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The state of New York requires drivers to maintain minimum levels of auto insurance to cover the cost of injuries, damage to property, and financial protection from uninsured motorists.
While many in the Empire State purchase policies above state-mandated minimums to protect themselves and their vehicles, the cost of car insurance in New York is rising, and drivers across the state are looking for ways to save.
Read on to learn the minimum car insurance requirements in New York, the types of optional coverage available, auto insurance programs unique to the state, how to get the cheapest car insurance, and more.
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Minimum car insurance requirements in New York
New York is a “no-fault” state, meaning that each driver’s insurance policy covers the costs associated with injuries and damages, no matter which driver caused the accident. The state of New York requires all drivers to purchase the following minimum amounts of “basic” car insurance coverage.
Personal injury protection (PIP)
Personal injury protection (PIP) covers the medical costs of treating injuries that you and/or others covered in your policy have sustained in an accident as well as certain other related expenses, payment for lost wages, and a death benefit if necessary. The minimum amount for basic no-fault coverage is $50,000 per person.
Important note: You will not be able to obtain no-fault benefits if you were driving while drunk or high, intending to hurt yourself, riding an ATV or a motorcycle, committing a felony, or were in an uninsured vehicle.
Bodily injury liability
If someone is seriously injured or dies in a car accident that you cause, and you are sued by the person or their family and found guilty, bodily injury liability coverage pays for the costs of the damages awarded for pain and suffering. The minimum limits are:
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$25,000 for any person who sustains a serious injury in an accident but does not die, or $50,000 if that person dies
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$50,000 for two or more people who sustain a serious injury in an accident but do not die, or $100,000 if two or more die (subject to the above per person limits)
You can sue another party for bodily injury due to an accident, but you must have sustained a “serious injury” as defined in the state’s insurance law. In addition to pain and suffering, you can also sue for economic damages that aren’t covered by your no-fault coverage or exceed your policy’s limits.
Property damage liability
Property damage liability coverage pays for repairing or replacing property that you damaged in a car accident. The minimum coverage amount for a basic policy is $10,000 per accident.
Insurance companies sometimes refer to these minimum bodily and property liability limits as “$25,000/$50,000/$10,000” or “25/50/10.”
Important note: For both types of liability coverage, your insurance company must provide your legal defense if you are sued by another party who claims you caused an accident, and your insurer is not allowed to reduce your policy’s liability limits.
Uninsured motorist coverage
If you are in an accident caused by another driver who is either uninsured or a hit-and-run motorist, this coverage will pay the medical costs if you are injured, but not the repair or replacement costs if your car is damaged. The minimum limits are the same as those for bodily injury coverage.
Learn more: How does uninsured motorist coverage work?
Optional NY car insurance coverage
Many New York drivers opt for additional car insurance coverage above the state’s minimum requirements in order to help protect their vehicles and shield themselves from out-of-pocket costs. While your insurance premium will rise with the more coverage options you add on, you will generally be better protected and more financially insulated from all costs associated with accidents.
Additional PIP coverage. You have the option to purchase more PIP (no-fault) coverage over the basic $50,000 minimum limit.
Additional bodily injury liability coverage. If you own a home and have other assets to protect, it’s smart to carry insurance limits above the state-required minimum. Your insurance company may offer to bundle increased limits for bodily injury liability and property damage liability, paying one maximum amount for all damages per accident, no matter how many people are hurt.
Supplemental spousal liability insurance. Supplemental spousal liability (SSL) insurance provides additional bodily injury liability coverage for accidents where a spouse is at fault. This provides protection if the driver who causes the accident has lower insurance limits than the person who is injured.
Effective March 26, 2025, insurers must provide SSL coverage when the policyholder includes the name of a spouse on their insurance application — unless the policyholder declines SSL insurance in writing using this form.
Additional property damage liability coverage. Many New York drivers choose additional property damage liability coverage above the $10,000 minimum limit, given the higher value of their automobiles.
Supplementary uninsured/underinsured motorists (SUM) coverage. You can buy supplementary uninsured/underinsured motorists (SUM) coverage with higher limits than the mandatory minimum.
Collision. If you damage your own car, collision car insurance coverage will pay the repair or replacement costs. If you don’t have collision coverage and another party is at least partially responsible for damaging your car, you can make a claim against their property damage liability insurance coverage for the damages they caused.
Comprehensive. Any damage you cause to your car that is not covered by collision is covered by comprehensive car insurance, including costs to repair a broken window, damage from flooding, fire, vandalism, falling or flying objects, if you collide with an animal, if your car is stolen, and the costs of a rental car or public transit until your insurance company settles your claim.
