New York is a very strict state when it comes to automobile insurance. The New York Department of Motor Vehicles will not issue a license plate unless the person can provide proof of current liability insurance –- this entails an electronic confirmation from an insurance provider as well as a New York insurance identification card.

Many states allow a person to have an out-of-state insurance provider. New York, however, does not allow this, as people must have their insurance provided by a state insurance department licensed company.

New York has a no-fault system. A no-fault system means that regardless of who is culpable for an accident, insurance companies are required to cover injuries (limited by your specific policy). The state also sets forth minimum requirements in terms of coverage that your policy must have.

Auto Insurance Coverage in New York -- Bodily Injury Liability

This part of the insurance covers injuries to people involved in the accident. New York minimum is coverage of $25,000 per person, up to $50,000 per accident. Your insurance company must provide legal defense if a person claims you are fault for an accident.

Minimum Auto Insurance Coverage in New York -- Property Damage Liability

The minimum property damage liability coverage that New York allows an individual to have is $10,000. This helps cover any property outside of your vehicle that is damaged in an accident, such as a light pole.

Minimum Auto Insurance Coverage in New York -- Personal Injury Protection

New York requires insurance policies that cover, at a minimum, $50,000 per accident. Personal injury protection is designed to cover medical expenses, which are deemed “reasonable and necessary” for any of the people in the car. This part of the coverage applies only to the people within the car, not to the actual car itself.

Auto Insurance in New York -- Uninsured/Underinsured Motorist Coverage

The uninsured/underinsured motorist coverage is designed to help anyone in your car (passenger or driver) or living with you who suffers an injury when the other motorist is uninsured or underinsured. This type of coverage also protects against hit-and-run occurrences.