Drivers in New York will be automatically upgraded to more expensive auto insurance
Drivers across New York automatically receive enhanced and more expensive auto insurance due to a state law that went into effect on August 1st. The Syracuse edition told in more detail.
The new law automatically enrolls statewide drivers in optional spousal liability insurance. Depending on when your auto policy is renewed next year, your insurance company will either notify you of the change or simply add coverage.
Additional coverage will cost between $20 and $84 per year. New coverage is paid out in some specific situations.
If spouses were involved in an accident and one of them was driving and the other was injured, the injured spouse generally cannot sue the other to recover money from that spouse’s insurance policy.
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Additional spousal liability coverage changes the rules. If this addition is in effect, the injured spouse can sue and claim damages from the insurance company of the spouse who was driving.
But a new state law requires insurance companies to add all drivers in the state to supplemental spousal coverage, even if they’re not married.
About half of New York City drivers will not benefit from additional coverage because they are not married. Insurance companies warned Governor Kathy Hokul about this in 2022, but Hokul signed the bill into law in December without pushing for changes to narrow insurance coverage requirements.
New Yorkers can opt out of coverage. You will need to contact your insurance company and fill out a form. You can do it online.
State Senate Insurance Committee Chairman Senator Neil Breslin said he is open to change and doesn’t want people to pay for coverage that won’t give them any benefits.
Batavia State Assemblyman Steve Hawley, a realtor and insurance broker, said the law was not well thought out.
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