Drivers in New York are legally required to carry car insurance that meets specific state requirements. Understanding those requirements can help you maintain the coverage you need to register and legally drive your vehicle.
New York requires more than liability insurance. Drivers must also carry no-fault coverage, known as Personal Injury Protection (PIP), and uninsured motorist coverage. Here’s what to know about New York’s required auto insurance coverage, optional protections, penalties for insurance lapses, and ways to save.
New York car insurance minimum requirements
To register a vehicle in New York, you need liability insurance, Personal Injury Protection, and uninsured motorist coverage. Your insurance must be issued by a company licensed by the New York State Department of Financial Services (DFS) and authorized by the Department of Motor Vehicles (DMV).
Liability insurance
Liability insurance helps pay for covered injuries or property damage you cause to others in an accident.
New York requires the following minimum limits:
- $25,000 for bodily injury to one person
- $50,000 for bodily injury to two or more people in one accident
- $50,000 for the death of one person
- $100,000 for the death of two or more people in one accident
- $10,000 for property damage in one accident
These are minimum requirements. Drivers may choose higher liability limits for additional financial protection.
No-fault insurance (Personal Injury Protection or PIP)
New York is a no-fault state. Personal Injury Protection, commonly called PIP or no-fault coverage, provides eligible benefits for accident-related medical expenses, lost earnings, and certain other necessary expenses regardless of who caused the accident.
Basic no-fault coverage provides up to $50,000 per person. It can include:
- Reasonable and necessary accident-related medical and rehabilitation expenses
- 80% of lost earnings, up to $2,000 per month for up to three years from the date of the accident
- Up to $25 per day for up to one year for certain reasonable and necessary expenses, such as household help or transportation to medical treatment
- A $2,000 death benefit in addition to the $50,000 basic no-fault limit
Coverage is subject to New York’s no-fault rules, policy terms, and applicable limits.
Uninsured motorist coverage
Uninsured motorist coverage can help protect you, family members who live with you, and occupants of your vehicle from bodily injuries caused by an uninsured or hit-and-run driver in a qualifying accident in New York.
New York’s required minimum uninsured motorist limits are:
- $25,000 per person
- $50,000 per accident
The required coverage applies to bodily injury, not damage to your vehicle or other property.
Supplementary uninsured/underinsured motorist coverage may extend protection to qualifying accidents outside New York and accidents involving underinsured drivers. Available limits depend on your bodily injury liability limits.
Additional coverage options
New York law doesn’t require collision or comprehensive coverage, but a lender or leasing company may require them if you finance or lease your vehicle.
Common optional coverages include:
- Collision coverage: Can help pay for covered damage to your vehicle after a collision.
- Comprehensive coverage: Can help with covered non-collision losses, such as theft, vandalism, or certain weather-related damage.
- Rental reimbursement: Can help cover eligible rental car expenses while your vehicle is being repaired after a covered loss.
- Towing coverage: May help with certain towing expenses, depending on the policy.
- Additional no-fault coverage: Provides benefits above New York’s basic $50,000 PIP limit.
- Supplementary uninsured/underinsured motorist coverage: Can extend bodily injury protection to qualifying accidents involving underinsured drivers and accidents outside New York, subject to policy terms and limits.
Available options, deductibles, limits, and exclusions vary by insurer.
Discounts and ways to save
New York requires auto insurers to provide certain discounts for qualifying vehicle safety features and approved driver-safety programs. Required discounts can apply to features such as anti-lock brakes, daytime running lights, qualifying anti-theft devices, airbags, and other passive restraints.
Eligible drivers who complete a New York DMV-approved Point and Insurance Reduction Program (PIRP), also known as an accident prevention or defensive driving course, can qualify for a 10% reduction in the base rate of liability, collision, and no-fault premiums for three years.
Depending on the insurer, additional discounts may be available for:
- Maintaining a clean driving record
- Bundling auto insurance with another policy
- Low annual mileage
- Good-student discounts
- Certain vehicle safety systems
- Military or other qualifying group membership
- Telematics or safe-driving programs
Discount availability and eligibility vary by insurance company, so ask which savings apply to your policy.
Penalties for driving without insurance
New York requires liability insurance to remain in effect for as long as most vehicles are registered in the state, even when the vehicle isn’t being driven. If your New York insurance will end and you aren’t immediately replacing it, the DMV instructs you to surrender your license plates before the coverage ends.
An insurance lapse can lead to consequences such as:
- Suspension of your vehicle registration
- Driver’s license suspension when a lapse lasts 91 days or more
- A requirement to surrender your registration and license plates
- Civil penalties for certain lapses of 90 days or less
According to the New York DMV, if you’re eligible to pay a civil penalty instead of serving a registration suspension, the current amounts are:
- $8 per day for days 1 through 30
- $10 per day for days 31 through 60
- $12 per day for days 61 through 90
The civil penalty option isn’t available for lapses longer than 90 days or in certain other circumstances.
