If you’re a driver in New York, you may have had to go through the process of photographically inspecting your vehicle when purchasing or renewing your auto insurance policy with physical damage coverage (collision and comprehensive). This process involves taking your vehicle to an inspection site authorized by CARCO, a company that provides inspection and fraud prevention services to insurance companies, within 14 days of the policy’s effective date. There, an inspector checks the condition of your vehicle, takes photos of it, and completes a report that is sent to your insurance company. Failure to comply with this requirement results in the suspension (removal) of your physical damage coverage, and you must bear any costs related to an accident out of pocket.
This photographic inspection system was established in 1977 with the aim of preventing insurance fraud but has become outdated and ineffective over time. Some of the problems it presents include:
1. Lack of authorized inspection sites in many areas of the state, forcing consumers to travel long distances or take time off work to complete the inspection.
2. The risk of physical damage coverage suspension if the inspection is not performed within 14 days of purchasing the policy, exposing consumers to unnecessary financial risk.
3. The inefficacy of photographic inspection in preventing insurance fraud, as criminals can falsify photos or damage the vehicle after inspection.
The good news is that this law was approved!
It was signed by New York Governor Kathy Hochul on November 17, 2023, after rapid approval by both the state Assembly and Senate. The law will take effect 180 days after its signing, meaning it will be applicable from May 2024. The law received support and commitment from state leaders who recognized the need to modernize the photographic inspection system for the benefit of consumers and insurance companies.
What does this law mean for you as a driver in New York?
It depends on whether your insurance company requests an exemption to waive photographic inspections or not. If your insurance company requests and obtains an exemption, you’ll have more flexibility and convenience when purchasing or renewing an auto insurance policy with physical damage coverage. You won’t have to search for an authorized inspection site, travel to it, take time off work, or risk losing coverage if you don’t complete the inspection within 14 days of the policy’s effective date. This could save you time and money while reducing stress and frustration.
If your insurance company does not request an exemption or does not obtain one, you’ll have to follow the current photographic inspection process. This means locating a CARCO-authorized inspection site, taking your vehicle there within 14 days of purchasing or renewing the policy, and waiting for the inspector to complete the report and take photos. Failure to do so will result in the suspension of your physical damage coverage, and you’ll have to bear any costs related to an accident out of pocket. This could cause inconvenience and financial risks, as well as increase the potential for fraudulent claims.
It’s recommended that you check with your insurance company or insurance agent to find out if your company will request an exemption and how the new law will affect you.
At Rondon Brokerage, we want you to be informed about the latest news in the insurance world. For us, you are our priority. We want you to know that you can rely on us to address your concerns, meet your needs, and provide you with the best advice.
Thank you for trusting us and being part of our family. We hope this article has been helpful and informative. If you have any questions or comments, feel free to contact us.
