New York City Automobile Insurance

New York City automobile insurance is somewhat different than cities in other states because the laws within the state dictate the required minimums that those in Manhattan must carry on their automobiles.

New York is a "No-Fault" state. [1] This means that a policy covers an individual on their own damages rather than having to seek damages from the party that would be deemed responsible for the accident if the state were a "tort state."

If you drive a vehicle in New York City, your required minimums, which is also standard No-Fault benefits within the state, would have to cover medical and rehabilitation expenses. Your New York auto insurance will cover up to 80% of lost wages due to an accident and up to $25 per day to reimburse for other expenses such as needing help within the household due to injuries. You also have a $2,000 death benefit with a $50,000 basic limit.[1]

It is possible, despite No-Fault protection that a claim can be made against you in an accident. An individual does have the right to obtain further compensation if their own coverage is not enough. New York City is a very tricky place to drive, so you want to make sure you have all protections in place. New York City car insurance in the form of liability requires that the following limits are present: $25,000 for bodily injury or $50,000 for any injury resulting in death and $50,000 for bodily injury or $100,000 for injury resulting in death if more than one person was involved in the accident. Property damage is $10,000. [1]

Coverage Limits

New York City auto insurance does come with coverage limitations and, in some cases, will allow you higher limits under certain circumstances. For instance, you can take your New York City vehicle to Canada and your policy will temporarily raise your liability protection because Canada requires higher coverage for vehicles.[1]

However, it is important to note that there are times in which your New York City auto insurance will not provide coverage. For instance, being in an automobile accident while intoxicated or under the influence of drugs, intentionally causing injury, riding driving a motorcycle or ATV (unless a pedestrian is struck), the automobile accident is the result of a felony, injured in an automobile that is stolen, or the automobile being driven is not insured.[1]

Optional Automobile Insurance

New York does provide its residents with optional automobile insurance coverage. You can enhance your New York City automobile insurance by increasing your limits. Bodily injury may be a priority in this case because of the incredible costs associated with medical care. If you are concerned about the cost of New York City auto insurance, you can refrain from raising the limits on property damage coverage. If cost is a concern, know that affordable automobile insurance is easy to obtain.

You may also add additional No-Fault benefits to your existing NY insurance policy because, truthfully, the minimums required by the state of New York are not always adequate enough to cover NY City drivers.

It is also required that New York City insurers offer what is called Optional Basic Economic loss in case their customers want the coverage. What this option does is elevate the amount of basic economic loss coverage by another $25,000. Wage benefits may be payable within a three year period. Adding benefits does not increase that time limit.[2]

Another option is uninsured or underinsured motorist coverage. This is coverage that covers an individual who may be in an auto accident with an uninsured or underinsured motorist. It is unfortunate that this would occur and, unfortunately, is a common occurrence in New York City.

Another piece of optional New York City automobile insurance is "Gap Coverage." This is coverage that you can receive when there is a difference between what the insurer will pay and what is owed on the vehicle in the case that the car is totaled.[2]

There are a number of other coverage options available with New York City vehicle insurance that covers your automobile and your overall health and financial well being. It is vital that every driver in New York City ensure that he or she is insured. This is a city known for its congested streets and even the occasional fender bender that doesn't even cause damage to the automobile can be of great concern. Damage doesn't have to be done for a person to claim injury. Injury can be sustained in the smallest of impacts.

So if you find yourself needing new insurance or you have an existing policy on your automobile, New York City automobile insurance comes with many options to help protect you in the case of an automobile accident. You can never be too cautious, yet you also need to do what is reasonable for you.

[1] http://www.ins.state.ny.us/auto/2009/auto0902.htm 06/09/10
[2] http://www.ins.state.ny.us/auto/2009/auto0903.htm 06/09/10


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