New York Auto Insurance Quotes and
Coverage Guide
New York Motor Vehicle Insurance
Questions & AnswersQ: Is
auto insurance mandatory?
A: Yes. If you're crazy enough to drive in
New York (especially in the Big Apple), you need
insurance. And even in the Little Apples, like
Albany, Syracuse, and the rest of the state, auto
insurance is not just a good idea – it's The Law. So
even though you're a busy New Yorker, and there's
about a million other things on your mind you
consider more important than car insurance (like
watching the paint peel on your wall), take the time
to educate yourself a little and maybe save yourself
some aggravation in the meantime.
You must show a New York Insurance ID Card when you
apply for a vehicle registration. The insurance
company must also file an electronic notice of
insurance coverage with the Department of Motor
Vehicles to verify the liability coverage. If a
police officer requests your proof of insurance, you
must show your Insurance ID Card. Your Insurance ID
Card and the electronic notice of insurance coverage
together verify your insurance coverage. An
Insurance ID Card by itself does not prove liability
coverage. The DMV will not accept any insurance ID
card issued on January 2, 2002 or later that does
not contain a barcode -- and that doesn't mean from
the local tavern.
Q: Is New York a "no-fault" state?
A: Yes. New York's no-fault system is
intended to lower the cost of auto insurance by
taking small claims out of the courts, not to
aggravate you, personally. But hey, sometimes it
happens. Each insurance company compensates its own
policyholders for the cost of minor injuries
regardless of who was listening to the Yankees game
on the radio, didn't notice their foot was on the
gas instead of the brake, and slammed right into the
guy selling watches from the trunk of his illegally
parked car.
Drivers in the Empire State may sue for severe
injuries if the case meets certain conditions. These
conditions are known as the tort liability
threshold, and in New York, are expressed in verbal
terms such as death or significant disfigurement
(verbal threshold) and do not include the broken
nails you got when your bookie slammed your hand in
the car door – even if you did just get them done at
Kenneth's.
Q: What type of insurance is required to purchase
and maintain a New York tag and registration?
A: Insurance coverage must be a minimum of
$25,000/50,000 for injury, $50,000/100,000 for
death, and $10,000 for property damage caused by any
one accident – because you never know, that guy's
watches might be real Rolexes.
Q: I moved to another state, but my vehicle is
registered in New York. Do I need to change to
out-of-state insurance?
A: No. All vehicles registered in New York
must have New York liability coverage. There are no
exceptions. If you replace your New York insurance
coverage with out-of-state insurance, a lapse in
valid insurance coverage occurs. The New York DMV
suspends your registration, and the New York DMV can
suspend your driver license. The New York DMV must
take actions against your New York registration and
driver license even if you move outside of New York.
This action can affect your ability to hold a valid
driver license in your new state. If you register
your vehicle in another state, immediately surrender
your New York vehicle plates to the New York DMV by
mail or someone from the DMV might come and break
your fingernails.
Q: What if I fail to keep insurance on my vehicle
that I’ve registered in New York?
A: Your insurance company is compelled by law
to notify the DMV if you cancel your liability
insurance. You are given 10 days from the date of
the DMV letter that will be sent to you to prove you
do, indeed, have insurance coverage; prove that you
sold the vehicle; or show some other proof that
insurance coverage was not required in New York
(good luck). If you do not have liability insurance,
you must surrender your vehicle plates to the New
York DMV immediately. Make sure you get a receipt.
You must also respond to the letter you receive from
the DMV or surrender your license plates to prevent
the suspension of your registration and driver
license. If your liability insurance is about to
lapse, and you do not plan to replace it with other
insurance, surrender your vehicle plates to the DMV
before your insurance coverage lapses. Or the guy
with the watches might still be able to track you
down and break your fingernails.
Q: What are some of the conditions that can
create a lapse in insurance coverage?
A: Any amount of time that your vehicle is
registered but not insured can cause a lapse in your
insurance coverage and the suspension of your
registration. A lapse in insurance coverage can
occur:
-- between the date your insurance is cancelled and
the effective date that you begin new insurance, and
you do not have other acceptable proof
-- between the date your insurance is cancelled and
the date you surrender your license plates or the
date your registration expires
-- between the date your insurance is cancelled and
the effective date of "other proof" (for example, a
vehicle registered in another state, or a vehicle
repossessed or impounded)
-- between the date you register your vehicle and
the effective date of your new insurance coverage
-- between the date the insurance is cancelled on a
registered vehicle and the date a dealer or the DMV
issues a registration on the replacement vehicle
(transfer of vehicle plates or vehicle registration)
-- between the date the insurance is cancelled and
the date the same insurance company reinstates your
insurance coverage
If the lapse in the insurance coverage exceeds 90
days, your driver license is also suspended. A long
appointment at Kenneth's will not be considered as a
valid excuse.
Q: What action does the DMV take if I do not have
insurance and I do not surrender my vehicle plates
immediately?
A: If you do not have insurance coverage and
you do not surrender your vehicle plates to the DMV,
start wearing gloves to hide your fingernails and
plan on walking because your registration and driver
license will be suspended indefinitely. If you had a
lapse in your insurance coverage and did not
surrender your vehicle plates immediately, your
registration is suspended for the same number of
days that you did not have insurance coverage, but
did hold the vehicle plates. If the time is more
than 90 days, your driver license is also suspended
for the same number of days as the registration. To
reinstate your driver license, you must pay a
termination fee of $25 when the suspension ends, but
New York will not return your fingernails, even if
you say, "Please."
|
Check out our brand new,
extensive and complete
Auto Insurance Guide
|
