New York law requires all drivers to carry minimum levels of coverage in the event of an accident. All car insurance policies sold in the Empire State must meet these requirements, ensuring motorists can benefit from New York’s no-fault auto insurance system.
Understanding these minimum car insurance requirements can help you avoid legal penalties and know how to protect your finances after an injury crash.
What Are New York’s Required Car Insurance Minimums?
The minimum car insurance coverage required in New York auto policies includes:
Personal Injury Protection (PIP)
New York policies must include at least $50,000 in PIP coverage, which serves as general no-fault insurance. PIP covers your medical expenses and a portion of your lost wages after a crash, no matter who was responsible.
Bodily Injury Liability
All drivers must have $25,000 per person and $50,000 per accident in bodily injury liability coverage, which pays for medical expenses resulting from a crash you are at fault for. It can also cover your legal expenses.
Property Damage Liability
Similar to bodily injury coverage, property damage liability pays for repair or replacement costs you’re responsible for after a crash. New York law requires a minimum of $10,000 in property damage coverage per accident.
Uninsured Motorist (UM)
UM coverage kicks in when you’re injured in a crash with a driver who does not have New York’s minimum car insurance coverage, providing up to $25,000 per person and $50,000 per accident. UM coverage also applies to hit-and-run accidents when the other driver is not identified.
Death Liability
Your auto insurance policy must include $50,000 per person and $100,000 per accident in coverage for wrongful death damages after a fatal accident.
What Does No-Fault Car Insurance Cover in New York?
New York’s no-fault system allows anyone with an auto insurance policy to recover compensation for essential expenses and losses after a car accident, whether or not they bear responsibility for the crash.
By filing a PIP claim with your insurer within 30 days of a crash, your policy can help cover:
- Medical bills and treatment costs
- Up to 80% of your lost wages
- Up to $25 a day in out-of-pocket expenses related to the accident
While no-fault coverage provides quick, efficient access to funds in most circumstances, it does have its limitations. After a serious accident, it may not provide enough coverage to pay for all of your expenses.
Is the Required Minimum Car Insurance Enough?
There are many situations where the minimum required car insurance coverage may be too little or too narrow to protect you from the expenses you face. In particular, a severe accident can exhaust your policy limits and become financially devastating very quickly. If you or someone else suffers serious injuries in a crash, you may be on the hook for:
- Costly hospital stays
- Medications
- The costs of repairing or replacing a heavily damaged vehicle
- Follow-up appointments, rehabilitation care, and ongoing medical treatment costs
- Lost income during a lengthy recovery process
In cases involving catastrophic injuries or wrongful death, long-term care costs can easily exceed the minimum coverage.
2026 New York Legislative Updates: Why Hochul’s 2026 Auto Insurance Reforms May Hurt Injury Victims
In mid-2026, the Money In Your Pockets legislation was enacted. One of the legislation’s outlined goals was to lower auto insurance premiums across New York State. There were three major changes made to how everyday New Yorkers are impacted after a car accident:
Removal of the 90/180 Rule
Previously, New York law allowed car accident victims to file lawsuits against at-fault drivers if their injuries kept them from working or performing their usual daily activities for at least 90 of the 180 days following the crash. Now, these cases do not qualify as “serious injuries” under state law, potentially leaving many deserving injury victims with no legal recourse beyond their insurance limits.
Limits on Pure Comparative Negligence
Before, New York drivers could recover reduced compensation even if they were mostly at fault. Now, in certain motor vehicle injury cases, claimants who are more than 50% responsible for a crash may be barred from recovering damages.
Addition of Non-Economic Damage Caps
The new legislation caps non-economic damages at $100,000 in certain cases involving at-fault drivers, including those who were driving an uninsured vehicle, driving while impaired, or committing or fleeing from a felony. However, drivers whose insurance had lapsed for less than 30 days appear to be exempt from the uninsured-vehicle cap.
How Does It All Add Up?
Despite the law’s stated goal of lowering auto insurance costs, Richmond Vona CEO John Richmond views the changes as a significant blow to the rights of New Yorkers injured in car accidents. Richmond also raised concerns about Uber’s reported support for the reform effort, noting that the company put millions of dollars into an independent expenditure committee backing Hochul and promoting the auto insurance proposal.
“The big campaign was, ‘Hey, let's let's lower auto insurance for New Yorkers.’ But to claim that personal injury lawsuits or fraud from personal injury cases are the only reason that insurance premiums are up is just flat out false.”
“There is a now greater sense of urgency after an accident to reach out to a law firm, a personal injury law firm that has a lot of experience in car accidents, that does this every day just like us. Tort reform came to New York State in the form of a new budget passed by Governor Hochul and in effect, you know, really hurting the rights of injured New Yorkers. Uber, they gave over $10 million to Governor Hochul and unfortunately, she listened, and what she did was a lot with Uber behind her. They launched a campaign and passed, and it was actually signed. So now it's in effect. The big campaign was, "Hey, let's let's lower auto insurance for New Yorkers." But to claim that personal injury lawsuits or fraud from personal injury cases are the only reason that insurance premiums are up is just flat out false. There's three high-level things that really impact injured New Yorkers and notably, injured New Yorkers in car accidents.”
What Happens if You Drive Without the Required Minimum Car Insurance?
In New York, it is illegal to drive without having the minimum no-fault car insurance coverage. If you do, you may face fines and other penalties, such as having your license and registration suspended.
Beyond the legal consequences, driving without insurance can also leave you heavily exposed to financial ruin in the event of an accident. Without no-fault coverage, you’ll be on the hook for all of your own medical bills, car repairs, and more. If the crash leaves someone else seriously injured, you could be personally liable for any damages exceeding their policy limits.
How Uninsured Motorist Coverage Can Help
UM coverage exists to protect responsible drivers when the no-fault system fails. UM coverage may provide bodily injury compensation when you, resident family members, or occupants of your vehicle are injured by a negligent, uninsured, or hit-and-run driver in a New York accident.
Should You Carry More Than the Minimum Required Coverage?
Most insurers offer higher policy limits and additional coverages for those who choose to purchase extra protection, such as supplemental UM coverage, extended PIP coverage, and coverage for vehicle damage.
While you’ll pay higher premiums to get a stronger policy, carrying more than the minimum required car insurance coverage can help you protect your personal assets, provide a critical lifeline when dealing with costs from a serious accident, and generally provide peace of mind that the bare minimum does not.
Talk to a New York Car Accident Lawyer About Your Legal Options
If you’re confused about how New York’s car insurance coverage minimums work or have any questions you’d like answered, the trusted team at Richmond Vona is ready to help. Our experienced New York car accident lawyers have an unwavering commitment to honest communication, compassionate service, and top-tier results.
Reach out to us online or call 716-500-5678 today to schedule your free consultation.
