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Car Insurance Coverage in New York

New York license plate

Auto insurance in New York can be divided into two different categories: the coverage that is required to register an automobile and optional protection that can usually be added to a policy. Buying a policy with the minimum amount of protection may appear economical, but after an accident it often pays to have a plan that includes an adequate amount of coverage. In 2010 the NY State Department of Motor Vehicles recorded over 315,000 accidents that ranged in severity and economic impact. A motorist who is involved in an accident where their liability limits are exceeded may end up paying a variety of expenses out-of-pocket. Residents are encouraged to use their resources and shop for a policy that can cover a wide variety of economic situations.

All New York car insurance policies must include specific forms of protection before an automobile can be registered. This includes Personal Injury Protection (PIP), liability coverage, and uninsured motorist protection. Each of these elements has a minimum threshold that must be met to pass the state financial responsibility requirements. The Department of Motor Vehicles (DMV), however, encourages residents to consider the various kinds of optional protection that insurers typically offer. Often an economical way for vehicle owners in the Empire State to improve their coverage is to increase their liability limits. The minimum property damage liability required by the state is set at $10,000, but many motorists can increase this threshold to $25,000 or $50,000 for only a few extra premium dollars.

Benefits of Additional New York Car Insurance Coverage

Including additional PIP benefits to a policy can be beneficial in many ways. A common additive includes Optional Basic Economic Loss (OBEL) coverage which is designed to pay for a variety of injuries sustained by the policyholder or their passengers. Insurers are required to offer OBEL, which increases the minimum $50,000 of basic economic loss by an additional $25,000. With this additive, if the original $50,000 limit is exceeded in a claim, an additional $25,000 can be used by the injured person for payments for loss of earnings, rehabilitation or to other forms of economic loss. Married motorists may also want to consider Supplemental Spousal Liability Insurance to cover the liability of the policyholder after their spouse is injured or killed as the result of an accident caused by the driver’s negligence, which is not covered by basic PIP.

Although helpful in many ways, including additional coverage in a policy can often translate into additional cost. In 2008 the NAIC calculated that the average expenditure in NY was over $1,000, but shopping around before making a purchase can often lead to lower rates. Utilizing Auto Insurance Price Comparison Tables and Notes in addition to other online resources can help motorists explore the price differences that usually exist between insurers, and take advantage of lower priced plans. Drivers should make the effort to explore a number of options to find adequately priced policies that also includes a desirable amount of protection.

Source: http://www.onlineautoinsurance.com/new-york/