Insurance must be obtained from a licensed insurance company, and proof of insurance must be carried at all times. Your insurance must cover you in New York even if you are not at fault for the accident, as New York is a No Fault state. Penalties for driving without insurance are stiff, including tickets and fines, license suspension, loss of registration, and even impounding of your car. The fees for driving uninsured can end up costing an average of $10 every day.
In New York, insurers are legally bound to notify the DMV when policies are issued, when policies expire, and when policies lapse. In addition, because it is against the law to drive without insurance, this extends even to rental cars. If your policy does not cover your driving of a rental car, you will need to purchase the rental company's policy, typically at a rate of $7 to $14 daily. Be sure you understand these policies before purchasing, however, as they may have exclusion clauses that restrict coverage from some household members.
In some situations, you may want insurance beyond the state minimum. For example, because new teen drivers can be unsafe, it is often considered wise to increase insurance beyond the minimum limits while your teenagers are listed on your policy.
New York Car Insurance has some of the highest car insurance rates in the nation, so it is critical that you comparison shop to find the best value. When you are considering insurance beyond state minimum, it is a good idea to work with a broker, who will have access to the insurance companies' best rates and do the legwork for you.
