Basic Facts About New York Car Insurance

Auto insurance rules are specific to different states and their needs. New York is one of the peculiar cases. Before knowing more about New York car insurance rules, let's see why it is so different?

New York Traffic Facts

We all know that New York is the most populous city of USA, but a bigger truth is that the City Subway is the largest transit spot in the world! Half of the population prefers public transportation to their work places; still it takes 60-89 minutes on an average to reach their destination. The busiest time on road is between 8:00am and 8:29am, when 530,791 people leave for work daily. This is the reason why New York ranks among top 5 world cities with most expensive auto insurance.

New York Insurance Rules

Keeping this data in mind, New York car cover has been designed in a special way. Let us understand that first. It follows a 'no-fault system', which means that the company pays a certain amount of claim regardless of fault. There is some mandatory coverage too, known as 25/50/10 coverage. This is the minimum Bodily Injury Liability insurance of $25,000 per injured person and $50,000 for two or more persons along with a Property Damage Liability indemnity of $10,000 minimum. The New York car insurance law requires taking a minimum Personal Injury Protection (PIP) cover of $50,000, which is used to pay the medical bills in case of a claim.