Car Insurance in New York

How does car insurance work in New York?

New York is a no-fault state, so after a crash your own insurer pays your injury costs first, even if the other driver caused it. That coverage is called personal injury protection, or PIP. It comes with every policy and you cannot turn it down.

PIP pays up to $50,000 per person. It covers medical bills and 80% of lost earnings (with a monthly cap) and some small extras. Insurers must offer an optional extra $25,000 for lost earnings and therapy.

Two deadlines matter. Send written notice to your no-fault insurer within 30 days of the crash. After you send proof of your loss, the insurer must pay within 30 days or owe 2% interest a month. If it denies or stalls, you can ask for arbitration or file a DFS complaint.

No-fault has a tradeoff. You can sue the at-fault driver for pain and suffering only if your injury is “serious” under the law. That means death, a broken bone, major scarring, or permanent or significant loss of use of a body part. A bad sprain usually does not qualify. Medical costs above the $50,000 cap are not shut out.

What is the minimum car insurance in New York?

The minimum is 25/50/10, plus a death limit. In plain words:

• $25,000 for injuries to one person you hurt, or $50,000 if the claim is for a death.
• $50,000 for all people hurt in one crash, or $100,000 for deaths.
• $10,000 for damage to other people’s property.

This is liability coverage, so it pays others, not you or your car. Many sites quote only 25/50/10 and leave out the death limit. Higher limits are only proposed. Two Assembly bills would raise them, but both have sat in committee since early 2025. Our state minimums guide compares New York with other states.

Consider whether $25,000 is enough. A fracture is a serious injury, so the person you hit can sue for pain and suffering on top of medical costs. Example: you cause a crash and a judge awards $70,000. Your 25/50/10 policy pays $25,000. You are personally responsible for the other $45,000. Run your own numbers with our liability limit checker.

Why is the uninsured-driver upgrade (SUM) the most overlooked coverage?

Because most drivers think they already have it. Every New York policy includes uninsured motorist coverage, which pays you if a driver with no insurance injures you. Its limits match the liability minimums, so $25,000 for one person.

The gap shows up when the other driver has insurance, but only the minimum. Basic coverage does not help then. Supplementary uninsured/underinsured motorist coverage, or SUM, does. Insurers must offer it, you can decline it, and it can go as high as your own liability limits, up to $250,000 per person.

Example: a driver with 25/50/10 hits you and you break a leg. Your costs and losses run to $90,000. No-fault pays the first $50,000, and the other driver’s insurer pays its $25,000 limit. Without SUM, the last $15,000 is yours to chase. With 100/300 SUM, your own insurer covers the shortfall. Read more in our uninsured motorist guide.

What happens if your insurance lapses in New York?

DMV treats a lapse as a problem for your registration and license, not just a ticket. The system checks your coverage electronically, since your insurer must file it with the state. Out-of-state policies and paperwork from a broker do not count.

If your insurance ends, DMV can suspend your registration, and your license too if the gap runs past 90 days. The suspension lasts as long as you were uninsured. A gap of a week or less does not require a suspension. For a gap of up to 90 days, you can pay a civil penalty instead: $8 a day for the first 30 days, $10 a day for days 31 to 60, and $12 a day after that. You can use this option once in 36 months.

Example: your policy lapses for 20 days after a missed payment. DMV can end the suspension if you pay $160. Let the same gap run 90 days and the price is $900. Fix a lapse early.

Driving without insurance, or letting someone else drive your uninsured car, is worse. A court can fine you $150 to $1,500 and order up to 15 days in jail. DMV adds a $750 civil penalty. If you are in a crash while uninsured, or are convicted, DMV revokes your registration and license for at least a year. Paying the penalty alone does not bring the license back.

Parking the car does not stop the clock. Surrender your plates before the insurance ends, or keep insuring the car.

Can insurers raise your rate after a ticket or small crash?

Less often than you might expect. New York bars insurers from raising your premium solely because of an ordinary traffic infraction. The same goes for a single accident in the rating period with $2,000 or less in property damage and no injury.

Exceptions are broad. The protection does not apply to speeding more than 15 mph over, two or more moving violations, DWI, driving without a valid license, or any accident with injury. Insurers can also raise prices for other reasons, such as a general rate change. So a ticket may not hurt, but it is not a guarantee.

A state-approved defensive driving course can help your wallet. DMV says insurers must cut the base rate of your liability and collision premiums by 10% for three years if you complete one. Give your insurer the certificate within 90 days so it counts from the finish date. The same course also lets DMV ignore up to four recent points when it counts toward a suspension, once in 18 months. The points stay on your record. Course fees vary, so compare providers.

Insurers must also give written reasons when they cancel within the first 60 days. After that, cancellation in the middle of the term is limited to a short list of reasons, such as nonpayment or fraud.

How much does car insurance cost in New York?

The state average is the most neutral number, though not a quote. NAIC’s 2024 data, in an edition dated September 2026, put New York at $1,980.93 per insured vehicle. The national figure was $1,431.63, so New York ran about 38% higher. Only Florida was higher. NAIC itself says state comparisons need caution because coverage choices differ.

Where the gap comes from is telling. Here is NAIC’s 2024 breakdown:

New York’s liability line runs about 53% above the national figure. That line carries the built-in no-fault and uninsured coverage. Comprehensive, which pays for theft and storm damage, sits at the national level.

Published estimates for a clean-record driver aged 35 to 40 give a feel for your own price. They vary because each uses a different car, deductible and set of limits:

• NerdWallet’s October 2026 median for 100/300/50 coverage was $2,673 a year.
• Insurance.com listed $2,898 for full coverage and $1,070 at the minimum.
• InsuranceQuotes.com, covering five large insurers, averaged $3,457 for full coverage and $1,820 at the minimum.
• MoneyGeek’s much lower $1,256 used an older car and bigger deductibles, and its headline figure is a bit higher.

Place matters as much as profile. MoneyGeek priced full coverage at $209 a month in New York City and $82 in Schenectady for the same driver. Upstate cities fall between. See our New York City page for the city. Figures come from different data years and dates, so use them for context. Our guide to lowering your premium covers the usual levers.

Which pages exist for New York?

This state page and our New York City page are the ones that exist for now. We do not yet have separate New York pages on SR-22 filings, DUI, young drivers or bad credit, so this page and our general guides cover them. Two facts help in the meantime:

• SR-22: we found no official New York page requiring an SR-22 form. We could not confirm whether DMV asks for a different filing after a DWI, so ask DMV or your insurer. Our high-risk insurance guide explains how rates behave after violations.
• Cannot get a policy: the New York Automobile Insurance Plan, known as the Auto Plan, places drivers insurers have turned down. DFS says most licensed agents can submit an application.

What to do next

1. Find your policy’s declarations page, the summary at the front. Note your liability limits and whether it lists SUM.
2. Decide whether 25/50/10 fits your life. If a $45,000 surprise would hurt, quote higher limits and compare the extra cost.
3. Ask for a SUM quote at your liability limits.
4. Save your insurance ID card and register your car under the exact name on the policy.
5. After any crash with an injury, send no-fault notice within 30 days, even if you feel fine.
6. Consider a defensive driving course, and ask your insurer to apply the 10% reduction.
7. Compare at least three quotes, using identical limits and deductibles. See our full coverage guide if you are unsure about collision and comprehensive.

Bottom line

If you only want to stay legal, 25/50/10 plus the built-in no-fault coverage does that. If you have a car loan, savings or a house, raise your liability limits and add SUM, since the law’s minimums are modest and the cost of a serious crash is not. For disputes with an insurer, file with DFS. For license or registration problems, use DMV. This page is general information, not legal advice.