New York Car Insurance Requirements in 2024

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Written by Jamie Johnson Edited by Lequita Westbrooks

Updated March 1, 2024

Car insurance requirements can vary substantially depending on where you live. Like most states, New York drivers must meet the minimum insurance requirements to legally drive.

Fortunately, New York has one of the country’s lowest rates of uninsured drivers — just 4.1% of its vehicle owners are uninsured, according to the Insurance Information Institute (Triple-I). New York is also a no-fault state, which means you use your own insurance to pay for medical costs, regardless of who caused the car accident.

Here’s what you need to know about New York car insurance requirements, including how to find the best auto coverage for your needs.

What Are New York’s Car Insurance Requirements?

New York law requires all drivers to have at least the following car insurance coverage limits:

• $10,000 property damage coverage per accident
• $25,000 bodily injury coverage per person
• $50,000 bodily injury coverage per accident
• $50,000 death liability coverage per person
• $100,000 death liability coverage per accident
• $50,000 personal injury protection (PIP)
• $25,000 uninsured motorist bodily injury coverage per person
• $50,000 uninsured motorist bodily injury coverage per accident

You must maintain liability coverage while your vehicle is registered with the state of New York — even if you don’t use your car. The policy must be issued in your name and by a company licensed by the New York State Department of Financial Services and certified by the New York State DMV.

Let’s take a closer look at the specific liability insurance requirements.

Property damage liability

Drivers in New York must have a minimum of $10,000 in property damage liability insurance. This coverage pays for damage to another person’s property when you cause an accident. It usually covers damage to another person’s vehicle but can also pay to repair light poles, mailboxes, or other structures your car hits.

Bodily injury liability

You also need $25,000 per person and $50,000 per accident in bodily injury liability, which pays for the other driver’s or passengers’ injuries in an accident you cause. It pays for medical expenses, lost wages, and any pain and suffering caused by the accident.

Death liability

Bodily injury liability also pays for expenses if another driver or passenger dies in the accident. Death liability helps cover the funeral expenses and your legal defense if you’re sued.

Uninsured motorist

You must also have at least $25,000 per person and $50,000 per accident of uninsured motorist bodily injury coverage. This covers any potential injuries you or your passengers suffer if you’re hit by an uninsured driver.

Personal injury protection

New York is what’s known as a “no-fault” state. This means that each driver pays for their own medical bills, regardless of who caused the accident. Like other no-fault states, New York requires all drivers to have at least $50,000 in PIP to cover these costs.

Supplemental spousal liability insurance

As of Aug. 1, 2023, all New York auto insurance policies must include supplemental spousal liability insurance. This coverage provides bodily injury liability coverage if a person is injured or killed in a car accident due to their spouse’s negligence.

Supplemental spousal liability insurance is included under the policy’s bodily injury liability limits and doesn’t increase those limits. Insurance companies must include this coverage — for both married and unmarried drivers — unless you opt out in writing.

Penalties for Driving Without Car Insurance in New York

If a police officer pulls you over or you’re involved in a car accident, state law requires you to show your insurance ID card. You could face serious consequences if you’re caught driving without car insurance in New York. In the best-case scenario, you could receive a fine of up to $1,500.

But if you’re involved in an accident while uninsured, the state can revoke your license and vehicle registration for at least a year. You’ll also lose your license if another person is caught driving your uninsured vehicle. And you’ll have to pay the court an additional $750 fine to reinstate your license.

New York Car Insurance Laws You Should Know About

Car insurance laws can vary quite a bit from state to state — here are a few laws New York drivers need to know about.

CARCO inspection

New York is one of several states that require drivers purchasing comprehensive and collision insurance to have a CARCO inspection. This pre-insurance inspection is designed to reduce insurance fraud and lower the cost of property damage coverage.

A CARCO inspector will take photos and note the overall condition of your car and any accessories included. This free inspection only takes about 15 minutes to complete.

Once the inspection is complete, you’ll sign off on the report, and CARCO will send it to your insurance company. If you need to schedule a CARCO inspection, you can find a nearby inspection site and schedule an appointment.

Are New York Minimum Car Insurance Requirements Enough?

If you file a claim, New York’s relatively low minimum insurance requirements are unlikely to provide the coverage you need. The average new car costs $48,334, according to Kelley Blue Book (KBB). So, if you total someone else’s car in an accident, $10,000 in property damage won’t be enough to cover a new or luxury vehicle.

And if you’re involved in an accident that causes serious injury to another person, a $50,000 bodily injury liability policy limit could quickly be exhausted. Plus, if you cause a serious accident, you’re at risk of a lawsuit.

That’s why the Triple-I recommends choosing higher limits than the state-required minimum liability insurance. If you don’t have enough insurance coverage, you put your personal assets, like your savings and home, at risk.

If you’re unsure of what you need, it’s a good idea to talk to an insurance agent about the following optional types of coverage.

