New York Auto Insurance

Minimum Auto Insurance Requirements in New York

In New York State, vehicle owners must maintain three primary types of auto insurance coverage to meet the minimum requirements:

No-Fault (Personal Injury Protection or PIP)

No-fault coverage in New York provides up to $50,000 per person for basic benefits and other necessary costs for drivers, passengers, or pedestrians injured in an accident involving the insured vehicle.

This type of auto insurance coverage offers:

• Medical and rehabilitation expenses
• 80% of lost earnings, up to $2,000 per month for three years
• Up to $25 daily for other expenses for one year
• A $2,000 death benefit

This coverage applies to accidents occurring anywhere in the U.S., its territories, possessions, or Canada. To claim these benefits, individuals must file an application for Motor Vehicle No-Fault Insurance (NF-2) within 30 days of the accident. Processing times vary, but insurers typically respond within 15 business days.

Liability

This type of coverage protects against harm caused by the insured vehicle to other people and their property. New York mandates the following specific minimum liability requirements:

• $25,000 for bodily injury (not resulting in death) per person
• $50,000 for bodily injury resulting in death per person
• $10,000 for property damage per accident

These limits are often referred to as "25/50/10" coverage. To modify coverage limits, vehicle owners must contact their insurance provider and may need to complete the NY State Insurance ID Card form (FS-21).

Uninsured Motorists

Uninsured motorists coverage in New York matches the minimum bodily injury liability limits. This coverage applies to accidents both within and outside of New York State. It includes protection for hit-and-run accidents and incidents involving uninsured vehicles.

For out-of-state coverage, drivers can purchase an endorsement for an additional fee, typically ranging from $20 to $50 annually.

New York State utilizes the Insurance Information and Enforcement System (IIES) to detect uninsured vehicles. This system is jointly managed by the New York State DMV and the NYSDFS.

Under this system, insurance companies are required to electronically report policy information directly to the DMV. This includes new policies, renewals, cancellations, and non-renewals. Insurers must report this information within 30 days of the policy change.

Types of Auto Insurance Coverage in New York

Adhering to New York's state-mandated minimum auto insurance requirements is crucial. However, drivers also have the option to expand their coverage. This can be achieved by increasing PIP and property damage liability (PDL) limits or selecting additional types of coverage.

Here are some optional auto insurance coverage options available to meet diverse car insurance needs in New York:

Enhanced Bodily Injury Liability

This type of insurance coverage safeguards policyholders' assets by providing additional protection in the event of lawsuits resulting from auto accidents. Policyholders can select from various limits, such as $50,000/$100,000, $100,000/$300,000, $250,000/$500,000, or higher, with some insurers offering combined single limits.

The process typically involves submitting a Policy Change Request Form, with premiums adjusted based on the chosen limits and insurer's rates. Processing time for this insurance coverage varies. Basic liability coverage must be in place, and premiums increase proportionally with higher coverage limits.

Increased Property Damage Liability (PDL)

This type of insurance coverage extends coverage beyond the $10,000 minimum requirement, providing greater financial protection against damage to others' property.

Common increased coverage limits include $25,000, $50,000, $100,000, or higher, depending on the insurance company's offerings and the policyholder's needs. Policyholders can usually request changes directly through their insurance provider.

The additional premium for higher PDL coverage is determined by several factors, including the chosen limit, the insured's driving history, the type of vehicle, and the insurance company's pricing structure. Additional premiums are determined by the chosen limit, with varied processing times.

Additional Personal Injury Protection (PIP)

This type of insurance coverage goes beyond the state-mandated $50,000 No-Fault coverage limit. It offers options to increase overall coverage limits and add Optional Basic Economic Loss (OBEL) coverage for specific purposes.

Policyholders can increase their PIP limits to $100,000 or higher and opt for OBEL coverage, typically requiring a PIP Extension Request Form. Premium increases are modest and vary among insurers.

Minimum PIP auto insurance coverage must be active, and OBEL funds can be designated for specific purposes, such as wage loss or rehabilitation.

Supplementary Uninsured/Underinsured Motorists (SUM)

Supplementary Uninsured/Underinsured Motorists (SUM) provides added protection against accidents involving uninsured or underinsured drivers. Coverage limits can reach up to $250,000 per person/$500,000 per accident, necessitating a SUM Coverage Request Form for enrollment. Premiums increase based on selected limits.

SUM coverage cannot exceed the bodily injury liability limits of the policy. It extends coverage to out-of-state accidents, providing broader protection than basic uninsured motorist coverage.

Collision Coverage

Collision coverage reimburses policyholders for vehicle damage resulting from collisions, regardless of fault. Deductible options range from $100 to $1,000, and premiums are calculated based on the vehicle's value and selected deductible.

Payouts are limited to the vehicle's actual cash value, and some insurers may offer "replacement coverage" for new vehicles.

