While every driver in New York must drive only properly registered vehicles with current license plates and have a valid driver’s license, there is another very important requirement of which to be aware.
Every driver must also carry a liability car insurance from a carrier licensed through the New York Insurance Department, or proof of a similar and equally valid insurance policy that at least meets the minimum state requirements. Carrying car insurance in New York is not optional; it is a mandatory policy with stiff fines and loss of driving privileges if it is disregarded.
This mandatory car insurance has three components that are important in and of themselves. New York is one of the “no fault” states when it comes to auto accidents. Also called “Personal Injury Protection,” this part of the policy covers anyone injured by your vehicle in an automobile accident, including pedestrians or by-standers. The purpose of no-fault auto insurance is to get everyone healthy and back to work as quickly as possible, regardless of who was responsible for the accident. It is for personal injuries only and will not cover repairs for any vehicle or personal property involved in the mishap.
New York no fault car insurance is good for the entire country and Canada, as well. It will pay up to $50,000 per person and 80% of lost wages, although there is a $2000 a month and 3-year cap on this provision. It also includes $25 a day for extra, related expenses for up to 1 year and a $2000 death benefit to be paid to the deceased’s estate. There are some very important factors that immediately cancel these benefits for the driver.
If you were under the influence of drugs or alcohol or intentional in causing the accident you are not covered. Neither will you receive benefits if the injury happened while committing a felony, in a stolen vehicle, or riding in a car whose driver you knew was uninsured. Riding ATVs and motorcycles dosen’t qualify either.
The second part of the required car insurance in New York is a liability insurance. This policy covers you and makes payments on your behalf if you actually caused the accident. It also provides legal defense if you get dragged into court over the matter.
There are financial limits to this policy, but extra coverage can be purchased if you feel that you want more protection. Your spouse is not always automatically covered so you will want to check that out to see if you need to also purchase supplemental Spousal Liability Insurance.
The third important part of required car insurance in New York involves uninsured coverage. This policy covers you in the event of an accident with an uninsured driver. The payouts and protection are very similar to those for liability insurance. Again, only bodily in jury is covered, not the vehicle. This part of the policy is only good for New York.
However, you can pay a little more to get an out-of-state-rider. New York is very serious about its auto accident and insurance coverage. Make sure that you respect not only the rules of the road, but the rules for being adequately insured while you are on those roads, and you should do just fine.
