A Breakdown Of New York’s No
By David Goguen, J.D.
Vehicle owners in New York are required by law to maintain certain minimum levels of car insurance coverage on any vehicle registered and operated in the state. New York is also a “no-fault” car insurance state, which means your options for pursuing a claim are often limited when you’re injured in a car accident. Read on to learn more about New York’s no-fault car insurance system, the minimum car insurance coverage requirements in the state, and more.
Shopping For Insurance In New York
New York car insurance costs are low on average compared to other states. The average rate, as noted above, is $108/month. Rates may differ greatly between areas especially between New York City and upstate New York. The New York State Department of Financial Services regulates the insurance industry and handles complaints regarding companies their records can help you to choose the right company and policy.
New York does not currently have a low-cost auto insurance program available, but there are a large number of companies offering policies in the state, which allows drivers to shop around and compare for a better price.
The Point And Insurance Reduction Program
In New York, you can receive a 10% discount in the base rate of your auto liability and collision insurance premiums if you take an accident prevention course through the Point and Insurance Reduction Program .
These DMV-approved courses are meant to provide a review of safe driving and traffic laws. The courses are privately run, at least 320 minutes long, and can be taken online or in a classroom .
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Know The Law: New York Automobile Insurance Requirements For Your Car
Liability coverage provides payment for damage a driver causes to persons or property. Any vehicle registered in New York State must carry liability insurance.
Beyond the prospect of having to pay for damages arising from an auto accident out of pocket, there are many important reasons to carry auto insurance. Failure to do so can result in serious legal consequences anyone cited for driving without insurance should consult a New York State traffic ticket lawyer.
Limits And Deductibles For Collision Insurance
Like all types of auto insurance, collision insurance has a deductible. The deductible is the amount that you are required to pay before your insurance will assist with paying for any claims that are made.
Typically, you will have the option to choose how much you want the deductible to be when you purchase your collision coverage. If you decide that you want a $1,500 deductible and your vehicle is damaged in a collision that your insurance covers, you will be required to pay $1,500 toward the costs of repairs. Only after you pay the amount of your deductible will your insurance kick in and help pay for the rest of the damages, and your insurance provider will only pay for the limit of your coverage.
The limit on your collision coverage is the maximum amount that your insurance carrier will pay for a claim that it covers. Usually, this limit is the actual cash value of your car. For example, if the actual cash value of your vehicle is $20,000, the limit of your collision coverage would also be $20,000. If your vehicle is totaled in a collision that your insurance covers, you will receive a check for the amount of the depreciated value of your vehicle, less your deductible. You can use that money to replace your vehicle, but you will likely need to use your own money to make up the difference if you intend on purchasing a vehicle that costs more than the amount you received.
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Is New York A No
Twelve states in the U.S. are considered no-fault states, and New York is one of them. New York no-fault laws state that you can make a claim on your own insurance policy following an accident, no matter who was at fault. So if another driver runs a red light and hits you, you would still make your claim to your own insurer, not the other drivers provider.
The portion of your policy that protects you in this case is called personal injury protection . PIP will cover your medical expenses, lost wages, funeral expenses, if needed, and some additional costs. PIP will pay up to $50,000 per person, with the option to raise it for an additional cost.
PIP is mandatory in New York State, as it is in all no-fault states. Driving without insurance New York will result in penalties and even jail time.
New York Car Insurance Requirements And Coverage
Drivers in New York are required by law to have car insurance in order to legally drive. However New York car insurance has to meet certain minimums in order for the driver to be legally covered. So what are these car insurance requirements? Can drivers get cheap car insurance in NY through discounts? What happens if a driver is uninsured? Heres what to expect regarding car insurance in New York.
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Usaa: Cheapest Rates And Best For Armed Forces
USAA’s average rate for full-coverage car insurance in New York City is $306 a month. That’s 26% lower than New York state’s average rate of $412 and 46% cheaper than the New York City average
|Average rates are based on non-binding estimates provided by Quadrant Information Services. Your rates may vary.
On top of low rates, J.D. Power gives USAA consistently excellent ratings for customer satisfaction. For 2021, J.D. Power rated USAA 868 out of 1,000. The USAA rating is not part of J.D. Power’s official ranking. That’s because USAA’s service is strictly limited to members of the military and their families.
