If you are a motorist with a car registered in New York, you must have a car insurance policy that meets the state-mandated minimum coverage. If you don't, you risk having your vehicle registration and driver's license suspended.
However, choosing the right car insurance policy can be overwhelming with so many options. The auto insurance company in New York offers various products that make buying car insurance challenging.
No worries; the blog post here covers the five essential auto insurance coverage options for New York drivers.
Types of Auto Insurance Coverage
Bodily Injury Liability
It covers the expenses related to the injury or death of another driver or pedestrian due to your fault. The minimum limit of the bodily injury liability coverage mandated by New York's Vehicle and Traffic Law is $25,000 per person or $50,000 per accident. However, most people in New York choose to raise their limits to 100/300, but it varies by auto insurance company in New York and depends on your needs. When selecting the limits, consider whether your assets would be vulnerable to lawsuits following an accident. Some drivers raise their coverage limit to match their net worth.
Property Damage Liability
The policy helps cover the cost of the damage to another person's property, like cars, houses, and other structures when you cause the accident. The minimum limit of New York property insurance coverage is $10,000 per accident. Together with bodily injury, these two coverages are known as liability insurance and payout to the other party when you cause an accident. Higher limits are available for property damage liability but vary by insurer.
Uninsured Motorist
The underinsured motorist plan helps cover your medical expenses if another driver hits your car and does not have an insurance policy. The minimum limit is $25,000 per person or $50,000 per accident. The auto insurance company in New York will pay the amount so you can easily overcome the damage or medical bills. However, pay attention to the limits because if your coverage exceeds 25/50, it may be considered supplementary coverage and cost more.
Underinsured Motorist
The underinsured motorist plan helps cover your medical expenses if you are involved in an accident due to the other driver's fault and do not have enough liability insurance. The minimum limit of this coverage is the same as the uninsured motorist plan, $25,000 per person or $50,000 per accident. It also fills the gap between a liable party's bodily liability coverage and the required compensation. It pays out the remaining compensation due to the insured victim up to the policy limit, and the insurer will be able to seek reimbursement from the liable party afterward.
Personal Injury Protection
Personal injury protection (PIP) is also known as no-fault insurance and helps cover your medical expenses following a car accident, regardless of the fault. The coverage limit is $ 50,000 per accident. The medical bills typically include hospital visits, physical therapy, psychiatric care, rehabilitation, and long-term professional health services.
If you cannot work due to injuries, you are entitled to 80% of your lost income, with a $2,000 monthly cap, for up to three years. You'll also receive a daily stipend of $25 to cover necessary household expenses for up to a year following the accident. And if you die in the accident, PIP coverage pays your beneficiary up to $2,000 for funeral expenses. You can raise your PIP limits, but it's considered a separate optional coverage called additional PIP or medical payments.
Other insurance coverage plans, like collision and comprehensive, help cover expenses to repair or replace the car damaged in an accident and stolen or damaged by storms or vandalism, respectively. New York law does not mandate drivers to carry these coverage plans, but your lender may need it if you lease or finance your vehicle.
Conclusion
These are the five essential auto insurance coverage options for New York drivers. However, select the best option to minimize the risk and maximize the benefits.
If you are confused about which coverage plan to choose, contact E.A. Funk and Associates, Inc. They are one of the best auto insurance companies in New York, and their experts will help you select the proper coverage limit per your needs. The company also provides the right coverage plans for New York property insurance.
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