Minimum Insurance Requirements for New York State

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When it comes time for New York car insurance quote shoppers to settle down and select an insurance plan, the most popular rate seems to be “whatever’s cheapest.” Saving money is all well and good, but you’ll want to make sure your insurance meets the minimum insurance requirements for New York State. Here’s a summary of the minimum levels of insurance required in NY, as well as a brief explanation of what the coverage means.

To cover medical costs, you’ll have to carry a minimum coverage of $25,000 for bodily injury to one person and $50,000 for all people involved in a wreck. This means that insurance companies will pay out up to $25,000 for an individual’s medical costs (hospital, doctor, chiropractic bills), and up to $50,000 for everyone else combined. On the property side, you’ll have to carry at least $10,000 of coverage as well as $50,000 of no-fault insurance. No-fault insurance pays out regardless of fault, invented in an attempt to increase payment times and reduce time-consuming litigation from insurance companies.

And that’s it. As long as you hold insurance that meets the standards outlined above, you won’t need to pay for more. However, that doesn’t mean you won’t want to. Carrying the minimum amount of insurance can still land you in hot water should the worst happen. While $25,000 may sound like a lot of injury coverage, an extended hospital stay can easily burn through that amount and then some.

Luckily insurance laws don’t only apply to you. Insurance companies are also required to offer a certain amount of coverage, even when you’re not legally required to buy it. Laws require that insurance companies also offer uninsured motorist protection with the same minimums, meaning you won’t be stuck if you’re hit by an uninsured driver. Additionally, an insurer must offer supplementary insurance of $250,000 per person and $500,000 per accident to cover for under-insured motorists. That’s just the legal minimum; car insurance companies can offer even more coverage if they choose.

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