A new law in New York that went into effect on August 1st will automatically enroll personal auto policy consumers into Supplemental Spousal Liability insurance. It will be applied to all new, renewed, or amended policies and applies to all drivers, even those who are single or own a business

The law, New York Insurance Law § 3420(g), requires that any insurer issuing auto policies must provide coverage for liability of an insured arising from the death or injury of their spouse, up to the liability insurance limits provided in the policy. Insureds can elect to opt out of the coverage, but must do so in writing, and in a form the superintendent approves.

Unlike many other states, New York is a no-fault state, and auto policies already provide up to $50,000 in personal injury protection that can go toward a spouse's injuries. But if expenses, including pain and suffering, go above that limit, the supplemental spousal liability coverage would allow the spouse to file for funds above that limit. To recover payment, the spouse of the insured must prove the insured is culpable. For example, an insured has a policy with limits of 100/300/100 and $50,000 PIP. The insured and spouse are driving to dinner, when the insured driver while answering a text, drives through a stoplight and hits another vehicle. The spouse in the passenger seat sustains injuries above the $50,000 PIP limit. With this mandatory coverage, the injured spouse could sue the driver for those medical bills.