STATEN ISLAND, N.Y. — A new law could leave millions of New Yorkers paying more for their auto insurance policies.
As of Aug. 1, a new law in New York State requires auto insurers to automatically enroll all drivers in supplemental spousal liability insurance, even if they are unmarried and won’t ever use the coverage they’re now paying for.
New Yorkers can opt-out of the coverage, though they’ll need to do so in writing through a supplemental spousal liability insurance declination form, which is available online and should be provided by insurers prior to automatically enrolling a driver in the new coverage.
The cost of the new coverage will vary based on several factors, but will likely range from roughly $20 to $84 annually, according to the New York Times.
So what exactly is supplemental spousal liability insurance?
If a married couple is involved in a crash where one is significantly injured and the other is deemed to be at-fault, supplemental spousal liability insurance allows the injured spouse to sue their partner and seek payment from their insurance company.
“It sounds weird about suing your spouse but sometimes you almost have to do that to get access to additional liability,” David Kirst, AAA senior insurance specialist, told WKBW in Buffalo.
Auto insurers have been required to alert New York drivers of the availability of supplemental spousal liability insurance since 2003, though previously drivers would need to opt-in to the coverage.
Now, as of Aug. 1, insurers must automatically enroll all drivers in the coverage unless they explicitly opt-out in writing.
Some have been critical of the legislation for requiring automatic enrollment, arguing that unmarried New Yorkers may not even realize that they’re now paying for a coverage they’ll never use.
“They’re going to have spousal liability. They’re going to pay the extra premium and this isn’t the insurance companies mandating this, this is the state of New York. They’re going to have…
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