New York Car Insurance
New York drivers must carry at least 25/50/10 liability coverage plus $50,000 in No-Fault (PIP) Basic Economic Loss under Article 51 of the Insurance Law and Uninsured Motorists (UM) at bodily-injury liability limits under N.Y. Insurance Law § 3420(f)142. New York is a No-Fault state: your own PIP pays first-party medical, wage-loss, and other benefits without regard to fault, subject to statutory caps. Optional Supplementary UM/UIM (SUM) coverage under DFS Regulation 35-D must be offered up to $250,000 per person / $500,000 per accident (or a $500,000 combined single limit)3. Insurance status is verified through DMV IIES; a lapse can trigger civil fines and license suspension78. This page owns those New York rules; the consumer journey (after a lapse, DUI, accident, or move) lives on our situation guides.
YesWeSure Bottom Line
What the current law requires. A New York policy must include 25/50/10 liability plus $50,000 No-Fault PIP and UM at BI limits142. The 25/50/10 liability floor is the lowest structural benchmark for what a policy must pay third parties; personal coverage-limit decisions belong on our coverage-limits guide.
SUM is where most New York consumers should read the fine print. SUM is your protection against an at-fault driver who lacks adequate coverage. Under Regulation 35-D and Insurance Law § 3420(f)(2), insurers must offer SUM up to $250,000 per person / $500,000 per accident (or a $500,000 combined single limit)3. If you did not elect SUM affirmatively, your protection tops out at compulsory UM limits.
Merit-rating surcharges are limited by statute. Under N.Y. Insurance Law § 2335, a New York insurer generally may not surcharge for an accident when aggregate property damage was $2,000 or less, no bodily injury occurred, and the merit-rating period included no more than one accident, subject to enumerated exceptions6. This is a New York-specific consumer protection worth knowing after a minor accident.
Verification is electronic and enforcement is real. Insurers report policy status to DMV through IIES by VIN. A lapse can lead to civil penalties and license and registration suspension78. Reentry mechanics live on our after-a-lapse guide.
State requirements at a glance
What New York car insurance law requires
Minimum liability limits
25 / 50 / 101
$25,000 bodily injury per person, $50,000 bodily injury per accident, $10,000 property damage per accident. Required on every registered vehicle under NY DFS auto insurance requirements. These liability limits have been in effect since 1995.
No-Fault (PIP)
$50,000 Basic Economic Loss4
Article 51 of the Insurance Law requires every motor-vehicle owner's liability policy to include $50,000 per person in Basic Economic Loss coverage. Components include medical expense, work loss, other expense, and a death benefit. New York is a No-Fault state.
Uninsured Motorists (UM)
Compulsory at 25 / 50 BI limits2
Under N.Y. Insurance Law § 3420(f), UM coverage is compulsory at the bodily-injury liability limits and is included on every policy.
Supplementary UM/UIM (SUM)
Optional; must be offered up to 250 / 500 or $500K CSL3
SUM is New York's Supplementary Uninsured/Underinsured Motorists coverage. Insurers must offer SUM up to $250,000 per person / $500,000 per accident (or $500,000 combined single limit) under § 3420(f)(2) and Regulation 35-D (11 NYCRR subpart 60-2). Endorsement wording is prescribed by DFS.
Merit-rating surcharges
Limited by N.Y. Ins. Law § 23356
Insurers may not surcharge for accidents where aggregate property damage does not exceed $2,000, no bodily injury occurred, and no more than one accident took place in the merit-rating period, subject to enumerated statutory exceptions.
Insurance verification
IIES electronic reporting to DMV7
The Insurance Information & Enforcement System (IIES) is DMV's statewide electronic verification database, implemented January 2000 under Chapter 678 of 1997 (as amended by Chapter 509 of 1998). Insurers report policy status by VIN.
Lapse consequences
Civil fines + registration and license suspension8
A lapse in required coverage on a registered vehicle can trigger DMV civil penalties, registration suspension, and driver-license suspension. Verify current amounts and durations with NY DMV directly.
Cancellation refund
Short-rate allowed when insured cancels9
NY DFS Office of General Counsel Opinion 07-01-07 confirms that New York Insurance Law allows short-rate cancellation refunds when the insured cancels the policy. Short-rate refunds are less than pro-rata.
