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Regulations and Restrictions for New York Liability Insurance

Insurance is very necessary in the State of New York. When a person decides to drive a vehicle, he must carry auto insurance in New York under the particular law. Once your vehicle is insured, your insurance company registers your vehicle with the Department of Motor Vehicles of New York. This helps with you and your vehicle’s protection from the accidents and to compensate in case of accident or damage. In case of owning a motorcycle, it also needs to be insured even if it is not in use or stored. Whenever the motorcycle is operated, its insurance must be in effect. Insurance ID card must be carried every time the vehicle is being used for the travel. The insurance coverage should always be achieved from the company that holds license from NYS Department of Financial Services. Insurance registered out of the state is not acceptable. For this, the insurance ID card alone is of no use; you have to assure that you have both paper proof and electronic filing coverage as per state law. Proper registration and insurance is necessary for the driving operations of vehicles.

Ways to Establish Financial Responsibility

To establish financial responsibilities in states, the only way is to obtain NYS insurance coverage. This is possible by registering with an insurance provider. There are few choices out of which the only option is to register an insurance policy provided by insurance companies.

New York Liability Insurance Requirements for Private Passenger Vehicles

An auto vehicle registered in NYS should have liability insurance. Insurance coverage must be a minimum of $25,000/$50,000 for injury, $50,000/$100,000 for death, and $10,000 for property damage caused by any one accident. The insurance must be applicable as long as registration is valid even if the vehicle is not in use except for motorcycles.

•             Out of state insurance is never valid in other states. You must possess insurance from within the state.

•             The liability coverage must be issued by company that is registered to do the business under the NYS law. It must have license from the NYS department of Finance.

•             Liability coverage must be issued on the name of registrant and must remain in his/her name all the time. A change can have adverse effects and can lead to driving license suspension.

•             NYS insurance ID card must be showed at the time of vehicle registration. Your agent, broker or the insurance company have to issue you the two Identification cards of NYS insurance. In addition, the name mention on the identification cards should be the same as on registration application. It also must have a barcode.

•             The insurance company must have electronic proof of insurance coverage for liability coverage verification. The ID card and electronic notice are a verification of your insurance coverage.

•             ID card provided by the insurance company is the proof of your insurance. Whenever the police demand it, you should show it to them that’s why it is compulsory to carry your insurance coverage license ID card with you all the time.

Electronic Reporting

It is very important to file the electronic notice for the insurance coverage from the DMV i.e. Department of Motor Vehicles. This approves the DMV’s financial responsibility of your vehicle. The ID card alone is of no use until it is registered with New York DMV. It helps in locating the liability coverage in case of accident or re-registration.

Proof of Insurance and Financial Responsibility

The state requires both electronic filing and paper proof. For this you have shown the insurance ID card to DMV at the time of registering your vehicle. You must have two ID cards issued by insurance company that have the same name that is on the registration application. The ID cards must have bar code. The cards must be kept with you all the time so that it can be shown in case of accident or provided when asked by the police.

Penalties for Failure to Maintain Financial Responsibility

Once you show proof of insurance at the time of registration, do not let your coverage to lapse. If it does lapse either the driver license would be suspended or your registration.

Insurance is necessary in states. If you get involved in some accident or damage and you do not have liability coverage, for that the state will revoke the registration for a year at least or fine as much as $1,500. When you try to get back the license you will be penalized. Insurance secures your damages and other mishaps.

No Insurance, No Plates

The state has a rule of taking your plates if you don’t have insurance coverage. Once it is taken, state can even suspend your registration for a number of days. If it exceeds the limit of 90 days, your license will be suspended for the same day count as of registration. After the suspension, you will have to pay fine to reinstate your license. It’s better to get the insurance instead of getting fined and giving your plates that can lead to larger loss and fatigue.

One way to avoid registration suspension is payment of the civil penalty rather than switching the plates into DMV for the time of 90 days or even less than the count. There is a condition that if you have already availed the option within the 36 months then the option is closed for you. Here’s how the penalties per day pan out:

•             One to 30 days: 8$ per day

•             31 to 60 days: 10$ per day

•             61 to 90 days: 12$ per day

For car proprietors, regulations are made to be followed. There exist a number of different companies offering one or the other kind of insurance packages. Enter your ZIP code at the top of the website and find different quotes for free.