New York Commercial Auto Insurance Requirements

New York requires commercial auto insurance with minimum liability limits of $25,000 per person, $50,000 per accident and $10,000 in property damage. Coverage minimums vary by vehicle weight, passenger capacity, cargo and services offered.

Learn more about the commercial auto insurance coverage you need for your business in New York, special circumstances, exemptions and penalties below.

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# New York Commercial Auto Insurance Requirements

Written by Blest Papio

Updated: March 12, 2026

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What Commercial Auto Insurance Is Required in New York?

New York's commercial auto insurance requirements under VTL Article 6 are as follows for most companies:

$25,000 for bodily injury or death of one person per accident
$50,000 for bodily injury or death of two or more people per accident
$10,000 for property damage per accident

Though this represents the base VTL Article 6 requirement for vehicles that don't offer specialized services, and coverage minimums vary by vehicle weight, passenger capacity (for-hire), cargo (non-for-hire) and service structure.

New York doesn't set state-level weight tiers for intrastate non-hazmat cargo, so vehicles staying within New York follow the base 25/50/10 regardless of size. If you transport cargo across state lines or as part of an interstate shipment, federal regulations apply instead.


Under 10,001 lbs	$300,000 CSL	Interstate for-hire carriers, cargo vans and sprinters
10,001–26,000 lbs	$750,000 CSL	Interstate general freight, box trucks and delivery vehicles
26,001+ lbs	$750,000 CSL	Interstate heavy-duty trucks, tractor-trailers and tankers

Weight bands apply to your GVWR (gross vehicle weight rating), the manufacturer's maximum allowable weight, not actual curb weight. Find your GVWR here:

On your vehicle: Driver-side door jamb, door edge or pillar. It can also be listed as GAWR (axle ratings).
Owner's manual: Under specifications, vehicle identification or weight information.
Manufacturer website: Search by vehicle model for specs on the automaker's site.

New York sets progressively higher minimums for vehicles carrying passengers for a fee. Businesses moving employees without charging fares follow the base 25/50/10.


1–7 passengers	100/300/50	For-hire livery, black car and taxi
8–15 passengers	100/500/50	Shuttles, commuter vans and small buses
16+ passengers	$5,000,000 CSL	Charter buses, tour buses and large shuttles

The NYC Taxi and Limousine Commission (TLC) sets its own higher requirements for five-borough vehicles: $100,000/$300,000 for livery, $1.5 million for eight to 15 passengers, $5 million for 16-plus, $200,000 PIP on all TLC vehicles and $500,000/$1 million for luxury limousines.

Rideshare and on-demand passenger services have specialized requirements under New York's TNC Act (VTL Article 44-B), effective June 29, 2017. These apply to app-based platforms like Uber and Lyft, not to traditional taxi or livery drivers covered under separate for-hire rules.


App on, waiting for request (Period 1)	TNC group policy or driver	75/150/25 liability + UM + no-fault PIP
Ride accepted through trip end (Period 2)	TNC group policy	$1,250,000 liability + $1,250,000 SUM + no-fault PIP

Most personal auto policies in New York include a livery exclusion that voids coverage for passenger-for-hire use. A rideshare driver without TNC-compliant insurance may have no coverage at all during Period 1.

Hazardous materials insurance in New York follows federal FMCSA rules under 49 CFR Part 171. Intrastate non-hazmat carriers follow the base 25/50/10, while interstate carriers follow federal weight-based minimums.


High-risk hazmat	$5,000,000 CSL	Tanks exceeding 3,500 water gallons, Class A or B explosives, poison gas, radioactive materials
Standard hazmat	$1,000,000 CSL	Flammable liquids, corrosives, oxidizers and most other hazard classes
Oil transport	$1,000,000 CSL	Crude oil, fuel oil, lubricants and other petroleum products
Non-hazmat (interstate)	$750,000 CSL	General freight, household goods, refrigerated loads for vehicles 10,001+ lbs GVWR
Non-hazmat (intrastate only)	25/50/10	General freight carried within New York under state jurisdiction

The $5 million high-risk hazmat requirement under FMCSA rules applies regardless of vehicle size, so confirm your cargo's hazard class before defaulting to base minimums.

