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A new state law requires all auto insurance policies in New York to include supplemental spousal liability coverage as of August 1, 2023.
The additional insurance provides coverage for a person who is injured or killed in a motor vehicle accident caused by the negligence of the person’s spouse. According Lawley Insurance, the law does not differentiate between married and unmarried drivers, so it is up to drivers to opt-out of the newly added coverage, which costs roughly $20 to $84 annually. Insurers are obligated to send all policy-holders notice regarding the newly added coverage upon issuance, renewal, or amendment of a policy which would include any change in premium.
Previously, the state’s insurance law required that this coverage be offered to all insureds, but policyholders had to make a written request to obtain the coverage.
According to the United Public Service Employees Union, the law was enacted to prevent policyholders from unknowingly waiving supplemental spousal liability coverage, which occurred routinely in the past.
The state legislature intended for the law to go into effect immediately after it was passed in January of this year, but the effective date was pushed back to give the state’s financial services department time to update its regulations and forms to comply with the new law.
The declination form on the state’s Department of Financial Services website can be found here: https://www.dfs.ny.gov/apps_and_licensing/property_insurers/supp_spousal_liability_insurance
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