The 25/50/10 minimum liability floor
New York requires 25/50/10 liability coverage on every registered vehicle:
- $25,000 bodily injury per person. The maximum a policy pays for one injured person's bodily-injury costs when you are at fault.
- $50,000 bodily injury per accident. The maximum a policy pays across all injured people in one accident when you are at fault.
- $10,000 property damage per accident. The maximum a policy pays to repair or replace someone else's property when you are at fault1.
Two facts about the floor are worth stating directly. First, these limits have been at 25/50/10 since 1995, so they have not kept up with vehicle repair costs or medical inflation. Second, they only pay third parties; they do not pay for your own vehicle, your own medical bills, or replacement of your car after theft. Personal-limit decisions belong on our coverage-limits guide.
No-Fault (PIP): $50,000 Basic Economic Loss
New York is a No-Fault state under Article 51 of the Insurance Law (the Comprehensive Motor Vehicle Insurance Reparations Act). Every liability policy on a New York registered vehicle must provide $50,000 per person in Basic Economic Loss coverage4. Basic Economic Loss includes:
- Medical expense. Reasonable and necessary medical, hospital, dental, surgical, rehabilitative, prosthetic, and non-medical remedial care and treatment.
- Work loss. Reduction in earnings from work and reasonable expenses in obtaining services in lieu of those normally performed, subject to statutory caps.
- Other reasonable expenses. Necessary expenses in obtaining substitute services, up to statutory caps.
- Death benefit. A statutory benefit payable to the estate of the deceased.
No-Fault benefits are paid by the injured party's own insurer without regard to fault. Claim procedures are prescribed by DFS Regulation 68 (11 NYCRR 65), which governs notice of claim, proof of claim, examinations under oath, and the sequence of benefit payments5. Detailed claim-side mechanics live on our medical payments explainer, which references New York in the PIP-state context; this page owns only the New York rule.
Optional OBEL. A 1991 amendment allows insureds to elect Optional Basic Economic Loss (OBEL), which increases the total Basic Economic Loss ceiling beyond the $50,000 floor. Availability and cost vary by carrier; ask your insurer directly.
Uninsured Motorists (UM): compulsory at BI limits
Under N.Y. Insurance Law § 3420(f), every liability policy on a New York registered vehicle must include Uninsured Motorists coverage at the same limits as bodily- injury liability2. UM applies when the at-fault driver has no liability insurance and pays for your bodily injuries. At the state minimum, that means UM at 25/50.
Supplementary UM/UIM (SUM): optional, must be offered, prescribed endorsement
Supplementary Uninsured/Underinsured Motorists (SUM) is New York's bolt-on protection against underinsured at-fault drivers. Under N.Y. Insurance Law § 3420(f)(2) and DFS Regulation 35-D (11 NYCRR subpart 60-2), insurers must offer SUM coverage up to $250,000 per person / $500,000 per accident, or a $500,000 combined single limit23.
- Endorsement wording is prescribed. DFS Regulation 35-D standardizes the SUM endorsement so coverage and disputes are administered consistently across carriers3.
- Election is a distinct step. SUM is optional; you must affirmatively elect the coverage and the limit. If you did not elect SUM, your protection tops out at compulsory UM limits, which at 25/50 is usually far less than modern injury settlement values.
- SUM stacks on top of the at-fault driver's liability payment up to your SUM limit; it is not a replacement for the at-fault carrier's payment.
Merit-rating surcharges limited by N.Y. Ins. Law § 2335
New York's Insurance Law § 2335 constrains how insurers may surcharge private passenger auto policies for accidents. A New York insurer generally may not surcharge for a claim when:
- aggregate property damage did not exceed $2,000,
- no bodily injury occurred, and
- the merit-rating period included no more than one accident,
subject to enumerated statutory exceptions (for example, certain traffic-conviction categories)6. This is a New York-specific consumer protection that applies to insurer surcharge practice; it is one reason the same accident can affect premium differently in New York than elsewhere. General after-accident premium framing lives on our after-an-accident guide.
