New York Spousal Liability Coverage: A Guide for Drivers

If you are a driver in New York State, you may have noticed a new coverage on your auto insurance policy called supplemental spousal liability coverage.

New York Spousal Liability Coverage This coverage, which became mandatory for all policies issued or renewed after August 1, 2023, provides protection for you or your spouse if one of you is injured in a car accident caused by the other.

In this article, we will explain what this coverage is, how it works, how much it costs, and how you can opt out of it if you don’t want it.

What is supplemental spousal liability coverage?

Supplemental spousal liability coverage is a type of insurance protection that extends your bodily injury liability coverage to your spouse if they are injured in a car accident where you are found responsible.

Without this coverage, your insurance company could deny paying for your spouse’s medical expenses.

This could leave you and your spouse financially vulnerable and potentially facing a lawsuit from your spouse or their lawyer.

Supplemental spousal liability coverage is not a new concept.

However, in 2022, the New York State Legislature passed a bill that changed the way this coverage is offered.

Now, insurance companies are required to add this coverage to every policy automatically.

How does supplemental spousal liability overage work?

Supplemental spousal liability coverage works by allowing your spouse to sue you or your insurance company for bodily injury damages if they are injured in a car accident that you caused.

The coverage limit matches the limit of your regular bodily injury liability coverage, which is the minimum amount of insurance you are required to have by law.

In New York, the minimum bodily injury liability coverage is $25,000 per person and $50,000 per accident.

Your spouse suffers a broken arm and a concussion and has to go to the hospital. The total cost of their medical bills is $30,000.

If you have supplemental spousal liability coverage, your insurance company will pay for your spouse’s medical bills.

If you don’t have supplemental spousal liability coverage, your insurance company will not pay anything.

How much does supplemental spousal liability coverage cost?

The cost of supplemental spousal liability coverage varies depending on your insurance company.

Some insurance companies may include this coverage as part of a base package of coverages.

Other insurance companies may charge a separate fee for this coverage, which could range from $15 to $80 per year.

The best way to find out how much supplemental spousal liability coverage costs .

You can also compare quotes from different insurance companies online to see which one offers the best deal for you.

How can you opt out of supplemental spousal liability coverage?

If you don’t want it, you can opt out of it by sending a written notice.

The notice must be in a form approved by the Superintendent of Financial Services.

You can also ask your insurance agent or company for a copy of the form.

You can opt out of supplemental spousal liability coverage at any time.

If you opt out of the coverage, your insurance company will refund you the prorated amount of the premium you paid for the coverage.

Conclusion

It can help you avoid paying out of pocket for your spouse’s medical bills or other damages, or facing a lawsuit from your spouse or their lawyer.

You should weigh the pros and cons of this coverage and decide what is best for you and your spouse.

 

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