What Is the New York Automobile Insurance Plan (NYAIP)?
Last Updated on January 22, 2026
New York requires drivers to carry auto insurance, and it also uses a no-fault system for certain injury-related expenses after a crash. If you want a refresher on how no-fault works (and what it does not cover), see our guide to New York’s no-fault auto insurance rules.
Most drivers can buy coverage in the “voluntary” market by shopping with multiple insurers or agents. But if you’re repeatedly declined, New York has a backstop program designed to make sure you can still get legal coverage: the New York Automobile Insurance Plan (NYAIP).
Official resources: The NYAIP is administered through AIPSO’s plan site (NYAIP information), and the New York State Department of Financial Services (DFS) also explains how the Auto Plan works (DFS: Trouble Getting Coverage).
At a Glance
- NYAIP Is New York’s Backstop: It’s the state’s assigned risk option for drivers who can’t obtain required coverage in the voluntary market.
- You Don’t Choose the Carrier: A certified agent submits your application and the Plan assigns an insurer to service your policy.
- Minimum Coverage Still Applies: NYAIP policies can provide the coverages New York requires for registration, and optional coverages may be available depending on Plan rules.
- It’s Not Permanent: Keep shopping—if you find voluntary coverage, you can usually move off the Plan without being “locked in.”
- What the New York Automobile Insurance Plan Is
- Who Typically Needs NYAIP
- Eligibility and Proof You Tried the Voluntary Market
- How NYAIP Assignment and Pricing Works
- NYAIP Coverage Options and New York Minimum Limits
- How Long NYAIP Coverage Lasts and When You Can Leave
- Why NYAIP Premiums Are Often Higher
- Next Steps Before You Apply
- FAQs on New York Automobile Insurance Plan (NYAIP)
What the New York Automobile Insurance Plan Is
The NYAIP (often called the Auto Plan or Assigned Risk Plan) is New York’s residual market mechanism for auto insurance. It exists to provide auto liability (and certain other coverages) to eligible drivers who cannot obtain insurance in the voluntary market. All insurers that write automobile insurance in New York State must participate in NYAIP assignments.
Practically, NYAIP works like this: a certified insurance agent or broker submits an application to the Plan, and the Plan assigns you to a participating insurance company. You don’t pick the carrier, but you do still choose your coverages and limits (within Plan rules).
If you’re researching the broader “assigned risk” concept (and how it compares to other options), you may also want to read our overview of assigned risk auto insurance in New York.
Who Typically Needs NYAIP
Drivers usually end up considering NYAIP when insurers view them as a higher underwriting risk. That can include major violations, repeated tickets, multiple at-fault accidents, frequent claims, lapses in coverage, or other factors that make standard underwriting difficult. If you’re in this situation, our high-risk driver insurance guide explains common paths back to better rates.
Common Reasons Drivers Get Declined
| What Insurers See | Why It Matters | What to Do |
|---|---|---|
| Multiple moving violations | Tickets can signal higher loss frequency and severity. | Shop widely, ask about nonstandard programs, and consider NYAIP only if you’re declined repeatedly. |
| Accident history or frequent claims | Past losses can increase the odds of future payouts. | Request your loss history, correct errors, and compare quotes with multiple carriers. |
| Coverage lapse or cancellation | Gaps can trigger underwriting restrictions or surcharges. | Rebuild continuous coverage as quickly as possible. |
| Newly licensed or limited driving experience | Less historical data can lead to conservative pricing or declinations. | Ask about tiered/nonstandard programs before applying to the Plan. |
Speed-related violations are a common driver of higher premiums and underwriting issues. Here’s a deeper look at how speeding tickets can affect car insurance.
Eligibility and Proof You Tried the Voluntary Market
NYAIP isn’t meant to replace normal shopping. To qualify, applicants generally must certify they tried and failed to obtain coverage in the voluntary market within the preceding 60 days. The Plan’s application process may also require the producer/applicant to identify insurers that declined coverage (or note that the producer has no access to voluntary markets). For details, see the Plan’s Coverage Declination Requirements and AIPSO’s NYAIP plan page.
Quick tip: Keep declination emails/letters (or screenshots) from recent quote attempts and share them with your agent—NYAIP eligibility often hinges on documenting recent voluntary-market shopping.
How to Apply
- Shop first: Try multiple insurers and agencies (no single agent has access to every insurer).
- Work with a certified producer: Most NY agents and brokers licensed for auto are certified to submit NYAIP applications, but you can confirm through AIPSO if needed.
- Submit the application: Your producer submits the application to the Plan and helps you select coverages and limits.
- Get assigned a carrier: The Plan assigns an insurer to service your policy.