IIES: DMV electronic insurance verification
The Insurance Information & Enforcement System (IIES) is DMV's statewide database that tracks insurance status on every New York registered vehicle. IIES was implemented January 2000 under Chapter 678 of the laws of 1997, as amended by Chapter 509 of the laws of 19987.
- Insurer reporting. Insurance companies report policy status by VIN. When a policy is written, amended, or cancelled, that change flows into IIES electronically.
- Mandatory verification. When DMV identifies a vehicle without an active insurance record, it can send an insurer a Mandatory Verification Request. The insurer must confirm liability coverage or repudiate it within the response window; failure to respond can trigger further DMV action against the registrant.
- Enforcement path. Confirmed uninsured status can lead to civil penalties, registration suspension, and driver-license suspension8. Verify current amounts and specific procedures with NY DMV directly.
Lapse consequences and reentry
A confirmed lapse in required coverage on a New York registered vehicle can trigger civil fines, registration suspension, and driver-license suspension8. Reentry mechanics (reinstatement, documentation, and how a lapse can affect underwriting on the next policy) are covered on our after-a-lapse guide. This page states only the New York rule.
Cancellation refunds: short-rate allowed when insured cancels
When a New York insured voluntarily cancels a policy mid-term, the insurer may return the unearned premium on a short-rate basis (less than pro-rata) per NY DFS Office of General Counsel Opinion 07-01-079. This is a state-specific rule; other states apply pro-rata refunds in the same fact pattern. General cancellation-refund framing lives on our switching guide.
Rating-factor treatment: credit scoring is currently permitted
As of this review date, New York does not prohibit credit-based insurance scoring for personal auto insurance. Multiple bills have been introduced in the Legislature since 2009 to restrict or eliminate the practice, but no such prohibition has been enacted. Insurers may use a range of rating factors permitted by DFS, including credit information, subject to filed-rate approval. Watch DFS and the Legislature for changes. Personal rating-factor decisions belong on our how insurers calculate rates guide.
Household disclosure and the permissive-user rule
NY DFS OGC Opinion 08-02-02 confirms that a permissive user of a personal auto policy is a covered insured. The same opinion allows the insurer to charge retroactive additional premium if an undisclosed household member drove the vehicle and should have been rated on the policy10. This is one of the reasons NAIC treats household residents as material at underwriting; New York enforces the framework through DFS OGC guidance. Full follow-the-car framing lives on our does insurance follow the car or driver page.
Where the New York situation rules live on YesWeSure
- After an accident. Merit-rating limitations under N.Y. Ins. Law § 2335 and the $2,000 property-damage threshold are cited on our after-an-accident guide.
- After a DUI. DUI-specific insurance consequences (SR-22 relevance, filing mechanics, license interaction) live on our after-a-DUI guide. This State Guide does not publish a New York-specific SR-22 duration; verify with NY DMV directly.
- After a lapse. Reentry, reinstatement, and how a lapse can affect underwriting are covered on our after-a-lapse guide.
- Moving into New York. Registration and proof of insurance timing for new residents are covered on our moving-to-another-state guide. This State Guide does not publish a specific new-resident deadline; verify with NY DMV.
What we verified for this page
- Strong25/50/10 liability minimums verified against the New York Department of Financial Services Minimum Auto Insurance Requirements consumer page. In effect since 1995.
- Strong$50,000 Basic Economic Loss No-Fault (PIP) verified against Article 51 of the New York Insurance Law (the No-Fault law) and the DFS Regulation 68 (11 NYCRR 65) claim-procedure framework.
- StrongCompulsory UM at BI limits and offered SUM up to 250/500 or $500K CSL verified against N.Y. Ins. Law § 3420(f)(2) and DFS Regulation 35-D (11 NYCRR subpart 60-2).
- StrongMerit-rating surcharge limits under N.Y. Ins. Law § 2335 (the $2,000 property- damage threshold and one-accident condition) verified against the statute. Consistent with the citation already published on our frozen after-an-accident guide; no conflict.
- StrongIIES electronic insurance verification implemented January 2000 under Chapter 678 of 1997 as amended by Chapter 509 of 1998, verified against the New York DMV IIES program page.
