New York Auto Insurance Laws, Minimums, Requirements

What mandatory auto insurance laws exist in the state of New York?

• In order to register your vehicle in the state of New York, you must obtain minimum liability insurance in the amounts of $25,000/$50,000 bodily injury liability, $25,000/$50,000 uninsured/underinsured motorist bodily injury, $10,000 for property damage, and $50,000 personal injury protection. There are no exceptions to this rule.
• In the state of New York, all drivers must purchase auto insurance from a insurance company that’s licensed with the New York State Insurance Department and you must carry proof of auto insurance at all times.
• By law, New York auto insurance companies must notify the DMV when it issues a policy and when the policy ends. The insurance company must also notify the DMV if your insurance policy lapses.
• Penalties for non-compliance with state of New York insurance laws include license suspension, you will lose your vehicle registration, you will be ticketed and fined, and your car could be towed and impounded. If you lose your vehicle registration due to lack of insurance for 90 days or less, your penalties will be between $8 and $12 for each day the vehicle was uninsured. What's worse is, a civil penalty for 85 days will cost you around $840.

What is the Minimum Liability Coverage (Bodily Injury amounts per person, per accident, and property damage amounts):

If you buy automobile insurance in New York, your policy must include minimum liability coverage of:

$25,000/$50,000 bodily injury liability,
$25,000/$50,000 uninsured/underinsured motorist bodily injury,
$10,000 for property damage,
and
$50,000 personal injury protection

What are the Rental Car Insurance Requirements?

In the state of New York it is illegal to operate any motor vehicle without insurance, this includes rental cars. Rental cars must carry the minimum liability coverages required under New York State insurance law. It is important to keep in mind that most New York auto insurance policies include car rentals. Most credit cards cover car rentals as well, so be sure to check your auto insurance policy and/or check with your credit card issuer. If you find that your credit card and/or auto insurance policy do not cover rental cars, you must purchase car rental insurance from the car rental company. It typically costs an extra $7-$14 a day.

What are the rules pertaining to Uninsured/Underinsured Motorist Coverage?

Uninsured/Underinsured Motorist Coverage is required in the state of New York in the amount of $25,000/$50,000 uninsured/underinsured motorist bodily injury.

What are the rules pertaining to the exclusion from coverage of a driver living in a household?

In the state of New York, auto insurance companies can write policies that exclude household members. These exclusions are listed in the exclusions section of the policy, which also includes a list of all possible circumstances that would free the insurance company from the responsibility of paying a claim. It is important to examine your auto insurance policy carefully before signing on the dotted line.

What are the rules regarding whether a driver has prior insurance? That is, how does state law handle it if a driver has no prior insurance or has let their previous insurance lapse?

By law, New York auto insurance companies must notify the DMV when it issues a policy and when the policy ends. The insurance company must also notify the DMV if your insurance policy lapses. Penalties for non-compliance with state of New York insurance laws include license suspension, you will lose your vehicle registration, you will be ticketed and fined, and your car could be impounded. If you lose your vehicle registration due to lack of insurance for 90 days or less, your penalties will be between $8 and $12 for each day the vehicle was uninsured. What's worse is, a civil penalty for 85 days will cost you around $840.

What are the rules and guidelines auto insurance companies must follow regarding the use of Personal Credit History in selecting applicants and setting rates?

In the state of New York, it is legal for auto insurers to use Personal Credit History to help determine which products they will offer as well as rates. Your Personal Credit History may also be used to determine whether you will be making monthly or quarterly payments or if you will be required to pay the entire premium upfront. Personal Credit History is also used to create an “insurance risk score.” This score also helps determine your auto insurance rates. In order to enjoy a lower insurance premium, pay your bills on time in an effort to improve your score. This will also help improve your credit history so that in the long run, you can save money on your car insurance premium. That said, Personal Credit History is not the only assessment tool Mississippi auto insurance companies may use. They also consider age, gender, where you live, car make and model, how much you drive, and driving record.

Is the state a No Fault or Tort state? What does either mean to the policy owner?

The state of New York follows a No Fault system. This means that if you are involved in an accident, it doesn’t matter who is at fault. Your insurance covers you, and the other party’s insurance covers them. New York’s No Fault laws make it illegal for New York motorists to drive without insurance or permit others to drive their vehicle without insurance. Penalties for driving without insurance include license suspension, you will lose your vehicle registration, you will be ticketed and fined, and your car could be impounded.

What is the average auto insurance premium in this state? As of what year?

As of 2006, New York resident’s average insurance premium was approximately $1,083, the 4th most expensive in the nation. This was down 3.7% from the previous year. The national average was $817.

Sources

Insurance Information Institute

New York State Insurance Department