New York Auto Insurance: An Overview Of The Basic Requirements

By Author: Michael Scott
Total Articles: 46
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Auto insurance state laws and requirements are considerably complicated and differ from state to state. There are many coverage options you can choose from, it can be a full liability insurance or personal injury protection. Some states require liability insurance as the minimum coverage while other states make it as an optional policy.

NY auto insurance is considered to be one of the strictest automobile insurance laws in the U.S. Therefore, if you want to drive within the state, you must have at least the required minimum liability coverage. Moreover, the New York Division of Motor Vehicle also requires every driver to carry the proof of insurance while on the road.

New York Liability Coverage
New York car insurance laws requires 25/50/10 liability coverage, meaning 50,000 dollars bodily injury liability per accident with 25,000 dollar limit per person and 10,000 dollar property damage liability. When the accident results in death also known as the ‘wrongful death coverage', the bodily injury coverage requires twice the minimum requirements. Wrongful death coverage limit are 50,000 ...
... dollars per person up to 100,000 dollars per accident.

New York auto insurance follows the no fault auto insurance system which means the insurance company of both parties will pay for the injury claims regardless of who is at fault in the accident on a certain limit.

Personal Injury Protection or PIP is also required if you want to drive legally in New York. This type of auto insurance will cover the cost for medical, lost wages and pain and suffering. PIP requires 50,000 dollar limit per accident.

Furthermore, Uninsured and Underinsured Motorist Coverage is also required with 25/50 limit, meaning 25,000 dollars per person involved up to 50,000 dollars per accident. This type of coverage will help you if the other party who caused the accident does not have insurance or his/her insurance is not sufficient to cover the cost of the accident.

Driving without insurance in the state of New York will result in ticket, fines or having lapse in insurance. Your auto insurance provider will contact the New York Division of Motor Vehicle with regards to your coverage. Thus, if your auto insurance lapses, you are definitely in trouble.

If you are planning to switch to another car insurance company, you have to notify the state's DMV as well. Keep in mind that taking so much time to resolve the problem will cost more on vehicle registration and driver's license. The New York DMV can also give you the option if your auto insurance application is on the process. They can give penalty fees from 8 dollars to 12 dollars within 90 days or less.

Before signing any application for auto insurance, make sure that the insurance company or agent is licensed. You can call the state's department of insurance for the list of car insurance agent and companies that are legally operating in the state of New York.

Car insurance policy is a legal document indicating your rights and responsibility. Therefore, when you buy auto insurance, make sure you read and understand the policies.
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