All drivers in New York are responsible for having a proper car insurance policy before getting on the road. Minimum car insurance requirements in NY are designed to protect you in the event of a motor vehicle accident.
The NY state minimum car insurance coverage is important to understand. Without the right coverage, you could be left vulnerable after a crash. Even worse, you may be held liable for damages if your auto insurance policy is outdated.
Mazzu Law is a personal injury law firm in New York state with legal services devoted to helping victims after a car accident. In this blog post, we delve into auto insurance coverage information to help you understand the minimum limit you need, explore optional coverages you can add to your car insurance policy, and detail the consequences of failing to comply with New York law.
The Importance of Having Car Insurance Coverage
Car insurance is something that every driver needs for protection in the event of an auto accident. All states have rules and regulations regarding the minimum auto insurance coverage to comply with the law, and New York is no exception.
New York is a no-fault state for insurance. This means that the no-fault insurance you are required to keep current on all vehicles you own will provide no-fault benefits to you in the event of a car accident.
It is important to understand that a no-fault state does not mean that no one is at fault in a crash. Simply put, a no-fault state requires insurance to cover each policyholder. Even if the accident is not your fault, the no-fault benefits from your policy will cover the medical expenses for your injuries, lost wages, and property damage.
If you do not have a car insurance policy, it leaves you vulnerable to legal issues. Additionally, the New York State Department of Motor Vehicles has an electronic database system to detect uninsured vehicles called the Insurance Information and Enforcement System (IIES). Insurance companies are mandated to report to the DMV with renewals, new policy issuance, and cancellations. If you do not maintain liability insurance coverage for your vehicle, you may have your vehicle registration and driver’s license suspended, as well as face hefty fines.
Minimum Coverage Requirements You Need from Your Insurance Company in New York
Make sure you comply by keeping the right insurance coverage up to date with your car insurance company. Here is a look at the minimum auto insurance coverage you are required to maintain in New York state:
- $25,000 bodily injury liability insurance and $50,000 death liability per person
- $50,000 bodily injury liability coverage and $100,000 death liability per auto accident sustained by two or more persons
- $10,000 property damage liability caused by one accident
- $50,000 personal injury protection (PIP)
- $25,000 uninsured motorist coverage per person and $50,000 of uninsured motorist coverage
At the very least, your auto insurance policy should have these minimum coverages. You should confirm with your insurance agent to ensure you are at the minimum limit. Many drivers opt for adding optional coverage to their insurance policy for more protection, which you can learn about below.
Here is a deeper look at the mandatory types of auto insurance that New York state law requires every driver to have:
Personal Injury Protection (PIP)
Personal injury protection (PIP) coverage or no-fault is a type of insurance that allows for quick payment of your medical expenses, lost wages, and other losses in a motor vehicle accident. It is called personal injury protection because it protects you in the event of injuries, regardless of fault.
Since the state follows a no-fault model, it minimizes the need to file a lawsuit. However, if you have a serious injury and have exceeded the limitations of your benefits under the no-fault coverage of your personal injury protection, you can seek economic losses and non-economic losses. Before taking that step, it is recommended that you discuss your situation with a reputable attorney in New York state.
Liability Insurance and Property Damage Liability
Liability coverage provides for damage and injuries sustained by a driver and their passengers. Liability insurance is meant to take care of any damage or injury that you cause. Often noted as 25/50/10, it denotes the $25,000 of bodily injury liability for each person, $50,000 of bodily injury liability coverage per accident, and $10,000 of property damage liability coverage per accident.
Uninsured Motorist Coverage
If people get in a hit and run accident or are involved in crashes with drivers of uninsured vehicles, your car insurance needs to have this bodily injury coverage included. It can also be helpful when an underinsured driver causes you serious bodily injury but does not have enough car insurance to fully cover your medical costs.
Supplemental Spousal Liability Insurance
In recent years, coverage in New York has been upgraded. There is a new law that was passed in 2023 that requires every insurance company to issue supplemental spousal liability (SSL) coverage in all policies. If you do not wish to have this coverage, you must decline it in writing.
SSL is a type of bodily injury liability coverage. This bodily injury coverage is used in an accident caused by your spouse that causes you bodily injury.
Why the Minimum of Liability Coverage May Not Be Enough
If you drive in New York, you must have car insurance at the minimum levels required for the types of insurance listed above. However, many drivers buy additional coverage for their insurance policy. How much additional coverage you want to purchase is up to you and will vary based on your lifestyle and specific needs.
While adding more coverage comes at an additional cost, it may be wise to consider adding these options:
Collision Coverage
You willl get extra coverage in addition to your property damage liability for damage to your vehicle or property damage to a stationary object.
Comprehensive Coverage
Comprehensive coverages pay for damages that are not caused by a collision. If a tree falls onto your vehicle or someone steals it, comprehensive insurance coverage allows you to have more protection. It is a great choice if you have a new or high-end vehicle.
