No-fault is also paramount to health insurance, meaning you pay first in the event that the injury is due to a car accident. This means that drivers must have insurance that can pay for their own injuries, regardless of who is at fault in an accident. These procedures could result in you receiving a letter from the DMV asking you about the status of your insurance, even if your vehicle is currently insured. This type of insurance protects you from having to spend on damages or compensation when another person files a lawsuit for an injury or loss you had to suffer because of your negligence.
No-Fault is personal injury coverage and does not pay for your car body repair or damage to another party's motor vehicle or other personal property. This provides coverage in situations where your vehicle is responsible for causing damage to another person's property. The easiest way to comply with New York's financial responsibility law is to buy an auto insurance policy. This means that you must have car insurance coverage to protect yourself from losses after an accident.
While your auto liability insurance policy provides coverage for all passengers in your vehicle injured in an accident caused by the driver's negligence, it will most likely not provide liability coverage when the injured passenger is your spouse, unless you purchase a supplemental spouse Liability insurance. According to ValuePenguin, State Farm is the insurer that offers the cheapest rates for minimum car insurance coverage in New York. Because car insurance is mandatory in New York, not having a policy can lead to certain penalties and fines. If you are injured in an accident and suffer a large loss, the insurer will only compensate you for the value of your policy, while your losses can be much greater and this can leave you financially vulnerable.
If you are injured in a car accident or if your car is damaged due to someone else's negligence, you may be able to file a lawsuit against that other person's auto insurance policy for liability for bodily injury and property damage. If you have an accident with a driver who doesn't have insurance, this part of your policy will be activated to help you with costs. For those drivers who can't get car insurance in New York, there are alternative tests of financial responsibility they can get. Your New York State insurance identification cards and electronic insurance notice together verify your insurance coverage.