New York No Fault Auto Insurance: Important Facts About Coverage

New York State is one of 12 U.S. states with no-fault car insurance. Other states with this system include: Florida, Hawaii, Kansas, Kentucky, Massachusetts, Michigan, Minnesota, New Jersey, North Dakota, Pennsylvania and Utah. “No-Fault” car insurance means that you are fully covered by YOUR insurance company, no matter who is at-fault for the accident.

What Is No Fault Car Insurance?

The benefit of no-fault car insurance in New York State is that the insurance company you choose will cover your injuries and repairs. You can choose as much coverage as you want — or the bare minimum required by law (which is $25,000/$50,000/$10,000.) Proponents of the no-fault car insurance system say that it keeps premiums low, eliminates waiting and eliminates unnecessary litigation. You won’t have to sue the other party for being underinsured or uninsured because your insurance provider has you covered and the other person’s insurance provider has him or her covered as well.

What Is The Tort System For Car Insurance?

Other states operate based on a tort system. The insurance company assigns blame and the guilty party must pay for all losses and damages he or she caused. It is believed that tort systems prevent fraud and discourage people to drive uninsured or under-insured since at-fault accidents are so expensive. People who cause accidents not only have to pay for the other car’s losses, but for their own as well.

The Bottom Line:

New York state is not known as a “cheap” state to buy car insurance. However, you can save big bucks by shopping around for free quotes online!