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Minimum Insurance Requirements

New York is a no-fault state, which means that your insurance company pays for your own medical expenses and lost wages if you are injured in a car accident, regardless of who is at fault. The following are the minimum coverages you must carry in order to legally drive in the state of New York:

• Bodily Injury Liability: This insurance pays for injuries, death and property damage resulting from an accident you cause. The minimum requirements are $25,000 for bodily injury per person, $50,000 maximum for bodily injury per accident, and $10,000 for property damage.
• Uninsured Motorists: This insures you if you are in an accident with an uninsured driver. The minimum requirement is $25,000 per person and $50,000 per accident. 
• Underinsured Motorists: This protects you if you are in an accident with a driver who does not have enough coverage to pay for your medical expenses, lost wages and property damages. The minimum requirement is $25,000 per person and $50,000 per accident.
• Personal Injury Protection (PIP): This coverage pays for medical expenses, lost wages, and funeral costs of the driver and passengers in your own car and their passengers if you are at fault for an accident. The minimum coverage is $50,000 per accident.

 

Fines and Penalties for Not Having Insurance

In New York, if you are caught driving without the minimum required insurance, you will be fined up to $1,500 and your driver’s license and vehicle registrations can be suspended or revoked. Your vehicle can also be impounded, and you may have to pay additional fines and penalties as well.

 

SR-22

If your license was suspended due to a DUI or other major violation, such as causing a major accident without the required insurance, you may be required to file an SR-22 form with the DMV to reinstate your driving privileges. An SR-22 is a document proving that you have the minimum required coverage in New York.

 

Impact of Credit Score

Your auto insurance rate is directly related to your credit score. The lower your credit score, the higher your insurance rate may be. It is important to keep your credit score as high as possible in order to get the best rate on your car insurance.

 

Impact of Marital Status

Marital status can also have an impact on your car insurance rates. Most insurers will offer married couples a discount on their auto insurance premiums. The impact of a divorce on your auto insurance rates will depend on several factors, such as who obtains the family car and who maintains the policy. Your auto insurance rates may go up or down after a divorce, depending on your situation.

 

What should New York Couples do with their Car Insurance Policy During and After Getting Divorced? 

• During Divorce:  Both parties should be sure to notify their car insurance carrier that the couple is in the process of getting divorced, as this will impact their policy and the respective parties’ rates. Each party should also transfer their policy to their own name if they are not already listed on the policy as a named insured.
• After Divorce:  Both parties should review their car insurance policies to ensure they still have the best coverage at the best price. This will likely require contacting their current car insurance provider and getting quotes from other insurers. Additionally, individuals may need to adjust their coverage given the changed marital status and new living situation.

 

Car Insurance for Single Parent or Co-Parent and Their Teenagers

It can be difficult to provide car insurance for a single parent or co-parent and their teenagers. The rates may be higher than for a married couple as teenagers typically have a higher risk profile. Shop around to find the best rates and consider raising the deductible and carrying higher limits to keep the costs down.

 

Who should cover the car insurance for a teen growing up in two NY households?

The teen’s parents should typically cover the car insurance for a teen. In some cases, one of the parents may cover the teenage driver under their own policy or the teen may purchase their own insurance policy. Alternatively, the households may decide to share the cost of the insurance premiums or purchase a joint policy for the teen. Ultimately, this depends on the individual situation and the agreement between the households.

 

Cars with Lowest Insurance Premiums in NY State

1. Honda Civic LX
2. Toyota Corolla LE
3. Honda Accord LX
4. Saturn Ion 2
5. Nissan Versa 1.6
6. Ford Fusion S
7. Subaru Impreza 2.5i
8. Volkswagen Jetta S
9. Hyundai Elantra GLS
10. Mazda3i 4-Door

 

Cars with Highest Insurance Premiums in NY State

1. Porsche 911 Turbo
2. Mercedes-Benz E Class
3. BMW 7 Series
4. Audi R8
5. Porsche Panamera
6. Mercedes-Benz S Class
7. BMW 5 Series
8. Audi A8
9. Lexus LS
10. Mercedes-Benz G Class