- StrongShort-rate cancellation refund when insured cancels verified against NY DFS Office of General Counsel Opinion 07-01-07. Consistent with the citation already published on our frozen switching guide; no conflict.
- StrongPermissive user is a covered insured; insurer may charge retroactive additional premium for an undisclosed household member verified against NY DFS OGC Opinion 08-02-02. Consistent with the citation already published on our frozen question page; no conflict.
- ModerateCredit-based insurance scoring currently permitted. Multiple legislative attempts since 2009 (S4534, A1538, S3470, A7218, S4656, A3488, S5285, A5638, S4131, and others) have proposed a prohibition; none has been enacted as of the review date. The page frames this accurately as "not prohibited" and directs readers to watch DFS and the Legislature for changes.
- ModerateCross-check against existing frozen pages. Every New York reference already published on YesWeSure (after-accident § 2335; how-to-switch OGC 07-01-07; question follow-car OGC 08-02-02; coverage MedPay New-York-as-PIP-state context; Progressive review Snapshot / Name Your Price unavailable in NY; State Farm review 30 percent good-driver discount in NY; cost hub NAIC 2020 expenditure figure) was checked against current New York primary sources. No conflicts were detected. No frozen page required edits.
- LimitedDeliberately omitted from V1. A New York modeled cost anchor; a New York premium average; specific DMV lapse civil-penalty dollar amounts and duration bands (these bands change and are best verified directly with DMV); a New York-specific SR-22 duration (verify with NY DMV); a specific new-resident registration deadline in days (verify with NY DMV); a complete list of N.Y. Ins. Law § 2335 enumerated exceptions to the merit-rating limit; and telematics program detail. Each will land on a dedicated subpage or future situation as primary evidence supports.
- LimitedNamed author and expert reviewer. V1 attributes to “YesWeSure Editorial.” A named auto-insurance editor and a New York-licensed reviewer are tracked as a pre-launch YMYL item across all reference families.
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Common questions
What is the minimum car insurance required in New York?
New York requires 25/50/10 liability plus $50,000 in No-Fault (PIP) Basic Economic Loss and UM at BI limits on every registered vehicle142.
Is New York a no-fault state?
Yes. Article 51 of the Insurance Law (the Comprehensive Motor Vehicle Insurance Reparations Act) makes New York a No-Fault state. Every policy must include $50,000 per person in Basic Economic Loss coverage4.
What is SUM coverage and do I need it?
SUM is New York's Supplementary Uninsured/Underinsured Motorists coverage under DFS Regulation 35-D. Insurers must offer SUM up to $250,000 per person / $500,000 per accident, or a $500,000 combined single limit3. SUM is optional; you must elect it affirmatively. Without SUM, your uninsured or underinsured driver protection is capped at compulsory UM limits (25/50 at the state minimum).
Can my insurer surcharge me after a minor accident in New York?
Under N.Y. Insurance Law § 2335, an insurer generally may not surcharge for an accident when aggregate property damage did not exceed $2,000, no bodily injury occurred, and the merit-rating period included no more than one accident, subject to enumerated exceptions6. Post-accident premium framing lives on our after-an-accident guide.
How does New York verify my insurance?
DMV uses IIES, the Insurance Information & Enforcement System, which tracks policy status by VIN. Insurers report electronically. DMV can send mandatory verification requests and can suspend registration and license for confirmed uninsured status78.
Is credit-based insurance scoring allowed in New York auto insurance?
Currently, yes. Multiple legislative attempts to prohibit it have not been enacted as of the review date. Watch DFS and the Legislature for changes. Personal rating-factor framing lives on our how insurers calculate rates guide.
What refund do I get if I cancel my New York policy mid-term?
New York allows short-rate cancellation refunds when the insured cancels a policy, per NY DFS Office of General Counsel Opinion 07-01-079. Short-rate refunds are less than pro-rata. General switching framing lives on our switching guide.
Are permissive users covered under a New York policy?
Yes. NY DFS Office of General Counsel Opinion 08-02-02 confirms that a permissive user of a personal auto policy is a covered insured. The opinion also allows insurers to charge retroactive additional premium if an undisclosed household member should have been rated on the policy10.
