How much liability insurance do I need in New York?

This question is about Cheap Car Insurance in New York

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@WalletHub • 04/15/21 This answer was first published on 04/16/21 and it was last updated on 04/15/21.For the most current information about a financial product, you should always check and confirm accuracy with the offering financial institution. Editorial and user-generated content is not provided, reviewed or endorsed by any company.

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You need $25,000 in bodily injury liability insurance per person ($50,000 per accident) plus $10,000 in property damage liability insurance to drive legally in New York. The New York liability insurance requirements can also be written as 25/50/10. In addition, drivers in New York will need to purchase $50,000 in personal injury protection (PIP) and uninsured motorist bodily injury coverage equal to the minimum required liability limits to satisfy the state’s minimum car insurance requirements.

Even though New York only requires 25/50/10 in liability insurance, drivers should consider buying more coverage if they can afford it. If you cause an accident that results in damage beyond your policy limits, you will be personally responsible for paying the difference. And no matter what, you should be sure to fulfill the minimum New York car insurance requirements to avoid facing consequences for driving without insurance.

Finally, drivers should also consider purchasing other types of car insurance in order to better protect themselves, given that liability insurance does not provide any coverage for the policyholder’s own injuries or property. For instance, collision insurance covers damage to the policyholder’s car regardless of fault. And comprehensive insurance pays if the policyholder’s vehicle is damaged by something besides an accident, like a natural disaster or vandalism.

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When to Carry Only the Minimum Liability Coverage

Although almost every state requires drivers to carry liability insurance, the minimum coverage is not always enough to cover the cost of an accident. It’s always best to carry as much liability coverage as you can afford, especially if you have a high net worth.

If you don’t have many assets or think the risk is worth it, you might be comfortable with carrying only the minimum coverage. But no matter what, make sure you’re carrying enough insurance to comply with state law and avoid paying fines for driving uninsured.

Liability Limits on Auto Insurance

Liability limits on auto insurance are the maximum amount that your insurance company will pay for injuries and property damage in accidents that you cause. Liability limits are typically written as three numbers divided by slashes.

For example, Arizona’s liability coverage requirements are 50/30/10. That means drivers need to carry $50,000 in bodily injury liability coverage per person, $30,000 in bodily injury liability coverage per accident, and $10,000 in property damage liability coverage overall.

Why You Need More Liability Insurance Than the State Minimum

Your insurance company will never pay for anything beyond the limits of your policy. Using the Arizona example, if you cause an accident that leads to $70,000 in medical bills for the other driver, you will have to pay for $40,000 if you are only carrying the minimum insurance required. And if you can’t afford to pay the full amount, the other driver can sue, and you can have your assets seized or wages garnished to cover the remainder.

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Is uninsured motorist coverage required in New York?

Yes, uninsured motorist coverage is required in New York. Drivers in New York are required to carry $25,000 in uninsured motorist bodily injury (UMBI) coverage per person (up to $50,000 per accident) as well as $25,000 in underinsured motorist bodily injury coverage per person (up to $50,000 per accident). New York does not require drivers to have … read full answer uninsured motorist property damage (UMPD) insurance, however.

Uninsured motorist insurance covers the policyholder’s expenses after an accident if the other driver doesn’t have insurance or doesn’t have enough coverage to pay for the damage. UMBI pays for the policyholder’s medial bills, while UMPD pays to repair or replace their vehicle. Instead of UMPD, drivers in New York can use collision insurance, which covers repairs after any car accident.

How Uninsured Motorist Coverage Works in New York

Normally, a New York driver can collect damages from the at-fault driver’s liability insurance after an accident. However, if the other driver is uninsured, getting compensation can be time-consuming or nearly impossible. That’s where uninsured motorist coverage can help. Instead of having to file a lawsuit, you can file a claim with your own insurance company in order to pay your bills and get the repairs or treatment you need without waiting for the courts.

Even though car insurance is required in New York, an average of 6% of drivers in the state don’t have car insurance. Car accidents in New York can be extremely expensive, too. For example, fatal accidents in New York have a total cost of $1.44 billion each year. As a result, uninsured motorist insurance is a smart investment for New York drivers.

Key Facts About Uninsured Motorist Coverage in New York:

Uninsured Motorist Bodily Injury Coverage: $25,000 per person and up to $50,000 per accident

Underinsured Motorist Bodily Injury Coverage: $25,000 per person and up to $50,000 per accident

Uninsured Drivers on the Road: 6%

Total Annual Cost of Fatal Accidents:$1.44 billion

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Is personal injury protection required in New York?

Yes, personal injury protection (PIP) is required in New York. Drivers in New York are required to have at least at least $50,000 of PIP coverage for medical expenses, plus additional categories of coverage for especially serious accidents.

Personal injury protection helps ensure that everyone on the road in New York has some financial assistance for medical payments in the event of a collision. Drivers in all no-fault states are required to have it because they are restricted in terms of when they can sue another driver for compensation after an accident. That means PIP coverage is their first line of defense if they face hospital bills or a long recovery from an injury.… read full answer

PIP required?	Yes, PIP is required
Minimum PIP coverage	At least $50,000 of PIP coverage
Annual cost of insurance	$1,812
State accident laws	No-fault
National cost ranking (1=cheapest)	49

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