New York Auto Insurance Laws
Auto Insurance Laws and Trends in N.Y.
New York State has implemented the no-fault system of insurance. Under this system, all insurance companies involved in an accident will have to pay for any injuries sustained, up to a certain limit. If this limit is exceeded, an injured victim has the right to seek compensation from the responsible party.
Mandatory insurance coverage includes bodily injury, property damage, personal injury protection (PIP), and under/uninsured motorist coverage. Drivers can also opt to purchase physical damage coverage , such as collision and comprehensive.
Denial of auto insurance in New York
In some cases, an insurance company will deny auto insurance to an individual. This may be because the individual has too many traffic violations, DUIs, or he or she may drive a modified vehicle. If this occurs, drivers can seek a policy under the New York Insurance Plan. This is a specially-designed market for high risk drivers who do not meet the criteria or a regular insurance company's underwriters. This insurance is usually much higher as well.
Auto insurance fraud in New York
In the state of New York, insurance fraud is a very serious and prominent crime. One of the most fraudulent activities is falsifying insurance cards. Under the old laws, offenders were punished with less than 90 days in jail and a $500 fine. Thanks to Senator William Larkin, the Larkin Bill was passed 61-0, which enforces stricter laws to fight this crime. Now, offenders will receive up to three years in jail and a fine of $5000. As reported in the Mid-Hudson News on March 27, 2008:
"Auto insurance fraud is a serious problem in New York State," said Larkin. "It is important that all motorists have legal insurance coverage to protect themselves and to pay for any damages they may inflict on others in an accident. Increasing the criminal penalties for forging or even possessing a forged insurance card should help encourage people to abide by the law."