The Requirements for Auto Insurance in the State of NY
Those driving in the state of New York must be carrying car insurance in order to remain legally compliant behind the wheel. In this article, you’ll find all the information you need about what is legally required in the state and where you can find cheap NY car insurance.
What is Required in the State of NY?
Here are the base requirements and information you need before getting started.
Uninsured/Underinsured Motorist Coverage
Uninsured/underinsured Insurance is legally required in New York City and covers injuries and forfeited wages that you or your passengers may incur if you are at fault by an uninsured driver.
Personal Injury Protection (PIP) Needs
Since New York is a no-fault state, motorists are required to buy Personal Injury Protection (PIP). PIP provides coverage for medical expenses incurred by you and your passengers in the event of an accident, no matter what the fault. The PIP will cover medical expenses such as hospital bills, rehabilitation costs, and even accidental job loss. In New York, a minimum PIP coverage of $50,000 per person is required on your policy.
Liability Insurance Coverage
Liability insurance is required by law in New York. This insurance covers bodily injury and property damage you cause to another driver or their passenger in an accident for which you are responsible. This coverage may also apply to expenses related to funeral expenses, lost wages and pain and suffering. It should be noted that your liability insurance never covers personal injury or damage to your property, so you may want to consider other insurance options for added protection
Optional Car Insurance Coverage
If you need it, you can increase your car insurance coverage to encompass the following.
Comprehensive
Comprehensive coverage protects your vehicle from non-collision damage your vehicle may suffer (although the insurance does cover collisions with animals).
Collision
The choice covers your vehicle in the event of a collision with another vehicle or a stationary object. However, keep in mind that collisions with animals are only covered by comprehensive coverage.
Gap Coverage
Since most vehicles depreciate quickly, it might be a good idea to have protection built in to cover the difference between the actual cash value of your car and the amount you still owe on your loan. Sometimes also known as loan/lease insurance, this is a great option for those who don’t want to get stuck in a loan.
Roadside Assistance
If you break down on the highway, this coverage will cover the cost of towing, battery charging, or some other related expense.
Additional Personal Injury Protection (APIP)
APIP acts as an extension of your PIP coverage. This increase is typical $50,000 and can be purchased to cover additional costs, lost wages, or medical expenses.
Optional Basic Economic Loss (OBEL)
Like the APIP, this is an extension of your PIP coverage that allows you to increase your coverage beyond the initial $50,000. OBEL insurance can be used to pay for medical treatment or lost wages.
Rental Car Reimbursement
If your car becomes unusable due to a covered loss, this coverage can be used to pay the rent until your car can be repaired. Limits and conditions may vary depending on the company you choose.
Medical Payments
Often referred to as “medical coverage,” this insurance covers your medical or funeral expenses (as well as those incurred by the passengers in your vehicle). This coverage is typically limited to $5,000 to $10,000 and can be used regardless of who is at fault.
Keep This in Mind: NY is a Diminishing Value State
New York is a diminishing value state, which means motorists have the right to recover the reduced value from the responsible party’s insurance company. When your car is involved in an accident, even if it is fully repaired to the condition it was in before the loss, the resale value is still reduced. Being involved in a collision makes your vehicle less valuable than similar vehicles that have not been in an accident. Claiming a decrease in value allows you to cover any losses you may incur when you sell your vehicle.
NY Insurance Hub is For You
To stay legal on the road, car insurance is required. However, it’s also a good idea, as not wearing it can have serious financial consequences. If looking for great auto insurance is causing yous stress, turn to the NY Insurance Hub. An independent insurance agency, that represents many different companies so they can help you find the best person to help you with your specific car insurance needs.
Contact NY Insurance Hub today for a quote.
NY Insurance Hub Agency
125 Wolf Rd STE 404 Albany,
NY 12205 518-783-0105
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