Understanding State Farm Supplemental Spousal Liability Insurance in New York

Supplemental spousal liability insurance is an optional coverage that can be added to your auto insurance policy in New York. This type of insurance provides compensation if your spouse is driving and causes an accident that injures you.

State Farm is one of the major auto insurance providers in New York that offers supplemental spousal liability coverage. Here is what drivers need to know about this extra protection and how it works with a State Farm policy.

What is Supplemental Spousal Liability Insurance?

Supplemental spousal liability insurance covers bodily injury to a spouse caused by the other spouse’s negligent driving. For example, if you are a passenger in a vehicle driven by your spouse and are injured in an accident caused by your spouse’s negligence, this coverage would pay for your medical bills and other losses.

Without this extra coverage, you would not be able to claim compensation under your spouse’s auto liability insurance since standard policies exclude coverage for injuries to a covered driver’s family members. Supplemental spousal liability fills this gap by adding protection for spouses.

New York’s Requirement for Supplemental Spousal Coverage

In 2023, New York enacted a new law that requires insurers to automatically include supplemental spousal liability coverage on auto insurance policies issued in the state.

• The law applies to new policies issued after August 1, 2023 as well as renewals.

• Policyholders must opt out of the coverage in writing if they do not want it.

• The coverage lasts until 2027 when it will be reevaluated.

So if you have a policy with State Farm in New York, it most likely includes supplemental spousal liability unless you specifically requested to remove it.

How Supplemental Spousal Liability Works with State Farm

Here are some key points about how this extra coverage works under a State Farm auto policy in New York:

• It is included within the bodily injury liability limits, so it does not increase the overall limits. For example, if you have 100/300 limits, the supplemental spousal liability would be limited to $100,000 per person and $300,000 per accident.

• The premium is relatively low, generally between $20-84 per year according to estimates.

• To remove the coverage, you need to sign a rejection form and submit it to your State Farm agent. State Farm should provide this form upon issuing a new policy or making coverage changes.

• The coverage protects the spouse who was injured, not the negligent driver. So if you cause an accident injuring your spouse, your spouse can file a claim under their own policy.

• It applies regardless of marital status. Unmarried partners are also covered.

When Supplemental Spousal Liability Coverage Applies

This extra coverage comes into play when:

• You are injured while riding as a passenger in a vehicle driven by your spouse or partner.

• The at-fault driver is your spouse or partner.

• Your spouse or partner’s negligence caused the accident.

• Your damages exceed the at-fault driver’s liability coverage.

For example, John is driving a car owned by his wife Jen. John causes an accident due to distracted driving. Jen suffers serious injuries as a passenger.

John only carries the minimum 25/50 liability limits on his auto policy. But Jen has 100/300 limits on her State Farm policy which includes supplemental spousal liability coverage.

Jen can file a claim under her own policy up to $100,000 through the supplemental spousal liability coverage since John’s lower limits are insufficient to fully cover her losses.

Without this extra coverage, Jen would have been limited to the $25,000 per person limit under John’s policy.

Advantages of Supplemental Spousal Liability

Here are some key benefits of having supplemental spousal liability insurance as part of your State Farm auto policy:

• Adds an extra layer of protection – It provides backup coverage when damages exceed your spouse’s liability limits. This can prevent financial hardship.

• Covers lost wages and medical bills – Injuries from auto accidents can be very costly. This coverage helps pay for expenses not covered by health insurance.

• Provides peace of mind – Knowing you have extra coverage in case your spouse causes an accident bringing them comfort.

• Low premium cost – The additional premium is relatively small compared to the extra protection.

• Easy to obtain – With it automatically included on New York policies, no action is required to get the coverage.

When You May Want to Opt Out

While supplemental spousal liability coverage offers valuable benefits, there are some situations where you may want to opt out:

• If you and your spouse carry high liability limits (250/500 or above), the extra coverage may be redundant.

• If you have umbrella insurance, you likely already have spousal liability coverage through the umbrella that exceeds your auto limits.

• If you are single or divorced, the coverage would not apply to your situation.

• If you want to minimize insurance expenses, removing this coverage can lower your premium slightly.

Discuss your specific insurance needs with your State Farm agent to decide if declining supplemental spousal liability is right for you. Keep in mind that opting out requires submitting a signed rejection form.

How to File a Claim with State Farm

If you need to file a supplemental spousal liability claim with State Farm after being injured in an accident caused by your spouse’s negligence, here is the process:

• Report the accident to State Farm promptly. Provide details on how the accident happened and your spouse’s role as the at-fault driver.

• Seek any necessary medical treatment and keep records of expenses, lost wages, etc.

• State Farm will investigate and confirm that your spouse was liable and your policy included supplemental spousal liability when the accident occurred.

• Submit any evidence supporting your losses such as medical bills, auto repair estimates, lost income details, etc.

• State Farm will calculate the eligible benefits under your policy limits and send you payment for covered losses.

Having a knowledgeable agent assist you through the claims process can be very helpful.

The Bottom Line

Supplemental spousal liability insurance can be a valuable addition to your State Farm auto policy, providing extra coverage in the event your spouse’s negligence in an accident causes you injury. Take time to understand this optional coverage and how it works so you can make informed decisions about what best protects your finances should the unexpected occur. Discuss your specific insurance needs with a State Farm agent to determine if declining or keeping this extra coverage is the right choice for your situation.