What is the minimum auto insurance coverage in New York? Find the right amount of coverage for New York State.
New York, one of the leading cities in the nation, has a number of different laws that are enforced in this large and vast metropolis, including auto insurance requirements.
Find information on New York auto insurance requirements. Don’t go without your own insurance company.
How much auto insurance coverage in New York, do I really need?
The answer is surprisingly simple, but only if you take the right steps to determine it. There are two main insurance questions that need to be answered:
(1) What is the minimum coverage I should have? (2) How much coverage do I really need?
The first question is easy enough to figure out if you’re a homeowner or renter with a car. It’s the second question that can be difficult and quite subjective.
This infographic from InsuranceQuotes.com shows the difference between the minimum coverage each state requires for car insurance and home insurance in order for you to qualify for your policy.
In New York State, for example, you can drive without any coverage if your driving record is clean, which means no drunk driving or speeding tickets. But if you get into an accident with a serious injury or death (you have uninsured motorist coverage), then you have to have a policy that pays at least $25,000 per person ($50,000 total).
If any one of those things happens and your driving record isn’t perfect after that point — such as being ticketed twice in three years — then your policy might not cover anything at all. For example, if one of those tickets came while you were driving under $10K/year in an annual basis, but was paid under $50K/year (which would suggest no accident liability), then your policy would be void because it doesn’t cover accidents under $10K/year.
The result of this could be no auto insurance at all for you in New York State because the state requires drivers to carry an auto policy that covers all injuries from accidents or bodily injury claims incurred while driving their cars on a regular basis (and this applies regardless of whether or not that driver has an insurance company on their side.) However, getting into an accident with a serious injury also means having an over-the-limit liability policy to cover monetary damages in excess of what the vehicle was insured for in case it had been involved in an accident with another vehicle.
And just like homeowners who don’t carry collision coverage when they buy their houses (because they expect to never need it), actual drivers don’t often need collision protection because they can live without it anyway (except when they hit something solid.)
For both types of policies though, there are certain things that people should always check before buying any type of auto insurance: All about auto insurance.
Minimum auto insurance requirements in New York
There are many different factors that contribute to the cost of auto insurance in the United States. However, the minimum amount of coverage is one of the most important ones to consider. It is important for you to understand how much coverage you need in order to provide yourself with adequate peace of mind when you are driving.
If you have already had an accident and have some road rash or other physical damage, then it may be a good idea to discuss your insurance requirements with an experienced car insurance agent before getting behind the wheel. You may be surprised at just how much cheaper your rates will be after a serious accident or major collision.
How Much Is Your Coverage?
In order for your auto insurance policy to cover all of your damages, you must have enough coverage to pay for them all. You will be able to get this kind of coverage through your own auto insurance policy, or you can buy it separately through the high-risk teen or owner’s license program.
How Much Does Coverage Cost?
Many factors affect your rate, including:
• The type of vehicle that you drive (such as a vehicle that has not been damaged in an accident);
• Your driving record (for example, is there any speeding or reckless driving history on your record); and
• The kind and age of vehicle that you drive (for example, does it need new tires at some point in its life?).
Check here to know more How Much Is Car Insurance for a 21-Year-Old?
All these factors are sometimes factored into your rates from different insurers; however, if they were all considered together then they would probably not vary so dramatically. There is no one factor that should dictate what size auto insurance policy you need: it all depends on what sort of damage has been done and who else might be involved in the accident (to name just a few). What we do know is that if something bad happens to you while driving then there is no shame in paying more for additional cover – especially if this extra cover will save you money down the road when something does happen again! 🙂
Auto insurance works in the event of an accident
Insurance companies need to make money in order to survive. And by definition, they have to find ways to make their customers more profitable. So, they respond by lowering the minimum required coverage. If a driver has a $1 million policy and is involved in an accident with another $2 million policyholders, the company will pay $5 million for the other driver if it is a covered collision.
In the event of an accident, that policyholder has to prove that he or she is in fact driving the vehicle (doesn’t matter if it was stolen-it doesn’t need to be found). So, what happens if you are involved in an accident? What are your options?
A. You can sue (and win); or
B. You can sign away your rights; or
C. You can settle out of court; or
D. You can do nothing and hope nothing bad happens (or… you could buy new insurance on your car).
The worst-case scenario for you is C, when you lose something valuable… like a loved one. The best-case scenario for you is D, when you don’t lose anything at all-like getting hit by lightning twice! Once again, this example is just a hypothetical one (a very good one at that) that shows how insurance companies try to divide the market into two halves: those who want coverage and those who don’t want coverage…and what happens when they get it right?
