What New York requires you to carry

New York is a no-fault insurance state, which means your own insurance pays your medical bills and lost wages after an accident, regardless of who caused it. This changes what you must buy and how claims work compared to states that use fault-based systems.

The state requires every driver to carry a minimum of $25,000 in bodily injury liability per person, $50,000 per accident, and $10,000 in property damage liability. You also must carry Personal Injury Protection (PIP), which covers your own medical expenses and up to 80 percent of lost wages after an accident. The minimum PIP coverage is $50,000, though many drivers carry more. New York also requires Uninsured Motorists coverage at the same limits as your liability ($25,000/$50,000), which protects you if an uninsured driver hits you.

Collision and comprehensive coverage are not required by law, but your lender will require them if you have a loan or lease on your vehicle. Collision covers damage from accidents; comprehensive covers theft, weather, and other non-collision events.

Key Takeaways

  • New York requires $25,000 bodily injury liability per person and $50,000 per accident, plus $10,000 property damage and $50,000 Personal Injury Protection as a minimum.
  • Your own insurance pays your medical bills after an accident in New York, not the other driver's insurance, even if they caused the crash.
  • Rates vary significantly by ZIP code, driving record, age, and vehicle type, so quotes from multiple insurers can differ by hundreds of dollars annually.
  • New York has a "high-risk" pool called the New York FAIR Plan for drivers who cannot find coverage in the standard market.

How New York rates differ from other states

New York's no-fault system affects both what you pay and how disputes are handled. Because your own insurance covers your medical costs regardless of fault, insurers cannot deny a claim based on who caused the accident. This removes one major source of dispute but also means insurers have less control over medical costs, which can push premiums higher in some areas.

New York also has strict rules about rate-setting. Insurers must file their rates with the New York Department of Financial Services and justify any increases above a certain threshold. This does not mean rates are low—they are not—but it does mean the state reviews major changes before they take effect. Your actual rate depends on your age, driving record, years of driving experience, the vehicle you drive, your ZIP code, and how much coverage you choose.

Urban areas, particularly New York City, typically have higher premiums than rural upstate areas because accident frequency and repair costs are higher. A driver in Manhattan may pay two or three times what an identical driver pays in rural Dutchess County.

What affects your premium in New York

Your age is one of the largest factors. Drivers under 25 and over 70 pay substantially more than drivers aged 30 to 60. A single accident or traffic violation can increase your rate by 10 to 40 percent depending on the severity and your insurer's underwriting rules. A DWI conviction will roughly double your premium and keep you in a high-risk category for years.

Your vehicle's make, model, and year matter because repair costs and theft rates vary. A 2024 Honda Civic costs more to insure than a 2015 Toyota Camry, even if both are the same age, because parts and labor for the newer car are more expensive. Some insurers also consider safety ratings and whether the vehicle has anti-theft devices.

Mileage and how you use the vehicle can lower your rate. If you work from home and drive fewer than 5,000 miles per year, you may may have access to for a low-mileage discount. Bundling auto insurance with home or renters insurance typically saves 10 to 25 percent on your auto premium. Good student discounts (usually 3.25 GPA or higher) explore to drivers under 25 in school.

Shopping for insurance and comparing quotes

New York has a competitive insurance market with dozens of companies offering coverage. The major insurers include State Farm, Geico, Progressive, Allstate, and New York-specific companies like NYSEG Insurance and Amica Mutual. Rates vary widely between them for the same driver and vehicle, so getting quotes from at least three insurers is standard practice.

When you request a quote, you will need your driver's license number, vehicle identification number (VIN), current insurance information if you have it, and details about your driving history. Most insurers offer quotes online in minutes. Some offer discounts for bundling, paying in full, setting up automatic payments, or completing a defensive driving course. Ask about each discount when you get a quote—they are not always applied automatically.

You can also contact the New York Department of Financial Services for a list of licensed insurers and information about filing a complaint if you have a dispute with your insurer. The department publishes complaint ratios by company, which can help you identify insurers with better customer service records.

The New York FAIR Plan and high-risk coverage

If you have been denied coverage by multiple insurers or have a serious driving record, you may be placed in the New York FAIR Plan (Fair Access to Insurance Requirements). This is a state-run pool of last resort that provides basic liability and physical damage coverage to drivers who cannot find coverage in the standard market.

FAIR Plan coverage is more expensive than standard insurance and offers fewer discounts, but it meets New York's legal requirements. You cannot be rejected from the FAIR Plan based on your driving record. To enter the FAIR Plan, you typically must first be denied by at least one standard insurer. You can explore through any licensed insurance agent in New York.

Understanding no-fault claims in New York

After an accident, you file a claim with your own insurance company, not the other driver's. Your insurer pays your medical bills directly to providers and reimburses you for lost wages up to 80 percent of your gross income, capped at a weekly maximum that changes annually. In 2024, the weekly maximum is $2,000, though this amount adjusts each year.

You do not need to prove the other driver was at fault to receive PIP benefits. However, if your injuries are serious enough to meet New York's "serious injury threshold," you can sue the other driver for pain and suffering and other damages. The threshold includes permanent disfigurement, fractures, or injuries that prevent you from performing normal activities for 90 days or more. Minor injuries typically do not meet this threshold, which limits your right to sue.

Disputes over medical necessity or the amount of a bill can arise. If your insurer denies a claim or disputes a medical provider's bill, you have the right to request an independent medical examination or file a complaint with the Department of Financial Services.

Discounts and ways to lower your premium

Beyond bundling and good student discounts, New York insurers offer several other reductions. Completing a defensive driving course (sometimes called a driver improvement course) can lower your rate by 5 to 10 percent and may also reduce points on your license if you have received a traffic ticket. Some courses are offered online and take four to six hours.

Installing anti-theft devices or safety features like backup cameras or automatic emergency braking can may have access to you for discounts with some insurers. Paying your premium in full rather than monthly sometimes saves 3 to 5 percent. Setting up automatic payments from your bank account may also reduce your rate slightly.

If you have been a safe driver for three or more years without accidents or violations, ask about a safe driver discount. Some insurers offer accident forgiveness, which means your first accident will not increase your rate, though this is not universal and usually applies only to drivers with a clean record for a set period.

Frequently Asked Questions

Do I need to carry uninsured motorist coverage in New York?

Yes, it is required by law. The minimum is $25,000 per person and $50,000 per accident, matching your liability limits. This coverage protects you if an uninsured or hit-and-run driver causes an accident. You can choose higher limits if you want more protection.

What happens if I let my insurance lapse in New York?

Driving without insurance is illegal in New York. If you are stopped by police, you face a fine of $150 to $300 for a first offense, and your license can be suspended. Your vehicle registration can also be suspended. If you cannot afford your premium, contact your insurer about payment plans or look into the FAIR Plan.

Can I get a discount for taking a defensive driving course?

Most New York insurers offer a 5 to 10 percent discount for completing an approved defensive driving course. The course must be state-approved; check with your insurer for a list of courses they recognize. You can usually take the course online.

How long does a traffic ticket or accident stay on my record for insurance purposes?

Most insurers look back three to five years at your driving history. A minor traffic violation typically affects your rate for three years, while an accident may stay on your record for five years. A DWI conviction can affect your rate for much longer, sometimes seven to ten years or more.

What is the difference between collision and comprehensive coverage?

Collision covers damage to your vehicle from an accident with another car or object. Comprehensive covers damage from theft, weather, vandalism, or hitting an animal. Both have deductibles (typically $250, $500, or $1,000), and you pay the deductible when you file a claim. Your lender requires both if you have a loan or lease.