Medical Payments
You can also add more coverage for your medical care that would extend beyond what PIP coverage provides. With this option, you can get your medical bills covered for the medical treatment needed immediately after a crash, such as ambulance transportation, hospital stays, surgery, and expenses related to your medical care.
Gap Coverage
New York drivers are encouraged to purchase gap coverage for their car insurance. This is best for those with new cars who owe more than the vehicle is worth. This addition to your car insurance policy will pay off your loan if your vehicle is totaled or stolen. Collision and comprehensive additions only pay the depreciated value of your vehicle, which is why you may want to consider closing that gap.
New Vehicle Replacement
If you have just bought a new car, you should consider adding new vehicle replacement to your insurance. This option can give you enough money to purchase a brand new car that is of the same value of your former car if it is totaled or stolen. Some insurers require that your car be no more than two years old while others require it to be no more than one year old. Choosing this optional insurance can prevent you from experiencing huge economic losses when you have a new vehicle.
Roadside Assistance Insurance
If you frequently take longer drives in Upstate New York or travel across state lines, you may want to consider roadside assistance added to your bodily injury package. This way, if your vehicle breaks down or you have any other issues, such as accidentally locking yourself out of your vehicle at a rest stop, you will have peace of mind no matter the circumstance.
Legal Consequences of Not Meeting New York Auto Insurance Minimums
It is not recommended to drive without insurance coverage in New York. Doing so can put you in a bad position. Remember, the New York DMV will be notified by your insurer if you have lapsed on the payments for your bodily injury and other policies. Even if it was a mistake on your part, you need to take prompt action to avoid violating the law.
With the new congestion tax in New York City, some drivers are choosing to stop driving altogether. If you rely on public transit from now on without keeping a vehicle, you must turn in your license plates and vehicle registration.
Driving without insurance is illegal in New York, and if you get behind the wheel without coverage, you will put yourself at extreme risk for major penalties. You could be issued a ticket or even arrested. Your driver’s license and registration may be suspended, your vehicle may be impounded, and you will likely have to pay hefty fines.
What to Do If an Uninsured Driver Causes Your New York Auto Accident
The insurance you have in New York is valuable for protecting you in the event of a crash with other vehicles. Even though the no-fault model allows you to recover your financial losses, you should know what to do if you have an injury resulting from a crash that another person caused.
Take the following steps to protect your legal rights:
Call the New York Police
Always call 911 when you are in an accident to get officers to respond. Since all drivers in New York are required to hold minimum coverages, the officer will likely issue a citation to the driver of the other car for not obeying the law. This will be noted on the police report, which can serve as part of the evidence in your car accident case.
Gather Information and Evidence
Drivers are responsible for staying at the scene and exchanging contact and insurance information. If the other driver does not have it or refuses to provide it, you can let the police officer know. You will also want to take photos and videos of the aftermath as evidence for your claim.
Do not forget to get contact information from any witnesses who saw the accident. What they saw may help prove the other driver caused the accident, and that would mean the other driver could be on the hook for your serious injuries.
Get Immediate Medical Attention
It is only natural to worry about PIP and the other coverage for medical and what that means for your out-of-pocket expenses. However, your health and safety should be the top priority. You will need to have a full medical evaluation to check for hidden injuries.
In many cases, victims assume they are not hurt when they do not see visible cuts and can move their limbs. It can be a fatal mistake to skip getting an examination. Your treatments will be documented and provide necessary medical records that relate your injuries to the crash and make it more likely you will be able to hold the other driver responsible for their negligent behavior.
Work with an Auto Accident Lawyer
You may be wondering why you should talk to a car accident lawyer about your injuries when your mandated insurance coverage should cover your injuries and losses. There are several key reasons it makes sense to consider legal representation.
One of the main reasons is that insurers are in the business of protecting their profits. They may realize that the evidence presented proves you were hurt in a crash on the date indicated. However, they may try to offer you much less than you deserve for your injuries, which hardly seems fair if you did nothing to cause the wreck. They may also attempt to deny your claim completely for a variety of reasons that range from minor errors on your forms to not having enough evidence.
If you do get an offer for a settlement right away, you might feel like you are one of the lucky ones. Most victims just want to put the trauma of a crash as far behind them as possible. They may also need the money to pay for the added expenses to their usual monthly expenses.
Ultimately, they wind up signing for a check that is far below what they deserve. Only a lawyer will be able to fully calculate the extent of the damages you have incurred and help you fight for it. It costs nothing to schedule a free consultation, something that almost every personal injury attorney offers.
Find out more about your legal rights after accidents and what to do if your insurance is not enough, or if you have grounds to sue the other driver. Contact Mazzu Law today to get the legal assistance you need.