Last Updated on December 14, 2025

The New York Automobile Insurance Plan (NYAIP) is New York’s “assigned risk” auto insurance program for high-risk drivers who can’t get the coverage they need in the regular (voluntary) market.

The program is established under New York law and administered with support from AIPSO. Instead of choosing a carrier yourself, you apply through a certified agent or broker and the plan assigns your policy to a participating insurance company.

NYAIP coverage is usually more expensive than standard policies—because it’s designed as a last-resort option. But for drivers who’ve been declined elsewhere, it may be the only way to stay insured and drive legally.

Below is a clear breakdown of how the New York Automobile Insurance Plan works, what it covers, who qualifies, and how to apply.

Key Takeaways

• The NYAIP is New York’s assigned-risk “Auto Plan” for drivers who can’t obtain required coverage in the voluntary market.
• You typically apply through a certified New York agent/broker, and the plan assigns your policy to a participating insurer—you don’t choose the carrier.
• Auto Plan premiums are generally higher than standard policies, but they’re based on plan rules (so pricing should be consistent across assigned insurers).
• The best long-term strategy is to keep continuous coverage and improve your driving record so you can move back to the voluntary market for lower rates.

About the New York Automobile Insurance Plan

The NYAIP is New York’s assigned risk car insurance program. It exists to make sure drivers who can’t find coverage in the voluntary market can still purchase required auto insurance.

Here’s the key idea: all insurers that write auto insurance in New York must participate in the plan. When you’re accepted into the NYAIP, the plan assigns your policy to a carrier (you don’t pick the carrier), and that carrier must issue the policy under plan rules.

How the NYAIP Works

NYAIP applications are submitted by certified agents and brokers (often called “producers”). Your producer submits your application to the plan, and the plan assigns your policy to an insurer that participates in New York.

Important: Auto Plan premiums are based on the plan’s rating rules—so the price should be consistent no matter which participating insurer you’re assigned to and no matter which producer submits your application. If someone quotes you a suspiciously low “Auto Plan” premium, ask questions and make sure you’re getting an accurate quote.

You may recognize many insurers that participate in New York’s market, including GEICO, Progressive, and State Farm. However, NYAIP can assign you to a variety of carriers—not just the biggest names.

Advantages (and Downsides) of the NYAIP

The NYAIP is designed for drivers who can’t get insured through the voluntary market. If insurers have rejected your application or you can’t find a policy that meets New York requirements, the plan is the backstop that helps you stay legally insured.

• Pro: You can get the coverages you need to drive legally.
• Pro: The assigned insurer must write the policy under plan rules.
• Con: Premiums are typically higher than the voluntary market.
• Con: You generally can’t shop NYAIP carriers against each other for a lower plan price.

NYAIP Coverage Options

The New York Automobile Insurance Plan can provide the coverages drivers need to meet New York requirements—plus several optional coverages.

At a minimum, NYAIP can provide New York’s required liability coverages, including bodily injury liability and property damage liability, along with required no-fault coverage (PIP) in this no-fault state, and uninsured motorist coverage.

NYAIP also allows many drivers to purchase:

• Higher liability limits (beyond the state minimums)
• Optional Basic Economic Loss (OBEL) coverage (commonly used for lost wages and other economic losses beyond basic no-fault)
• Additional PIP (higher no-fault limits)
• Optional physical damage coverage (collision and comprehensive) and deductible choices (availability and limits depend on plan rules and vehicle type)
• Rental reimbursement (Auto Plan policies commonly include mandatory rental car coverage under plan rules)

Coverage options and limits can vary by vehicle type and plan rules. A producer can walk you through what’s available for your specific situation and what you’ll pay for each option.

How Much Does NYAIP Car Insurance Cost?

NYAIP premiums are generally higher than what you’d pay in the voluntary market because the plan pools drivers who insurers have historically considered higher risk.

Just like regular auto insurance, your NYAIP premium depends on multiple factors, including:

• Driving record (tickets, accidents, suspensions, lapses)
• Where you live and where the car is garaged (ZIP code/territory)
• Age and driving experience
• Vehicle type and usage
• Coverage limits and deductibles you choose

Because rates are based on plan rules, most of your “savings” come from choosing the right coverage limits/deductibles and then improving your risk profile so you can move back into the voluntary market.

NYAIP Payment Plans

NYAIP policies commonly offer installment options under plan rules. Exact availability can vary, but these are the typical structures you’ll see:

Six Payment Plan: Usually requires a 25% down payment on the policy effective date, followed by five installments (often 15% each) according to a schedule set by plan rules. Some plans require a minimum premium to qualify, and service fees may apply.

Two Payment Plan: Usually requires 25% down on the policy effective date, with the remaining balance due about a month later (plus any applicable fees).

If you’re worried about making payments, ask your producer what installment choices are available for your policy type and whether paying in full would reduce fees.

Who Is Eligible for the NYAIP?

The NYAIP is not for everyone—you generally must show that you tried and failed to obtain coverage in New York’s voluntary market.

In practice, that usually means you (as the applicant) must certify that within the last 60 days you were unable to obtain the coverage you need in New York at a price not exceeding the Auto Plan’s rates.

Drivers who end up in the plan often have multiple violations, accidents, suspensions, a lapse in coverage, are newly licensed, or have other underwriting factors that make them hard to place—at least temporarily.

How to Save Money While You’re in the NYAIP

You can’t “shop” the Auto Plan the way you can the voluntary market, but you can still control costs and position yourself for better rates later:

• Keep checking the voluntary market: Even if you qualify for NYAIP today, you might find a standard or nonstandard insurer willing to take you later—especially as tickets and accidents age.
• Choose limits and deductibles carefully: Higher deductibles (when available) can lower premiums, but only pick a deductible you could actually afford after a loss.
• Keep your record clean: Avoid new tickets and at-fault crashes. Plan rules may offer discounts for “careful drivers,” and a clean year helps you look better to voluntary insurers.
• Reduce optional coverages if appropriate: If you’re carrying more than you need, lowering limits can reduce cost. Just be careful—minimum limits are often not enough to protect your assets after a serious crash.
• Wait (if you can): If you don’t need to drive immediately, sometimes waiting 6–12 months allows you to re-enter the voluntary market as your record improves.

In the voluntary market, you can shop around to save money on car insurance. In the Auto Plan, the big “win” is using it as a bridge—staying insured while you work your way back to better voluntary rates.

How to Buy NYAIP Car Insurance

Most drivers buy NYAIP coverage through a certified New York agent or broker (producer). If your current agent can’t help, you can contact the plan directly to get help locating a certified producer.

Online: New York Automobile Insurance Plan (NYAIP) – AIPSO

Phone: (212) 943-5100

Related insurer reviews and comparisons

If you’re comparing options (or you’re assigned to a carrier you’re unfamiliar with), these reviews can help you understand common insurers that New York drivers shop:

• Allstate
• Liberty Mutual
• Travelers
• USAA
• NYCM Insurance
• National General
• Nationwide
• MetLife
• The Hartford

FAQs on the New York Automobile Insurance Plan

Final Word on the NYAIP

The New York Automobile Insurance Plan exists so drivers who can’t get coverage elsewhere can still meet New York’s insurance requirements and stay on the road legally.

If you’ve been unable to find coverage in the voluntary market within the last 60 days, talk to a certified producer about applying for the NYAIP. Then, focus on maintaining continuous coverage and improving your driving record so you can qualify for better rates outside the plan as soon as possible.