Until August 1, 2023, supplemental spousal liability insurance was an optional coverage available under automobile insurance policies issued in New York State that few drivers purchased. However, as of August 1, 2023, New York Insurance Law § 3420(g) was amended to provide that supplemental spousal liability insurance is automatically included in all new or renewal automobile insurance policies issued in New York State on or after August 1, 2023 unless an insured affirmatively opts out of such coverage. Supplemental spousal liability coverage provides coverage to a spouse for bodily injury when that spouse is injured or killed in a motor vehicle accident caused by the negligence of his/her spouse. On average, such coverage costs approximately $20 to $84 annually depending upon the insurer and the amount of the bodily injury limits contained in an automobile insurance policy.

For many people, supplemental spousal liability coverage is simply unnecessary. In particular, anyone who is unmarried clearly does not require supplemental spousal liability coverage on their automobile insurance policy. However, as of August 1, 2023, unless an insured driver affirmatively completes and signs a declination form, supplemental spousal liability coverage will be included in all new and renewal automobile insurance policies issued in New York State without regard to such insured’s marital status. This will result in drivers who are single, divorced or widowed paying for coverage they clearly do not need.

While supplemental spousal liability coverage can be useful, in reality, there are few scenarios in which such coverage would prove beneficial, particularly since such coverage only applies when both spouses are in an insured motor vehicle and an accident occurs that results from the negligence of the spouse operating such motor vehicle. If spouses are in an insured motor vehicle together and an accident occurs but is due to the negligence of a driver of another motor vehicle, supplemental spousal liability coverage will not be applicable. However, even in instances when supplemental spousal liability coverage would be applicable, the injured spouse will still have to establish that he or she has incurred “basic economic loss” greater than $50,000 as per New York Insurance Law § 5104(a) or that he or she has sustained a “serious injury” as defined by New York Insurance Law § 5102(d) in order to successfully recover under the supplemental spousal liability coverage.

Notwithstanding the availability of supplemental spousal liability coverage which is meant to benefit a spouse injured by the negligence of another spouse in the operation of a motor vehicle, a lawsuit by one spouse against another may have the unintended consequence of putting a strain on the marital relationship, as it would require one spouse to testify against another spouse. Furthermore, given that the supplemental spousal liability coverage now applies to both married and unmarried individuals, bills have already been introduced in September 2023 in both the New York State Assembly and the New York State Senate seeking to further amend New York Insurance Law § 3420(g) to provide that it applies only to married individuals, it is anticipated that such amendment will eventually be enacted into law to correct what appears to have been an oversight by the Legislature. Regardless of whether New York Insurance Law § 3420(g) is further amended, it is recommended that anyone consult with an attorney familiar with negligence and insurance law or an insurance broker to ensure they have sufficient and appropriate automobile insurance coverage.