In New York, car insurance companies must compete for your business, which is in your benefit. You should never be afraid to take advantage of that in order to receive the best New York auto insurance prices possible.

However, before you begin to wrestle with multiple providers, make sure that you thoroughly understand the state’s requirements for car insurance in order to make the most informed decisions about your rates.

Minimum Liability Requirements

In New York, everyone is required by law to carry the established minimum liability insurance, which stands at $25,000/$50,000 for injury coverage, $50,000/$100,000 for coverage in the event of death, and $10,000 for property damage coverage per accident. Liability insurance coverage ensures that your policy will compensate other parties for medical fees or economic costs if you are sued for negligent driving. If you do not have adequate insurance coverage while your car is registered in the state, that means you are driving illegally.

New York drivers are also required to carry no-fault insurance, which is also known as personal injury protection. This coverage can cover everything from lost wages and medical costs to other extraneous injury-related expenses that result from the accident, regardless of who was actually at fault. Do note that New York’s no-fault insurance does not cover damages to vehicles or other property — it’s only meant to cover medical fees and the economic costs of everyone involved in the accident.

All New York car insurance policies must additionally include uninsured motorist coverage, which covers you for medical fees and property damage if you are involved in an accident and the other motorist doesn’t have adequate insurance. Everyone who drives in New York is required to have car insurance, but unfortunately, not everyone follows the law. Uninsured motorist coverage makes sure that you have the support you need to pay for damages after an accident and the other vehicle operator failed to follow New York’s car insurance laws.

At any time that your vehicle is registered, liability insurance must be in effect. It is also mandatory that your policy be from an insurance provider that is located within New York and that is authorized by the state to do business. That means that the company is licensed within New York — any out of state coverage must be switched to New York coverage as soon as possible.

Make sure that the name registered to the vehicle matches the name on the insurance policy meant to cover that vehicle. Else, insurers will view it as a lapse in coverage, and you will run the risk of having your license suspended. Every time you visit the DMv to renew your vehicle registration, you must submit proof of insurance coverage.

Penalties for Inadequate New York Car Insurance

By law, insurance companies within the state must notify the DMV whenever a policy is canceled or reinstated, or when a new policy is written. If the DMV’s records show that your vehicle continues to be registered but no notice is given by an insurance company about your insurance, you will be contacted and asked to provide proof of coverage, which must arrive within ten days that you receive the DMV’s letter. Proof comes in the forms of documents that are evidence of your coverage or the selling of your car.

If you do not intend on becoming covered, you are required to surrender your vehicle plates at once and notify the DMV of your actions in order to avoid the suspension of your driver license and vehicle registration.

In the event that you suffered from a lapse of coverage and failed to submit your plates, your vehicle registration will be suspended for the number of days that matches the time period when you did not have adequate car insurance coverage. Your license will be suspended along with your registration if the number of days you were not covered was 90 days or more. Reinstating your license requies the payment of a $50 fee that can be paid once the suspension period is over.

If you do not wish to surrender your vehicle plates, you can continue to keep your registration and driver license active if you pay a civil penalty. However, the civil penalty does not apply if your lapse exceeds 90 days or if you have used the civil penalty option within the past 3 years.

The civil penalty is:

• $8 per day for a lapse that occurs from day 1 to day 30
• $10 per day for a lapse that occurs from day 31 to day 60. This penalty is added to the penalties accrued during the first 30 days with the rate above
• $12 per day for a lapse that occurs from day 61 to day 90. This penalty is added to the penalties accrued during the first 60 days with the rates above

Compare New York Car Insurance

Now that you understand the state’s requirements for all drivers when it comes to the minimum liability insurance, you are ready to take the next step, which is to begin the comparison of quotes from multiple insurance providers that operate within New York. Whether this is your first time insuring your vehicle or you are shopping around for better and cheaper auto insurance, you can start by entering your zip code into the box at the top of the page.

Remember, coverage will save you from having to pay for all damages (yours and the other driver’s) that occur from an accident. Get coverage options now.