In New York, it used to be that you had to “opt-in” with most carriers to be covered for spousal liability – that which required the insurance company to cover a spouse for “pain and suffering” if their spouse causes (or partially causes) a motor vehicle accident where they are a passenger.
The law changed in 2023, as many people did not know what spousal liability coverage was. Now, the insured must “opt-out” at renewal or at the issue of a new policy and must sign a form opting out.
An attorney came to hire me for a trip and fall case for his father, and he mentioned casually that his parents had been in a serious car accident months ago. I asked about the car accident, and is father had hit a tree, and his mother was the front seat passenger. Their car insurance carrier said there was no coverage as his parents did not elect spousal coverage and that the mom only had no fault available to pay for her medical treatment.
I took on the case. I actually had to provide the insurance company with the text of the new statute (shocking!), and I asked them to provide the spousal refusal.
Guess what – no refusal.
The carrier admitted their error and will underwrite and bind coverage for the spousal liability. The coverage under the policy of the parents is $75,000 which surely would have been left behind.
You don’t know what you don’t know – that’s why you should call us. Reach out at 631-894-4730.