New York’s Minimum Auto Insurance Requirements May Not Be Enough Coverage for Your Needs

Ron Trumbo Insurance Editor

In New York, you need to have auto insurance liability limits of at least $25,000 bodily injury for each accident, up to $50,000 for all passengers, and property damages of $10,000. When you shop for NY quotes online, you may see this coverage as 25/50/10. Although these coverage levels may satisfy a simple no-injury fender-bender, serious accidents are simply not cheap.

Why Low Auto Insurance Coverage Levels Are Not the Best Solution

Imagine that you're running late for work and you run stale-yellow light that turns red before you cross the intersection. Imagine you t-bone (hit from the side) a family of 4 in a mini-van going the other way and are determined to be at fault. Now imagine the cost of 4 hospital visits for the family including the damage to their van. Would you insurance minimums even come close to making family whole again? It’s a rhetorical question, and the answer is: probably not. Once your auto insurance policy is fully exhausted on the liability coverage payout, the other insurance company is going to come after your assets and will most likely liquidate everything they can, including your savings accounts, your home and possessions that have any meaningful value.

The Value of Experienced New York Insurance Agents

When you’re looking for the cheapest car insurance in New York, the state minimum levels are not the best way to find the cheapest insurance rates. You need to compare car insurance rates from different NY insurance agents (at least 5) and ask for prices at different coverage levels. You’ll be surprised how much insurance rates vary from carrier to carrier. Tell the insurance agent about your unique financial needs and let them help you put together an insurance strategy.

Sources: New York Department of Insurance, New York DMV