The personal auto policy itself (Parts A through F, insureds, covered autos and exclusions) is covered in the national Personal Auto Policy guide. New York is a no-fault state. Its auto rules come from the Vehicle and Traffic Law (VTL) for minimum limits and cancellation notices, Insurance Law Article 51 for No-Fault, Insurance Law 3420 for uninsured and supplementary motorists coverage, and section 3425 for personal lines cancellation and nonrenewal. This guide covers those rules.

Minimum liability: 25/50/10

• Coverage applies in New York and elsewhere in the United States and Canada.
• Proof of financial security can be an owner's policy, a bond, a deposit or self-insurance (VTL 311(3)).
• Driving or registering a vehicle without coverage can bring registration and license suspension and fines (VTL 318).
• Insurers report new policies to the DMV within 7 days and terminations within 30 days (VTL 313(2)).
• Transportation network company drivers: $1.25 million during a prearranged trip, and 75/150/25 while logged on but not on a trip (VTL 1693). The owner's personal policy may exclude TNC use (Ins. Law 5103(b)(4)).

No-Fault (Insurance Law Article 51)

No-Fault pays the injured person's economic losses regardless of fault (Ins. Law 5103).

Basic economic loss: $50,000 per person (Ins. Law 5102(a)):

• Medical expenses, without a time limit if within one year it's clear further expenses may be incurred.
• Lost earnings: 80% of earnings (the statute reduces them by 20%), up to $2,000 a month for three years.
• Other reasonable expenses up to $25 a day for one year.
• Basic economic loss is also reduced by workers' compensation, Social Security disability, disability benefits and certain Medicare benefits (5102(b)).

Also:

• A $2,000 death benefit to the estate (Ins. Law 5103(a)(4)).
• Optional Basic Economic Loss (OBEL) adds $25,000 (5102(a)(5)). Additional PIP raises benefits further.
• Insurers must offer No-Fault with no deductible, and may offer a family deductible of up to $200 (5103(c)).
• Motorcycles aren't "motor vehicles" for No-Fault, and motorcycle occupants aren't covered by mandatory first-party benefits (5102(f), 5103(a)).
• Benefits may be excluded for injuries while committing a felony, racing, driving intoxicated, operating a vehicle known to be stolen, or using one's own uninsured car (5103(b)).

Claim deadlines (Regulation 68, 11 NYCRR 65-1.1): written notice of claim within 30 days of the accident; medical bills within 45 days of service; lost earnings and other expenses within 90 days.

Serious injury threshold. No-Fault limits lawsuits for pain and suffering to cases of serious injury: death, dismemberment, significant disfigurement, a fracture, loss of a fetus, and listed permanent or significant limitations (Ins. Law 5102(d), 5104). An at-fault plaintiff who was driving their own uninsured vehicle, or was convicted of impaired driving or a felony, can recover no more than $100,000 in noneconomic damages (5104(d)).

Uninsured and supplementary motorists

• Mandatory UM: every auto liability policy includes UM at 25/50 (50/100 for death), for bodily injury only (Ins. Law 3420(f)(1)). A hit-and-run claim requires physical contact with the insured or the occupied vehicle (3420(f)(3)).
• SUM (supplementary uninsured/underinsured motorists): on new policies, SUM equals the bodily injury liability limits unless the first named insured signs a waiver choosing lower limits or declining. The waiver carries over to renewals and binds all insureds (Ins. Law 3420(f)(2-a)).
• SUM applies when the other driver's liability limits are less than the insured's own bodily injury limits. It's reduced by whatever the at-fault driver's insurer pays, and SUM limits can't exceed the insured's liability limits (Ins. Law 3420(f)(2); Regulation 35-D, 11 NYCRR 60-2.1). All other liability coverage must be exhausted first.
• Supplementary spousal liability (SSL): a liability policy doesn't cover injury to the insured's spouse unless SSL is included. SSL is included when a spouse is listed, unless declined in writing (Ins. Law 3420(g)).
• MVAIC (Motor Vehicle Accident Indemnification Corporation, Article 52) pays qualified New York residents hurt by uninsured or unidentified drivers who aren't covered by a UM policy. They report to police within 24 hours where possible and file an affidavit of intention to claim within 90 days (Ins. Law 5208).

Residual market: NYAIP

The New York Automobile Insurance Plan (Insurance Law Article 53) is the assigned risk plan. Every auto insurer in New York participates. It offers liability up to 50/100/10, physical damage up to $10,000 actual cash value with at least a $100 deductible, and twice the basic No-Fault benefits. Decisions can be appealed to the Superintendent (Ins. Law 5303, 5304).

Cancellation and nonrenewal

• Policy period: the required policy period for auto is one year (Ins. Law 3425(a)(8)).
• First 60 days: a cancellation notice must state the specific reason (3425(b)).
• After 60 days: cancellation only for nonpayment, suspension or revocation of a driver's license, or fraud or material misrepresentation (3425(c)(1)).
• Notice: at least 20 days, or 15 days for nonpayment (VTL 313(1)(a)). Payment within 15 days after a nonpayment notice is mailed is timely (3425(a)(10)).
• Nonrenewal or conditional renewal: 45 to 60 days before expiration (3425(d)(1)).
• Nonrenewal cap: auto nonrenewals and conditional renewals are limited to 2% of policies in each rating territory, plus an allowance for new voluntary business (3425(f)).
• A copy of every notice goes to the agent or broker within 7 days (3425(h)(3)).

Physical damage and claims

• Photo inspection is required before physical damage coverage is issued. It can be deferred 14 days, after which coverage is suspended if the car isn't inspected. New cars from a dealer and cars at least seven model years old may be exempt (Regulation 79, 11 NYCRR 67).
• An insurer can't require repairs at a particular shop, or recommend one unless asked, and the estimate must say so in 12-point type (Ins. Law 2610).
• Within 60 days of a claimant's written request, the insurer confirms whether a policy was in force and its limits (Ins. Law 3420(d)(1)).

Common exam traps

• 25/50/10, with 50/100 for death.
• No-Fault: $50,000 basic; 80% of wages up to $2,000 a month for 3 years; $25 a day for other expenses; $2,000 death benefit.
• Serious injury is the threshold for pain-and-suffering suits.
• SUM equals bodily injury limits unless waived in writing, and it's offset by the other driver's payment.
• Spousal liability is included when a spouse is listed, unless declined.
• Auto notice: 20 days, 15 for nonpayment. Nonrenewal 45 to 60 days.