New York Auto Insurance Requirements & Laws Explained

Whether you’re a regular city dweller in the Big Apple, heading out to the Hamptons for a relaxing summer vacation, traveling out to the Catskills for an Appalachian getaway, or just plain old living life in one of the Empire State’s lovely cities, New Yorkers must ensure they always have an active and adequate car insurance policy. All auto insurance policies in New York must have minimum limits of a few different coverages to be considered legally adequate.

Let’s take a look at what coverages New Yorkers must maintain on their policies, why auto insurance is required in the Empire State, and other information you might want to know about insurance in the state.

In New York, car insurance is required for all drivers with vehicles registered in the state. Residents must maintain a minimum of at least $25,000 in bodily injury liability per person, $50,000 in bodily injury liability per accident, $10,000 in property damage liability per accident (25/50/10 liability coverage), $25,000 in uninsured or underinsured motorist bodily injury coverage (UMBI/UIMBI) per person, $50,000 in UMBI/UIMBI per accident (25/50 UMBI/UIMBI), and $50,000 in personal injury protection (PIP) per person. Those who lease or finance their vehicles may be required by their lender or leaser to have comprehensive and collision coverages on their policies. 

Drivers who fail to maintain the legal amount of auto insurance may face penalties for driving without insurance in the Empire State. Such penalties may include fines, fees, license or registration suspension, or even jail time. Plus, those who have their license or registration suspended may need SR-22 insurance or high-risk insurance, which can raise one’s premiums to double or triple the state average for several years.

New Yorkers with minimum coverage policies are adequately insured in the eyes of the law. Still, they may not feel sufficiently insured in terms of their safety. While a minimum coverage policy in the Empire State offers more protection than those in other states, policyholders still lack a significant amount of coverage, especially in an at-fault accident. Drivers can always opt for a full coverage policy with higher limits of the legally required coverages and additional coverages like comprehensive, collision, uninsured/underinsured motorist property damage coverage, and gap coverage, among others. 

Since New York is a no-fault state, drivers must carry a minimum limit of the first-party medical benefit (FPMB) called PIP. PIP is costly, so the average full coverage premium in the state is higher than the national average. The average full coverage policy in New York costs about $2,340 annually, whereas the national average rests at about $1,670 annually. While a full coverage policy may be more expensive in the Empire State, it offers significantly more coverage than a minimum coverage one. Plus, many of the top insurers in the state offer stackable discounts you can use to lower your premiums even further. 

In New York, bodily injury liability requirements state all drivers must maintain at least 25/50/10 liability coverage. That means drivers must have at least $25,000 in bodily injury liability coverage per person, $50,000 in bodily injury coverage per accident, and $10,000 in property damage liability coverage per accident.

Liability coverage protects the victim in an accident with the at-fault policyholder. This means that policyholders carry specific coverage for anyone they may injure in an accident. Liability coverage will be invoked if the policyholder is deemed at fault in an accident, and the accident victim will invoke it to cover their medical expenses or vehicle repairs. If the victim incurs medical costs or vehicle repairs that exceed the policyholder’s liability limit, the policyholder may be on the hook for the remainder of the victim’s expenses. 

Since New York is a no-fault state, the fault in an accident isn’t immediately assigned for victims to recover their insurance benefits. Instead, New Yorkers with an adequate policy would rely on their PIP coverage to cover their medical expenses before depending on the at-fault party’s liability coverage. However, if the victim’s PIP doesn’t cover the bill, they may invoke the at-fault driver’s liability coverage. 

Yes, the minimum New York car insurance every driver must have is 25/50/10 liability coverage, 25/50 UMBI/UIMBI coverage, and $50,000 in PIP. While every policy must at least include such coverage limits, drivers may require more coverage to ensure their safety behind the wheel.

It can be challenging to find the right compromise between cost and coverage when it comes to auto insurance in the Empire State, especially considering it’s one of the most expensive states for auto insurance. However, a good rule of thumb is to ensure you have enough coverage to make you feel confident behind the wheel and paying your premiums, but you still have some wiggle room in your savings for life’s unexpected costs. 

It’s crucial to remember that when filing a claim, once you reach your coverage limits, the remainder of your expenses will have to come out of your pocket. We recommend a full coverage policy so your savings aren’t at risk in a severe accident. 

