Key Takeaways
- New York requires minimum auto liability limits of 25/50/10 - among the highest in the nation
- New York is a "no-fault" state requiring Personal Injury Protection (PIP) with $50,000 minimum
- Supplementary Uninsured Motorist (SUM) coverage is mandatory in New York
- Uninsured Motorist (UM) coverage minimums match liability minimums at 25/50
- The Motor Vehicle Accident Indemnification Corporation (MVAIC) covers hit-and-run victims
New York Auto Insurance Requirements
New York has comprehensive auto insurance requirements that producers must understand. New York is a no-fault state with some of the highest minimum coverage requirements in the nation.
Mandatory Coverage
New York requires all registered vehicles to have the following coverage:
Minimum Coverage Requirements
| Coverage | Minimum Limit |
|---|---|
| Bodily Injury per Person | $25,000 |
| Bodily Injury per Accident | $50,000 |
| Property Damage | $10,000 |
| Personal Injury Protection (PIP) | $50,000 |
| Uninsured Motorist (UM) BI | $25,000/$50,000 |
| SUM (if purchased) | $25,000/$50,000 minimum |
Memory Tip: Remember "25/50/10" for New York minimum liability limits. These are among the highest in the nation.
Proof of Insurance
New York drivers must carry proof of insurance (FS-20):
- Physical insurance card, OR
- Electronic proof on smartphone
- Registration cannot be completed without proof
- Penalties for driving without insurance include fines and license suspension
No-Fault Insurance (PIP)
New York is a no-fault state, meaning your own insurance pays for your injuries regardless of who caused the accident.
Personal Injury Protection (PIP) Benefits
| Benefit | Limit |
|---|---|
| Medical Expenses | Up to $50,000 |
| Lost Wages | 80% of wages (capped) |
| Household Services | $25/day |
| Death Benefit | $2,000 |
No-Fault Applies To
- Medical expenses
- Lost earnings
- Other reasonable expenses
- Does NOT apply to property damage
Serious Injury Threshold
To sue for pain and suffering in New York, the injury must meet the serious injury threshold:
Definition of Serious Injury
- Death
- Dismemberment
- Significant disfigurement
- Fracture
- Loss of fetus
- Permanent loss of use of body organ, member, function, or system
- Significant limitation of body function or system
- Medically determined injury preventing normal activities for 90+ days
Exam Tip: This threshold is critical for the exam. If injuries do not meet the threshold, the injured party can only collect no-fault benefits, not sue for pain and suffering.
Supplementary Uninsured Motorist (SUM) Coverage
New York has unique SUM coverage requirements:
SUM Coverage
| Feature | Details |
|---|---|
| Purpose | Covers difference between UM/UIM limits and your policy limits |
| Mandatory Offer | Insurers must offer SUM |
| Minimum Limits | 25/50 (must equal BI limits) |
| Stacking | Not permitted in New York |
How SUM Works
If hit by uninsured/underinsured driver:
- UM coverage pays up to its limits
- SUM pays the difference up to your policy limits
- Total recovery cannot exceed actual damages
Uninsured Motorist (UM) Coverage
Requirements
| Requirement | Details |
|---|---|
| Mandatory | Yes |
| Minimum Limits | 25/50 (match BI limits) |
| Covers | Bodily injury only |
| Property Damage UM | Not required in NY |
Motor Vehicle Accident Indemnification Corporation (MVAIC)
MVAIC covers victims when no insurance is available:
MVAIC Coverage
- Hit-and-run accidents
- Accidents with uninsured vehicles
- Accidents with stolen vehicles
- Subject to same limits as compulsory insurance
- Funded by assessments on insurers
What are New York's minimum auto liability insurance limits?
What is the minimum Personal Injury Protection (PIP) limit in New York?
What is the purpose of New York's Supplementary Uninsured Motorist (SUM) coverage?