Comprehensive Coverage

Comprehensive coverage protects against non-collision incidents such as theft, fire, or vandalism. Similar to collision coverage, deductible options apply, with premiums varying based on the vehicle's value and chosen deductible amount. Policies may include features like a deductible waiver for window glass damage and coverage for additional living expenses.

Additional Optional Coverages

For the additional coverages mentioned below, policyholders should contact their insurer, agent, or broker for specific details on forms, fees, and conditions, as they can vary significantly between providers:

• Medical Payments
• Accidental Death and Dismemberment (AD&D) Coverage
• Supplemental Spousal Liability Insurance
• Towing and Labor, Extended Transportation (Rental Reimbursement)
• Mechanical Breakdown

For further information, refer to the "Optional Auto Insurance" page on the NYSDFS website.

Penalties for Driving Without Auto Insurance in New York

In New York, driving without auto insurance carries serious consequences enforced by the DMV. If caught, drivers face steep penalties designed to discourage this illegal behavior.

The maximum fine for operating an uninsured vehicle is $1,500, and the DMV will suspend the driver's license for one year or worse, a car impound. Additionally, offenders may face up to 15 days in jail, though this penalty is less commonly imposed for first-time violations.

Beyond these immediate penalties, drivers must pay a $750 civil penalty to reinstate their license after the suspension period. The vehicle's registration may also be suspended, further complicating the situation.

To regain driving privileges, individuals often need to file a Free High-Risk Insurance Comparison or SR-22 form, proving drivers obtained proper insurance coverage.

Age and Driving Experience

Statistics show that young drivers, especially teenagers and those in their early twenties, get into more car accidents compared to older drivers. Because of this higher risk, insurance companies usually charge drivers under 25 more for car insurance.

This higher rate isn't just about age, though. Inexperienced operators, regardless of age, often face surcharges if they've been licensed for less than three years when starting a policy.

As drivers age and gain experience, their rates typically decrease. Mature drivers may benefit from lower rates due to their longer driving history and usually lower risk. However, it is worth noting that some insurers adjust premiums upward for senior citizens based on aggregate claims data that show increased risk in very advanced age groups.

Driving Record and Merit Rating

An individual's driving record impacts insurance eligibility and rates. Insurers use merit-rating plans: a first at-fault accident can spike premiums by 40%, canceling safe driver discounts.

New York law permits insurers to apply surcharges for specific incidents during a typical three-year experience period. These may include at-fault accidents involving bodily injury, death, or property damage exceeding $2,000, as well as convictions for certain traffic violations, such as driving under the influence (DUI) or excessive speeding.

Credit History

In recent years, insurers have incorporated consumer credit information into their underwriting and pricing decisions for private passenger auto policies. New York law mandates several consumer protections in this regard. Insurers must disclose their use of credit information and provide notices explaining how credit-related factors affect premiums.

Policyholders have the right to have their credit information reviewed at least every three years, which may lead to premium adjustments if their credit standing has improved.

Other Factors Affecting Auto Insurance Rates in New York

Here are additional factors that cause inclination in auto insurance rates in New York:

Cancellation

Cancellation can significantly impact auto insurance rates. Mid-term cancellations may result in a higher cost due to short-rate calculations. Some insurers now charge a flat cancellation fee instead of using a short-rate basis. However, cancellations due to military service or total loss typically don't affect future rates.

Nonrenewal

Nonrenewal of auto insurance can occur for various reasons, including license suspension or DUI conviction, and often leads to difficulties in obtaining new coverage. When a policy is not renewed due to such serious infractions, drivers typically face significant rate increases when seeking new insurance.

Insurers may be hesitant to provide coverage to drivers with nonrenewals on their record, especially if the nonrenewal was due to high-risk behavior. If they do offer coverage, it is usually at much higher premiums to offset the perceived increased risk.

Available Discounts in New York

Other specific discounts are available in New York, such as:

• Completing an approved accident prevention course can reduce points on a driver's license and lower premiums.
• Vehicles equipped with safety features such as automatic seat belts, airbags, an anti-lock braking system, and daytime running lamps often qualify for discounts.
• Installing anti-theft devices such as alarms or electronic tracking devices may earn discounts on comprehensive coverage.
• Participation in the Combat Auto Theft Program could qualify vehicles for discounts.
• Bundling auto and homeowners insurance with the same company often leads to reduced premiums.
• Retirees may receive lower premiums due to reduced driving frequency.
• Vehicles participating in a telematics program that monitors driving behavior may qualify for discounts.

Additional Tips

Additional tips include considering increasing deductibles on physical damage coverages, particularly for older vehicles, or evaluating whether to drop collision and comprehensive coverages altogether can help lower premiums.

Using the Automobile Insurance Checklist can help maximize eligible discounts and make informed decisions about coverage needs and merits of the best insurance solution tailored to individual circumstances.