What’s this Spousal Liability Coverage all about?
New York has a new law that requires auto insurers to provide supplemental spousal liability insurance coverage equal to bodily liability coverage, unless the insured specifically rejects such coverage in writing. This law went into effect on August 1st, 2023.
Supplemental spousal liability insurance coverage is designed to provide financial security for you or your spouse in the event of a car accident where you or your spouse are at fault. In simpler terms, it means that if your spouse is a passenger in an accident that was your fault (as the driver) and is injured, then they would be able to sue and collect pain and suffering compensation from your own auto insurance policy. Supplemental spousal liability coverage pays for your legal defense along with any damages you may owe as the responsible party, up to the limit on the policy. The coverage limit matches the coverage limit of your regular bodily injury liability coverage.
This coverage is being added to all New York auto insurance policies regardless of your specific marital status.
Some carriers are charging for the coverage and others are not. If your carrier is charging for the coverage and you want it removed, married or not, you have to sign a declination form. If there is no premium charge, there is no way to opt out.
If you have any further questions about this topic, please don’t hesitate to contact us.