New York Vehicle Insurance

Vehicle ownership within New York City is actually lower per capita than most other parts of the United States.  Many New Yorkers find it easier and far less expensive to use mass transit or taxis on Manhattan Island than to own and maintain a car - and auto insurance is a big factor in the cost of owning a vehicle in New York.  That's because in the State of New York, failure to provide insurance and, more importantly, maintain the payments, can result in the owner's vehicle being impounded and the owner hit with a host of hefty fines and fees. Insurance NY.

It is also a bit more complicated to maintain auto insurance in the State of New York than it is in other parts of the country.  The New York Department of Motor Vehicles requires two different forms of proof of insurance. Failure to do so will hinder the vehicle owner's ability to obtain a license for the vehicle.

The State of New York also requires higher limits for auto liability than many other states; starting at $25,000 for personal injury coverage per person and $50,000 per accident.  Coverage involving a fatality begins at $50,000 per person and $100,000 per accident.  In addition, uninsured motorist coverage is required in New York, whereas other states may allow that coverage to be optional for drivers.



Likewise, some states are more liberal when it comes to where the insured motorist may purchase his or her auto insurance - allowing the motorist to buy from agencies in other states.  However, the State of New York requires insured motorists to purchase their auto insurance from companies legally registered and doing business within the State of New York.

Moreover, motorists in the State of New York must maintain their insurance without any lapse in coverage.  Failure to make the monthly or quarterly insurance premium payments can result in the insurance company notifying the Department of Motor Vehicles.  The result can be a stiff fine on top of the added cost of reinstating the insurance ny coverage.

There are other states that adhere to this practice; accessing a fine for failure to maintain current auto insurance and even notifying the financial institution holding the loan on the vehicle of the lapse.  This allows the financial institution to purchase its own insurance as a way of protecting its investment, then tacking the fees for the insurance onto the loan.

Of course, like most states, a driver must also keep the proof of insurance with the vehicle at all times in case of accident or a traffic stop.  Maintaining the proper insurance and keeping the proper proof of insurance keeps New York drivers on the road legally, without any problems from the Department of Motor Vehicles.