New York Car Insurance Laws & Requirements (Updated 2023)

WRITTEN BY: Julia Matseikovich


New York mandates car insurance coverage limits for all drivers in the state. All NY drivers must have the minimum mandated car insurance to drive within the Empire State legally, or they may face penalties, including fines or license suspension. 

Below, we cover New York car insurance laws, including how much liability insurance you need and what it covers. Read on to learn more about the New York state car insurance requirements, plus how to save on your insurance. 

New York car insurance minimum requirements

New York car insurance laws require minimum limits of 25/50/10 in liability coverage, which is $25,000 for bodily injury liability and $50,000 for bodily injury for a person involved in an accident, and $10,000 for property damage per accident. Uninsured/underinsured motorist coverage needed is $25,000 per person and $50,000 per accident. Personal injury protection (PIP) coverage required is $50,000 per person. 

Liability coverage in New York

Liability coverage is car insurance that protects you and helps pay costs associated with an accident where you’re at fault. If you cause a car accident, your liability coverage pays for the other person’s medical expenses and repair costs up to the limits listed in your policy. The liability coverage only pays for the other person’s expenses, not yours. 

State-mandated auto insurance limits you should know

Each state features mandated auto insurance coverage minimums. New York car insurance laws include the following limits:

  • $25,000 for bodily injury per person/$50,000 per accident
  • $10,000 for property damage per accident
  • $25,000 for bodily injury per person/$50,000 per accident in uninsured motorist coverage
  • $50,000 in PIP coverage per person

Drivers in New York can purchase car insurance over the minimum, opting for full coverage insurance. These are the only standard requirements for liability insurance coverage.

Are New York’s minimum requirements providing enough coverage?

New York car insurance laws require higher limits than other states, but the minimum may not be enough. Minimum car insurance of $10,000 in property damage liability may barely cover the repair costs for a new vehicle after an accident, If the other driver or their passenger is injured, it’s possible to quickly go past the $25,000 in bodily injury liability with just a few X-rays and an ER visit. You should increase your NY car insurance policy by as much as you can afford.

Penalties for driving without proof of insurance in New York 

It’s a criminal offense to drive without proof of insurance in New York. You may face several penalties if you drive uninsured, including;

  • Fines of up to $1,500
  • Arrest and possible jail time
  • SR-22 requirements
  • Driver’s license suspension
  • Vehicle registration suspension
  • Impoundment

New York optional car insurance coverage

Drivers in New York have several optional car insurance coverages to expand their policy. These coverage options include:

  • Collision: If you collide with another car or a stationary object, this coverage pays for the repairs.
  • Comprehensive: Comprehensive coverage is for repairs associated with weather, theft, collisions with animals, and other covered losses
  • Gap coverage: When you lease or take a loan out on your car, gap coverage covers the difference between what you owe and the car’s value
  • Medical payments: After an accident with injuries, this coverage pays for your medical bills and those of your passengers 
  • Optional Basic Economic Loss (OBEL): OBEL lets you increase PIP coverage beyond $50,000
  • Rental car reimbursement: If you need to rent a car while yours is in repair from a covered loss, insurance pays for the rental car 
  • Roadside assistance: Roadside emergencies such as breakdowns, tows, battery jumps, and other needs fall under this coverage

CARCO inspections in New York

Certain states, including New York, require a CARCO inspection before you purchase collision and comprehensive car insurance. The inspection looks at your vehicle before you insure it to reduce fraud. A CARCO inspection is brief and takes 15 minutes. The inspection covers your vehicle’s mileage, condition, and accessories. 

Do I have to pay for a CARCO inspection?

No. You can get your CARCO inspection for free. 

What paperwork is required? 

You only need to provide paperwork or information on your insurer at your CARCO inspection in New York.

Where do I go for a CARCO inspection?

Various body shops and other auto businesses offer CARCO inspection in NY. Using the CARCO site look-up tool you can find a site for inspection by using the CARCO site lookup tool.

Why it’s important to follow New York car insurance laws and requirements

Following New York car insurance laws are part of safe driving, plus having the required insurance coverage helps you in case of an accident. Driving without insurance in New York also has severe consequences, including fines of over $1,000. Following the NY car insurance laws, you can save yourself stress and money. 

How much does the minimum car insurance cost in New York?

The average price for car insurance in New York is $887 a year or $73 a month for the state minimum coverage. Car insurance premiums vary by the driver’s carrier, vehicle, location, age, credit score, driving record, and gender. 

USAA offers the lowest average rates for car insurance in New York but limits membership to military members and their families. After USAA, GEICO features the lowest minimum rates. 

Cheapest minimum liability car insurance in New York


Minimum car insurance requirement in New York when leasing a car

If you lease a car in New York, you will likely need more car insurance than the state requires. Car leasing companies often require higher coverage than the New York car insurance laws mandate. A typical car lease in New York may need 100/300./50 in liability insurance. 

Car insurance cancellation laws in New York

New York law prohibits mid-term car insurance cancellations unless in cases of non-payment, fraud, misrepresentation, or the revocation of a policyholder’s driver’s license. Insurers may make a cancelation mid-term after a notice of 20 days prior to the effective date.

All cancellation notices must state the reason for termination. If you cancel your auto insurance policy before it expires, you may receive a refund, however, cancellation often comes at 10% of the premium.  


How much does car insurance cost in New York?

Minimum liability insurance that matches New York car insurance requirements costs $887 a year on average. Your car insurance premium will vary based on your vehicle, carrier, location, age, gender, and driving record. You may pay more or less than the average rate in NY. 

What carrier offers the cheapest car insurance in New York?

USAA, limited to military members and families, provides the most affordable minimum liability insurance in NY at $75 a month. New York is one of the most expensive states for car insurance, so it pays to compare rates.

How much does New York require in bodily injury coverage?

New York car insurance laws require a minimum of $25,000 for bodily injury per person/$50,000 per accident. 

What are the penalties for driving without insurance in NY? 

Driving without insurance in New York can come with driver’s license suspension, vehicle registration suspension, fines of up to $1,500, possible jail time, and impoundment.

Does New York require car insurance if you register a car?

Yes. You must have proof of insurance before registering a car in New York. 

Get Coverage That Meets New York’s Car Insurance Requirements

New York car insurance laws require higher coverage limits than other states, and every driver in the state needs insurance. Failure to meet NY car insurance requirements may result in penalties, including steep fines. 

If you own a car in New York, you should carry the state minimum car insurance, though it’s recommended you choose higher limits if possible.

If you’re new to New York or want to save on car insurance rates, compare quotes from various providers. We make getting coverage that matches New York car insurance laws easy, so request your car insurance quotes now