New York has some of the busiest and most complex roads in the country — from New York City’s dense gridlock to snowy rural highways upstate. Insurance laws here are among the strictest in the U.S. Because New York is a no-fault state, your own policy generally pays for medical expenses after an accident, regardless of who was responsible. Combined with proactive DMV monitoring, this system makes New York one of the toughest states for uninsured driving. Below is a full breakdown of insurance requirements for 2025.
New York Car Insurance Minimums Explained
The state mandates these minimum coverages:
- Bodily Injury Liability: $25,000 per person / $50,000 per accident
- Property Damage Liability: $10,000 per accident
- No-Fault Personal Injury Protection (PIP): $50,000 minimum
- Uninsured Motorist Coverage: $25,000 per person / $50,000 per accident
Known as 25/50/10 plus mandatory PIP and UM.
- Minimum liability: 25/50/10 plus no-fault PIP
- No-fault state: your policy covers medical costs regardless of fault
- Uninsured motorist coverage required
- Proof of insurance must be filed with NY DMV
- Coverage lapses trigger automatic DMV suspension
Optional Coverages to Consider in New York
Because of New York’s heavy traffic, harsh winters, and strict no-fault rules, many drivers choose to add extra protection beyond the state minimums. Here are the most common options:
- Collision Coverage: Pays for repairs to your own car after a crash, regardless of fault. This is especially valuable in New York City, where bumper-to-bumper traffic makes fender benders common.
- Comprehensive Coverage: Covers theft, vandalism, fire, and storm damage. Important for urban drivers concerned about theft and for upstate drivers facing snow, ice, or flooding.
- Supplemental Uninsured/Underinsured Motorist (SUM): Required UM coverage only goes so far. SUM lets you increase protection if you’re hit by a driver with low coverage.
- Additional PIP (APIP): Extends no-fault benefits beyond the basic $50,000 minimum, helping with higher medical bills or lost wages after a serious accident.
- Medical Payments Coverage (MedPay): Works alongside PIP to cover extra medical costs, ensuring quick access to care without delays.
- Roadside Assistance & Rental Reimbursement: Practical add-ons if you commute daily in NYC or drive long distances upstate. They help with breakdowns and keep you on the road while your car is in the shop.
Note: Leased vehicles in New York typically require full coverage, including both collision and comprehensive insurance.
How New York Enforces Insurance Coverage
New York’s DMV operates a strict electronic insurance verification system. Insurers are required to notify the DMV immediately when a policy is canceled, expires, or lapses. If this happens, the DMV will:
- Send a notice of insurance termination to the vehicle owner
- Require proof of new coverage or surrender of license plates
- Automatically suspend the vehicle’s registration if proof is not provided quickly
This real-time monitoring means uninsured drivers are flagged almost instantly. Even a short lapse can result in suspension, fees, or vehicle impoundment.
Official resource: NY DMV – Insurance Requirements
Penalties for Driving Uninsured in New York
Uninsured driving is treated seriously in New York. Penalties may include:
- Fines and fees up to $1,500
- Immediate license and registration suspension
- Vehicle impoundment
- Payment of a civil penalty in lieu of suspension
Proof of Insurance Laws
New York requires insurance companies to file proof of coverage directly with the DMV. This is handled electronically, so if your policy lapses, the DMV is notified right away and suspension penalties begin automatically. More information is available on the NY DMV Insurance Requirements page.
Frequently Asked Questions About New York Car Insurance
Is car insurance mandatory in New York?
Yes. New York requires liability, uninsured motorist, and no-fault PIP coverage for all registered vehicles.
What are New York’s minimum liability coverage requirements?
25/50/10 liability, $50,000 no-fault PIP, and 25/50 uninsured motorist coverage.
What does it mean that New York is a no-fault state?
No-fault means your own policy pays medical expenses after an accident, regardless of who caused it. This reduces lawsuits for minor injuries but does not cover vehicle damage.
What happens if my insurance lapses in New York?
The DMV is immediately notified. Your registration may be suspended, and you may face fines or reinstatement fees unless you show proof of new coverage or surrender your plates.
Do I need insurance to register a car in New York?
Yes. You must show proof of valid New York insurance before the DMV will issue license plates or registration.
Can I use electronic proof of insurance in New York?
Yes. New York accepts electronic proof of coverage on your smartphone.
Curious how New York’s insurance laws compare? Check out:
New Jersey,
Connecticut,
Pennsylvania, and
Vermont.