Before you drive your car on the roads of New York, you must know a few compulsory car insurance requirements as per the State law of New York.

The first thing to know is New York State follows a �No-Fault� system. Under this system, your insurance company will pay for the damages and injuries up to a certain limit, regardless of the person in question for the accident. Also, in States that follow no-fault system, you lose the right to sue someone. Specific details of a no-fault system vary from State to State.

The state law of New York requires the car drivers to carry a minimum bodily injury liability of $25,000 per injured person and a total of $50,000 for all injuries per accident.
The coverage of bodily injury includes medical, rehabilitation, psychiatric, and healing expenses, as well as compensation for work loss of up to $2,000 per month for a period of not more than three years.

The minimum limit of property damage liability is set at $10,000 per accident.

It is also mandatory to carry uninsured and underinsured motorist coverage under the law of New York. The minimum liability limit for uninsured and underinsured motorist coverage are the same as that of regular liability coverage ($25,000/$50,000). This coverage pays for injuries and damages when the accident caused is due to the fault of the other driver who is either uninsured or underinsured.

You are also required to carry Personal Injury Protection (PIP) to pay for necessary medical expenses for you and your passengers. The minimum PIP coverage is $50,000.

This basic liability coverage plan is often referred to as 25/50/10 coverage with 25/50 UM limits.

Car owners can also opt for Additional Basic Economic Loss coverage. This coverage includes an additional $25,000 to be paid for work loss and rehabilitation expenses once the $50,000 economic loss coverage is exhausted.

Further information on New York auto insurance policies can be obtained from the New York State Insurance Department at any one of their seven locations by calling 1-800-342-3736 or by visiting their website athttp://www.dfs.ny.gov.

If you fail to maintain the compulsory level of liability insurance as per the State law of New York, you are required to surrender your driver's license until you are able to provide proof of coverage.

The average car insurance premium rate for New York residents in 2009 is $2,432. This is way above the national average of $1,794.