Car Insurance Information in New York

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Monday, May 12th, 2008 Subscribe To Our Feed

You step out of your local New York deli and enter a state of complete shock: Your car is gone. Was it thieves? Maybe not – did you have car insurance?

The state of New York takes car insurance very seriously. You can rack up huge fines for not having car insurance, and might even end up with your car impounded. Did you know you can’t get license plates in New York without car insurance? Having the answers to this and other car-insurance questions is the first step to avoiding unpleasant scenarios like the one above.

New York’s Department of Motor Vehicles requires two kinds of proof of insurance: electronic and paper. Once the DMV has those, it will issue your license plates. The liability limits in New York are also higher than in some states.

New York State Insurance Requirements

The liability limit for bodily injury is $25,000 per person and $50,000 per accident. In the case of death, the limit is $50,000 per person and $100,000 per accident. Property damage has a minimum liability limit of $10,000, and basic no-fault liability stands at $50,000. Unlike some states, uninsured motorist coverage is not optional in New York. You are required to pay the same rates for uninsured motorist coverage as you would for bodily injury and death.

Where and How to Get Insurance in New York

One of the car-insurance answers in New York that needs to be clarified is where you can buy insurance. Some states allow you to buy out-of-state insurance. In New York, however, you must buy insurance from an insurance company that is licensed by the New York State Insurance Department.

One car-insurance question that arises often in New York is about how to prove you have it. The answer is fairly simple, if somewhat tedious. Once you have purchased car insurance, your insurance company will contact the DMV electronically and inform them. You also need a New York insurance ID card.

Following Up

What happens if your insurance is not up to date? The car-insurance answer in New York is that you are breaking the law. This can happen if your car-insurance payments lapse and your insurance company then notify the DMV.

A lot of people don’t realize this can also happen if you get a new insurance company without notifying your old one. If New York DMV doesn’t hear from the new company, it will send you a letter. Take care it right away, because you can be fined for each day DMV thinks you were uninsured - even if you really were.