Auto Liability Insurance in New York
Last Updated on January 22, 2026
If you drive (or even just keep a vehicle registered) in New York State, you must carry auto liability insurance. New York’s Motor Vehicle Financial Security Act requires continuous coverage for most registered vehicles—and the DMV can suspend your registration and license if the policy lapses.
Auto liability insurance is the part of your policy that helps protect you financially if you cause a crash that injures someone else or damages their property. It’s different from coverages that protect you (like New York no-fault/PIP) or your vehicle (like collision and comprehensive).
At a Glance
- Required in NY: You generally must carry NY-issued liability coverage to register a vehicle and keep that coverage active while the registration is valid.
- What Liability Does: Pays for covered injuries and property damage you cause to others, and may include legal defense under your policy terms.
- Minimum Limits: NY minimums include $25k/$50k bodily injury, $10k property damage, and separate $50k/$100k death limits (plus required PIP and uninsured motorists).
- Higher Limits Help: Moving above the minimum can reduce your risk of paying out of pocket if a claim exceeds your policy limits.
- What Auto Liability Insurance Is
- What Auto Liability Insurance Covers
- Auto Liability Requirements in New York
- How Liability Limits Work
- Choosing Higher Liability Limits
- How Liability Claims Are Handled After a Crash
- What Affects the Price of Auto Liability Insurance
- Penalties for Driving Without Insurance in New York
- FAQs on Auto Liability Insurance in New York
What Auto Liability Insurance Is
Liability insurance pays for covered losses to other people when you (or a covered driver) are legally responsible for an accident. In New York, auto liability is commonly discussed as two core parts:
- Bodily injury liability (injuries to others)
- Property damage liability (damage to others’ property)
New York also requires other coverages (like no-fault/PIP and uninsured motorists) that are not “liability,” but are still mandatory for most drivers. If you’d like a broader overview, see common car insurance types.
What Auto Liability Insurance Covers
Liability coverage is designed to handle claims from others after an at-fault accident—often including the insurer’s investigation, negotiation, and legal defense under the policy terms.
| Coverage | Common Examples | How Limits Apply |
|---|---|---|
| Bodily Injury Liability | Medical expenses claimed by an injured third party, lost wages, and (when applicable) pain-and-suffering allegations | Usually split into per person and per accident limits |
| Property Damage Liability | Repairs to another vehicle, damage to buildings/fences/fixtures, and other covered property losses | Typically a per accident limit |
What Liability Usually Doesn’t Cover
- Your own injuries: In New York, your medical bills and certain related expenses are typically handled first through no-fault/PIP, regardless of fault (up to your policy limits).
- Your own vehicle damage: That’s generally handled by collision and comprehensive (if you carry them), not liability.
- Anything above your liability limits: If damages exceed your limits, you may be personally responsible for the difference.
Quick tip: If you have a loan or lease, your lender will often require collision and comprehensive—even though New York doesn’t require them for registration.
Auto Liability Requirements in New York
New York requires liability coverage issued by a company licensed in New York and certified by the DMV. Out-of-state insurance generally isn’t accepted for registering a New York vehicle. You can verify current requirements on the NY DMV insurance requirements page and the New York Department of Financial Services overview: What auto coverages do I need?
Minimum Required Coverages (Commonly Shown as “25/50/10”)
“25/50/10” is shorthand for the minimum bodily injury and property damage liability limits many people recognize. In New York, the DMV also lists separate minimum death liability limits within the bodily injury requirement. These limits apply per accident, subject to the per-person cap.
| Required Coverage | NY Minimum (Most Vehicles) | What It Helps Pay For |
|---|---|---|
| Property Damage Liability | $10,000 per accident | Damage you cause to others’ property |
| Bodily Injury Liability | $25,000 per person / $50,000 per accident | Injuries you cause to others |
| Death Liability | $50,000 per person / $100,000 per accident | Death claims arising from a covered crash |
| No-Fault (PIP) | $50,000 per person (basic) | Medical bills/lost wages and certain expenses for you and your passengers, regardless of fault |
| Uninsured Motorists (BI) | $25,000 per person / $50,000 per accident | Injury protection if you’re hit by an uninsured driver (subject to policy terms) |
How Liability Limits Work
Liability limits are caps—your insurer won’t pay more than your policy limit for covered damages. With split limits, the per-person limit applies to any one injured person, and the per-accident limit is the maximum for everyone injured in the same crash. Property damage liability is typically a single per-accident limit.
If repairs or medical bills exceed your limits, the injured party may pursue the remaining amount from you personally. That’s one reason many drivers choose limits higher than the minimum, especially if they have savings or other assets to protect.
Choosing Higher Liability Limits
Minimum limits are meant to satisfy the law—not necessarily to protect your finances in a serious loss. Common higher-limit options include 50/100/50, 100/300/100, and beyond (availability varies by insurer). You can also explore additional coverage options that may strengthen your protection depending on your needs.
Situations Where Higher Limits Often Make Sense
- You routinely drive in high-traffic areas where multi-vehicle crashes are more likely.
- You want to reduce the chance of paying out of pocket if damages exceed minimum limits.
- You have assets (savings, home equity) you’d like to better shield from large claims.
- You drive frequently, commute long distances, or transport passengers often.
Quick tip: When you’re comparing quotes, make sure you’re comparing the same liability limits—a cheaper premium may simply mean lower protection.
How Liability Claims Are Handled After a Crash
After an at-fault accident, your insurer typically investigates the loss, reviews police reports and statements, evaluates damages, and negotiates with the other party (or their insurer). For property damage repairs, the process often involves estimates, supplements, and final payment—this guide can help you understand what to expect: how to go through your auto insurer to get repairs done.
What Affects the Price of Auto Liability Insurance
Liability pricing varies by driver and vehicle. Insurers generally consider factors like your driving record, prior claims, location, mileage, vehicle type, coverage limits, and (where permitted) rating characteristics such as age or driving experience.
Ways to Keep Costs Reasonable Without Cutting Protection
- Maintain a clean driving record: safe driving often leads to better renewal pricing over time.
- Shop at renewal: compare apples-to-apples quotes using the same limits and deductibles.
- Bundle policies: combining policies may reduce premiums—see how bundling insurance can lower costs.
Penalties for Driving Without Insurance in New York
Driving without required insurance can trigger serious consequences, including registration and license issues, fines, and other penalties. New York law provides for fines (and possible short-term imprisonment in some cases) for operating an uninsured vehicle; see the statute here: NY Vehicle & Traffic Law § 319. For a plain-English breakdown, read penalties for driving without insurance in New York.
Note: This article is for general information and reflects New York requirements as of 2026. Coverage details and claim outcomes depend on your policy language, the facts of the accident, and applicable state law.
