What are the most important things to know about car insurance laws in New York?

By Luke Worli posted 04-18-2021 06:06 PM


The car insurance industry is closely monitored and controlled by the department of insurance in each state. Given that insurance companies are part of one of the largest and profitable industries, it’s only normal that they’re tightly regulated. The chief responsibility of the state government agencies is to ensure that insurance carriers take measures to promote ethics. 

Auto insurance companies must provide fair prices and demonstrate that they’re financially sound to cover claims for a large and diverse customer base. Owing to the fact that the car insurance industry affects many people, there are various state and federal laws regulating how business should be conducted. The aim is to protect consumers and promote the financial health of the industry. 

The United States government doesn’t regulate insurance to a large extent. Auto insurance regulation occurs at state level, meaning that each state establishes its own ground rules. The car insurance rates, premiums, and minimums are different in New York as compared to any other state. If you’re a licensed driver with a registered motor vehicle in New York, it’s essential to meet the minimum requirements as far as car insurance is concerned. To be more precise, you need to know what’s expected of you. 

The State of New York requires drivers to carry insurance when they’re behind the wheel. It’s recommended to get a car insurance quote or work with an insurance agent to make sure that you have the right level of coverage. This is important to keep legal on the road and protect your personal assets. If you drive without insurance, you’re putting yourself at risk. The fine amount ranges between $150 and $1, 500. It’s a good idea to get several quotes from individual providers or companies and use’s car insurance quote guide

New York is a no-fault insurance state 

New York is regarded as a no-fault state, which translates into the fact that motorists must have insurance to cover for their own injuries and damage. Besides liability insurance, you must purchase personal injury protection as part of your car insurance policy. No matter who is responsible for the road crash, it’s necessary to file a claim with your own insurance company. 

The fact is that no one can be held accountable for the motor vehicle accident. No-fault is basically medical insurance for someone who has been injured in a car crash. The insured person is reimbursed for medical costs, as well as other losses that might arise after the collision. The intent behind the no-fault law is to speed up compensation without the necessity of litigation over fault. 

The insurance company will pay for ambulance and hospital expenses, doctor bills, prescription drugs, and diagnostic tests. It also includes lost wages. Attention needs to be paid to the fact that the insurer doesn’t provide financial compensation for pain and suffering. Additional claims can be pursued, but it’s necessary to file a separate lawsuit. 

To collect no-fault benefits, you must file a claim with the insurance company within 30 days of the accident. The best course of action is to file within this period. If not, you could lose your benefits. After having submitted the no-fault insurance claim, you don’t have to worry that the insurer will deny your claim. You’ll collect compensation, even if it’s not a significant amount. The process is efficient and direct. 

New York State insurance requirements 

New York laws require insurance coverage that differs from many other states. Please continue reading to discover the minimum auto insurance requirements: 

  •     $10,000 for property damage for a single accident
  •     $25,000 for bodily injury for a single person in an accident
  •     $50,000 for bodily injury per accident (if more than one person is injured)
  •     $50,000 for personal injury protection 
  •     $25,000 per person/$50,000 per accident for uninsured motorist bodily injury

If you finance or lease a car, you could face additional insurance requirements. Proof of coverage must be carried at all times. A card is issued to you by the car insurance company. In the event that you’re stopped or pulled over by a law enforcement officer, you must show your insurance card right away. 

How much is car insurance per month in New York? 

The average cost for car insurance is a key factor that every driver should take into account. As a rule, every driver will pay a different rate. Costs vary greatly based on location and personal factors, of which mention can be made of age and credit score. Additionally, rates for the same coverage vary widely from company to company. Each insurer has an exclusive formula to evaluate risks and determine how much you should pay., an independent educational comparison service, has more information on the national average car insurance cost per month. It informs us that the full coverage per month is $171. By contrast, the average full coverage car insurance policy costs about $2,050 per year. To equip us with this knowledge, extensive research has been carried out, based on various driver profiles and rates collected from major auto insurance companies. 

Rules for teen drivers in New York 

The State of New York has Graduated Driving Licensing (GDL) laws to protect young drivers and other traffic participants. Over the past couple of years, they have led to fewer fatalities. Nevertheless, teen drivers still have a very high involvement rate in fatal crashes. There are restrictions in place by age, not to mention the restrictions based on where the teen driver will be on the road. Therefore, driving privileges vary based on the following geographic areas: 

  • Upstate New York
  • New York City
  • Long Island

Teen drivers must have insurance that meets the state law for minimums, which is generally by adding the driver to the parent’s policy. No more than one passenger is allowed in an automobile operated by a teen driver. If you are 17, you’re eligible for a senior driver license, if you have a junior driver license/limited junior driver license, and have completed an education course.