WHEN DOES FEDERAL LAW APPLY OVER NEW YORK LAW?

Federal FMCSA insurance filing requirements take priority over New York's state rules when your vehicles carry cargo or passengers across state lines, or handle any leg of an interstate shipment, even if your trucks never leave New York. Vehicles used only for local New York business operations follow the state's 25/50/10 base regardless of vehicle size.

New York Commercial Auto Insurance Requirement Exemptions

Below are the main exemptions from New York commercial auto insurance requirements under VTL Article 6 and what applies instead. New York's no-fault system under Insurance Law Article 51 still requires PIP on all registered vehicles, even those otherwise exempt.


Vehicle used only for personal (non-business) purposes	Personal auto insurance rules under VTL Article 6
Farm or agricultural vehicle not operated on public roads	May not require liability coverage under road-use laws; PIP may still apply if registered
Off-road equipment (construction vehicles, ATVs) not driven on highways	Not subject to on-road insurance mandates
Government vehicles covered under authorized self-insurance programs	Government self-insurance statutes
Vehicle not registered for road use (yard-only, private property use)	No road-use liability requirement

New York Commercial Auto Insurance Alternatives

New York allows three alternatives to standard commercial auto insurance under VTL Article 6, Section 316 and Section 312.

Surety bond: Filed per vehicle with the New York DMV, matching the state's minimum liability limits (25/50/10 for standard vehicles, $300,000 CSL for tow trucks). Must be issued by a surety company authorized in New York.
Self-insurance: New York grants certificates to businesses that file with the Commissioner of Motor Vehicles under VTL Section 316 and prove sufficient assets to cover claims. Most common among large fleets and government entities.
Cash deposit: Securities deposited with the Commissioner under VTL Section 312, at least $25,000 for a standard vehicle. This option ties up capital and is rarely used by commercial operators.

Special New York Commercial Auto Insurance Coverage Circumstances

Three situations require additional commercial auto insurance in New York beyond the base 25/50/10.

Leased commercial vehicles

Lessors either add you to their policy or require New York-compliant coverage. Gap insurance covers the difference between actual cash value (ACV) and remaining lease balance.

Canada border commerce

Standard New York commercial auto policies may not cover incidents in Canada, and Ontario requires $200,000 CAD in minimum liability. Check the U.S. Department of State Canada travel advisory and verify cross-border terms before trips through the Peace Bridge, Lewiston-Queenston or Champlain crossings.

Tow trucks

VTL Article 6 requires tow trucks to carry $300,000 CSL plus $25,000 on-hook coverage. NYC Department of Consumer and Worker Protection accepts $1 million CSL as an alternative.

New York Commercial Auto Insurance Enforcement and Penalties

New York verifies commercial vehicle insurance through an electronic system connecting insurers to the DMV. Coverage lapses trigger automatic suspension notices.


First lapse in coverage	Up to $1,500	Registration suspended after DMV notice	$8 per day civil penalty for each day uninsured + filing fee
Operating without insurance	$150–$1,500	Up to one year	Proof of insurance + filing fee + civil penalties
Registration fraud (false insurance filing)	Up to $1,500	Revocation possible	Full re-application required

New York requires an SR-22 certificate for reinstatement after an insurance-related suspension, kept for three years. Under Insurance Law Section 5104, uninsured vehicle owners can't collect no-fault benefits and may be barred from suing for non-economic damages.

How to Verify Your Business Meets New York Commercial Auto Insurance Requirements

Use these steps to confirm your vehicles meet New York and, if applicable, federal commercial auto insurance rules.