What is bodily injury liability?
And just to make things clear, the body is not supposed to get hurt. It’s the outside that’s the issue. Think of it as a large insulated container that contains your body. Anything that goes on inside of it, such as a car accident or a fall from a building, is not covered by your auto policy — at least not in New York State.
Under New York law, if you were to be injured in an accident that was caused by someone else’s negligence (i.e., you and your car were involved in an accident), that person would be responsible for paying you damages (as well as other expenses) so long as they could prove they weren’t at fault. This concept is called “bodily injury liability” and it can result in very large claims for damage to autos, trucks and buildings.
Generally speaking, you want to take this into account when driving your vehicle; if you are injured in an accident caused by someone else driving their car recklessly or negligently and can prove this was due to the other person’s negligence — even if they were not at fault for causing the accident — then you will probably be able to get compensation for whatever damage is done to your vehicle.
However, if there was no fault on either side of the crash and instead another driver caused the crash by failing to take proper precautions but didn’t cause it because they weren’t negligent, then they might end up paying some of your medical bills on their own without any additional compensation from you or anyone else (notwithstanding any reasonable steps taken by them).
What is property damage liability?
The term “minimum coverage” is a little confusing, as it suggests that you should aim for the least amount of coverage possible. But this is not the case.
Minimum coverage is relative to your specific situation and should be decided based on what you need in order to avoid paying higher premiums in the future. If enough parts of your car have been damaged by a large hail storm, then you need more insurance coverage than if you hardly ever get hit with hail.
Here are some examples:
• We’re only covered for damages caused by what we own (that’s our cars and trucks).
• We aren’t covered for damages from other people’s property (that’s anybody else’s cars and trucks).
• Our insurance policy doesn’t cover injuries sustained in an accident involving other vehicles or pedestrians (that means we can only be insured up to $1,500 per person in an accident involving ours).
• Our policy doesn’t cover damages from earthquakes or tornadoes (we don’t want to pay extra for something that could happen any time).
Minimum insurance coverage isn’t the same thing as minimum liability coverage; it’s just a way of telling how much you need in order to avoid paying more in the future. Remember: do what you need to do now, rather than plan around later events!
Essential car insurance coverage in NY
You’ve probably heard the phrase “minimum coverage”. It refers to a rule of thumb that you should set aside at least X amount of your driving budget (or $XX in NY) for car insurance. That’s an intuitive idea, but it doesn’t tell you how much to save. In fact, it doesn’t tell you anything at all. If you are the type that can be trusted to drive at a speed where there is no serious risk of crashing and your driving record is clean, then the only thing that matters is how much you can afford to pay out in premium.
Here is an example from a friend who used this approach when he had just bought his first car:
“I was scared about buying my first car so I took out as low of coverage as I could get with my credit card (minimum $8,000)…I thought I was set until my insurance went up after the first month.”
The problem with this approach is that if you have any other types of risk involved in your driving history then you are going to need to spend more on the cover than your initial budget allows — for example, if you have a DUI record or if your license has been suspended or revoked. This means that:
• You will likely end up paying more overall than if you had taken out more expensive coverage
• You are likely going to end up paying more in premiums over time than if you had taken out less expensive coverage
• You may end up losing money on auto insurance even when things go smoothly and there is no danger in whatever sport or activity you do
In short, the idea behind minimum coverage sounds great and solves many problems, but it isn’t a good way to approach auto insurance policy formulation. The best way to formulate an auto policy without taking into account risk factors such as DUI/DWI records and license suspension history is simply to ask you: “Is there any level of risk involved with me driving?” If so, add extra money — say $2K — into your budget.. If not, don’t add anything. If there is some level of risk involved in whatever sport or activity we do (i.e., driving while intoxicated), we should just take care not to exceed our budget by much over what would be considered “minimum coverage” by most people procuring their policy on their own (in this case $8K).
What are uninsured and under
There are several factors that must be in place before you can have auto insurance. In New York, it is a requirement for all drivers to have auto insurance. However, there are many variations of this requirement across the state, and there are even New York state minimum coverage requirements for those who don’t have auto insurance.
So when you find yourself needing to buy New York auto insurance, you will need to know what your minimum coverage requirements are.
For example, some states require that car occupants be at least 18 years old. In other states, the minimum age is 18 to 25 or 25 to 30 (or whatever the legal limit is in your state).
The minimum coverage requirements vary by state and depending on where you live (you may be required by your landlord or your employer). You can find out if you need any additional information here: More information Auto insurance coverage in New York.