 

Tips for Finding the Best Car Insurance Rates in New York

• Shop around for the best rates. Different insurers have different rates and discounts, so it pays to compare car insurance quotes.
• Ask your insurer about discounts. You may be eligible for discounts such as multi-car, multi-policy, good driver and safety device discounts.
• Monitor your credit score. Many insurers use credit information to determine your rate; a good credit score can help you get a lower rate.
• Increase your deductibles. A higher deductible may lower your premiums.
• Consider increasing your liability limits. Increasing your liability limits can provide more coverage at an affordable rate.

 

New York Cities With Lowest Car Insurance Premiums

New York State is the second most populated state in the U.S., and the cost of car insurance can vary greatly from one city to another. Some of the cities in New York with lower car insurance premiums include:

• Utica: Located in Oneida County, this small city is known for its low car insurance premiums, in part because of low accident rates and low population density.
• Rochester: Located in Monroe County, Rochester is another city with relatively low car insurance rates. The city’s low population density, as well as its relatively low accident rates, contribute to lower premiums.
• Buffalo: Located in Erie County, Buffalo is another city with relatively low car insurance premiums. Low accident rates and population density, as well as a decrease in the number of uninsured drivers, contribute to the city’s low insurance premiums.
• Syracuse: Located in Onondaga County, Syracuse is another city with lower car insurance premiums. This is largely due to the city’s low population density and low accident rate.
• Niagara Falls: Located in Niagara County, Niagara Falls is one of the cities with lowest car insurance premium rates. The city has a low population density, and its relatively low crime rate helps keep insurance costs down.

 

Auto Insurance Exceptions in NY

1. Motorcycles: Motorcycles and mopeds in the state of New York are not required to have insurance. The rider must, however, have a valid driver’s license and registration.
2. Personal Injury Protection: New York State does not require Personal Injury Protection (PIP) coverage for motor vehicle insurance policies.
3. Rental Cars: Insurance is not required for rental cars in New York State. The renter is responsible for any damage caused by their rental car.
4. Professional Drivers: Professional drivers, such as chauffeurs, cab drivers, and limo drivers, are not required to carry auto insurance as they drive as part of their job and are typically insured by their employer.
5. Lease or Loan Payoff: If a vehicle is being sold or leased in New York, it is not required to have auto insurance. The loan or lease payoff coverage is sufficient.
6. Military Personnel: Active-duty military personnel who are stationed or are deployed in New York are not required to obtain auto insurance.
7. Vintage Cars: Collector vehicles that are registered as vintage in NY are not required to have auto insurance.
8. Government Vehicles: Government vehicles such as police cars and fire trucks are not required to carry insurance; however, some vehicles such as school buses may be required to have insurance.

 

Is Motorcycle Insurance Required in NY

Yes. All motorcyclists in New York are required to have liability insurance coverage. This coverage protects other drivers in the event of an accident caused by the motorcycle rider. It is also important to remember that riding a motorcycle without insurance in New York is a crime and could result in fines and other penalties.

 

Is Bicycle Insurance Required in NY

No, bicycle insurance is not required in New York. However, it's still a good idea to consider getting it, especially if you plan to ride frequently. Bicycle insurance can provide coverage for theft and accidents, allowing you to replace or repair your bike if it's damaged or stolen. It can also provide coverage for you if you're injured in a cycling accident.

 

In conclusion, auto insurance in NY is both expensive and necessary.  It even gets more expensive in case of a divorce or co-parenting situation. The state requires a minimum level of coverage, and the cost of premiums depends on many factors, such as driver history and the type of vehicle insured. As a result, consumers should shop around, consider discounts, and utilization of insurance technology platforms to ensure they are getting the best rate and coverage for their needs.

 

Warning:  This post is neither financial, health, legal, or personal advice nor a substitute for the advice offered by a professional. These are serious matters, and the help of a professional is recommended as it can impact your future.