Driving an uninsured vehicle can result in more serious consequences. According to the New York DMV, a driver may be ticketed or arrested, and law enforcement may impound the vehicle. Driving an uninsured vehicle, or allowing someone else to drive your uninsured vehicle, can also result in a traffic court fine of up to $1,500.
The easiest way to avoid these problems is to keep continuous liability coverage while your New York registration remains active.
Moving to or from New York
If you’re moving to New York and plan to register your vehicle in the state, you need liability insurance from a company licensed by the New York State Department of Financial Services and authorized by the DMV. New York doesn’t accept out-of-state insurance on a vehicle registered in New York.
Obtain qualifying New York coverage before registering your vehicle, and update your vehicle registration as required.
Moving out of New York requires some extra care. Don’t simply cancel your New York insurance while your New York registration and plates are still active.
If your New York coverage is ending and you aren’t immediately replacing it with qualifying New York coverage, surrender your New York license plates to the DMV before the policy ends. Otherwise, the gap between the end of your coverage and the surrender of your plates can create an insurance lapse.
After establishing coverage and registration in your new state, work with your insurer and the appropriate motor vehicle agencies to make sure the transition is completed correctly.
Get New York car insurance that fits your needs
New York’s minimum insurance requirements provide a starting point, but the coverage that works for you may depend on your vehicle, driving habits, budget, and whether you finance or lease your car.
Before choosing a policy, compare liability limits, deductibles, optional coverages, and available discounts rather than looking only at the premium.
Freeway Insurance can help you compare available coverage options and insurance carriers to find a policy that fits your needs and budget.
Visit one of our offices, call us at 800-777-5620, or get a free New York car insurance quote online to compare your options.
Frequently asked questions about New York car insurance
What is the minimum car insurance coverage required in New York?
New York requires liability, Personal Injury Protection, and uninsured motorist coverage to register most vehicles.
Minimum liability limits include $25,000 for bodily injury to one person, $50,000 for bodily injury to two or more people, and $10,000 for property damage. Higher limits of $50,000 per person and $100,000 per accident apply when bodily injury results in death.
Drivers also need at least $50,000 in basic PIP coverage and uninsured motorist limits of $25,000 per person and $50,000 per accident.
Is New York a no-fault insurance state?
Yes. New York’s no-fault system provides eligible benefits for accident-related medical expenses, lost earnings, and certain other reasonable and necessary expenses regardless of who caused the accident.
Basic no-fault coverage provides up to $50,000 per person, subject to applicable rules and policy terms.
What happens if I drive without insurance in New York?
Driving without required liability insurance can lead to serious consequences, including fines, registration or license penalties, and possible vehicle impoundment.
The New York DMV states that driving an uninsured vehicle, or allowing someone else to drive one, can result in a traffic court fine of up to $1,500. Separate penalties can also apply to insurance lapses on registered vehicles.
Can I get discounts on my car insurance in New York?
Yes. Available discounts depend on the insurer, vehicle, and driver.
New York requires certain discounts for qualifying safety equipment and approved accident-prevention courses. Other insurer-specific discounts may be available for factors such as safe driving, bundling policies, low mileage, good-student eligibility, or certain vehicle technology.
Do I need collision and comprehensive coverage in New York?
New York law doesn’t require collision or comprehensive coverage.
However, a lender or leasing company may require these coverages if you finance or lease your vehicle. Collision and comprehensive coverage can also help protect your own vehicle against different types of covered damage.
How can I qualify for lower car insurance rates?
Start by comparing quotes and asking each insurer about available discounts.
Maintaining a clean driving record, qualifying for multi-policy or low-mileage discounts, and completing an approved accident prevention course may help lower your premium. Eligible drivers who complete New York’s Point and Insurance Reduction Program can receive a 10% reduction in the base rate of liability, no-fault, and collision premiums for three years.
Are electronic proof of insurance cards accepted in New York?
Yes. According to the New York DMV, insurers may provide proof of auto liability insurance in paper or electronic form. Electronic proof must be displayable on a portable electronic device and meet the state’s requirements.
Electronic proof isn’t available for every type of insurance ID card or transaction, so keep the format your insurer provides and make sure you can access it when needed.
What should new customers do when moving to New York?
Before registering a vehicle in New York, obtain qualifying New York liability insurance from an insurer licensed by the New York State Department of Financial Services and authorized by the DMV.
Out-of-state insurance isn’t accepted for a New York-registered vehicle, so arrange New York coverage before completing the registration process.
