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New York Car Insurance Requirements

New York Minimum Car Insurance Requirements

The state of New York requires drivers to carry a few different types of car insurance: liability insurance, personal injury protection (PIP), and uninsured/uninsured motorist coverage. This may be due to the fact New York is a no-fault insurance state, which will be explored in further detail later. With each policy comes its own mandatory minimums you must meet in order to be considered a legal driver. Those minimums are as follows:

Liability Insurance

  • $25,000 bodily injury per person
  • $50,000 bodily injury per accident
  • $10,000 property damage per accident

Uninsured/Underinsured Motorist Coverage

  • $25,000 bodily injury per person
  • $50,000 bodily injury per accident

Personal Injury Protection (PIP)

  • $50,000 per person

Failure to provide proof of insurance in the state of New York comes with some serious consequences. You should also keep in mind that if you have an auto loan or lease your vehicle, your lender or leasing company may require you to carry additional insurance.

New York Uninsured/Underinsured Motorist Coverage

Despite car insurance being mandated by law in New York, there will always be drivers who choose to get behind the wheel of a car without a policy in their name. You may even have the unfortunate luck of ending up in an accident with such a driver. This is where uninsured/underinsured motorist coverage will help. Required for drivers in New York, this type of insurance will pay for injuries you sustain in an accident where the other driver lacks insurance. Usually, when the other driver is found at fault, you would file claims with their liability insurance. But when no such insurance exists, or it is inadequate, you could turn to your uninsured/underinsured motorist coverage if the case is severe enough and justified.

New York Personal Injury Protection (PIP)

As previously mentioned, New York is a no-fault state. This means that if you are in an accident and suffer some bodily injuries, you would file a claim with your own insurance company, specifically utilizing your personal injury protection (PIP) coverage. PIP coverage applies to expenses like hospital stays, lost wages, and rehab costs. In some cases, if your PIP coverage is exhausted, you can try to file a claim with the at-fault party’s liability insurance to get extra assistance.

New York Liability Car Insurance

All drivers in the state of New York are required to carry liability insurance. Liability insurance pays for bodily injury and property damage that you cause to another driver in an accident for which you have been deemed responsible. This coverage applies to expenses such as auto repair bills and medical costs. Keep in mind that your liability insurance will never pay for your injuries or damage to your property.

CARCO Inspection

New York is one of the few states that require a CARCO inspection. This independent inspection will verify the existence of your vehicle along with taking notes of its features, such as milage and accessories. Photos are also taken and then shared with your insurance company. This is required in New York when you are going to obtain certain insurance policies such as comprehensive and collision coverage. It is done free of charge and takes no more than 15 minutes.

Diminished Value Policy in New York

New York is one of 15 states that is a diminished value state, meaning you are able to try to recover diminished value from the at-fault driver’s insurance company should you experience any losses when going to sell your vehicle. Even if your car is entirely fixed following an accident, its value already took a serious hit. If you see the effects of this during the selling process, you can file a diminished value claim with the other person’s insurer.

In the state of New York, you must meet the following requirements in order to file such a claim:

  • You were not responsible for the accident
  • You can provide substantial documentation of the accident and vehicle
  • The accident happened under 3 years ago
  • New York does have uninsured motorist coverage for such a claim.

Car Insurance Limits in New York

The word limits, when discussing insurance, refers to the maximum amount of money your insurer will payout in the event of a claim. It also is the minimum amount of insurance every driver must carry as mandated by the state. In New York, liability insurance limits are outlined as 25/50/10, with each other representing a different aspect of liability coverage. Those categories and what they cover are explained below.

  • Bodily injury per person is the maximum amount your insurance company will pay to cover one person’s injuries in an accident you caused.
  • Bodily injury per accident is how much your insurer will pay for all injuries in an accident you are responsible for.
  • Property damage per accident is the amount of money your insurer will pay to cover damages you cause to another driver’s property in an accident.

Uninsured/underinsured motorist coverage also have their own minimum limits and operate pretty much in the same fashion as bodily injury liability insurance. The main difference is you would file claims after an accident with an uninsured or underinsured driver with your own insurance company.

Is New York’s Mandatory Car Insurance Minimums Enough Coverage?

Despite New York mandating a number of different types of car insurance, the required minimums are quite low. For example, if you total someone else’s car in an accident, a $10,000 property damage coverage limit would barely begin to cover the costs of a new vehicle. For this reason and others, it is highly recommended that you increase insurance limits and utilize policy add-ons. Doing so can port you and your assets. You do not want to be stuck picking up the costs of an accident after your insurance runs out.

Driving Without Proof of Car Insurance in New York

Failure to provide proof of insurance as a driver in New York can come with some pretty unfortunate consequences. Listed below is what you could be facing should you choose to drive without insurance in the state of New York.

  • Lines ranging from $150-$1,500
  • Vehicle impoundment
  • License suspension
  • Imprisonment, depending on the circumstances of your case
  • SR22 Requirement

Additional Types of Car Insurance in New York

While the state of New York requires drivers to carry a number of different types of car insurance, there are still many other ways you can continue to expand your policy. Listed below are some common car insurance policy add-ons to strengthen your coverage.

  • Comprehensive: This coverage protects your vehicle against non-collision-related damage. Some incidents covered under this policy include theft and extreme weather.
  • Collision: This covers damage your vehicle sustains when in an accident with another car.
  • Rental Car Reimbursement: Some accidents are so severe they render your vehicle useless until fixed. In cases like those, rental car reimbursement will help cover the costs of renting you a vehicle while you wait for yours to get out of the shop.
  • Roadside Assistance: If your car experiences some mechanical problems while you are on the road, roadside assistance can be there to lend a helping hand and resolve your vehicle’s issues.
  • Gap Coverage: If you have an auto loan, but your car is totaled before you can pay it off, gap coverage can help cover the difference in what is remaining your loan and the actual cash value of your vehicle.

Car Insurance is Important For Any New York Driver

Carrying car insurance in New York is mandated, but you should not just carry the required minimums for the sake of being within the law. You want to analyze policies and choose the one with the best coverage for you. It is highly recommended you increase limits and utilize policy add-ons when shopping for car insurance. Anything that ends up not being covered but your plan can land back in your lap, and that may be detrimental to your finances. Not to mention driving without the proper car insurance can result in you being hit with fines and potential jail time. It is best if you take time to hit the road prepared.

Just a few minutes of your time can get you a better rate on your auto insurance coverage. Contact Insurance Navy today for your free cheap car insurance quote. Call 888-949-6289 or visit us online to apply for a quote.

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