Types of Insurance
Last Updated on January 19, 2026
If you plan to drive in New York, you generally need a New York State-issued auto policy to register your vehicle and stay compliant. For the official, up-to-date requirements, review the New York DMV insurance requirements and the New York Department of Financial Services (DFS) auto insurance resource center.
At a Glance
- Required in New York: Most drivers need liability, PIP/no-fault, and uninsured motorist bodily injury coverage to register and drive.
- No-Fault Focuses on Injuries: PIP typically pays covered medical care and certain economic losses regardless of fault; property damage is handled separately.
- Minimum Limits Are a Starting Point: State minimums can be quickly exhausted by modern medical and repair costs, so higher limits are often worth considering.
- Optional Add-Ons Reduce Surprise Costs: Collision, comprehensive, and roadside assistance can prevent major out-of-pocket expenses after a crash or loss.
- Types of Auto Insurance Coverage in New York
- New York and No-Fault Insurance Laws
- Minimum Required Auto Insurance Coverages in New York
- New York’s Bodily Injury Liability Requirements
- Personal Injury Protection Coverage Is Required
- Property Damage Liability Insurance in New York
- Uninsured Motorist Bodily Injury Liability Coverage
- Other Types of Car Insurance in New York
- How to Choose Limits and Deductibles
- Shopping for New York Auto Insurance
- FAQs on Types of Car Insurance in New York
Types of Auto Insurance Coverage in New York
Whether you are a first-time driver, a teenager researching your first policy, or moving from another state, understanding New York’s required coverages (and the optional add-ons) can help you avoid registration problems and reduce financial risk after a crash.
New York and No-Fault Insurance Laws
Auto insurance in the state of New York follows a no-fault system for injuries. In many situations, your own Personal Injury Protection (PIP) coverage is designed to pay for covered medical expenses and certain economic losses after an accident—regardless of who caused the crash. Property damage is typically handled through the at-fault driver’s liability coverage (or your collision coverage, if you carry it).
No-fault rules can also limit when someone can pursue a lawsuit for pain and suffering, which is why legal questions often come up after serious crashes. If you’re trying to understand timelines and options, see our explainer on how long after an accident you can sue in New York, and review DFS’s No-Fault Insurance FAQs for claim-processing guidance.
Quick tip: No-fault (PIP) claims can have short deadlines. Report the accident promptly and keep copies of any forms, bills, and wage documentation you submit.
Minimum Required Auto Insurance Coverages in New York
New York requires a package of coverages that includes liability, PIP (no-fault), and uninsured motorist bodily injury protection. Minimum limits and eligibility details should always be confirmed with the NY DMV and NY DFS (rules and forms can change).
| Coverage | What It Typically Pays For | Minimum Limit (Common NY Passenger Vehicles) |
|---|---|---|
| Bodily Injury Liability (BI) | Injuries you cause to other people; includes legal defense under most policies | $25,000/$50,000 for bodily injury; $50,000/$100,000 for death (see NY DMV) |
| Property Damage Liability (PD) | Damage you cause to someone else’s vehicle or property | $10,000 per accident |
| Personal Injury Protection (PIP / No-Fault) | Covered medical expenses and certain economic losses regardless of fault | $50,000 per person (basic no-fault) |
| Uninsured Motorist Bodily Injury (UM) | Injury protection if you’re hit by an uninsured driver (and many hit-and-run injury scenarios) | $25,000 per person / $50,000 per accident |
New York’s Bodily Injury Liability Requirements
The most important type of required auto liability insurance in New York is Bodily Injury Liability coverage. If you cause a crash that injures someone else, BI coverage is designed to pay covered damages up to your policy limits and help protect your financial assets. For a deeper breakdown, see our guide to bodily injury protection in New York.
Many drivers choose limits above the mandatory minimum because serious injuries and lawsuits can exceed minimum limits quickly. Your ideal limit depends on your assets, income, and overall risk tolerance.
Personal Injury Protection Coverage Is Required
Personal Injury Protection (PIP) is required in New York and is the centerpiece of no-fault injury protection. PIP often helps pay for covered medical care and certain economic losses (such as a portion of lost earnings), regardless of who was at fault. Some insurers also offer “Additional PIP” to increase the basic limit and expand certain benefits—ask your agent to explain options alongside other additional coverage options.
Property Damage Liability Insurance in New York
Property Damage Liability pays for damage you cause to someone else’s car or property. For example, if you hit a parked car, this coverage is typically what pays the other owner’s repair costs (up to your limit).
Because vehicle repair costs can be high, many drivers consider higher property damage limits than the minimum—especially in areas with dense traffic and expensive vehicles.
Uninsured Motorist Bodily Injury Liability Coverage
New York also requires uninsured motorist bodily injury (UM) protection, which helps cover injuries to you and eligible passengers if you’re hit by an uninsured driver. In New York, UM is also a key protection layer in many hit-and-run injury situations.
If you want protection when the at-fault driver has insurance but not enough, ask about uninsured/underinsured motorist options (often offered as Supplementary UM/SUM in New York). This can matter even more if children or other frequent passengers ride with you regularly.
Maintaining continuous coverage is also critical—New York treats uninsured driving and coverage lapses seriously. Review uninsured driving penalties and keep your policy active even if you’re not driving the vehicle for a period of time.
Other Types of Car Insurance in New York
Beyond the required coverages, many policies include optional add-ons that can protect your vehicle and reduce out-of-pocket costs. These are especially common when a car is financed or leased.
| Optional Coverage | What It Helps With | When It’s Often Worth Considering |
|---|---|---|
| Collision | Pays for damage to your car from a collision (subject to your deductible) | Your car is newer, financed/leased, or repairs would be a major hardship |
| Comprehensive | Non-collision losses like theft, vandalism, falling objects, and many weather losses | You want coverage for risks such as fire and flood damage |
| Medical Payments (MedPay) | Extra medical expense coverage that may supplement PIP in some situations (varies by insurer) | You want additional medical-bill flexibility depending on how your policy is structured |
| Roadside Assistance | Services like towing, jump-starts, fuel delivery, and lockout help | You want predictable costs for towing and common breakdown needs |
| Accidental Death and Dismemberment (AD&D) | Additional benefits after a catastrophic injury or death (terms vary) | You want an extra financial cushion for your household in worst-case scenarios |
If you’re thinking about cutting coverages to lower your premium, make sure you understand the tradeoffs—and remember that driving uninsured can trigger major consequences. Here’s what to know about penalties for driving without insurance in New York.
How to Choose Limits and Deductibles
- Match liability limits to your risk: Consider your assets and income—liability claims can exceed minimum limits.
- Pick deductibles you can pay quickly: A higher deductible can lower premium, but only if you can afford it after a loss.
- Think about who rides with you: Frequent passengers and household drivers can increase exposure.
- Consider vehicle value and usage: Collision and comprehensive are often more valuable for newer or higher-value vehicles.
Shopping for New York Auto Insurance
When comparing quotes, keep limits and deductibles consistent so you can compare policies fairly. Also consider the insurer’s claims process, customer service, and complaint history. For state guidance on shopping and understanding policy language, DFS publishes a consumer brochure: Purchasing Automobile Insurance (PDF).
Note: This page is for general educational purposes. Coverage availability, policy language, claim outcomes, and legal rights can vary based on the insurer, the specific policy, and the facts of an accident.
