- New York requires auto insurance for every registered vehicle.
- New York’s minimum car insurance coverage may not be enough to cover all expenses following an accident.
- Understanding the complexities of insurance claims, laws, and processes can be challenging.
- If you have been injured in a car accident, the New York car accident lawyers at Chopra & Nocerino can guide you through the complexities of New York insurance law.
Understanding New York’s insurance laws and mandatory coverage is essential for every driver. This guide explains the state’s auto insurance requirements, how these policies protect you after an accident, the consequences of driving without coverage, and other key details to help you stay informed and protected.
New York’s Required Auto Insurance Coverage
Like many states, New York requires motorists to have bodily injury and property damage liability insurance. However, due to its no-fault insurance system, drivers must also carry personal injury protection (PIP) and uninsured/underinsured motorist coverage.
Liability Insurance Requirements
If you are responsible for or contributed to an accident, the liability insurance you carry pays for damages to another person and their property. The minimum requirements for auto liability insurance in New York are:
- $10,000 for property damage in a single accident
- $25,000 for bodily injury in a single accident
- $50,000 for the death of a person in a single accident
- $50,000 for bodily injury and $100,000 for the death of two or more people in an accident
Personal Injury Protection (PIP) – No-Fault Coverage
New York PIP insurance provides financial recovery to you, regardless of who is at fault for the accident. It provides coverage for the following:
- Medical Bills: Pays for necessary and reasonable medical and rehabilitation expenses.
- Lost Wages: Pays 80 percent of lost wages, up to $2,000 monthly for three years.
- Death Benefits: Pays $2,000 toward the insured’s estate to cover funeral and burial costs.
- Other Essential Services: Pays $25 per day for essential services, such as household cleaning, if you can no longer do those tasks due to your injuries.
Uninsured/Underinsured Motorist (UM/UIM) Coverage
Underinsured or uninsured motorist coverage serves as a safety net when another driver causes an accident and either has no insurance or has insufficient coverage. It covers your medical expenses, property damage, and lost wages.
If your accident caused you serious injury, working with an experienced UM/UIM accident attorney is beneficial. A lawyer can review your case and potentially uncover other responsible parties with insurance.
How New York's No-Fault Insurance System Works
New York operates under a no-fault insurance system. This means that your insurance will cover certain expenses after an accident, regardless of who was at fault. Although this coverage is limited and doesn’t account for all damages, you might still be able to pursue legal action for additional compensation.
What No-Fault Doesn't Cover
New York’s no-fault insurance does not cover property damage or pay for non-economic damages, such as pain and suffering. However, these damages can be recovered if New York’s serious injury threshold is met.
Under New York’s pure comparative negligence law, people injured in accidents can collect compensation as long as they are not 100 percent responsible for their injuries. Even if you are partially responsible for your injuries, you can still get compensation from the other party involved in your accident.
When Can You Sue Beyond No-Fault?
Under New York’s serious injury threshold, you can file a personal injury lawsuit or an auto liability insurance claim against the at-fault driver if your basic economic loss exceeds $50,000 or you have sustained a “serious injury.” Serious injuries may include:
- Dismemberment
- Disfigurement, including burn injuries
- Fractures
- Permanent loss or limitation of an organ or limb
- Limitations of body function or system use, such as traumatic brain injuries
- Non-permanent injury that prevents you from performing regular activities for at least 90 days of the 180 days following the accident
- Death
- Loss of a fetus
Penalties for Not Having Required Insurance in New York
New York takes uninsured driving seriously. Drivers who are not properly insured can face fines and legal consequences.
Fines and Legal Consequences
- Revoked or suspended registration and driver’s license
- Traffic court fines up to $1,500
- DMV civil penalty of $750 to restore a driver’s license if revoked
- Arrest or citation
How NY Tracks Uninsured Vehicles
Uninsured vehicles are tracked through the Department of Motor Vehicles’ comprehensive vehicle-based system called Insurance Information and Enforcement System (IIES). It monitors the insurance status of New York-registered vehicles.
Proof of Insurance Requirements in New York
You must carry proof of insurance and provide it when requested.
- Insurance ID cards vs. electronic proof: Physical and electronic insurance ID cards or proof of insurance are accepted in traffic stops and accidents.
- Vehicle registration and insurance connection: You must register your vehicle within 180 days from the effective date on your insurance ID card. Bring a printed copy of your insurance ID card, as the DMV will keep that copy.
Why Minimum Coverage May Not Be Enough
While having minimum coverage can be sufficient in many situations, it’s important to recognize the potential risks associated with accidents. An accident could lead to significant injuries and extensive property damage, which may surpass the limits of those minimum coverage amounts, leaving you to pay those costs out of pocket.
Special Insurance Considerations for NYC Drivers
Businesses that operate for-hire vehicles must carry for-hire auto insurance. These vehicles include private rentals leased to individuals who do not own the car, as well as passenger transport services such as taxis and daycare buses. Required minimums vary based on seating capacity.
Commercial vehicles must also be insured with a commercial auto policy, which generally carries the same minimum coverage levels as non-commercial vehicles.
Depending on where you park, it may be wise to add comprehensive coverage. This protects your vehicle from non-collision losses, including theft, vandalism, and weather-related damage.
Get Help From Real New Yorkers Who Fight for You
If you were severely injured in a New York car accident, contact Chopra & Nocerino for a free consultation. Our compassionate New York car accident attorneys will treat you like family and give your case the personalized attention it deserves.
At Chopra & Nocerino, we recognize that English isn’t everyone’s first language. We take pride in having a multilingual team that speaks:
- English
- Spanish
- Greek
- Italian
- French
- Mandarin Chinese
- Cantonese
- Haitian Creole
- Hindi
- Urdu
- Punjabi
We work on a contingency fee basis, which means we do not get paid unless we secure a verdict or settlement for you.
Contact us today online or call (855) NYC-HURT—We will fight for you every step of the way.
