New York Car Insurance What You Need To Know
Posted by Tom Carolan on Mon, Jun 07, 2010 @ 10:01 AM
It is very important to carry car insurance in New York for a variety of reasons. Not only is it required by law, if you were to be involved in a serious accident, the high cost of car repair might be more than you could afford. Most certainly, the cost of medical expenses could easily get out of hand for even injuries of average seriousness. Finding the right insurance however, takes time and can be frustrating on times. A great place to start is by learning what is required by your state.
The state of New York is considered a no-fault car insurance state. This makes its treatment of car insurance different than many other states, as in the case of an accident each party would have his or her own car insurance company take care of the expenses incurred, regardless of fault. The at-fault driver does not have liability in the situation. This type of car insurance was instituted to stem the tide of lawsuits arising from car accidents and to enable drivers to get medical attention quickly.
Personal Injury Protection (PIP) is one of the required types of auto insurance coverage in NY and is meant to take care of medical expenses for each party injured in a car accident. Even though it overlaps somewhat with private health insurance, it is not recommended that drivers skimp on this insurance coverage because there are many other things provided by PIP that traditional health care doesn't take care of. PIP provides for lost wages due to injury and funeral expenses.
Even though the system is considered no-fault, if the cases of serious accidents, the law allows victims to pursue the driver who is deemed at fault. Because of this loop hole, drivers in New York must also carry liability insurance in the following amounts:
- $25,000 bodily injury coverage per person
- $50,000 bodily injury coverage in total per accident
- $10,000 property damage coverage.
The third type of required car insurance coverage in New York is uninsured/underinsured motorist (UM) coverage. It will pay for expenses incurred in an accident where the other party is uninsured, doesn't carry enough coverage to pay for all the expenses or when the accident is a hit and run.
There are other types of car insurance that can be purchased but are not required by the state. If you are involved in an at-fault accident, your medical expenses will be covered but not the cost of repairing your vehicle. Therefore, you need collision coverage for such eventualities. Comprehensive coverage will provide for repairs to your vehicle if you incur losses from things that are not your fault, such as storm damage, fire, theft and vandalism. If your car is still financed, your lender will require you to carry both collision and comprehensive coverage. Gap insurance is also recommended if you owe more than the vehicle is worth.
In order to find out more about car insurance in New York, contact the New York State Insurance Department. Or go to New york auto insurance quotes online.