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Automobile Coverage Guide

Auto insurance combines several different types of coverage into one policy.  New York State requires that you have certain coverages.  So what type of coverage do you need?  Although everyone's situation is different, the following chart might help you find the coverages you should consider.


Coverages
Mandatory/Optional
Required Limit
Most Common
Required by NY State Law
$50,000
$50,000
Optional
Not required
$25,000
Required by NY State Law
$25,000/$50,000
split limit
$300,000
single limit
Required by NY State Law
$10,000
Included in combined single limit above
Required by NY State Law
$25,000/$50,000
$25,000/$50,000
Optional
Not required
$50,000
Optional
Not required
$5,000
Optional
Not required
$500 deductible
Optional
Not required
$200 deductible

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  • Required by NY State Law
  • Required Limit: $50,000
  • Most Common: $50,000
Personal Injury Protection - Also known as "No Fault Insurance"
New York State Law requires this insurance. The minimum requirement is $50,000 to pay for medical expenses, loss of income, and other miscellaneous expenses regardless of fault. This coverage provides the following benefits.
  • medical expenses – covers your various medical expenses
  • loss of income – a maximum of $2,000 a month or 80% of your current monthly income (which ever is less)
  • other expenses – $25 a day for reasonable expenses
  • death benefit – $2,000
  • Optional
  • Required Limit: Not required
  • Most Common: $25,000
In a recent ruling by New York State, maximum loss of income received from no-fault was increased from $1,000 to $2,000 a month for 36 months. However, with a $50,000 limit, coverage may be used well before the 36 months. This is where OBEL comes in to help you out. This coverage provides an extra amount on top of the no-fault limit.
Required by law, bodily injury protects you if you are responsible for an accident in which someone is injured or killed. The minimum requirement is $25,000/$50,000, which means that the insurance company will only pay up to $25,000 per person injured and up to $50,000 per accident. So if there is more than one person injured, the most you are covered for is $50,000.
  • Required by NY State Law
  • Required Limit: $10,000
  • Most Common: Included in combined single limit above
Required by law, property damage covers the damage your vehicle causes to someone else's property, such as your car running into someone's house or car. The minimum requirement is $10,000, which means that the insurance company will only pay up to $10,000 for damage your vehicle does to someone else's property.
  • Required by NY State Law
  • Required Limit: $25,000/$50,000
  • Most Common: $25,000/$50,000
Uninsured motorist coverage pays for injuries sustained by you and your passengers caused by an uninsured motorist. Underinsured motorist coverage pays when you or your passengers are injured as a result of negligence by someone with insufficient liability insurance to cover your losses. In New York State, you are required to carry at least statutory uninsured motorist with limits of $25,000 per person and $50,000 per accident for those accidents that occur WITHIN New York State. If you ever travel out of state, you should consider supplementary uninsured motorist coverage. This provides the same limits as statutory uninsured motorist, but it extends coverage to accidents that occur outside of New York State.
  • Optional
  • Required Limit: Not required
  • Most Common: $25,000
Uninsured motorist coverage pays for injuries sustained by you and your passengers caused by an uninsured motorist. Underinsured motorist coverage pays when you or your passengers are injured as a result of negligence by someone with insufficient liability insurance to cover your losses. In New York State, you are required to carry at least statutory uninsured motorist with limits of $25,000 per person and $50,000 per accident for those accidents that occur WITHIN New York State. If you ever travel out of state, you should consider supplementary uninsured motorist coverage. This provides the same limits as statutory uninsured motorist, but it extends coverage to accidents that occur outside of New York State.
  • Optional
  • Required Limit: Not required
  • Most Common: $5,000
Medical payments insurance is coverage that reimburses you and your passengers (whether or not they are members of your family) for medical or funeral expenses stemming from an accident, regardless of who was responsible for the accident.
  • Optional
  • Required Limit: Not required
  • Most Common: $500 deductible
Collision coverage reimburses you for damage to your own car resulting from impact with another car or an object, such as a house. This coverage is usually written with a $250 deductible, but may be higher or lower depending on your specific needs.
  • Optional
  • Required Limit: Not required
  • Most Common: $200 deductible
This coverage reimburses you for damage to your auto not caused by a collision. Such losses include theft, hail, vandalism, or hitting an animal.

Split Limit: Split limits restrict the maximum amount that a policy will pay for a specific type of loss, such as property damage and bodily injury. A split limit auto insurance policy, for example, might pay $25,000 per person and $50,000 per accident in bodily injury benefits, and $10,000 in property damage per accident. By contrast, a single limit policy might pay up to $60,000 for all property damage and bodily injury resulting from a single accident. Although the total amount of coverage is the same, the single limit policy is more flexible, because it does not cap the amount that can be paid for any type of loss.

Single Limit: A policy with a single limit of liability pays up to a single maximum amount for any type of liability loss. By contrast, a policy with split limits pays different maximum amounts for bodily injury and property damage.

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NOTE: difference between split limits and single limits below.
Coverages
Split Limit Policy
Combined Single Limit Policy
Bodily Injury 1
Bodily Injury 1
Pays $5,000
(because under $25,000 per person maximum)
Pays $5,000
(because under $60,000 limit)
Bodily Injury 2
Bodily Injury 2
Pays $25,000
(because per person maximum)
Pays $30,000
(because $5,000 and $30,000 total still under $60,000 limit)
Property Damage
Property Damage
Pays $10,000
(because property damage maximum)
Pays $20,000
(because $5,000, $30,000 and $20,000 total still under $60,000 limit)
Total Paid
Total Paid
$40,000
$55,000


Trying to figure out for yourself what coverages you may need can be very difficult.  Choose one of our independent insurance agents near you today! They will sit down with you and figure out what coverages best fit your needs.