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Before driving in New York be sure your car insurance provider
participates in New York�s no-fault program. When it comes to car
insurance, New York is a no-fault auto insurance policy state. This means
that New York State no-fault car insurance rules apply to all in-state
drivers but may not apply to all out-of-state drivers who get in an
accident in New York. There are a few things you might need to know about
New York�s no-fault auto insurance policies before purchasing your
insurance in or out-of-state.
Most commonly known as
25/50/10 coverage, New York State�s insurance law mandates all motorists
to carry a minimum amount of property liability insurance, $10,000;
$25,000 for bodily injury to one person, $50,000 for bodily injury to all
people, and property damage. According to the �no-fault� policy, a
mandatory additional coverage of $50,000 applies for all New Yorkers. This
is because no-fault entails coverage for damages done to all vehicles and
the medical costs for all parties involved in the accident.
New York�s no-fault
insurance program offers convenient payment for expenses, such as medical
care for treatment of injuries and it safeguards against lawsuits for pain
and suffering in cases that do not involve serious injuries. All insurance
companies licensed to sell auto insurance within New York are required to
partake in the no-fault insurance program, which means they are
automatically required to cover the medical bills of their customers. This
prevents many conflicts for New York drivers.
In cases in which a
non-New York resident has been in an accident in New York, the no-fault
insurance policy only applies to the out-of-stater if he has auto
insurance through a national insurer who sells auto insurance policies in
New York or another insurer who participates in New York�s no fault car
insurance program. In these cases even if the out-of-state motorist�s
policy does not include a no-fault provision, the insurer is still
required to cover the cost of any expenses or medical bills resulting from
an accident in New York. Regulation 68, as noted in the 2007 Consumer
Guide to Auto Insurance, states that No-Fault Benefits-Personal Injury
Protection (PIP), under the coverage of the insurer, covers the driver and
passengers for the costs of all damages resulting from an accident.
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