New York now requires that insurance companies provide motorists with supplemental spousal liability insurance coverage equal to bodily injury liability coverage, unless the insured specifically rejects such coverage in writing. In Short, your spouse now has supplemental spousal liability coverage under your policy.
This bill amends the insurance law to prevent insurance consumers unknowingly waiving supplemental spousal liability insurance coverage, which insurance companies routinely did in the past.
There was no coverage under a traditional auto insurance policy for a spouse injured or killed in an accident for which their spouse is liable, or the other driver has no or only a little insurance. This bill was signed to protect a spouse in these unfortunate situations from being left with an undue burden after a life-altering accident.
Drivers have the option to opt out of this coverage and would not be required to pay for this additional coverage if they don’t want to. Drivers should be cautious of this as Supplemental Spousal Liability is important as people often drive with their spouses in the car. For a relatively inexpensive addition to your policy, you can protect your loved ones. New York drivers will now be informed and have the power to choose if they want to be protected by the Supplemental Spousal Liability coverage.
The bill, which took effect on January 1, 2023, covers all policies issued, renewed, or modified on or after January 1, 2023. As such we commend New York State for forcing the insurance companies to provide this crucial coverage to New York State drivers.