Choosing car insurance can be daunting. Here is some information to help you understand what impacts your insurance policy choices and costs.
Consider Your Driving Record
Your driving record will affect your insurance rates because insurers see your driving history as an indicator of how you will drive in the future. If you have a clean driving record, they’ll expect you to continue to be a safe driver. However, if you have traffic violations, or have been involved in accidents which you were at fault for, then you may be assessed as a higher risk insured which may result in a higher premium for your insurance policy.Explore the Different Types of Coverage
Before choosing a policy and insurance provider, it is important to familiarize yourself with the different coverages and insurance terminology that are involved when you purchase a policy. While some coverages are mandatory, there are others that are elective. Let’s take a look at what is required in New York State for Automobile Insurance Coverage.New York State law requires all vehicles be insured with a minimum liability coverage of $25,000 per person, $50,000 per accident for bodily injury and $10,000 for property damage in any one accident. New York State also requires a minimum of $50,000. in mandatory No Fault Coverages. All NYS insurance policies are also required to provide Supplementary Uninsured/Underinsured Motorist coverage, often referred to as SUM coverage.
MANDATORY COVERAGE
Bodily Injury Liability Insurance Coverage: In the event that you are at fault for injuring passengers in your vehicle, occupants of another vehicle and/or pedestrians, their claims for bodily injury pain and suffering would be made under this coverage Bodily Injury Coverage does not cover intentional harm or injury. (NYS Minimum requires coverage of $25,000 per person, $50,000 per accident for bodily injury).
Property Damage Liability Insurance Coverage: Similar to bodily injury liability, this coverage applies if you’re at fault for damaging someone else’s property as a result of an automobile accident. Repair and/or replacement of damaged property such as fences, trees, houses and vehicles is usually covered. (NYS Minimum requires coverage of $10,000 for property damage in any one accident.)
No-fault Coverage: This coverage provides payment for medical treatments related to injuries arising from an automobile accident. No-Fault Insurance laws require every driver to file a claim with their own insurance company after an accident, regardless of who was at fault. With this coverage, your medical bills along with any of your passengers who sustained injuries will be taken care of up to the policy limit no matter who is at fault for the accident. Insurers will also pay medical expenses, provide dental care, or cover funeral costs for injured passengers in your vehicle. No-fault coverage is mandatory on all auto policies in the State of New York. Eligibility for no-fault benefits could be different when the accident occurs outside of NYS. (NYS Minimum requires coverage of $50,000. Per person in mandatory No Fault Coverages).
Statutory Uninsured/Underinsured Motorist Protection (SUM): Car accidents are inevitable. In the event that you’re hit by someone that is uninsured or underinsured (carries insufficient liability limits to cover your loss) and you sustain serious bodily injuries, this coverage may handle expenses and pain and suffering that are not covered by the at-fault party. New York residents are required to have SUM coverage equal to the Bodily Injury Coverage limit. Your policy is entitled to an offset of whatever coverage the at-fault party may have. Example: You have $100,000 in SUM coverage and the person who hit you has $25,000. If your injuries are serious enough, you would collect the $25,000 from the at-fault party and potentially $75,000 from your own SUM coverage.
(NYS minimum statutory limit in NY is $25,000 per person, $50,000 per accident)
The following are optional coverages you may add to your auto insurance policy:
Collision Coverage: Coverage applies to damages to your insured vehicle due to an accident involving a collision or contact with another vehicle or object. This coverage will pay for repairs to your covered vehicle as a result of an automobile accident. This is an added coverage which you must elect to place on your policy for an additional premium. If you have a loan on your vehicle, your bank(lienholder) will likely require this coverage be added to your policy. This coverage is subject to a deductible.
Comprehensive Coverage: In the event that you hit an animal , or your vehicle is damaged by weather, a falling tree, or some other type damage occurs from a non-auto accident, comprehensive coverage pays for repairs to you vehicle. This coverage is often subject to a deductible.
Estimate How Much Money You are Able to Spend on a Deductible
A deductible is the amount you are responsible for and have agreed to pay, before the insurance company will pay for your claim. For example, if your deductible is $500 and the repair cost is $900, you’re responsible for the first $500. Typically, the higher deductible you have on your policy the lower your premium payment will be. Deductible usually applies to Comprehensive, Collision and No Fault Coverages.Consider What Car You Will Be Driving
Insurers look at the year, make and model of your car when providing your rates. Take the time to financially plan whether you can afford car insurance for the vehicle you may purchase. You can get a quote from your local agent to help you project your expense for insurance based on different types of vehicles.Insurance Agents in your community are available and ready to help guide you through the process of selecting your insurance policy, and to ensure you are obtaining a policy to fit your needs. If you would like to find an agent near you, click here and you will be provided with a local agent that will be happy to assist you and provide you with a peace of mind while making these important decisions.
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