New York Car Insurance Laws Every Driver Should Know

Mandatory Liability Insurance: The Foundation of NY Auto Law
New York state law mandates that all drivers carry minimum liability insurance to legally operate a vehicle. The required minimums are:

• $25,000 for bodily injury per person in an accident you cause
• $50,000 for total bodily injury per accident (if multiple people are hurt)
• $10,000 for property damage (to other vehicles or structures)
• $50,000/$100,000 for wrongful death claims

These limits constitute the absolute minimum—many experts recommend higher coverage due to New York’s high medical and repair costs. Driving without insurance carries severe penalties, including fines up to $1,500, license suspension for at least one year, and potential jail time for repeat offenses.

No-Fault Insurance (PIP): Mandatory Medical Coverage
New York is a no-fault insurance state, meaning all drivers must carry Personal Injury Protection (PIP) covering:

• Medical expenses for you and passengers, regardless of fault ($50,000 minimum)
• 80% of lost wages (up to $2,000/month for three years)
• $25/day for other reasonable expenses (e.g., transportation to medical appointments)

PIP covers injuries sustained in crashes but does not apply to property damage. Serious injuries (e.g., fractures, disfigurement) exceeding PIP limits allow victims to sue the at-fault driver for additional compensation.

Supplemental Uninsured/Underinsured Motorist Coverage (SUM)
New York requires insurers to offer Supplemental Uninsured/Underinsured Motorist Coverage (SUM)—drivers must actively decline this in writing. SUM protects you if:

• The at-fault driver has no insurance
• The at-fault driver’s insurance is insufficient to cover your injuries
• You’re injured by a hit-and-run driver

Minimum SUM limits must match your liability coverage ($25,000/$50,000). For maximum protection, consider increasing SUM limits to match higher liability policies.

Uninsured Motorist Property Damage (UMPD)
While not mandatory, insurers must provide Uninsured Motorist Property Damage (UMPD) unless waived in writing. This covers repairs to your vehicle if damaged by an uninsured driver (up to $25,000 minus a $200 deductible). UMPD claims DO NOT increase your premiums.

The MTA Surcharge: Unique to New York
Drivers in NYC, Nassau, Suffolk, Westchester, Rockland, Orange, Putnam, and Dutchess counties pay an annual Motor Vehicle Accident Prevention (MTA) surcharge ($10–$15, depending on location). This funds the Metropolitan Transportation Authority and is non-negotiable for applicable residents.

Continuous Coverage Requirements
New York enforces strict continuous coverage rules. Letting your policy lapse for even one day triggers:

• $8–$12/day civil penalty (up to $900/year)
• License/registration suspension
• SR-22 requirement for reinstatement (high-risk certification)

Insurers must electronically report policy cancellations/lapses to the DMV within 30 days. Avoid reinstatement fees ($70) by maintaining uninterrupted coverage.

Proof of Insurance: Digital and Physical Options
Drivers must carry proof of insurance meeting these criteria:

• Includes policy number, effective dates, VIN, and covered drivers
• New York permits digital ID cards via insurer apps or email
• Rental cars require proof from either your policy or the rental company

Failure to provide proof during traffic stops or accident investigations results in a $150+ fine and possible vehicle impoundment.

Optional Coverages Worth Considering

• Collision Coverage: Repairs your vehicle after accidents, regardless of fault
• Comprehensive Coverage: Covers non-collision damage (theft, weather, vandalism)
• Gap Insurance: Pays the difference between a totaled car’s value and your auto loan balance

While not legally required, lenders/lessors typically mandate collision and comprehensive for financed vehicles.

Driving Violations That Skyrocket Premiums
New York assigns insurance points for traffic violations, leading to premium hikes:

• DWI/DUI conviction: +400% average rate increase
• Reckless driving: Up to 200% increase
• Speeding (21+ MPH over limit): 20–30% surcharge

Multiple violations within 18 months may trigger policy non-renewal.

The New York Insurance ID Card Requirement
Insurers must issue a New York-specific Insurance ID Card—out-of-state cards are invalid for NY-registered vehicles. Cards must display:

• NYS Insurance Department disclaimer
• Policy dates matching registration period
• All vehicle details (make, model, year, VIN)

Penalties for Providing False Insurance Information
Misrepresenting insurance status (e.g., fake ID cards, expired policies) is a Class A misdemeanor, punishable by:

• Up to one year in jail
• $1,000–$5,000 fines
• Permanent criminal record

Special Rules for Rideshare and Commercial Drivers

• Rideshare drivers (Uber/Lyft): Must maintain personal insurance with rideshare endorsements or commercial policies during “app-on” periods.
• Commercial vehicles: Require higher liability minimums ($750,000–$5 million) depending on weight and passenger capacity.

Accident Reporting Thresholds
New York requires drivers to report accidents to the DMV within 10 days if:

• Damages exceed $1,000 (including other vehicles/property)
• Anyone is injured or killed

Failure to report leads to license suspension. Police must be notified immediately for injuries, deaths, or property damage exceeding $250.