New York Auto Insurance

By: EconomyWatch   Date: 26 May 2010

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Introduction to New York Auto Insurance

New York Auto Insurance requires every car owner in New York to have minimum liability protection, Personal Injury Protection and Uninsured or Under insured Motorist Coverage. If anyone does not carry this minimum insurance protection, then the New York Auto Insurance Law restricts him from getting his car registered.

Mandatory Insurance Liability Coverage in New York

  • Bodily Injury Liability Coverage

    If the policyholder becomes involved in an accident which causes injuries and damages to third party, then this bodily injury liability coverage pays for the injuries.
    This type of coverage compensates for:

    • Medical Expenses
    • Lost Income
    • Pain and suffering
    • Legal Costs if the third party files a lawsuit against the policyholder or any driver listed under the auto insurance policy.

    The policy holder is required to choose a coverage limit which will settle on the maximum amount to be paid per person, per incident by the New York Auto Insurance Company.

    According to New York Auto Insurance Law, every car owner and driver in New York is bound to buy bodily injury liability coverage of at least $25000 per person and of at least $50000 for all persons. But these are the minimum stipulated limits. Anybody can purchase bodily injury liability coverage of a higher amount to protect own self from huge financial loss in case of severe accidents.

  • Property damage Liability Coverage

    If in any car accident, for which the policy holder is responsible, property of other persons is damaged, the property damage liability coverage pays for the damages.
    This coverage actually covers:

    • Damage to other person’s property
    • Legal Cost incurred due to the car accident

    The coverage limit set under the New York Auto Insurance Policy determines the maximum amount to be paid per accident by the Auto Insurance Company.
    According to New York Auto Insurance Law, every car owner in New York should buy property damage liability coverage of at least $10000. Policy holders are obviously free to go for higher limit for this coverage.

  • Personal Injury Protection Coverage(PIP Coverage)

    Personal Injury Protection Coverage is mandatory in New York. This coverage compensates for the injuries caused to the policyholder himself and to the passengers of his car by an accident.
    This Personal Injury Protection Coverage covers:

    • Medical Expenses including
      • Surgical treatment
      • Dental Treatment
      • Optometric Treatment
      • Ambulance Service
      • Medicine Supplies
      • Nursing Services
    • Loss of Income
    • Accidental Death Benefits in case of death by the car accident
    • Essential Service Expenses

    This coverage includes not only the injuries of the policy holder but also the injuries of the authorized drivers listed on the auto insurance policy and the passengers of the insured car who are also the residents of New York. One can get the coverage benefits for the car accident regardless of whose fault it is, as the New York Auto Insurance Law enforces No-Fault Rule.
    When buying personal injury liability coverage, one has to decide on the level of deductibles. Deductible is the amount that the policy holder is required to pay from his own pocket before establishing an insurance claim in case of an accident.

    Maximum payment under this personal injury liability coverage is restricted to $50000 per person, per accident. But, one can receive larger amount of payments if he opts for one of the following optional coverages:

    • Additional PIP Coverage
    • Optional Basic Economic Loss Coverage
    • Work Loss Coverage
  • Uninsured or Under insured Motorist Bodily Injury Coverage

    Uninsured or Under insured Motorist Bodily Injury Coverage is mandatory. If the policy holder is injured in an accident made by a driver who has no insurance coverage or has insufficient insurance coverage, then this Uninsured or Uninsured Motorist Bodily Injury Coverage compensates for the injuries.
    The Coverage actually covers:

    • Medical Expenses
    • Lost Income
    • General Damages

    The Optional Auto Insurance Coverage of New York are:

    • Medical Payments Coverage
    • Additional PIP Coverage

    The Optional Liability Coverage in new York are:

    • Optional Basic economic Loss Coverage
    • Supplementary Uninsured/Under insured Motorist Bodily Injury Liability Coverage

    To get more detailed information on New York Auto insurance, one can browse the sites like automobilemag.com and newyorkcarinsurance.com.

Find out more about New York Car Insurance.

 


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