Understanding New York Car Insurance Requirements

New York Minimum Liability Insurance Requirements
New York State law mandates all registered vehicles carry liability insurance meeting specific minimum limits. Drivers must maintain:

• $25,000 for bodily injury per person
• $50,000 for total bodily injury per accident (if multiple people are hurt)
• $10,000 for property damage per accident

These limits (often abbreviated as 25/50/10) cover injuries or damages you cause to others in an at-fault accident. Insufficient coverage can leave you personally liable for costs exceeding your policy limits.

Personal Injury Protection (PIP) – No-Fault Coverage
New York is a “no-fault” insurance state, meaning PIP covers your medical expenses and lost wages after an accident, regardless of fault. Minimum PIP coverage includes:

• $50,000 per person for medical expenses, rehabilitation, and 80% of lost wages (up to $2,000/month)
• $2,000 death benefit (in addition to PIP limits)

PIP also extends to pedestrians struck by your vehicle. You cannot reject PIP in New York, but policyholders can opt for supplemental “Additional PIP” for higher coverage.

Uninsured/Underinsured Motorist Coverage (UM/UIM)
New York requires:

• $25,000 per person / $50,000 per accident for uninsured motorist bodily injury
• $25,000 per person / $50,000 per accident for underinsured motorist bodily injury

UM/UIM protects you if the at-fault driver lacks insurance or carries inadequate coverage. Notably, UM/UIM does not cover vehicle damage—those claims fall under your collision coverage or the at-fault driver’s property damage liability.

Supplemental Uninsured/Underinsured Motorist (SUM) Coverage
While not mandatory, SUM provides extra protection beyond standard UM/UIM limits. It covers:

• Bodily injuries when the at-fault driver’s insurance is exhausted
• Hit-and-run accidents where the driver cannot be identified
• Non-New York accidents involving underinsured drivers

SUM coverage typically mirrors your liability limits if not specified otherwise.

Optional Coverages to Consider
New York’s minimums provide basic protection but may be inadequate for serious accidents. Additional options include:

• Collision Coverage: Repairs your vehicle after accidents, regardless of fault.
• Comprehensive Coverage: Covers non-collision damage (theft, vandalism, weather).
• Increased Liability Limits: Raising limits to 100/300/100 or higher safeguards assets against major lawsuits.
• Gap Insurance: Pays the difference between your loan balance and vehicle value if totaled.

Penalties for Driving Without Insurance in NY
Failing to carry proof of insurance risks severe consequences:

• First offense: Fines up to $1,500, license suspension for one year, $750 reinstatement fee.
• Repeat offenses: Higher fines, extended suspensions, possible jail time.

New York’s DMV uses an electronic insurance verification system (e-Insurance) to automatically check coverage. Lapses trigger immediate suspension notices.

Proof of Insurance Requirements
Drivers must carry:

• A physical NY Insurance ID Card, displaying policy dates and vehicle details.
• Digital proof: Accepted via smartphone through insurer apps.

Out-of-state insurance is not valid for vehicles registered in New York.

High-Risk Drivers and the NY Assigned Risk Plan
Drivers denied standard insurance can apply through New York’s Assigned Risk Plan. Premiums are higher, but coverage meets state minimums. High-risk drivers may also need an SR-22 certificate after violations like DUIs, proving continuous coverage to the DMV.

Special Cases: Rideshare and Commercial Vehicles

• Rideshare drivers (Uber/Lyft): Must carry commercial insurance during “periods” of app use. Personal policies typically exclude rideshare activities.
• Commercial vehicles: Require higher liability limits, often $750,000–$1 million, depending on weight and use.

How to Save on New York Car Insurance

• Multi-Policy Discounts: Bundle auto with homeowners/renters insurance.
• Safety Features: Discounts for anti-lock brakes, airbags, and anti-theft systems.
• Driver Training: Completing a defensive driving course can reduce premiums by 10%.
• Usage-Based Programs: Opt into telematics apps tracking safe driving habits.

Steps After an Accident in New York

1. Exchange Information: Share insurance details with all involved drivers.
2. Report to DMV: File Form MV-104 within 10 days if damages exceed $1,000 or injuries occur.
3. Notify Your Insurer: Prompt reporting ensures timely claims processing.

Frequently Overlooked Requirements

• Leased/Financed Vehicles: Lenders often require comprehensive/collision coverage.
• Rental Cars: Your policy extends to rentals, but credit card or rental company coverage may supplement it.
• Out-of-State Travel: Verify if your policy covers accidents in other states or countries.

Annual Policy Review
Review coverage annually, especially after life changes (moving, new drivers, vehicle purchases). Adjust deductibles, explore discounts, and compare quotes to balance affordability and protection.