If you’re looking to get behind the wheel and drive on the streets of New York, the law says you need to have the proper auto insurance. However, not everyone is diligent about getting or renewing their insurance, which is unfortunate because not having the minimum auto insurance coverage in New York is more than just a minor violation, causing problems that go far beyond a simple ticket. In this post, the team at Alex Yadgarov & Associates will take on the role of a New York City car accident lawyer and break down why driving without insurance in NYC is a huge mistake and the penalties you could face as a result.

What is New York’s minimum auto insurance coverage? 

If you want to obtain the minimum auto insurance coverage in New York, you need to purchase three types of insurance. They include liability insurance, personal injury protection (PIP) insurance, and uninsured motorist (UM) coverage. 

The state-issued automobile liability insurance is the insurance that pays out for the damages you may have caused another person during an accident. According to the DMV, the minimum liability coverage must include:

• $10,000 for property damage per accident.
• $25,000 for bodily injury and $50,000 for death for a person involved in a crash or accident. 
• $50,000 for bodily injury and $100,000 for death for two or more people in a crash or accident. 

An important thing to know about New York is that it is a ‘no-fault’ state, which means that a person injured in an auto accident can claim compensation for their injuries, irrespective of the blame connected to them in the accident—this is where the personal injury protection (PIP) coverage comes into play. Also known as ‘no-fault insurance,’ you can call on this coverage to take care of your medical bills, up to 80% of your lost income, and other reasonable and necessary expenses. However, your PIP has an upper limit of $50,000.

Last but certainly not least, we have uninsured motorist coverage. Your chances of getting into an accident with an uninsured motorist are not zero, and should your damages exceed your PIP coverage, you call on your UM coverage to cover costs that go beyond the PIP limit and non-economic losses such as pain and suffering and emotional distress, areas not compensated under no-fault insurance.

What are the consequences of driving without insurance in New York?

As we emphasized at the beginning, driving in New York without the proper insurance can have serious ramifications. If you no longer have the proper insurance, you are required to turn in your vehicle registration and stop driving until you have renewed your insurance. However, if you choose to drive and get caught, the penalties you might face include:

• The suspension of license and registration for at least one year. 
• A traffic court fine of $1500 and a $750 civil penalty from the DMV to have your license reinstated. 
• A 15-day jail sentence. 
• The impounding of your vehicle.

If the penalties are not enough to convince you to have your auto insurance in order, remind yourself that should you get into an accident without the proper insurance, every penny will come out of your pocket, leaving you with devastated finances and an uncertain future.

Does the state keep track of my auto insurance? 

Yes, New York does keep track of everyone’s auto insurance. Once you purchase your auto insurance coverage, your insurance provider must send your insurance information to the DMV, including when your insurance coverage expires. The DMV will enter your information into the Insurance Information and Enforcement System (IIES) and keep track of your vehicle and insurance coverage. If your insurance policy is flagged for non-compliance, then they will issue a warning to renew your insurance or risk possible fines and suspensions. 

Conclusion

There are a lot of things that can go wrong when you drive without a license in New York: exorbitant fines, suspensions of license and registration, and even jail time. In a highly congested city where accidents happen on a daily basis, it’s simply a risk not worth taking.

If you’ve been involved in a car accident, the law allows you to claim compensation for your losses, and you will need the best car accident lawyers in NYC to protect your rights and secure the compensation you deserve. If you’re on the lookout for the best of the best, you will find what you are looking for at Alex Yadgarov & Associates. Schedule a free consultation and tell us your story, and we will do everything in our power to see that justice prevails.