Cheap Auto Insurance in New York

Auto Insurance Requirements in New York

New York is one of the most highly regulated states in the country; their auto insurance law is no different. Every vehicle registered in the state must be covered with a minimum amount of liability and uninsured/underinsured motorist insurance. Being caught without it in New York can result in very serious penalties.

The cheapest car insurance available in the Empire State is a minimum liability policy expressed as 25/50/10. Like everything else in New York, the three in number formula is different here than in other states. Those three numbers provide coverage is as follows:

  • $25,000 per accident for injury to a single victim; $50,000 per accident for multiple victims
  • $50,000 per accident for the death of a single victim; $100,000 for multiple victims
  • $10,000 per accident for property damage

New York State also requires a certain amount of uninsured/underinsured motorist (UM) or personal injury protection (PIP) to be included on a standard liability policy. The minimum amounts of these coverages are not listed on their website, but a New York licensed insurance company will know what they are and include them as part of a standard policy.

Electronic Reporting

New York is also one of a number of states that utilizes an electronic reporting system to keep track of drivers and their insurance policies. Companies who sell insurance in the state are given access in order to report new policies and those that are allowed to lapse.

In terms of canceling a policy — say you were taking a car off the road or you wanted to purchase more affordable auto insurance from a different company — your current provider would not be legally allowed to cancel your policy until you provide proof of a new policy or a receipt from the state showing you surrendered your license plates and registration. If you do get a new policy with a different company you’ll need to send a copy of your new insurance ID card to the state.

Furnishing Proof of Insurance to Police

Like other states, New York requires drivers to provide proof of their insurance policy if they are pulled over or involved in an accident. That proof comes by way of an insurance ID card sent to you by your insurance company. Please note that New York law requires the name on the registration and insurance ID card to match. If they don’t, you will most likely be issued a citation or a summons to appear in court.

Drivers caught without insurance in New York are penalized starting with a $1,500 fine and a license and registration suspension. Once the suspension period is over an additional $750 reinstatement fee will be assessed to get both back. Furthermore, car owners who allow others to drive their vehicles without insurance will face the same penalties should the driver be caught. In New York it’s definitely not worth it to skirt the law. You’re better off just buying a cheap car insurance policy and getting on with.


If you enjoyed this post, please consider leaving a comment or subscribing to the RSS feed to have future articles delivered to your feed reader.