25,000/$50,000), which stacks atop standard UM limits.
- SUM Enhanced Benefits: Includes coverage for hit-and-run accidents and provides up to $10/day for substitute transportation (e.g., rental cars).

5. New York-Specific Requirements

Serious Injury Threshold: PIP benefits cover initial expenses, but lawsuits for pain/suffering require proving a “serious injury” (e.g., fractures, disfigurement, permanent disability).
Financial Responsibility Law: Driving without insurance results in fines ($150-$1,500), license/registration suspension (minimum one year), and potential vehicle impoundment.
Continuous Coverage Requirement: Insurance must remain active even if the vehicle isn’t driven. Surrendering license plates to the DMV is the only legal way to suspend coverage.

Proof and Enforcement

Electronic Insurance Verification: New York’s DMV uses an Electronic Insurance Verification system (eIVP) to randomly confirm coverage. Insurers report policy data directly to the state.
Carrying Proof: Drivers must present a physical or digital Insurance ID Card when requested by law enforcement.
Penalties: First-time violations for driving uninsured incur a $1,500 civil penalty and a $750 driver responsibility assessment (annual fee for three years).

Optional Coverages to Enhance Protection

While New York’s minimums are legally sufficient, these optional policies mitigate risks:

Collision Coverage: Repairs your vehicle after an accident, regardless of fault.
Comprehensive Coverage: Covers non-collision damage (theft, vandalism, weather).
Increased Liability Limits: Experts recommend at least 100/300/100 ($100,000 per person / $300,000 per accident / $100,000 property damage) given rising medical and repair costs.
Gap Insurance: Covers the difference between a vehicle’s depreciated value and remaining loan balance if totaled.

New York Fee Structures

Insurance Surcharges: Accidents and violations (e.g., speeding tickets) typically increase premiums for three years.
Driver Assessment Penalty: The DMV imposes annual fees ranging from $100 to $900 for serious violations like DUIs.

Frequently Asked Questions

Q: Can I use out-of-state insurance if I move to New York?
A: No. You must purchase a New York-specific policy within 30 days of residency.

Q: Is motorcycle insurance required?
A: Yes, with similar minimums, but excludes PIP coverage.

Q: What if my leased vehicle has higher requirements?
A: Lessors often mandate collision/comprehensive coverage and higher liability limits (e.g., 100/300/50).

Q: How do I report a lapse in coverage?
A: The DMV automatically receives insurer notifications. Proactively surrender plates to avoid penalties.

Q: Does PIP cover drivers outside New York?
A: PIP applies only if the insured vehicle is registered in NY, regardless of where the accident occurs.