Home General Driving in New York? What Every Motorist Should Know

Driving in New York? What Every Motorist Should Know

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New York City roads are always swelling with traffic. As a result, motorists who drive on the busy city roads have higher chances of getting into an accident than drivers who drive on less congested roads. 

The likelihood of vehicles being involved in a road accident necessitates each vehicle to have insurance coverage. Insurance laws vary depending on which state the vehicle is driven. Therefore, motorists should be keen to check their state laws and the applicable laws in other states where they drive.

New York state laws regarding insurance are easy to understand. Any beginner with New York car insurance questions can find straightforward answers online. Here’s a look at the most pertinent issues for drivers in New York.

Is car insurance mandatory in New York?

The State requires New York residents to have valid automobile liability insurance coverage before they are allowed to register their vehicles in New York. The Insurance has an expiry date and must be renewed thereafter for it to remain valid. Neglecting to do so can result in the cancellation of the owner’s vehicle registration or suspension. Driving with expired insurance is a traffic offense punishable by law.    

Minimum applicable insurance costs

Insurance coverage costs for the liabilities covered in the basic insurance package are as follows:

  • $10,000 for property damage
  • $20,000 for bodily harm to one individual in the accident
  • $50,000 for the death of a single person
  • $50,000 for bodily harm to two or more people
  • $100,000 for the death of two or more people

The amount charged to the person registering for insurance varies depending on their age and experience. Different insurance companies also charge varied rates for their services.

Other than the basic plan, there are other types of Insurance coverage that come with different perks:

  • Comprehensive coverage. Covers car damage brought about by occurrences like floods, storms, and fire
  • Collision coverage. Coverage car damage to the car in any accident 
  • Medical coverage. Covers bodily harm to the driver and occupants of the car when in use
  • Physical injury coverage. The insurance covers any persons that suffer injuries as a result of your car.

Validity of insurance

For insurance to be valid for use in New York, it must be issued by a company licensed under the state of New York. Out of state insurance does not apply. 

Car insurance is not transferable to different cars or individuals. In other words, the registered name of the car and insurance must be those of the owner and cannot be used by any other persons or on any other car.

Shared insurance between two individuals   

State laws, however, allow insurance to be shared by a maximum of two individuals. One individual is listed as the primary registrant, while the other person is listed as a co-registrant. Both names have to appear on the insurance ID card.

How driving experience affects insurance rates

If you just got your license from the DMV, don’t be surprised when insurance companies charge you slightly higher rates than experienced drivers when you register for insurance. This is because new drivers have a higher risk of getting into accidents compared to experienced drivers.

Choosing a reliable auto insurance company  

There are tons of companies that provide vehicle insurance you can choose from when looking to ensure a New York City vehicle. Picking a reliable company helps the car owner rest easy knowing that they are protected in any accidents. 

The department of financial services advises car owners to check listings that rate insurance companies when picking which insurance companies to cover their cars. Doing that is the only sure way to pick a financially stable company.

James Wallace did his degree in psychology at the University of Edinburgh. He has an ongoing interest in mental health and well-being.

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