New law causing confusion over car insurance costs

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As of August 1, state law will automatically enroll New Yorkers in additional coverage that you may not need.

“Everybody is now going to be automatically enrolled with the supplemental spousal liability coverage whether they’re married or not so it is causing some confusion and some concern with a lot of the insured,” explained David Kirst, senior insurance specialist with AAA. Kirst told Capitol Correspondent, Amal Tlaige, right now, if someone were to get in an accident with their spouse at fault they’d only have access to the personal injury protection. “Which will cover medical payments up to $50,000 if they just have the basic personal injury protection, but they are not gonna have access to any of the bodily injury liability limits.”

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While enrollment is automatic, Kirst said you can opt-out, “But they have to do it in writing. You are going to have a declination form that you will have to sign saying ‘I do not want this coverage’ otherwise it’s just being added to the policy.” That declination form can be found at dfs.ny.gov or you can get it directly through your provider.