Sources & methodology
- New York Department of Financial Services: Minimum Auto Insurance Requirements. Consumer-facing summary of compulsory coverages required for every registered vehicle. (New York Department of Financial Services, TIER 1)
- New York Insurance Law § 3420(f)(2): required Uninsured Motorists coverage and the requirement to offer Supplementary Uninsured/Underinsured Motorists (SUM) coverage up to a $250,000 per person / $500,000 per accident cap or a $500,000 combined single limit. (New York State Senate, TIER 1)
- NY 11 NYCRR subpart 60-2 (Regulation 35-D): SUM endorsement provisions and offer/election mechanics prescribed by the New York Department of Financial Services. (New York Department of Financial Services, TIER 1)
- New York Insurance Law Article 51: Comprehensive Motor Vehicle Insurance Reparations Act (the "No-Fault" law). Requires every motor-vehicle owner's liability policy to provide coverage for Basic Economic Loss up to $50,000 per person (medical expense, work loss, other expense, and death benefit). (New York State Senate, TIER 1)
- NY 11 NYCRR 65 (Regulation 68): No-Fault claim procedures. Prescribes claim notice, proof of claim, examination under oath, and other procedural mechanics for No-Fault benefits. (New York Department of Financial Services, TIER 1)
- New York Insurance Law § 2335: limitations on merit-rating plans. Insurers may not surcharge for accidents below a $2,000 aggregate property-damage threshold with no bodily injury and no more than one accident in the merit-rating period, subject to enumerated exceptions. (New York State Senate, TIER 1)
- New York DMV: Insurance Information & Enforcement System (IIES). DMV's statewide electronic verification database, implemented January 2000 under Chapter 678 of the laws of 1997 as amended by Chapter 509 of the laws of 1998. (New York Department of Motor Vehicles, TIER 1)
- New York DMV: Insurance lapse consequences. Describes civil penalties and license/registration suspension for uninsured status. (New York Department of Motor Vehicles, TIER 1)
- NY DFS Office of General Counsel Opinion 07-01-07: New York Insurance Law allows short-rate cancellation refunds when the insured cancels a policy. (New York Department of Financial Services, TIER 1)
- NY DFS Office of General Counsel Opinion 08-02-02: permissive user of a personal auto policy is a covered insured; insurer may charge retroactive additional premium if an undisclosed household member was rated on the policy. (New York Department of Financial Services, TIER 1)
- YesWeSure: Car insurance after an accident (YesWeSure, INTERNAL)
- YesWeSure: Car insurance after a DUI (YesWeSure, INTERNAL)
- YesWeSure: Car insurance after a lapse in coverage (YesWeSure, INTERNAL)
- YesWeSure: Car insurance when moving to another state (YesWeSure, INTERNAL)
- YesWeSure: How to switch car insurance (YesWeSure, INTERNAL)
- YesWeSure: How much is car insurance? National cost hub (YesWeSure, INTERNAL)
- YesWeSure: How to choose coverage limits (YesWeSure, INTERNAL)
- YesWeSure: How insurers calculate rates (YesWeSure, INTERNAL)
- YesWeSure: What is medical payments coverage? (New York is a No-Fault / PIP state) (YesWeSure, INTERNAL)
- YesWeSure: Does car insurance follow the car or the driver? (NY DFS OGC 08-02-02 permissive user cited) (YesWeSure, INTERNAL)
- YesWeSure: California car insurance state guide (YesWeSure, INTERNAL)
- YesWeSure: Florida car insurance state guide (YesWeSure, INTERNAL)
- YesWeSure: Texas car insurance state guide (YesWeSure, INTERNAL)
Evidence hierarchy on this page: Tier 1 (New York Insurance Law, New York Department of Financial Services, New York Department of Motor Vehicles, and DFS OGC opinions). No Tier 2 or Tier 3 publisher figures appear on this page; a New York modeled cost anchor is deliberately omitted from V1 and will land on a future subpage with full provenance. Every legal number on this page traces to a New York primary source: N.Y. Ins. Law §§ 3420(f), 2335; Article 51; DFS Regulations 35-D and 68; and DMV IIES program materials. This page is informational and does not constitute legal, tax, or insurance advice. Last reviewed .