If you are a New York driver, you should already be aware that the State of New York has financial responsibility requirements in place that must be met in order for you to both register your car and obtain license plates. Financial responsibility requirements mean that you must carry minimum automobile insurance coverage in order to operate your New York vehicle. Several different types of auto insurance coverage are required by New York state law. Here, we discuss these different insurance types and how much coverage is required.
What Auto Insurance is Required in New York?
Three types of auto insurance coverage are required in New York, all carried under your single auto insurance policy. The first type is no-fault, or personal injury protection (PIP) coverage. PIP coverage goes towards paying things like medical bills and other reasonable and necessary expenses incurred due to an accident. It is intended in its design to promptly pay out, no matter who is at fault for causing the accident. The required PIP insurance will pay out up to $50,000 per person to the driver and passengers injured in your vehicle. It will also cover any pedestrians injured by your vehicle. It is also important to note that PIP is primary to health insurance, so it will pay first should you be injured in an auto accident.
There is also liability insurance coverage required by state law. This includes both bodily injury liability coverage and property damage. This type of insurance provides you with protection should you be at fault in causing an accident. The coverage pays out on your behalf to a third-party injured in an accident you are found to be at fault in causing. The minimum about of bodily injury liability coverage you must carry in New York is $25,000 for bodily injury sustained by a single person in any accident and $50,000 for bodily injury by two or more persons in any accident. You must also cover a minimum of $10,000 in property damage liability coverage to pay to a third-party whose property you damaged in an accident.
Last, but not least, New York requires uninsured motorist coverage. This type of coverage is intended to protect you in the event that you are injured in an accident caused by an uninsured driver or by a hit and run driver that cannot be located and held accountable for the damage he or she caused. You are required to carry uninsured motorist coverage in an amount equal to that which is required for liability insurance. It is also worthwhile to consider increasing your uninsured/under insured limits of coverage. If you are in an accident that is not your fault, and the amount you are entitled to recover exceeds the at-fault driver's coverage, then you can look to your own policy's underinsured covergae if your limits are higher than the tortfeasors. The additional amount of premium you will have to pay for these increased coverages is usually worth it.
It is also important to note that these are minimum insurance coverage requirements. You may want to consider increasing your limits to protect yourself.
New York City Personal Injury Attorney
Insurance coverage plays a critical role in the personal injury claims process. More often than not, an injured party recovers from a person's insurance company as opposed to the person himself or herself. These are complex laws at place and Michael J. Redenburg, Esq. P.C. is here to use his thorough understanding of the law to help you get the compensation you deserve. Contact our office today.