What Every Motorist Should Know about New York Car Insurance : If you own and drive a vehicle in the State of New York, you must carry liability insurance issued by the New York State (NYS). It is required under the state law as having liability insurance ensures that you are financially responsible for covering any cost of damages or injury due an accident that you happen to be involved in. This financial responsibility law requires that even driving a vehicle registered in another state must comply with the provisions of the NYS Financial Responsibility law. This is why it is important to have NYS liability insurance coverage if you want to drive in New York roads or highways.
Be aware that New York is a no-fault state. You need NYS liability coverage even if you are not using your car as long as it carries a valid registration number from the state. The minimum requirements of New York car insurance coverage are $25,000 – 50,000 for injury, $50,000 – 100,000 for death and $10,000 for property damage due to an accident.
You would be wise to purchase a policy that provides more coverage than the minimum requirements of your state, especially when your assets amount to a high value and you want to protect them. You should also decide what coverage and how much you will be suitable in your case. You can pick a cost effective New York car insurance by doing some extensive research and comparative shopping. Remember that the name in your insurance policy and vehicle registration are the same. The difference of name swill cost you the policy. Once you purchase your New York car insurance policy, make sure that your insurance company files with the DMV an electronic notice of your insurance coverage. In addition you must show your NYS Insurance identification card to the DMV at the time of your car registration meaning that both electronic and physical proof of your having car insurance is a must by law.
It is also very important not to allow your insurance to lapse under any circumstance. A lapsed policy can result in penalties and punishments for you. Your driver’s license will be suspended and the vehicle’s registration will also be suspended. The DMV will take away the registration plate of your car. If you meet with an accident and are found without liability coverage, your driver’s license and vehicle registration will be cancelled for a minimum of one year. It is applicable when someone else crashes your vehicle when it is without insurance. The fine for driving without insurance or for allowing others to drive the uninsured vehicle will be $1500 and to get back your license plate from DMV you should pay $750 as civil penalty in addition.