WATERTOWN, New York (WWNY) – There’s a change in how car insurance is issued in New York state. You should listen up or else you might end up paying for something you won’t even use.
Spousal liability insurance. Folks have been able to opt in since 2002.
But now a state policy change has made it the default whether you are married or single, meaning you have to opt out.
If you don’t, it could cost you more. What exactly is it?
“We’re talking about something that’s been around for 20 years. Essentially, it’s a bodily injury coverage if one spouse is negligent in an auto accident and responsible for the death and injury of another spouse,” said Adam Fuller, principal, Fuller Insurance Agency.
But why would you want to sue your spouse? AAA tells us the practice is pretty rare since married couples tend to share assets but it does have some niche applications.
“Maybe it’s a second marriage or third marriage or folks that have substantial funds in their name and not their spouse’s,” said Andrew Ellis, AAA branch insurance agent.
How much it’ll cost someone depends on the plan they have. Some have begun including it for free. That being said, opting out is always an option.
“You can get out. It’s not going to be a lot of money. If you’re married, it honestly might not be the worst thing for you to have that coverage,” said Ellis.
If you do want opt out, we’re told the process is pretty simple. Ellis and Fuller say it’s best to talk with your insurance agent.
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Based in New York, Stephen Freeman is a Senior Editor at Trending Insurance News. Previously he has worked for Forbes and The Huffington Post. Steven is a graduate of Risk Management at the University of New York.