Understanding Your Auto Insurance Coverage Needs
Auto insurance combines several different types of coverage into one policy. New York State requires that you have certain coverages. What type of auto coverage do you need?
Mandatory Coverages for New York State
These coverages are required by New York State law with mandated minimum levels of coverage.
Personal Injury Protection
Also known as No Fault Insurance, PIP covers medical expenses, loss of income, and other miscellaneous expenses regardless of fault for the insured. This coverage provides the following benefits:
- Medical Expenses- covers various medical expenses of the insured and passengers in the vehicle.
- Loss of income- a maximum of $2,000/month or 80% of insured's current monthly income (whichever is less).
- Other expenses- $25/day for reasonable expenses.
- Death benefit- $2,000 (not applicable if insured is liable in accident).
Bodily Injury Liability
Protects you if you are responsible for an accident in which someone is injured or killed. With a minimum split limit requirement of $25,000/$50,000, the insurance company will pay up to $25,000 per person injured and up to $50,000 per accident. If there is more than one person injured, the most you are covered for is $50,000. Alternatively, insureds can select a single limit (CSL) policy that provides one total amount that can be used for all bodily injury and property damage in an accident. The most common coverage for NYCM policyholders is $100,000/$300,000 single limit.
Property Damage Liability
Property Damage Liability covers the damage your vehicle causes to someone else's property, such as running into someone's house or vehicle. The most common coverages for NYCM policyholders are $50,000 or $100,000.
Statutory Uninsured/Underinsured Motorists
This in-state only coverage pays when you or your passengers are injured by a driver with too little or no auto insurance. New York State requires you to carry at least $25,000 per person and $50,000 per accident, which is most common for NYCM policyholders. Higher limits are available by choosing Supplementary Uninsured/Underinsured Motorists coverage.
Comprehensive & Collision Coverages
Comprehensive and Collision coverages are required if a vehicle is under lease or has a lien. Transportation Expense and Personal Articles coverages are included with auto policies with at least comprehensive coverage. Higher coverage limits are available for purchase.
Collision
Collision coverage reimburses you for damage to your own vehicle resulting from impact with another vehicle, an object, or a single car accident; for example, hitting another vehicle, a guardrail, or a tree. This coverage is usually written with a $500 deductible but may be higher or lower depending on your specific needs.
Comprehensive
This coverage reimburses you for damage to your vehicle not caused by a collision. Such losses include theft, hail, vandalism, or hitting an animal. This type of coverage is subject to your deductible.
Transportation Expense
Coverage for the cost of a rental vehicle or other modes of transportation in the event your vehicle is undriveable due to a covered cause of loss. Transportation Expense is subject to your policy's daily minimum amount, with a maximum of 30 days. The most common coverage for NYCM policyholders is $40/day, or a total of $1,200 for 30 days.
Personal Articles
This product provides coverage for personal belongings damaged in an insured's vehicle as a result of a covered cause of loss. No deductible applies. This includes cell phones, laptops, musical instruments, etc. Coverage will be secondary to any existing coverage on items damaged. Base coverage of $100.
Optional Coverages
While these coverages aren't required, you may want to consider adding them to your policy.
New Car Replacement
In the event of a total loss, the insurance company will pay the cost of the new model year equivalent of the same or comparable vehicle, subject to 120% of the MSRP of the vehicle totaled. This coverage is available for vehicles less than three years old.
Original Equipment Manufacturer (OEM) Parts
This coverage will pay for the repair cost of using OEM parts (if available) with glass losses excluded. Coverage is available for vehicles less than 10 years old, and a vehicle must have at least comprehensive coverage to be eligible.
Optional Basic Economic Loss (OBEL)
OBEL coverage provides an extra amount on top of the no-fault limit with the most common coverage for NYCM policyholders is $25,000.
Supplementary Uninsured/Underinsured Motorist
This provides the same minimum limits as statutory uninsured motorists, but it extends coverage to accidents that occur outside of New York State. Higher limits are available. The most common coverage for NYCM policyholders is $100,000/$300,000.
Medical Payments
Medical Payments coverage 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. The most common coverage for NYCM policyholders is $5,000.
Stay in the Know
Interested in learning more about preventing a claim? Check out the NYCM Insurance Blog for additional tips and insurance know-how:
