Minimum Auto Insurance Coverage in New York Explained by Car Accident Attorney Queens

What are the types of insurance drivers must have in New York?

Since New York is a no-fault state, individuals injured in auto accidents are allowed to claim compensation for their injuries, irrespective of the fault they may bear in the accident. As such, the New York State Insurance Law, as a bare minimum, requires all drivers to have three types of insurance, with each serving a distinct purpose. They include:

• Liability Insurance
• Personal Injury Protection (PIP) Insurance
• Uninsured Motorist (UM) Coverage

Note that the types of insurance listed above comprise the “minimum requirement.” Having these three will allow you to register your car with the DMV. However, if you are willing and able, you can purchase additional insurance coverages and claim additional protections.

Liability Insurance

The main purpose of liability insurance is to compensate for the damages and injuries suffered by the other party. Liability insurance in New York is often referred to in shorthand as the ‘25/50/10’ because it requires the following coverage per accident:

• $25,000 per bodily injury per person.
• $50,000 per bodily injury; and
• $10,000 property damage liability per accident.

Personal Injury Protection (PIP) Insurance

PIP coverage, or ‘no-fault’ insurance as it is more famously known, comes into play when the insurance holder has been injured in an auto accident and requires medical attention. Apart from medical expenses, you can also claim compensation for any wages or income you have lost due to the accident and compensation for any other expenses related to your medical treatments and recovery. The maximum a person can claim through PIP is $50,000.

Uninsured Motorist (UM) Coverage

Although the law requires all motorists to have auto insurance, not everyone follows the rules. If you meet with an accident and the person responsible is an uninsured motorist, you can call on your UM coverage to cover your damages, with the state mandating a minimum of $25,000 per bodily injury per person and $50,000 per accident.

What are the consequences of driving without insurance?  

Driving in New York without proper insurance is a serious criminal offence. Since the DMV keeps track of your insurance coverage through the IIES, you must take steps to renew your auto insurance before the time elapses. If a person no longer holds the proper auto insurance, they must turn-in their vehicle registration and license plates to the DMV and stop driving until they can get their insurance renewed.

However, if you continue to drive without having proper auto insurance, you can face the following penalties:

• The suspension of driver’s license.
• The suspension of vehicle registration.
• The impounding of vehicles.
• Fines as much as $1500 plus a $750 civil penalty for restoring driving privileges.
• Tickets or Arrest.

Review your auto insurance with the best car accident lawyer in Queens.

While the law mandates you to have auto insurance and sets a baseline for it, you still have to decide which auto insurance policy matches your needs and offers the best protection for your money. As such, having an understanding of NY’s minimum auto insurance requirements and carefully reviewing your policy are crucial steps in protecting your legal rights and securing fair compensation should you be injured in an accident.

As the best car accident lawyer in Queens, Gabriel Law provides a wide range of legal services for almost any legal challenge. We have plenty of experience helping clients review their insurance policies and helping them claim fair compensation after their accidents. It is our philosophy to deeply care for our clients' well-being and fight for their rights from start to finish. Contact us at (212) 497-2421 or send an email to suren@gabriellegal.com  and schedule your free consultation.