Many people – especially in the Big Apple – rely on public transportation instead of a car, so it’s understandable if they aren’t familiar with auto insurance laws. Here’s your New York auto insurance guide if you’re looking to purchase your own vehicle.
New York Auto Insurance Coverages
Every state has its own insurance laws, although almost all states require a certain amount of coverage. Using this New York auto insurance guide will help prevent you from falling into a trap that can lead to costly penalties. By following auto insurance requirements in New York state, you will help protect your financial condition, especially if you cause an accident.
Minimum Auto Insurance Requirements Coverage
To be compliant with New York state laws, you must meet these three types of coverage in addition to registering your vehicle with license plates:
1. Personal Injury Protection (PIP), also known as No-Fault insurance, pays medical costs for drivers, passengers, or pedestrians injured by a motorist. It also covers lost wages and certain other relevant expenses to traffic accident victims.
2. Liability covers damage to other people’s vehicles or property.
3. Uninsured Motorists coverage provides benefits to victims of hit-and-run accidents or damage caused by an uninsured driver.
Prompt PIP Payments
No matter who causes an accident, PIP payments are designed to pay victims right away so they can take care of financial losses, including medical expenses and work-related losses. The coverage pays up to $2,000 per month for lost wages for up to three years following the date of the accident, over and above the basic No-Fault limit. Payments will also be made to the estate of a victim who is killed by accident.
No-Fault coverage can be as high as $50,000 per person and may include benefits for “pain and suffering” involving serious injuries. While this coverage does not include auto body repair for your vehicle or those of other parties, it helps accelerate the treatment process so that injured individuals can return to work as soon as possible.
PIP is useful coverage for you and your household members, as it pays promptly for injuries caused by an auto accident anywhere in North America, U.S. territories, and possessions.
Under certain conditions, however, No-Fault benefits may be denied, such as when the driver who causes an accident is intoxicated or impaired by drug use. Intentionally causing an accident or committing a felony in the process are further grounds for denial, among other scenarios. Check the easy-to-read chart of New York PIP choices from a recent Forbes article for a clearer understanding of these coverage features.
Liability Insurance in New York
The reason you need liability coverage is if someone files a claim against you or a person using your vehicle with permission due to an auto accident. This insurance protects you from shelling out thousands of dollars from your own pocket if you cause an accident that leads to third-party injuries, death, or property damage. Be aware your insurance company is required to defend you against such claims without decreasing your policy’s minimum limits, which include:
• $25,000 for bodily injury that doesn’t result in death
• $50,000 for injuries that lead to death for any accident victims
• $50,000 for bodily injury that doesn’t result in death for two or more victims
• $100,000 for injuries leading to death by two or more accident victims
These minimum limits required by the state are subject to per person limits. As for property damage, the minimum limit required by the state for damage to another person’s vehicle or property is $10,000 per accident. Insurance companies refer to these liability limits as either “$25,000/$50,000/$10,000” or “25/50/10.”
Suppose your vehicle is struck by a motorist, and you sustain a severe injury. In that case, you may be able to file a personal lawsuit against them for “pain and suffering” if you can provide sufficient evidence it was their fault. Such a claim will not involve your insurance company.
Uninsured Motorist Coverage
How many uninsured drivers are in New York? According to the Insurance Research Council, only 6.1 percent of drivers in the state lack proper coverage. That’s the second-lowest figure behind Maine throughout the United States.
What Else Should I Have?
Beyond the state’s minimum requirements, you will have to decide for yourself any other coverage you need. Recommended New York auto insurance includes Collision and Comprehensive coverage, although it’s not required. Additionally, you may need Supplemental Spousal Liability, which is another personal preference. Here are ideal coverage plans to optimize coverage:
• Basic PIP: $50,000 plus $25,000 in Optimal Basic Economic Loss Benefits
• Bodily Injury Liability: $250,000 bodily injury liability per person, $500,000 per accident
• Property Damage Liability: $250,000
• Uninsured Motorist Coverage: $250,000 per person, $500,000 per accident
Average Car Insurance Premiums in New York
Multiple factors determine New York car insurance rates, such as your driving record, vehicle model, and your history of filing claims. Other key factors include age, credit, gender, marital status, zip code and amount of coverage. Here are the average premium costs per year in the state:
• Liability: $840
• Collision: $414.27
• Comprehensive: $178.10
Penalties for Driving Without Auto Insurance in New York
Failure to comply with the state’s insurance requirements can lead to a fine ranging from $150 to $1,500 and/or jail time up to 15 days. Additionally, you may have to pay a civil penalty. Keep in mind your auto insurance may be canceled if you fail to pay premiums, engage in insurance fraud, or if your driver’s license is revoked or suspended.
Following this New York auto insurance guide will help point you in the right direction to get the essential background on your coverage responsibilities. Contact us at 01 Insurance for more details on how to get an auto insurance quote. We are ready to assist you with all your coverage needs today.