How NYAIP Assignment and Pricing Works
When an application is submitted through the Auto Plan, you are assigned to one of the participating insurers. Importantly, DFS notes that the Auto Plan premium should be the same regardless of the insurer assigned and regardless of which agent or broker submits the application. If you’re getting noticeably different “NYAIP quotes,” ask questions and make sure the same coverages/limits are being quoted, then review DFS guidance on the Auto Plan (DFS: Trouble Getting Coverage).
Quick tip: If an Auto Plan quote feels “too good to be true,” confirm the exact limits and coverages being quoted. Inaccurate quoting can lead to a higher billed premium once the application is processed.
NYAIP Coverage Options and New York Minimum Limits
NYAIP can provide the coverages New York requires for registration, including liability, uninsured motorists (UM), and no-fault/PIP. DFS summarizes New York’s minimum required coverages and limits here: DFS: What Auto Coverages Do I Need?. The New York DMV also lists the minimum liability requirements for most vehicles here: NY DMV: Insurance Requirements.
New York Minimum Auto Insurance Limits
| Coverage | Minimum Limit (Most Vehicles) | What It Typically Covers |
|---|---|---|
| Property Damage Liability | $10,000 per accident | Damage you cause to someone else’s property (like their vehicle). |
| Bodily Injury Liability | $25,000 per person / $50,000 per accident | Injuries you cause to others (lawsuits/claims). |
| Death Liability (Part of Liability Requirements) | $50,000 per person / $100,000 per accident | Liability coverage when a fatality occurs. |
| Uninsured Motorists (UM) | $25,000 per person / $50,000 per accident | Injuries caused by an uninsured driver (subject to policy terms). |
| Personal Injury Protection (PIP / No-Fault) | $50,000 per person | Certain medical and wage-related losses regardless of fault (within no-fault rules). |
If you want a deeper explanation of how liability limits work (and why minimum limits can be risky), see our breakdown of bodily injury liability in New York.
Optional Coverages Often Available Through NYAIP
Depending on the type of vehicle and your situation, DFS indicates drivers may be able to buy higher limits and certain optional coverages through the Auto Plan (subject to Plan rules and underwriting requirements). Examples can include higher liability limits, optional no-fault enhancements, supplemental UM/SUM, and physical damage coverages like collision and comprehensive. (See DFS: Trouble Getting Coverage for a coverage overview.)
| Coverage Category | Examples (May Vary by Risk/Vehicle) | Why It Matters |
|---|---|---|
| Higher Liability Limits | Higher BI/PD limits beyond the state minimums | Helps protect assets if you cause a serious loss. |
| No-Fault Enhancements | Optional additional PIP-type benefits (where available) | Can reduce out-of-pocket exposure if injuries are significant. |
| Supplemental UM/SUM | Higher UM/SUM limits (where available) | More protection if the at-fault driver has little or no coverage. |
| Physical Damage | Collision and comprehensive (often with deductibles) | Helps repair/replace your vehicle after covered losses. |
How Long NYAIP Coverage Lasts and When You Can Leave
DFS explains that if your coverage is written through the Auto Plan, the assigned insurer generally must insure you for three years before it can non-renew (unless it renews you voluntarily). At the end of that period, you can shop for a voluntary policy or re-apply to the Auto Plan if you still can’t find coverage.
You do not have to stay in NYAIP for three years. If you find a voluntary-market insurer willing to cover you sooner, you can typically cancel your Auto Plan policy and move—DFS notes that the short-rate cancellation charge generally does not apply in that situation. (See DFS: Trouble Getting Coverage.)
Why NYAIP Premiums Are Often Higher
NYAIP premiums are often higher than comparable coverage in the voluntary market because the Auto Plan pool tends to have worse overall loss experience. That doesn’t mean you’re “stuck” forever—it does mean you should treat NYAIP as a last resort and keep shopping for voluntary coverage at renewal.
Ways to Reduce Costs Over Time
- Keep continuous coverage: Avoid lapses, late payments, or cancellations.
- Stay violation-free: Fewer tickets and incidents can improve underwriting outcomes over time.
- Re-shop at renewal: Ask your agent to check nonstandard and tiered programs before renewing in the Plan.
- Consider deductible and coverage adjustments: Where appropriate and affordable, changes to optional coverages can impact premiums.
Next Steps Before You Apply
Before applying for NYAIP, it’s smart to run a structured shopping process. Comparing carriers, coverages, and discounts can sometimes uncover a voluntary-market option even if you’ve already been turned down once or twice. Our guide to comparing New York auto insurance companies can help you organize the process.
Note: Insurance rules and Plan procedures can change. For the most current requirements, rely on DFS, the New York DMV, and the NYAIP administrator (AIPSO), and work with a licensed insurance professional.