The required package
Every registered vehicle in New York must carry liability, uninsured motorist, and personal injury protection coverage - a package the DMV verifies electronically against its registration database. New York calls its PIP coverage no-fault insurance because it pays your own economic losses first, before anyone argues about who caused the crash.
| Coverage | New York minimum | What it does |
|---|---|---|
| Bodily injury liability | $25,000 / $50,000 | Injuries you cause others |
| Property damage liability | $10,000 | Damage you cause to other vehicles and property |
| Uninsured/underinsured motorist | $25,000 / $50,000 | Your losses from a hit-and-run or uninsured driver |
| Personal injury protection (PIP) | $50,000 | Your medical bills, lost earnings and funeral costs, regardless of fault |
PIP can be raised well above the $50,000 floor, and stacking or higher UM limits are available for additional premium. The $10,000 property damage minimum is among the lowest in the nation, so carrying more is the difference between a covered repair and a lawsuit.
How no-fault actually works in New York
After a crash, your PIP pays your medical bills, a portion of lost earnings, and reasonable and necessary expenses up to your limit - without regard to fault, and without anyone suing anyone. The other driver's insurer does not pay a cent of your medical care until you leave the no-fault system.
Leaving it means crossing New York's serious injury threshold. To sue for pain and suffering you must show death, loss of a limb or fetus, significant disfigurement, a fracture, permanent loss of use of a body member or organ, or a permanent significant limitation of a body function. Cross it and you can pursue non-economic damages against the at-fault driver; fail it and your recovery stays inside PIP.
Direct action and the three-year clock
New York lets injured drivers sue the other driver's insurer directly for basic economic loss - a procedural right that streamlines what in many states becomes a liability fight with the insured. Bodily injury lawsuits must be filed within three years of the accident, a deadline New York applies without sympathy for slow negotiations.
One more New York quirk works in your favor: if the other driver's insurer disclaims coverage or goes insolvent, your own liability carrier can be drawn in under the state's motorist identification and finger-point procedures. An attorney is not required for a routine PIP claim, but the three-year suit clock makes early advice cheap insurance.
Lapse means instant registration trouble
New York DMV checks insurance electronically and continuously. If your policy lapses, the DMV suspends your registration - and plates must be surrendered - until you are insured again and fines are paid. Driving with a suspended registration after a lapse brings its own tickets and surcharges, and the gap appears on future quotes.
- Notify the DMV or surrender plates when parking a vehicle long-term, or the lapse will register anyway.
- New York garaging ZIP drives price as much as driving record - report moves promptly.
- Motorists with older vehicles often drop collision once premiums exceed a meaningful share of the car's value.
- Completing an approved defensive driving course qualifies drivers for the state-recognized discount.
What New Yorkers pay
New York consistently ranks among the most expensive states for full coverage - driven by dense metro traffic, high medical costs, generous benefit requirements, and litigation frequency. Long Island and the outer boroughs price differently from upstate counties, which is why one statewide average tells you little about your own renewal.
The levers are the standard ones applied New York style: report an accurate commuting mileage, bundle with renters or homeowners, raise comprehensive and collision deductibles, keep continuous coverage, and re-shop at each renewal rather than trusting last year's rate. Where UM stacking or higher PIP limits are offered, price them against your health plan's accident coverage before declining.
Related pages
- How car insurance works
- Liability limits: how much you need
- Auto insurance in California
- Auto insurance in New Jersey
- Auto insurance hub
Frequently Asked Questions
Is New York a no-fault state?
Yes. Your PIP coverage pays your medical bills and lost earnings after a crash regardless of fault. You can sue the at-fault driver for pain and suffering only if your injury meets New York's statutory serious-injury threshold.
What is the minimum car insurance in New York?
25/50/10 liability ($25,000 per person, $50,000 per accident, $10,000 property damage), $25,000/$50,000 uninsured motorist coverage, and $50,000 of personal injury protection - all required on every registered vehicle.
What happens if my New York insurance lapses?
The DMV suspends your registration electronically and you must surrender the plates until coverage is restored and fines are paid. Driving during the suspension brings additional tickets, and the lapse follows you to your next quote.
Can I sue for pain and suffering after a New York crash?
Only if your injury qualifies as serious under state law - death, loss of limb or fetus, significant disfigurement, fracture, or permanent loss or limitation of a body function. Otherwise your recovery is limited to PIP benefits.
How long do I have to file a lawsuit after a New York accident?
Three years from the date of the accident for most bodily injury claims. Property damage claims follow a different, longer clock, but the three-year rule is the one that catches people.
Last updated: 2026-10-01