1
Identify how each vehicle is used
Determine whether each vehicle transports passengers, hauls goods, tows vehicles or operates only locally. Insurance requirements under VTL Article 6 depend on vehicle use, not just business type.
2
Check each vehicle's weight rating
Find the GVWR on the driver-side door label. Vehicles at 10,001 lbs or more crossing state lines fall under federal FMCSA rules, which set higher liability floors than New York's base 25/50/10.
3
Determine whether state or federal rules apply
Vehicles staying within New York and not part of any interstate shipment follow state minimums. Vehicles involved in interstate freight or passenger transportation fall under federal motor carrier insurance minimums instead.
4
Confirm your liability limits meet the correct requirement
Standard New York business vehicles need 25/50/10, passenger-for-hire need 100/300/50 to $5 million, tow trucks need $300,000 CSL and interstate freight needs at least $750,000 CSL.
5
Verify your policy reflects actual vehicle use
Make sure your insurer classifies each vehicle correctly on your New York policy so coverage isn't denied due to improper use categories.
6
Maintain continuous coverage
Avoid coverage lapses and update your insurer when vehicles are added, removed or used differently. Changes in use can change New York insurance requirements.

New York Commercial Auto Insurance Requirements: Bottom Line

New York commercial auto insurance requirements depend on how your vehicles are used, how much they weigh and whether your operations are local or connected to interstate transportation or Canada. Identify each vehicle's category, then confirm your policy limits match the requirement that applies.

New York Commercial Auto Insurance Requirements: Next Steps

Now that you know what New York law requires for your vehicles, the next step is determining how much coverage your business needs beyond legal minimums.

If your goal is just legal compliance only

Confirm your liability limits meet New York or federal minimums and make sure your insurer classifies vehicles correctly when you get commercial auto insurance coverage.

If your vehicles are valuable or highly visible

New York's $10,000 property damage minimum barely covers a fender bender in Manhattan. Increase limits if your fleet operates in the city or carries visible branding.

If you transport passengers

Passenger injuries increase exposure quickly, and many contracts require higher coverage than state minimums.

If you haul goods or equipment

Match coverage to the potential loss value. Liability minimums may not cover damage from larger vehicles on routes like the Cross Bronx Expressway or I-87.

If your business signs contracts

Check insurance clauses in client agreements and platform contracts. New York shippers routinely require $1 million in liability and $100,000 in cargo coverage.

If your business operates near the Canadian border

Ontario requires $200,000 CAD in minimum liability, and your standard New York policy may exclude Canadian incidents.

About Blest Papio

Blest Papio is a Content Producer at MoneyGeek specializing in small business insurance. With five years of experience in insurance and finance writing and hands-on perspective as a former business counselor, he understands the risks that come with running a business and what it takes to protect against them.

Blest focuses on commercial auto, cyber, property and specialty business insurance. He digs deep into policy details, regulations and provider offerings so businesses can find the coverage they need and avoid financial fallout. His goal is to translate technical insurance language and insurer offerings into guides you can act on.

Whether you're insuring company vehicles, managing cyber liability or protecting your commercial property, Blest aims to guide you through your risks to help you find coverage you truly need, not sell you a policy.

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sources

New York State Legislature. "Vehicle and Traffic Law Article 6 — Motor Vehicle Financial Security Act." Accessed March 23, 2026.
New York DMV. "Insurance Requirements." Accessed March 23, 2026.
Federal Motor Carrier Safety Administration. "Insurance Filing Requirements." Accessed March 23, 2026.
U.S. Department of Transportation. "49 CFR Part 171: General Information, Regulations and Definitions." Accessed March 23, 2026.
U.S. Department of State. "Canada Travel Advisory." Accessed March 23, 2026.

New York Commercial Auto Insurance Requirements

What Commercial Auto Insurance Is Required in New York?

New York Commercial Auto Insurance Requirements by Vehicle Weight

New York Commercial Auto Insurance Requirements by Passenger Count

New York Commercial Auto Insurance Requirements by Service Type

New York Commercial Auto Insurance Requirements by Cargo Type

New York Commercial Auto Insurance Requirement Exemptions

New York Commercial Auto Insurance Alternatives

Special New York Commercial Auto Insurance Coverage Circumstances

New York Commercial Auto Insurance Enforcement and Penalties

How to Verify Your Business Meets New York Commercial Auto Insurance Requirements

Identify how each vehicle is used

Check each vehicle's weight rating

Determine whether state or federal rules apply

Confirm your liability limits meet the correct requirement

Verify your policy reflects actual vehicle use

Maintain continuous coverage

New York Commercial Auto Insurance Requirements: Bottom Line

New York Commercial Auto Insurance Requirements: Next Steps

sources