If you are a current or retired member of the Armed Forces living in NYC, USAA is probably your best choice. They have auto insurance policy benefits specifically for members of the military, such as international car insurance coverage if you’re stationed overseas and premium discounts if you live on a U.S. base.
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What Are The Minimum Insurance Requirements For Rideshare Drivers In Ny
If youre ridesharing in New York State, you need to have the right insurance. Unfortunately, for drivers in NYC, the insurance requirements are slightly higher than those in NYS. All of NYCs Uber vehicles, Lyft vehicles, taxis, and limousines are regulated by the TLX , which puts higher insurance limits in place.
The table below shows the insurance requirements for rideshare drivers in NYS and in NYC.
Cheapest Car Insurance In New York For 30
Drivers in their 30s can get lower rates by shopping around and taking advantage of car insurance discounts. You may be able to save by insuring multiple vehicles with the same carrier, or by bundling your auto policy with your home insurance. Also, keep an eye out for discounts based on your profession or affiliations some insurers offer more affordable insurance rates for teachers, members of the military or alumni of certain colleges.
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Supplemental Spousal Liability Insurance
An unusual twist in New York is the availability of supplemental spousal liability insurance. This gives you liability coverage under your own auto insurance policy if you cause serious injury or death to your spouse in a car accident.
Essentially, this coverage kicks in if your own spouse sues you for economic loss and pain and suffering if you were negligent and caused them serious injury in a car accident.
Normally you cant sue a spouse whos on the same insurance policy because you cant be liable to yourself.
Your insurance company must offer this coverage if you request it in writing.
Cheapest Car Insurance In New York For 20
Young drivers may have to get a lot of quotes to find cheap car insurance. Prices can be sky-high for younger 20-somethings, but tend to come down as drivers get more experience on the road. To cut down on costs, young drivers might want to consider buying only state-mandated coverage, rather than full coverage insurance. Still, some companies routinely have lower insurance rates for drivers in their 20s, so it’s best to shop around to find them.
Many insurance companies offer ways for young drivers to save, such as good student discounts for those in college or premium reductions for those who take a defensive driving course. If you live in an apartment, consider getting your renters and auto insurance from the same company to take advantage of bundling discounts.
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New York Car Insurance Premiums
Vehicle insurance premiums are regulated by the New York Department of Financial Services. Insurance companies are allowed to charge premiums and award discounts based on a number of factors that can include:
- The type of car you are insuring
- Prior auto insurance coverage
- How long youve been driving
- Whether or not you use your car for business
New York also allows insurers to consider your credit rating to determine your premium.
What Is Considered Full Coverage Auto Insurance In New York
According to the New York Department of Motor Vehicles, New Yorks car insurance laws require all drivers to present proof of liability insurance when they register their vehicle. New York vehicle owners with cars registered in their name must be able to certify that they have insurance and that it meets state minimum requirements for:
- $25,000 for bodily injury to or death of one individual in any one accident
- $50,000 for bodily injury to or death of two or more individuals in any one accident
- $10,000 for injury to the property of others in any one accident
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Minimum Car Insurance Coverage Requirements In New York
In order to drive a motor vehicle in New York, vehicle owners must carry certain minimum amounts of insurance on it:
- $25,000 liability coverage for bodily injury per person
- $50,000 total liability bodily injury coverage per accident you cause
- $10,000 liability coverage for property damage
- $50,000 in no-fault coverage, and
- uninsured motorist coverage subject to these same minimums.
Keep in mind that, if you are found responsible for causing a car accident, and the injured drivers’ and/or passengers’ losses exceed the limits of your car insurance policy , you may find yourself personally responsible for making up the difference out of your own assets.
Notifying Your Insurance Carrier
It is essential to notify your insurance carrier about the new teenage driver who has a learners permit. Insurance companies often have different requirements regarding learners permits. Depending on your policy and coverage, merely having them drive a car already listed on the policy with your permission may give them insurance coverage. Notifying your insurance carrier of the new driver with a learners permit will help you know what steps to take to ensure everything is in order.
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Insurance Information And Enforcement System
Be aware of the importance of maintaining required motor vehicle insurance coverage on a continuous basis as long as you own a car. The New York Department of Motor Vehicles has a system, called the Insurance Information and Enforcement System , that detects uninsured vehicles.
