car insurance in new York
Car Insurance in New York City
A lot has changed in New York City’s Insurance industry, specifically in terms in automobile insurance, due to the constant coverage in the news. During the 1970’s, the lawyers and politicians were the main people fighting for the insurance industry and the news was controlling the narrative. 1970 was just the beginning of a long battle. In this example, I am focusing on automobile insurance in New York and the internal as well as external factors affecting its repercussions.
The ROCKEFLER-STEWART PLAN
The announcement of The Rockefeller—Stewart Plan on February 16, 1970, caused quite a stir across New York because of a proposition focused on automobile accident reparations. The Plan was literally the culmination of a little over 5 months of work undertaken by the state’s insurance department under the supervision of governor. It is safe to say that the Governor’s Office did not expect the level of backlash that was received. The Office was tactically trying to disguise the damage that was incurred because of the automobile insurance and accident reparations systems and were looking to modernize the approaches which were taken, to ensure that the state’s motorizers and accident victims received better services.
The James D. Ghikardi is Professor of Law at Marquette University Law School, Member and President of the Wisconsin Bar, and Research Director of the Defense Research Institute. The John J. She is part of the Wisconsin Bar and currently serves as the Research Director of the Defense Research Institute.
The document is the Woodward & Fondiller Review and Summary Report for The New York Insurance Department, Automobile Insurance…For Whose Benefit? (12, 1970) [henceforth STEWART REPORT], which the New York State Insurance Department staff prepared. Accompanying legislation was also developed and submitted to the New York State Legislature as SB 8922. To investigate the law more closely, consult in Ghiardi & Kircher, Automobile Insurance The Rockefeller-Stewart Plan, 37 INS. Council J. 324 (1970)
Basic Provisions:
the proposed scheme suggests the elimination of tort liability for the damages of automobile accidents within New York. Instead, a new form of insurance scheme would be introduced which mandated that every vehicle owner maintain first party insurance which would pay benefits to all passengers injured while riding in, or being struck by, the insured vehicle. Payment for any damages done would still be granted even with the negligence of the vehicle claimant or operator. Likewise, no tort liability would be upheld for damage which was inflicted on motor vehicles. It would be mandatory for every vehicle owner to pay for the expenses incurred as a result of damaging his vehicle or obtain collision and comprehensive coverage.
The sole exception to the removal of tort liability would apply to cases involving the wrongful death of a person in an automobile crash. The insurance department and the Governor were unwilling to modify such actions, assuming the exemption of a tortfeasor would be unconstitutional.
Under The Plan’s Benefits,
**In consideration for giving up the right to complete compensation a negligent tortfeasor would owe, the victim of an accident would obtain the benefits* provided by the Rockefeller-Stewart Plan. The benefits include medical and hospital expenses, wage loss, and rehabilitation expenses, “not compensated from other sources.” The other sources referred to would include accident and health insurance, sicksocial insurance programs such as unemployment insurance, wage continuation benefits, union health and welfare benefits, and workers’ compensation. Although the report by the Insurance Department and the legislation that establishes the program does not provide a definition to the phrase, “sources funded, ‘from general public revenues,’” one can reasonably assume these would… Medicare, Medicaid, and other public welfare programs.
Aside from the fact that 1970 was an election year, the reasoning about why one individual preventing subsidized medical expenses under his personal accident and health policy, for instance, should not also be permitted to benefit under the Rockefeller-Stewart Plan, where as another individual could benefit under both Medicare and the plan, remains unanswered. It may be observed that the Rockefeller-Stewart Plan is simply excess automobile liability accident and health insurance.No benefits payments would be made until the claimant had exhausted every other available collateral benefit plan. It is worth mentioning that the insurance department’s own report indicated that 91 percent of the workers in New York possessed some form of health insurance, and that the majority also participated in income continuation plans.
Special Provisions .- In addition to the capitation based primary benefit and tort liability acceptance of the structured and sustained injuries coverage, the Rockefeller-S
FAQs:
1. Is auto insurance mandatory in New York?
Yes, New York law requires all drivers to carry minimum auto insurance coverage before registering and operating a vehicle.
2. What is the minimum required auto insurance coverage in New York?
Drivers must have at least $25,000 for bodily injury per person, $50,000 per accident, $10,000 for property damage, and $50,000 in no-fault coverage.
3. What is “no-fault” insurance in New York?
It’s coverage that pays for your medical expenses and lost wages after an accident, regardless of who caused it.
4. Do I need uninsured motorist coverage in New York?
Yes, it’s required and protects you if you’re hit by a driver without insurance or by a hit-and-run driver.
5. Can I drive without insurance if my car is parked?
No, in New York, registered vehicles must always have active insurance—even if not being driven.
6. What happens if I’m caught driving without insurance in New York?
You may face fines, license suspension, vehicle impoundment, and even jail time.
7. How are auto insurance rates calculated in New York?
Rates depend on factors like driving history, age, location, vehicle type, and coverage limits.
8. Does my New York auto insurance cover me in other states?
Yes, most policies extend coverage across the U.S. and Canada, but you should check your policy details.
9. Can I get auto insurance with a foreign driver’s license in New York?
Some insurers allow it, but you may need to switch to a New York license within a certain time frame.
10. Is there a grace period for renewing auto insurance in New York?
No, there’s no grace period—coverage must remain continuous to avoid penalties.
11. What is the penalty for a lapse in insurance coverage?
Penalties include daily fines, registration suspension, and possibly losing your license.
12. Do I need collision coverage in New York?
It’s optional but recommended if you want protection for damage to your own car after an accident.
13. What’s the average cost of auto insurance in New York?
It varies, but urban areas like New York City typically have higher rates than rural regions.
14. Can I lower my auto insurance premium in New York?
Yes, by maintaining a clean driving record, bundling policies, taking defensive driving courses, or increasing deductibles.
15. What is the New York Automobile Insurance Plan (NYAIP)?
It’s a program that helps high-risk drivers get the minimum required coverage when they can’t get it from regular insurers.
16. Do I need special insurance for rideshare driving in New York?
Yes, Uber, Lyft, and similar services require rideshare insurance coverage.
17. Can my insurance be canceled in New York for non-payment?
Yes, if you miss payments, your insurer can cancel the policy after proper notice.
18. Does New York require proof of insurance for vehicle registration?
Yes, you must show an insurance ID card when registering your vehicle.
19. Will my New York auto insurance cover rental cars?
Many policies do, but coverage varies—always check with your insurer before renting.
20. What should I do after an accident in New York?
Call 911 if needed, exchange insurance information, document the scene, and report it to your insurer promptly.