New York City is expensive to own an automobile. This is due to the costs of registration and monthly parking fees. Many residents opt to use the New York Public Transit System instead of an automobile because these costs are too high. However, even if you decide to buy an automobile in New York and find a parking spot, insurance will still be required. Like many other large metropolitan areas, New York has its own car insurance requirements.
Minimum Coverage
New York requires that you have minimum insurance coverage in order to register your vehicle and get license plates. This coverage includes Personal Injury Protection (No-Fault) that pays medical expenses and lost earnings to a pedestrian, driver, or passenger who is injured by your car. The coverage must be at least $50,000 per person (basic No-Fault coverage), for both the driver and any passengers in your car. It also covers pedestrians. Liability insurance is required to cover the damage your car, or any other car that you drive to others and their property. Uninsured motorists are another type of insurance that is required. This insurance covers you and your family against injuries that could result from a hit-and run accident, an accident with an under-insured car, or any other accident involving an uninsured or uninsured vehicle.
No-Fault Laws
New York is considered a “no fault” state. No-Fault insurance’s purpose is to quickly restore people who have been injured in an auto accident to their health and productivity without them having to pay large out-of-pocket costs. Auto accident lawsuits can only be brought for economic damages that exceed No-Fault benefits. Non-economic damages like pain and suffering are not allowed unless there is a “serious” injury. New York law defines “serious injury”.
No-Fault insurance does not cover auto body repairs to your car, or any damage to another party’s vehicle or property. Although it is not required, you should purchase collision insurance that covers vehicle damage and accidents. Comprehensive coverage is another option you should consider purchasing. It covers other causes such as theft, flood, windstorm and glass breakage.
Additional Coverage
Optional coverage that is not required by the state is bodily injury liability. This is an excellent idea for those who want to protect themselves against lawsuits due to an auto accident. Your personal assets determine the amount of coverage that you need. There are many levels of coverage available. Optional coverage includes property damage liability. Additional coverage may be required if your car is worth more than $10,000. If you wish, you can purchase additional PIP benefits (No-Fault), above the minimum of $50,000. To better protect yourself against uninsured and underinsured motorists, you can also purchase additional supplemental insurance. Ask your agent what policies and levels of coverage are most appropriate for you. You can also add other options.
The Insurance Information and Enforcement System (IIES) is another insurance-related item you need to be aware of if your home is in New York. The system detects uninsured vehicles, and reports the information to New York State DMV. It is important to have insurance on all automobiles you own. Non-insurance can result in suspension of your vehicle registration, driver’s license, and substantial monetary penalties.