New York drivers are required to carry Bodily Injury Liability insurance in the amount of ,000 per person up to ,000 per accident, and Property Damage Liability insurance in the amount of ,000.  This level of coverage is often referred to as 25/50/10 coverage.  Drivers in the Big Apple are also required to carry Personal Injury Protection coverage of at least ,000 and Uninsured/Underinsured Motorist coverage of ,000 per person up to ,000 per accident.

New York Auto Insurance is considered a “no-fault” state meaning that your insurance company will cover your claims up to a specified limit regardless of who was at fault in the accident.  New York also requires drivers to have liability insurance as long as their vehicle is registered, even if the car is not in use.   Vehicles must be both registered and covered in the name of the same driver.  In the state of New York you need to have your insurance company file an electronic notice of coverage with the Department of Motor Vehicles.

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Drivers must keep their registration and proof of insurance coverage in the vehicle at all times.  If you are stopped by the police you will be asked for both.  If you are in an accident you should exchange insurance information with all involved parties.

If you allow your insurance coverage to lapse you run the risk of a suspended license and registration.  If you are involved in an accident and you are not insured you may lose your license for a year (or more).  If your vehicle is not insured you will be held liable, even if someone else is driving your car.  In the state of New York, you must turn in your license plates immediately following a lapse in insurance regardless of whether the lapse was accidental or intentional.

Drivers in any given state must have the minimum coverage required but they can also choose to pay for more insurance.  Auto insurance companies usually offer minimum coverage packages along with packages that offer more protection.  If you prefer, insurance agents can help you customize your insurance coverage based on your assets and your personal needs.

Once you decide on the amount of coverage you want, you will need to decide how on a deductible – the amount you pay out of pocket before the insurance “kicks in”.  Deductibles amounts can vary; the higher the deductible the lower your insurance payment.  Drivers can choose to pay insurance premiums annually, monthly or quarterly.   While insurance may seem expensive the fines and penalties you could incur by driving without it – or even letting someone else drive your uninsured car – will likely be more than the amount of insurance you would have paid.

Talk to more than one auto insurance company and compare rates before making a decision.  In 2009 the average auto insurance premium for New York drivers was a little over ,400 compared to the national average of almost ,800.  Individual states do not set auto insurance rates so shopping around can help you get the coverage you want with premiums you can afford.