If your NYS insurance company is requiring you to have a pre-insurance photo inspection then yes, you will be required to get one. Insurance companies can waive an inspection of a new car if they are given proper paperwork but are not required to waive the inspection of a new car so that your physical damage coverages are kept intact.

According to the New York State Department of Insurance, Section 67.3(b)(2) of New York Codes, Rules and Regulations (NYCRR), Title 11, Pt. 67 (referred to in general as Regulation 79) permits an insurer to waive inspection of a new automobile if the insurer receives a bill of sale setting forth a full description of the vehicle, or if the insurer receives a copy of DMV-50 (a Department of Motor Vehicles form that establishes a transfer of ownership from the dealer to the customer) with a window sticker or dealer’s invoice.

So an insurer may waive the inspection of a brand new vehicle but they are not required to. NYS insurance Law 3411(d) sets forth an inspection requirement for new motor vehicle insurance policies as follows:

(d) A newly issued policy shall not provide coverage for automobile physical damage perils prior to an inspection of the automobile by the insurer.

Thus, a purchaser or lessor of a new automobile must have the automobile inspected by the insurance provider if the insurer is to provide physical damage insurance on a vehicle. Section 11 NYCRR Pt. 67 implements the provisions of Insurance Law 3411 and sets forth the standards and procedures for the requisite inspections. 11 NYCRR 67.1 defines physical damage insurance for the purposes of the inspection requirement. It states in pertinent part:

(c) Automobile physical damage insurance means a policy providing one or more of the following insurance coverages:

(1) collision;

(2) comprehensive;

(3) fire or theft.

11 NYCRR 67.2 sets forth automobile inspection requirements. It states in pertinent part:

(a) No new policy or endorsement insuring a private passenger automobile shall be issued in this State to provide coverage for automobile physical damage unless the insurer has inspected the automobile.

However, Insurance Law 3411(m)(2) provides for exceptions to the inspection requirement as follows:

The inspections provided for in this section may be dispensed with or deferred under circumstances specified in the regulations of the superintendent. Such circumstances may include but are not limited to, the insuring of a new automobile, the insuring of an automobile whose inspection would constitute a serious hardship to the insurer, the insured or an applicant for insurance, and the insuring of an automobile for a limited specified period of time.

11 NYCRR 67.3 details the exceptions relevant to the questions presented here as follows:

(b) An insurer may waive or dispense with a mandatory inspection under any of the following circumstances:

(2) Where a new, unused automobile is purchased or leased from a franchised automobile dealership and the insurer is provided with either a copy of the bill of sale which contains a full description of such automobile, including all options and accessories, or a copy of the lease or MV-50 form, provided by the Department of Motor Vehicles, which establishes transfer of ownership from the dealer to the customer and a copy of the window sticker or advanced dealer shipping notice (invoice) showing the itemized options and equipment in addition to the total retail price of the vehicle on which will be added any dealer installed options installed on the vehicle at the time of sale or lease.

The physical damage coverage on such new, unused automobile shall not be suspended during the term of the policy due to the insured’s failure to provide the required document(s). Payment of a claim shall be conditioned upon the receipt by the insurer of such document(s) and no physical damage loss occurring after the effective date of coverage shall be payable until the document(s) are provided to the insurer. If the above document(s) are not submitted by the insured 60 days prior to the annual renewal date, the insurer, upon renewal of the automobile physical damage insurance must require a physical inspection, pursuant to the provisions of section 67.7 of this Part of law.

Thus, there is no requirement that an insurer waive inspection on any new automobile simply because the Insurance Law and regulations permit that an insurer may waive the pre-insurance inspection. However, if an insurer wants to waive an inspection, it must adhere to Regulation 79 as listed above. An insurer may request additional documentation beyond that which is required by Regulation 79, because 11 NYCRR 67.3(b)(2) only sets forth minimum requirements for an insurer to waive inspection.

We hope these sections of the New York laws pertaining to the need for a pre-insurance inspection if you want physical damages as part of your auto insurance policy help you understand the requirements in NYS better. If you are shopping around for car insurance for your new vehicle then get inexpensive car insurance quotes here with us.