Optional car insurance coverage in New York

Car thefts in New York City have gone up 191% since 2019, according to the NYPD. And with more than 20 million residents, New York is the country’s fourth most populated state.

So, in addition to liability, you may want to consider purchasing the following optional car insurance coverages.

Some people choose the minimum required insurance coverage because they’re trying to save money, but it’s still a good idea to purchase as much coverage as you can afford. Fortunately, there are ways to cut down on your insurance costs and get the coverage you need.

Let’s look at the average car insurance costs in New York.

How Much Does Car Insurance Cost in New York?

When you’re shopping around for car insurance, you’ll have to choose between liability-only and full-coverage insurance. Liability insurance pays for damages to the other driver’s car and any injuries they get in an accident you cause. But you’re responsible for paying for repairing or replacing your vehicle.

If you choose full-coverage insurance, your car costs are also covered.

In New York, liability-only insurance costs an average of $202 per month, and full coverage costs $410 per month, according to Compare.com data. But people with poor driving records pay more since insurance companies view them as a higher risk.

Let’s look at the seven cheapest car insurance companies in New York and each insurer’s average rates.

USAA is the cheapest insurer overall — but not every driver qualifies for auto insurance with the company since it’s restricted to military members and their families. Progressive comes out on top as the next cheapest, but your personal insurance premium is based on several factors, like your age and where you live, so it may not be the cheapest for you.

So, if you’re looking for ways to save on car insurance, the best thing to do is shop around and compare insurance quotes.

New York Auto Insurance FAQs

Car insurance is mandatory in New York, and driving without it can result in serious legal and financial consequences. Here’s some additional information about New York’s car insurance requirements.

Do you need auto insurance to register a vehicle in New York?

Yes. You must show proof of insurance before registering your vehicle in New York. And if you don’t maintain your auto policy, the New York DMV can suspend your driver’s license.

Can you have out-of-state car insurance in NY?

No. New York doesn’t accept out-of-state vehicle insurance coverage of any type if your vehicle is registered in New York. You must purchase New York auto liability coverage. You can contact the New York DMV for more information.

Is New York a “diminished value” state?

Yes. New York acknowledges diminished-value claims. That means if you’re involved in a car accident that isn’t your fault, you may be entitled to receive money for your car’s loss in value resulting from the accident.

What is “basic” car insurance in New York?

New York State law requires you to meet the following basic minimum coverage requirements:

• $10,000 per accident in property damage liability
• $25,000 per person and $50,000 per accident in bodily injury liability
• $50,000 per person and $100,000 per accident in death liability
• $50,000 personal injury protection
• $25,000 per person and $50,000 per accident in uninsured motorist bodily injury coverage

Can someone drive your car if they’re not on your insurance in NY?

Yes. Someone can drive your car if they aren’t on your auto insurance. New York car insurance provides coverage for other drivers using your vehicle. In New York, the car insurance follows the vehicle, not the person.

Methodology

Data scientists at Compare.com analyzed more than 50 million real-time auto insurance rates from more than 75 partner insurance providers in order to compile the quotes and statistics seen in this article. Compare.com’s auto insurance data includes coverage analysis and details on drivers’ vehicles, driving records, insurance histories, and demographic information.

All the quotes listed in this article have been gathered from a combination of real Compare.com quotes and external insurance rate data gathered in collaboration with Quadrant Information Services. Compare.com uses these observations to provide drivers with insight into how auto insurance companies determine their premiums.

Sources:

1. Insurance Information Institute, “Facts + Statistics: Uninsured motorists,” Accessed February 16, 2024.
2. New York DMV, “New York State Insurance Requirements,” Accessed February 16, 2024.
3. Insurance Information Institute, “What is covered by a basic auto insurance policy?” Accessed February 16, 2024.
4. New York DMV, “Auto Liability Insurance,” Accessed February 16, 2024.
5. Carco Group, “FAQ,” Accessed February 16, 2024.
6. New York State, “Property Insurers: Supplemental Spousal Liability Insurance,” Accessed February 16, 2024.
7. New York State, “Supplemental Spousal Liability Insurance Declination Form,” Accessed February 16, 2024.
8. Kelley Blue Book, “Average New Car Price Sees Smallest Increase in a Decade,” Accessed February 16, 2024.
9. New York Post, “Car thefts surge 191% since 2019,” Accessed February 16, 2024.
10. U.S. Department of Health and Human Services, “New York – 2023,” Accessed February 16, 2024.

Jamie Johnson Insurance Writer

Jamie Johnson is a Kansas City-based personal finance writer whose work has been featured on several of the top finance and business sites in the country, including Insider, Credit Karma, Bankrate, Rocket Mortgage, Fox Business, Quicken Loans, and The Balance. For the past six years, she's dedicated more than 10,000 hours of research and writing to more than 2,000 articles about personal finance topics.