Spousal Liability for NY Drivers

Effective August 1, 2023, New York Insurance Law requires insurance companies to provide supplemental spousal liability insurance, unless the named insured elects to decline and refuse such insurance in the insured’s policy.  What is interesting to note is that this coverage actually began over two decades ago (the year 2002) as an option (very rarely used) but it really has not been brought to light until this new law requiring insurance companies to automotically add it to every policy.

Here's what this means:   A spouse who is a passenger in a car can now sue their other spouse if they are injured as the result of an auto accident. 

Many insurance carriers (Erie Insurance and Progressive) have chosen to add this coverage at no additional charge to their clients.  Other companies will begin to place a charge on this but you can choose to opt out if you wish.

What happens if you are not married?  Well, for many the coverage will remain on your policy at no additional cost.  If you ever get married in the future the coverage could apply. 

All in all,  I believe that the media may have blown this issue out of proportion.  They portrayed it as insurance companies coercing people to have coveage they might not actually want to need.  In reality, it's a good coverage to have at no or very minimal cost. 

Please contact us if you ever want to discuss in more detail.