Minimum Auto Liability Coverage for New York Drivers: An Overview

Minimum Auto Liability Coverage for New York Drivers: An Overview

Driving is a high-risk endeavor. Thousands of accidents happen every day. Auto insurance gives you a safety net while you are on the road. Perhaps you accidentally injured someone while you were on the road. This is where minimum auto liability insurance in NY kicks in.

Minimum Requirements

Drivers are legally obligated to carry auto insurance in NY at all times. Uninsured/underinsured motorist coverage is required as a New York driver. The coverage takes care of any injuries and lost wages that you or a passenger are entitled to due to being hit by an insured driver. New York is a no-fault state. This means that you are required to purchase personal injury protection (PIP). PIP covers your medical bills if you are injured in an accident regardless of who was at fault. You also need minimum auto liability insurance in NY, which covers you if you are responsible for damaging property or injuring someone. Liability coverage can assist with funeral costs, lost wages, and pain and suffering. Be aware that liability coverage does not cover your personal injuries.

State Auto Insurance Limits

Research the liability limits on your policy. The liability limits are the maximum amount that your insurer will cover if you file a claim. New York has the authority to set the minimum limits of coverage that drivers must abide by under the law. In New York, general liability coverage limits are 25-50-10 for bodily injuries per person, bodily injuries per accident, and property damage per accident, respectively.

Do You Have Enough Coverage?

While New York requires more types of coverage than other places, the liability limits are still relatively low. If you seriously injure someone or cause extensive property damage, your coverage may run out quickly. Minimum property damage liability limits are lower than the cost of a new vehicle. You may need to increase your liability limits to avoid covering potential damages out of pocket. Increasing your liability limits may only alter your premium by a small margin. You want to make sure that you have enough coverage so that your assets are not at risk in the event of a disaster.

What Happens If You Don’t Have Insurance

Your insurer must notify the local DMV whenever your liability coverage starts. If your coverage lapses and you don’t have liability insurance, you may have to turn in your license plates. If you attempt to drive an insured vehicle, you are assuming a lot of risks. If you are pulled over by law enforcement, you could have your vehicle impounded, or you may be fined. In severe cases, you may be arrested. If your lapsed period of coverage is over three months, your driver’s license may be suspended for the duration of your lapsed period. You will then be subject to a fee before you can start driving again. If you are involved in an accident while you don’t have coverage, you could lose your license for an entire year.

Optional Types of Coverage

Comprehensive

Comprehensive coverage protects your vehicle in unique situations. Perhaps severe weather moves through the area and damages your vehicle. Perhaps you are the victim of theft. These are common situations when comprehensive coverage will protect your vehicle.

Medical Payments

Medical payments coverage protects you if you are injured in an accident. Your medical bills and funeral expenses are covered.

Gap Coverage

Most vehicles suffer quick depreciation. Gap coverage protects the difference between the actual cash value of your vehicle and the amount that you still owe on your loan. As a result, gap coverage can prevent you from going underwater with your loan.

Rental Car Reimbursement

If your car suffered extensive damage, you would be covered as you seek a rental vehicle until your car is repaired.

Collision Coverage

Collision coverage protects you if your vehicle suffers damage through impact with another vehicle.

Roadside Assistance

Roadside assistance protects you in emergency situations. If your vehicle breaks down while you are on the road, you can receive an urgent towing service or a battery charge.

Following the Requirements

To legally operate your vehicle in NY, you need auto insurance. Driving around without the proper coverage can be a financial disaster if something happens to your vehicle. Also, keep in mind that New York is a diminished value state. If you are involved in an accident, you can seek to recover diminished value from the other party’s insurance company. Finally, be aware that the statute of limitation for filing is three years.

Liability insurance offers a layer of protection while you travel around New York. If you have any questions about your insurance coverage, contact 01 Insurance. Our experienced team of experts is here to assist you.