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FAQ’s Concerning Auto Insurance in New York Liability Insurance Requirements

Below are discussed few of the frequently asked questions about the auto insurance in New York.

Q.           What are included under the requirements heading for the liability insurance of motor vehicles in NY?

•             New York is a no fault state. Vehicle must be registered and should have liability coverage. The minimum level of insurance coverage should remain as follows: for injury $25,000 – $50,000, for death $50,000 – $100,000, and for property disturbance due to any accident $10,000. This coverage of liability should remain activated until the valid registration of the motor vehicle, even if the motor vehicle will not be in use.

•             The liability coverage must be provided by the insurance company that is authorized for business in New York State and has the license provided by Dept. of Financial Services NYS. Out of state insurance is unacceptable by state. It is not considered valid. A vehicle must have NY insurance coverage if it is registered in NY.

•             The car insurance liability coverage must be issued on the name of person who has registered the vehicle. In addition, should remain on his name all the time. A change can cause problems leading to the suspension of registration, driving license and liability coverage. If a person decides to change the name, this can cause a delay in the coverage leading to misunderstanding and misconceptions.

•             The person must possess a NY insurance identification card while applying for vehicle registration. The insurance identification cards are issued by the insurance company or brokers/agents. They should have the same name as that on registration application, or else it can cause problems in getting the vehicle registered.

•             The insurance company must file an electronic notification to DMV regarding the insurance coverage. DMV will verify the notification. For verification your insurance ID card and electronic notice is required.

•             The Insurance ID card should be provided within the 45 days of insurance coverage effective date. One card is kept by DMV, and the other one is returned to you. You have to carry it all the time.

•             The DMV does not approve out of state documents of auto insurance.

Q.           Do I have to change the out of state insurance if I plan to move out to some other state when my vehicle has NYS registration?

A.            All motor vehicles that are registered under NY should have the liability coverage. A lapse would occur if you get NY coverage register at any other state. Validation becomes difficult of replacements like these. In such case, the New York DMV will suspend your registration and driving license. The action can result in affecting your ability of holding valid license for driving in your now residing state. In case you want to register your vehicle in other state, surrender your driving plates to NY wither personally or by mail.

Q.           What would be the consequences if I quit the liability insurance?

A.            It is the duty of your insurance company to notify DMV for your liability coverage insurance and its expiry. In case you have changed the company or have cancelled your insurance, your previous company has to send a notification to DMV informing them that you are no longer associated with them. If your company does not properly notify DMV, your vehicle registration will be suspended and license can be suspended. The notification must be electronic, paper proof are unaccepted. If you do not have the insurance, then you should surrender the vehicle plates to the DMV NY immediately.

Q.           What are the few conditions that could create lapse in the coverage?

A.            A vehicle that is registered and uninsured can cause lapse in your liability insurance coverage. This can result in the suspension of your registration. A lapse in insurance coverage can occur between the following dates:

•             Date of cancelling insurance and date of new insurance.

•             License surrendering date and insurance cancellation date.

•             Insurance cancellation date and expiry date of registration.

•             Date when the insurance was cancelled and the date insurance company restored the insurance coverage.

•             Date when your vehicle was registered and the effective date when you got updated insurance coverage.

If the lapse in the insurance coverage surpasses 90 days, then your license will be suspended.

Q.           What can I do in case the vehicle be stolen, repossessed, sold, or impounded?

A.            The Customer Service of DMV has the knowledge of different scenarios that could happen with the vehicle and its consequences. If your vehicle is stolen, repossessed, sold, or impounded, call the customer service and they have the knowledge to provide you with the relative information.

Q.           What action would DMV follow, if I failed to show them my insurance and failed to surrender my motor vehicle plates?

A.            If you do not have an insurance coverage for your vehicle and do not surrender your vehicle plates, DMV will suspend your driving license and vehicle registration. If you do not surrender vehicle plates and you have delay in your insurance coverage, the authority will suspend your registration for some days. To reinstate your driving license and registration, you will have to pay the charges and work with the insurance policy. Termination fee for the suspension is $50.

Q.           How should I prevent the suspension in case the liability insurance lapses?

A.            You can prevent the suspension of your registration and the license in case you submit the vehicle plates to DMV before the lapses of liability insurance. Vehicle plates are surrendered in case you have not paid the civil penalty. Total civil penalty cost up to $840. The civil penalties as followed are the particular amounts of suspensions that were set in October 2005.

•             per day 8$ for first 30 days of the lapse,

•             per day 10$ for next 30 days, and

•             per day 12$  for next 30 days

If you want to get a free quote from different companies of auto insurance in New York, then insert your ZIP at the top bar on the web page and enjoy doing the comparison and finding out the most suitable quote from the licensed insurance company in New York.