Insurers are required to report to the DMV information, such as cancellations, renewals, and issuance of new policies, on all persons they insure for motor vehicle insurance. This information is entered into an electronic database that will continuously track insurance coverage for each registered vehicle. Failure to maintain liability insurance coverage for your car at all times can result in the suspension of your vehicle registration and drivers license, as well as other substantial monetary penalties.
These procedures could result in you getting a letter from the DMV inquiring about your insurance status even if your vehicle is currently insured. Dont delay in handling any correspondence of this nature you receive from the DMV, even if you are confident that your insurance is in effect. Contact your insurance agent, broker or company for assistance in responding to these letters, or contact the DMV directly for information on how to handle such correspondence.
Uninsured/underinsured Motorist Coverage In Ny
New York requires that all automobile policies include uninsured motorist coverage . And “Supplementary Uninsured/Underinsured Motorists” coverage can also be purchased, up to the bodily injury liability limits of the policy. New York law requires insurers to offer SUM limits of $250,000 per person/$500,000 per accident if a policyholder has liability limits at that amount or higher.
Uninsured and underinsured motorist coverage come into play if you are injured by a motorist who either has no car insurance at all or whose coverage isn’t enough to pay your medical costs and other damages associated with the accident. For more information, see Uninsured Motorist Coverage: The Basics and Underinsured Motorist Coverage: How It Works.
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New York Car Insurance Requirements
Minimal NY car insurance requires drivers to have a policy that includes liability car insurance, no-fault car insurance, and uninsured motorist insurance. You can easily find a New York insurance company that will provide a plan that combines all three types of coverage.
As you look through car insurance quotes, NY also has some required minimum coverage requirements for each aspect of your plan. Heres a breakdown of all the required minimums in order for New York residents to drive:
Other Methods Of Financial Responsibility
If a driver decides for whatever reason to not get an auto insurance policy that complies with the state minimums, they can still drive legally if they meet the states required financial responsibility. The alternatives to having car insurance include:
- A $150,000 security deposit with the New York DMV
- A NY licensed surety bond that covers the amounts required for the state minimum policy
- A self-insurance policy for those who have more than 25 cars registered under their name and proof of financial ability to pay out accident claims for every vehicle
While these options are available, it is typically less bothersome and less expensive to just purchase a car insurance plan that meets New Yorks minimum standards.
How To Steer Clear Of Legal Trouble Caused By Driving Without Insurance
The consequences of driving without insurance can be avoided by obtaining insurance coverage, registering your vehicle and ensuring that your coverage remains up to date. To obtain liability coverage after buying a vehicle you must bring proof of ownership to an insurance agent or broker authorized to do business in New York State. Suitable proof of ownership for a new vehicle is typically the manufacturers documentation of origin and form MV-50, Dealers Bill of Sale. For most other vehicles transferred from someone who is not an auto dealer, an original bill of sale and a title certificate, taken together, are acceptable as proof of ownership.
Once insurance coverage is obtained, your insurer should provide you with a card to serve as your proof of insurance coverage. Then, you must take this proof of coverage, your proof of ownership, proof of New York State sales tax payment, proof of your identity and date of birth, a completed E-ZVisit Form MV-82EZV, and payment for sales taxes and fees to a DMV office to register your vehicle.
If you have already been cited for lacking insurance, you may face dire legal consequences. However, a New York traffic ticket attorney can help you explore all your potential options. Contact a lawyer today to learn more.
First Step To Getting Insured
The first step after your teenager has received their permit is to notify your vehicle insurance carrier. Talk with your insurer to see what their requirements are for a driver with a learners permit. They may want you to add them to the policy then or tell you they are already covered.
Checking with your insurance company will allow you to consider any particular circumstances that may come up and begin discussing what to do once they earn their unrestricted license.
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Best Cheapest Car Insurance Companies In New York City
We looked at the biggest car insurers in New York City and found that USAA has the lowest average rate of $306 a month for full-coverage auto insurance. The second-best rates are from State Farm, at $318 a month. Third is Progressive, with a big jump to $482 a month. At the highest end, Allstate customers pay $884 a month on average.
In New York City, the cost of your car insurance policy will likely be a major deciding factor in which company you go with. There are, however, other considerations. Policy offerings that fit your specific needs and customer satisfaction trends need to be looked at as well. We carefully considered the options available to you and found these to be the best.