Read more to learn all about the requirements of auto insurance, options, and programs in New York.
Car insurance requirements
In New York, all vehicles registered in the state are required to have the following:
- Civil liability auto insurance.
- Auto insurance without fault.
- Insurance of uninsured drivers.
Your civil liability auto insurance policy should have at least the following:
- $ 25,000 for injuries to one person.
- $ 50,000 for injuries to multiple people.
- $ 50,000 for the death of a person.
- $ 100,000 for the death of multiple people.
- $ 10,000 for property damage.
The liability insurance only pays for damages related to accidents and injuries that you cause to someone else. Civil liability does not cover your own personal costs.
The insurance without fault
New York also requires you to have no-fault insurance coverage, which will help you with your costs after an accident regardless of who was at fault.
Basic coverage of no-fault insurance in New York includes a limit of $ 50,000 per person that covers the following:
- Your medical expenses related to an accident.
- 80% of the loss of income due to an auto accident, with a limit of $ 2,000 per month for a period of up to three (3) years.
- Up to $ 25 per day for expenses such as home help (up to one (1) year from the date of the accident).
- A benefit of $ 2,000 for death above the $ 50,000 limit.
The no-fault insurance will cover your medical costs after an accident and before your health insurance. If your medical costs exceed the limit of your no-fault insurance coverage, your health insurance will begin to take effect.
Coverage of uninsured drivers
In New York, it is also required to have coverage of uninsured drivers to cover the costs of injuries related to a car accident. The minimum coverage you should have for bodily injuries is:
- $ 25,000 for injuries to one person.
- $ 50,000 for injuries to multiple people.
Coverage of uninsured drivers will not cover property damage.
You also have the option to purchase Supplemental Coverage for uninsured or underinsured (SUM) drivers, based on the limits of your own policy until:
- $ 250,000 per person, per accident.
- $ 500,000 per accident.
Your insurance company will give you the insurance identification cards that can be used as proof of your insurance. When you register your car, you will need to give the DMV one of your insurance cards and the other cards you should keep in your car.
Your auto insurance company is required to notify DMV about your auto insurance coverage electronically. When you register your car, the DMV will verify your auto insurance through electronic notification and your insurance card. The DMV will not verify your proof of insurance with only your insurance card.
If a police officer stops you and asks for proof of insurance, you must show him your insurance card.
Your insurance provider should provide you with new insurance cards every time you renew your auto insurance policy.
Auto Insurance in New York City
You have the option to buy higher amounts of coverage for the types of policies required from liability insurance, no-fault insurance, and uninsured motorist insurance. In addition, you can buy any of the following types of optional coverage such as:
- By crashes – This will cover the damages of your car after an accident with another car.
- For all risk – This will cover the damage that could happen to your car after an incident that does not involve a car accident, such as vandalism.
- Medical and funeral services.
- Towing and workmanship.
NOTE: all risk and collision coverage is not required in New York; However, if you have a loan from your car or have your car leased, your financing company will require you to have insurance for all risks and collisions.
Fines and penalties for violations
If you do not have auto insurance, you must immediately give the license plates to your DMV, otherwise, your car registration and driver’s license will be suspended indefinitely.
If you have an interruption in the auto insurance, for example, a time between the cancellation of your current auto insurance and the purchase of another plan, you must deliver the license plates of your car in order to avoid the suspension of the registration of your vehicle.
Your driver’s license will also be suspended if the interruption of insurance coverage is greater than 91 days and you did not deliver your license plates. To restore your suspended driver’s license, you will have to make a payment of $ 100.
The easiest way to avoid having your car registration or driver’s license suspended when you do not have auto insurance is by handing out the license plates of your vehicle to the DMV. However, when the car’s insurance coverage lasts less than 90 days, you have the option to pay a fine instead of delivering your license plates.
The cost of the fine depends on the duration of the coverage interruption. You can calculate the fine with the following:
- $ 8 daily for the first 30 days.
- $ 10 daily between 31 and 60 days.
- $ 12 daily between the 61 and 90 days.
The New York auto insurance plan
If for some reason you have trouble finding auto insurance (such as a poor driving record), you can apply for auto insurance through the New York Auto Insurance Plan ( NYAIP ).
Through the NYAIP, you will be assigned an auto insurance provider that will provide you with minimum liability coverage, no-fault and uninsured drivers, with the option to buy higher amounts of coverage.
The prices of auto insurance through the NYAIP are considerably higher than the standard rates so that the request before the NYAIP is normally considered as a last resort.
An insurance provider assigned to you through the NYAIP must offer coverage for a minimum of three (3) years. However, if you find an insurance company willing to sell you an auto insurance policy at standard rates, you are free to cancel your NYAIP insurance.
Auto insurance fraud in NY
New York is one of the states with the highest level of fraud in auto insurance. Because of this, New York law enforcement agencies are heavily focused on dismantling auto insurance frauds.
The common types of fraud include :
- The assembly of car accidents.
- The falsification of medical reports of injuries related to accidents.
- The falsification of reports of mechanics of damage to vehicles related to accidents.
Auto insurance fraud report
Auto insurance fraud costs companies money, which results in higher premiums for everyone.
You can help keep the prices of auto insurance low in New York by being vigilant and reporting any suspicion of auto insurance fraud.
You can report good information to:
- Call (800) 342-3736.
- Complete and mail the report of an alleged fraud to:
- New York State Department of Financial Services
- Insurance Frauds Bureau
- One State Street
- New York, NY 10004
- Send a fax of the report of an alleged fraud to (212) 709-3555.
The most stolen cars in New York
Driving a car that is a frequent target for theft could increase your auto insurance premiums.
According to www.nicb.org, the following is a list of the most commonly stolen vehicles in New York in 2013:
- Honda Civic.
- Honda Accord.
- Dodge Caravan
- Toyota Camry.
- Nissan Maxima
- Nissan Altima
- Ford Econoline E350.
- Jeep Cherokee / Grand Cherokee.
- Toyota Corolla.
- Ford Econoline E250.
Auto insurance discounts in New York
Everyone is looking for discounts on auto insurance. New York requires insurance companies to offer you discounts on auto insurance IF your car has :
- Automatic safety belts or airbags.
- An anti-lock braking system (ABS) installed at the factory.
- Lights with factory-installed operation during the day (DRL).
Insurance and score reduction program
In New York, you can receive a 10% discount on the basic rate of your liability and crash insurance premiums if you take an accident prevention course through the Insurance and Scoring Reduction Program ( PIRP, for its acronyms in English ).
These courses approved by the DMV are intended to provide a review of traffic laws and careful management. The courses are offered by private companies with a duration of at least 320 minutes, and can be taken online or in a classroom or classroom (click here to access online providers).
By taking the course, you not only qualify for a discount on your auto insurance premiums, but you may also be able to reduce up to 4 points in your driving record (if you have one).
You will receive a certificate of having completed the course within 45 days after completing the PIRP course.
To receive your discount, you need to show your certificate of having completed the course to your insurance provider within 90 days of completing it. If you qualify, your insurance company must give you the discount for three (3) years.
NOTE: the discount only counts for one driver per vehicle.