New York State Auto Insurance Requirements
Any party wishing to own and/or operate a registered vehicle in the state of New York is required to obtain insurance with at least the minimum state requirements. These requirements include No-Fault or Personal Injury Protection, Liability insurance and Uninsured Motorist insurance.
No-Fault (Personal Injury Protection)
No-Fault coverage pays for the reasonable and necessary medical expenses and lost wages for covered parties for treatment due to injuries sustained in an automobile accident. This coverage applies regardless of whether or not you are responsible for the accident and includes passengers in your vehicle or even pedestrians injured by your vehicle during an automobile accident.
PIP coverage provides up to $50,000 for medical bills, increased household expenses such as house keeping or transportation ($25/day for up to one year), 80% of lost earnings up to $2,000 a month for 3 years, and a $2,000 death benefit.
Liability coverage protects you, or the operator of your vehicle, if a negligence claim is made against you by a third-party, for an accident resulting in property damage or injuries. The minimum allowed by New York State is 25/50/10 which means up to $25,000 for injuries for any one person in an accident (not resulting in death) or $50,000 for any injuries resulting in death and up to $50,000 for bodily injury for two or more people in any one accident or $100,000 for any injuries resulting in death for two or more parties and $10,000 in property damaged in a single accident. Furthermore, your insurance carrier must also provide a legal defense in the event and court costs should litigation arise.
Uninsured (UM) coverage protects you, your family household members and the passengers in your car if you are injured in an accident due the negligence of someone who is uninsured or as a result of a hit-and-run motorist. New York State requires $25,000/$50,000, $25,000 per person with a maximum of $50,000 per loss.
For additional information on this topic you can visit the New York State Department of Financial Services at http://www.dfs.ny.gov/consumer/auto/auto1202.htm.