While mandatory automobile insurance coverage requirements vary across the country, New York has its own set of established coverage minimums that must be adhered to. Knowing what you must have when you sign up for car insurance in your area will give you a good head start in putting together the most comprehensive coverage.
First up is bodily injury and property damage limits. The state of New York requires a minimum of $25,000 per person for bodily injury, $50,000 for two or more people that have been injured in one single accident, and $15,000 towards property damage as a result of an accident. These are the minimums but you may want to increase your coverage accordingly.
Uninsured and or underinsured motorist coverage is optional in many states but it is mandatory in New York. This coverage includes payment for medical expenses, damages and lost income to you or other household members only when the accident occurred within the state of New York. And the accident must have been the fault of a driver who had no insurance at all or too little coverage available. There are exclusions to this coverage so check your policy carefully.
Supplemental Uninsured Motorist coverage may be purchased to cover additional bodily injuries including pain and suffering, medical expenses that have exceeded the PIP limits, and accidents that have occurred outside of New York.
All New York drivers require basic PIP, or personal injury protection, in the amount of $50,000. PIP covers the expenses of you, the passengers in your vehicle and any pedestrians that may be involved no matter who was responsible for the accident.
The maximum amount that your property damage insurance will cover in New York when an uninsured person is responsible for an accident includes medical costs, up to $2,000 a month towards loss of income, an additional $25 per day for other unforeseen expenses and $2,000 for death benefits.
Even though it is not mandatory most people make sure they protect their vehicle with collision coverage. Comprehensive coverage is also optional and it covers theft or vandalism and just about anything other than an accident that may cause damage to your car.
These minimums are to be used just as a base of coverage. You certainly should listen to a trusted insurance professional when determining where to put extra coverage and where it is not needed. They will also help you in determining the right deductibles for your needs as well as your budget.