New York Car Insurance Laws and Penalties Explained

New York Car Insurance Requirements & Mandatory Coverage
New York mandates all drivers maintain continuous auto insurance coverage meeting minimum state requirements. Vehicle owners must carry liability insurance, Personal Injury Protection (PIP), and uninsured/underinsured motorist coverage.

• Liability Insurance: Covers injuries or property damage you cause to others. Minimum limits:
  • $25,000 bodily injury per person.
  • $50,000 bodily injury per accident.
  • $10,000 property damage per accident (often abbreviated as 25/50/10).
• Personal Injury Protection (PIP): No-fault coverage paying medical expenses, lost wages (up to 80%), and essential services for you/passengers, regardless of fault. Minimum: $50,000 per person.
• Uninsured/Underinsured Motorist Coverage: Protects against drivers with no or inadequate insurance. Minimums match liability limits (25/50).

Proof of insurance via a New York Insurance ID Card must be carried physically or electronically. Lapses in coverage trigger automatic DMV notifications and penalties.

Penalties for Driving Without Insurance in New York
Violating insurance laws incurs severe legal and financial consequences:

• First Offense: Fines from $150–$1,500, up to 15 days in jail, and a minimum one-year license revocation. Vehicle registration suspended for at least one year.
• Repeat Offenses: Higher fines, prolonged registration suspensions, and potential felony charges for persistent violations.
• Civil Liability: If uninsured and cause an accident, you’re personally liable for all damages, including medical bills, property repairs, and legal fees.

Drivers caught without insurance face an additional $750–$900 DMV fee to reinstate licenses/registrations post-suspension.

New York’s No-Fault Insurance System Explained
New York operates under a no-fault system, meaning your own PIP coverage handles initial medical costs after an accident, regardless of fault. Exceptions apply for severe injuries (e.g., fractures, significant disfigurement), allowing lawsuits against at-fault drivers.

Key no-fault rules:

• File PIP claims with your insurer within 30 days.
• Pursue liability claims against another driver only if injuries meet the “serious injury” threshold defined in NY Insurance Law §5102(d).

Surcharges & Penalties for High-Risk Drivers
Drivers convicted of serious violations face extra penalties affecting insurance:

• DUI/DWI: Fines up to $2,500, license revocation, mandatory ignition interlock device, and annual $750 DMV assessment fee for three years. Insurance rates typically triple.
• Reckless Driving: Up to $300 fines, 90-day license suspension, and five DMV penalty points.
• Hit-and-Run: Criminal charges (Class A misdemeanor to Class D felony), 2–7 years license revocation, and potential imprisonment.

Repeat offenders may require an SR-22 certificate, proving high-risk insurance coverage for three years.

Uninsured Motorist Coverage: Protection Against Others
New York requires uninsured motorist bodily injury (UMBI) coverage ($25,000/$50,000) but not property damage (UMPD). UMBI covers:

• Medical bills if an uninsured driver injures you.
• Hit-and-run accidents (if reported to police within 24 hours).
• Underinsured motorist accidents (if the at-fault driver’s limits are insufficient).

UMPD is optional and covers repairs to your vehicle if an uninsured driver damages it.

Registration Suspensions & Reinstatement Process
The NY DMV automatically suspends registrations for:

• Insurance lapses exceeding 90 days.
• Failure to submit proof of insurance after a random verification request.

Reinstatement requires:

• Paying a $25 suspension termination fee.
• Submitting Form FS-12 (proof of new insurance).
• Paying a $750 civil penalty for lapse-related suspensions.

Drivers with suspended registrations must surrender license plates immediately; failure results in additional fines.

Financial Responsibility After At-Fault Accidents
Drivers causing accidents resulting in injury/death or property damage exceeding $1,000 must file a Form MV-104 within 10 days. Failure to do so triggers license suspension. If uninsured during the accident:

• License/registration suspended for one year.
• $500–$2,500 civil penalty.
• Potential court-ordered restitution payments.

Special Rules for Rideshare & Commercial Vehicles
Rideshare drivers (Uber/Lyft) must maintain personal policies with endorsements meeting NY’s for-hire vehicle requirements. Minimum commercial insurance limits:

• $100,000–$250,000 liability during rideshare use.
• $1.25 million if transporting 5+ passengers.

Commercial vehicles exceeding 18,000 pounds require federal (MCS-90) liability coverage.

Additional Penalties & Long-Term Consequences

• Fraudulent Insurance Cards: Misdemeanor charge, up to $1,500 fine and one year in jail.
• Insurance Lapses: $8/day penalty from insurers, reported to DMV.
• SR-22 Requirements: High-risk drivers pay 70–150% higher premiums for three years post-violation.

New York participates in the Electronic Insurance Verification Program (EIVP), enabling real-time police/DMV verification of coverage.