New York Car Insurance

New York Requirements for Car Insurance

New York car insurance regulations require each car be covered by a policy that provides liability coverage for injury, death, and property damage. The policy must also carry additional coverage in case an accident occurs with an uninsured driver.

The insurance must remain in effect as long as the car is registered in New York, even if the vehicle is not currently being used. If your coverage is cancelled or lapses, the car insurance company is required to notify the New York Department of Motor Vehicles (DMV).

Policies for New York car insurance can only be issued by companies licensed and approved by the state’s insurance department. When moving into the state, drivers must verify that their insurance policy is valid in New York and update it to meet New York requirements, or they will be unable to register their vehicles. Fortunately, many national companies like Geico and State Farm are approved insurance providers in New York.

In addition to the above requirements, New York drivers can add extra options to their coverage. Commonly added selections include comprehensive coverage which helps defray costs of non-accident related damage from vandalism or weather, towing and labor coverage, and increased liability coverage.

New York's No Fault System

New York is one of thirteen states that have implemented a “no-fault” system. This system was developed to speed up the payment of personal injury caused by accident claims. Rather than wait for lawsuits to assign blame, the insurance companies are required to pay up to $50,000 toward medical expenses regardless of who caused the accident.

No-fault does not cover damage to the vehicle and does not extend past the $50,000. A lawsuit can still be initiated for additional coverage or for damages such as pain and suffering.

Proof of New York Car Insurance

Proof of valid New York auto insurance must be shown when registering a vehicle in the state or if you’re pulled over for a traffic violation. Your most recent insurance identification card should be kept with your vehicle registration in your car, so it can be accessed quickly. Expired insurance cards are acceptable.

A Lapse in Coverage

Although you are required by law to carry car insurance at all times, a lapse may occur in your coverage. This can happen if there is a gap between when your insurance coverage is cancelled and your new coverage begins or if there is a delay in getting your insurance after registering your vehicle. In any case, the DMV will be notified, and you will have to turn in your license plate until you can show new proof of insurance.

Penalty for Not Carrying New York Car Insurance

In order to protect all drivers on the roads, anyone with a registered vehicle who does not have New York automobile coverage can lose his or her license and pay fines. Once the DMV is notified that a driver’s car insurance is no longer valid, a letter is sent to the driver. The driver then has ten days to either turn in the vehicle’s license plate or show proof of new insurance. If the driver does neither of these things, the vehicle’s registration and the driver’s license are revoked.

If you are in an accident in New York and do not have insurance, your license will be suspended for one year. Additionally, you will have to pay traffic courts fees of up to $1,500 and pay a fine of $750 to get your license reinstated.

Reducing Your Insurance Rates

New York drivers can get a discount on their car insurance rates by attending a DMV approved course highlighting ways to avoid accidents. These courses are offered in a classroom setting and last at least six hours. Successful completion of the course can reduce up to four points from your record and take 10 percent off your New York car insurance.

Courses are offered across the state from several approved agencies, including the National Safety Council, the New York Safety Program, the American Automobile Association, and the American Association of Retired Persons.