Learn more: Most common types of car insurance explained
Car insurance programs only available in New York
The New York Automobile Insurance Plan (NYAIP)
If your driving record, lack of experience, or age, for example, prevent you from getting the car insurance you need, you can purchase coverage through the New York Automobile Insurance Plan (NYAIP). Your existing insurance agent will likely be able to place you in this plan, or you can call the plan directly at (212) 943-5100 or visit the NYAIP website.
You will typically pay higher premiums for NYAIP coverage, but you can obtain a "careful driver" discount after one year in the plan if you are accident- and conviction-free, and if you’ve had a driver’s license for at least four years.
Learn more: What is high-risk car insurance and who needs it?
Cheap car insurance in New York
Here’s how to get the cheapest car insurance in New York.
Shop around
“Policyholders are encouraged to check their policies or speak with their company representative or agent to discuss their specific needs and the range of optional coverage available,” said Cassandra Anderson, president of the New York Insurance Association.
“With affordability top of mind in a rapidly evolving economy, insurance is a critical component of financial planning,” Anderson said. “Insurance carriers are deeply committed to enhancing financial literacy and empowering New York families with the knowledge to ensure their coverage needs are met.”
Prices differ from company to company, so it pays to get at least three quotes from different insurance companies, including those that sell through their own agents, those that sell through independent agents, and those that sell directly to consumers via phone, app, or the internet.
“Ask friends and relatives for their recommendations based on their experiences, and do your own due diligence by researching the company before committing,” said Loretta L. Worters, spokesperson for the Insurance Information Institute. “Make sure the company you choose is reputable and that you're comfortable with the service you get from the insurance professionals you speak to,” she added.
Learn more: How to shop for car insurance
Car insurance discounts
Auto insurance companies offer various discounts to their customers, including those who are:
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Senior citizens
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Students
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Loyal customers
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Making annual payments or going paperless
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Bundling home and auto or renters insurance
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Insuring more than one vehicle
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Driving less than average
“Practice defensive driving and maintain a clean driving record,” Anderson said. “Additionally, installing dash cams and anti-theft devices improves security and may be eligible for discounts.”
Learn more: Car insurance discounts: 17 ways to save
Customize coverage to your personal situation
Increasing your deductible can lower your premiums, but be aware that you may have to pay more out of pocket for any claim, Anderson said. Policies should be reviewed annually to ensure you are not over- or under-insured.
“If your older car is worth less than 10 times the insurance premium, having collision and/or comprehensive coverage may not be cost-effective,” Worters said. “We do caution people that in today’s market, older cars hold their value longer than they have in years past, so make sure to check what your car is worth.”
Car insurance quotes in New York
The amount you'll pay for car insurance in New York is impacted by a number of very different factors — some you can control, like driving safely and improving your credit, and some you cannot, like your age and gender.
While not all companies use the same parameters, here's a list of what commonly determines the bottom line on your car insurance policy:
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Your driving record
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How much you drive your car
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ZIP code
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Your age
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Your gender
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The car you drive
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Your credit
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The type and amount of car insurance coverage
Learn more: What is a car insurance premium, and how is it calculated?
NY car insurance laws
Insurance Information and Enforcement System (IIES)
Insurance companies must report to the New York Department of Motor Vehicles whenever someone buys a car insurance policy, renews one, or cancels one. The DMV tracks this information on its electronic database, the Insurance Information and Enforcement System (IIES), and can detect when vehicles are uninsured. Your vehicle registration and driver’s license can be suspended, and you will also be subject to hefty fines if you fail to maintain liability insurance coverage.
DWI/DWAI
It's illegal to drive your car in New York if you have a .08 blood alcohol content (BAC) or higher, if you’re driving while impaired with more than .05 BAC but less than .07 BAC, or if you’re driving while impaired by a drug or a combination of drugs and alcohol.
Learn more: What’s the difference between DUI and DWI?
For the first offense of these violations, you will pay a fine up to $1,000 and various surcharges, your driver’s license will be revoked for at least three months, and you will face up to one year in jail. The penalties increase per occurrence, and if you are cited with a BAC of 0.18 or higher.
Teenagers under 21 who drive with a .02 BAC to .07 BAC can be cited under New York’s Zero Tolerance Law. They will have to pay a $125 civil penalty, their license can be suspended for six months, and they will have to pay another $100 fee to lift the suspension.
