Like all states, New York has its own requirements for minimum insurance for cars. Before moving or buying a car in New York, it is a good idea to find out the minimum auto insurance requirements so the cost can be worked into a person’s budget ahead of time.
New York requires liability insurance on all cars registered in the state. New York state is specific about the minimum amounts of liability coverage. Minimum payouts for people injured in an accident are up $25 thousand per person injured up to a maximum of $50 thousand total for all medical bills. For death, the policy must payout up to $50 thousand per person up to a maximum total of $100 thousand. Property damage payout must be up to $10 thousand. These payout totals are for one accident, not multiple accidents added together.
In addition to the minimum car insurance requirements, New York has some other rules when it comes to coverage. All cars registered in New York must be insured by a New York state insurance company. In other words, the insurance company must licensed to sell insurance by the New York State Insurance Department.
As New York is a no-fault state, accidents will appear on the records of all drivers involved in a car accident, not just the person at fault. For this reason, it is a good idea to keep a copy of all police reports and judgments connected to any wreck. In this way, a driver can show insurance companies what actually happened in order to get lower insurance rates since most insurance companies have good driver discounts.
This is especially important if a driver moves to another state that is not a no-fault state. If the driver does not have proof that the accident was not his or her fault, most companies will assume the driver was at fault and adjust the rates accordingly.
As seen above, the New York auto insurance requirements are designed to financially provide for the other people in an accident not the driver. If living in one of the more densely populated parts of New York, it would be a good idea to get more insurance in the form of collision insurance and other full coverage options. If a driver parks his or her car in a parking garage then insurance covering scratches, dings and other incidental damage could end up saving the driver money in the long run. Depending on the area, theft insurance would also be a good option. In the more rural areas, especially those that are densely forested, collision insurance specifically for accidents involving animals is a must. A deer may appear delicate but running into one will usually result in a car being destroyed.
New York auto insurance is method designed to protect drivers against financial liabilities that may arise as a result of accidents or vehicle theft.