If you own a car, you need auto insurance. This type of insurance is mandated by the state and is designed to protect the insured against automobile related losses. Although NY state requires a minimum amount of coverage, different coverages can still be purchased to personalize your policy. There are four major categories of automobile insurance: Personal Injury Protection (PIP), Liability coverage, Uninsured/Underinsured Motorist Protection, and Physical Damage. Each category should be tailored to fit you, depending on your personal needs and wants. Contact us today and let us help you.
Personal Injury Protection (PIP)
PIP is also known as No-Fault Insurance. Required by New York State Law to have at least $50,000 worth of coverage to pay for medical expenses, loss of income, and other miscellaneous expenses regardless of fault. This coverage provides such benefits as medical expenses, loss of income up to $2,000 a month or 80% of your current monthly income (whichever is less), other reasonable expenses up to $25 a day, and $2,000 in death benefit.
Optional Basic Economic Loss (OBEL)
Should your PIP protection be used up, this coverage provides the extra amount you need above the PIP limit.
Bodily Injury Liability
Required by NY State Law to have at least $25,000/$50,000 split limits to protect you if you are responsible for an accident in which someone is injured or killed. The split limits mean that the insurance company will only pay up to $25,000 per person injured and up to $50,000 per accident. So if there is more than one person injured, the most you are covered for is $50,000.
Property Damage Liability
Required by NY State Law to have at least $10,000 worth of coverage to cover the damage your vehicle causes to someone else's property, such as your car running into someone's house or car.
Medical payments insurance is coverage that reimburses you and your passengers (whether or not they are members of your family) for medical or funeral expenses stemming from an accident, regardless of who was responsible for the accident.
Statutory Uninsured Motorist
Required by NY State Law to have at least $25,000/$50,000 split limits to cover you for injuries sustained by you and your passengers caused by an uninsured motorist. Underinsured motorist coverage pays when you or your passengers are injured as a result of negligence by someone with insufficient liability insurance to cover your losses for accidents that occur WITHIN New York State.
Supplementary Uninsured Motorist
If you ever travel out of state, you should consider supplementary uninsured motorist coverage. This provides the same limits as statutory uninsured motorist, but it extends coverage to accidents that occur OUTSIDE of New York State.
Collision coverage reimburses you for damage to your own car resulting from impact with another car or an object, such as a house. This coverage is usually written with a $250 deductible, but may be higher or lower depending on your specific needs.
Other than Collision (Comprehensive)
This coverage reimburses you for damage to your auto not caused by a collision. Such losses include theft, hail, vandalism, or hitting an animal.