Upon registering a vehicle in the state of New York, proof of insurance is required. New York has imposed a law requiring all vehicles carry minimum amounts of insurance on their vehicle at all times. The minimum amounts required to meet the Financial Responsibility Act of New York include 25/50/10 coverage.
This basic coverage will pay $25,000 for one person injured in an auto accident, with a maximum of $50,000 for all injured in an accident. Coverage also pays up to $10,000 to cover the costs of property damage due to an accident. As a No-Fault state, New York auto insurance companies will make payments for your injury claims regardless of fault. This No-Fault policy does have maximum amounts it will pay.
Along with this basic coverage New York requires driver carry an Uninsured Motorist policy. Uninsured motorist policies help cover the expenses caused by a driver who is uninsured. Minimum requirements for this policy is $25,000 with a maximum of $50,000 to cover bodily injuries for those involved in the accident.
Personal Injury Protection (PIP) is the final auto insurance requirement in New York. PIP coverage helps pay medical expenses for you as well as your passengers. State law requires a minimum of $50,000 PIP coverage be maintained.
New Yorkers will pay more than the rest of the United States to insure their vehicles. Average premiums in New York were $2,300 in 2010. The U.S.average is $1,566. That’s a whopping $834 more per year! Many things can affect your auto insurance premium. The rate can be higher or lower than this rate. New York insurance agencies use a variety of factors to determine the amount you will pay. Age, gender, type of vehicle, credit score, and previous insurance history all are used to determine the amount. Searching for discounts can help you save. Ask your auto insurance company about discounts they may offer. Comparing rates is also wise;do so online and get rates in a matter of minutes.
Severe penalties result for those who do not carry this coverage including the loss of your drivers license and vehicle registration. And, if you are uninsured and involved in an accident, New York law mandates the suspension of driving privileges and registration for one year. Fines can be as much as $1,500, and another $700 if your license are suspended. Its better not to take the chance and ensure your insurance is always up to date.