New York State auto insurance laws require all residents to carry auto insurance policies with at least 25/50/10 liability coverage, 25/50 UMBI/UIMBI coverage, and $50,000 in PIP per person. Most states require residents to carry minimum car insurance coverage limits because it helps ensure drivers can cover their medical expenses should they get into an accident. However, there are a few specific reasons the Empire State state requires specific coverages.

New York is a no-fault state, meaning drivers must carry a FPMB. In New York’s case, drivers must carry PIP. In no-fault states like New York, drivers default to their insurance coverage to cover their medical bills before relying on the at-fault driver’s liability coverage. No-fault states typically enact such laws because of a high population, leading to an overwhelming burden on the insurance and legal systems. No-fault laws aim to mitigate the burden of placing blame on a driver, thus providing relief to the insurance system and the courts. 

New York car insurance requirements mandate that drivers must always carry an active and adequate car insurance policy. In the Empire State, drivers must have at least 25/50/10 liability coverage, 25/50 UMBI/UIMBI coverage, and $50,000 in PIP per person. Those who fail to maintain a sufficient policy may face fines, fees, license or registration suspension, or even jail time. 

While a minimum coverage policy may be the cheapest policy in the state, it may not be the best choice for everyone. Carrying a minimum coverage policy will protect drivers from the legal penalties associated with driving uninsured. Still, it provides little protection for various accident scenarios. Many New Yorkers opt for a full coverage policy from one of the top insurers in the state to get the most bang for their buck without sacrificing coverage. Plus, having a full coverage policy allows drivers to tailor their coverage to their specific needs and comfort levels. 

New York minimum car insurance requirements state that all drivers must have at least 25/50/10 liability coverage, 25/50 UMBI/UIMBI coverage, and $50,000 in PIP per person. Drivers who fail to comply with the minimum requirements in the state may face penalties such as fines, fees, license or registration suspension, or even jail time. 

Those who opt to carry a policy with the state-mandated minimum coverages and nothing extra are adequately insured in the eyes of the law but may not be adequately protected in terms of safety. By and large, a full coverage policy provides more protection than a minimum coverage one, and policyholders can tailor a full coverage policy to their specific needs. 

Suppose a driver with a minimum coverage policy causes an accident that puts the other driver in critical condition. While the other driver may default to their PIP to cover their medical expenses, they may run out of funds quickly if they only have the minimum PIP limit. If you’ve ever been to a hospital in the States, you know exceeding $50,000, $100,000, or even $150,000 in medical costs isn’t unheard of and is actually close to the norm. 

Opting for a full coverage policy may be more expensive out the gate, and your savings may take a hit each year when it comes time to pay your premiums, but this investment in your safety may even protect your savings. A full coverage policy will offer far more protection for drivers, regardless of fault. Should disaster strike, you’ll be glad you paid the $2,340 for a full coverage premium instead of the hospital bill.

New York insurance regulations require all drivers with vehicles registered in the state to have an active and adequate insurance policy. While it’s illegal to forgo auto insurance, it’s also outright unwise. New York is one of the most expensive states to live in, meaning hospital bills and car repairs are much more costly in the state than elsewhere. Maintaining a car insurance policy, even if it just meets the minimum coverage limits without exceeding them, is a wise financial decision that may save you from financial ruin in the long run.

New York is a no-fault state, meaning drivers default to their own insurance coverage in the event of an accident, and the fault doesn’t need to be assigned right away. In tort states, a driver must be deemed at fault before anyone can receive insurance benefits because victims rely on the at-fault driver for liability coverage. In no-fault states like the Empire State, drivers are required to carry PIP coverage to begin to cover their medical costs before fault is assigned, and the victim can recover liability coverage from the at-fault driver after exceeding their PIP limit.

If you’re in the market for a New York auto insurance policy but don’t know where to find one that meets your needs, look no further. The best way to find the best policy for your lifestyle and budget is to get and compare quotes online. By getting and comparing quotes from several insurers, you can find the policy that best aligns with your needs and helps you keep a few bucks in the bank.

Lucky for you, we’re quoting experts here at Clovered. We even have a free quoting tool you can use to access your unique quotes in minutes. If you prefer to chat with a professional insurance aficionado, one of our licensed agents can assist you at 833-255-4117 or [email protected].