Insurance Coverage: What protection do I have under my car insurance policy?
Car insurance is not only a legal requirement but also a crucial financial safety net that protects you in the event of an accident or damage to your vehicle. Understanding the protections provided by your car insurance policy is essential to ensure you have the necessary coverage. If you reside in New York, this blog post will help shed light on the various protections offered by a typical car insurance policy in the state.
Liability Coverage
In New York, all drivers are required to carry a minimum amount of liability coverage, which includes two components:
- Bodily Injury Liability: This coverage pays for medical expenses, lost wages, and other damages incurred by other individuals involved in an accident for which you are deemed responsible.
- Property Damage Liability: This coverage pays for the repair or replacement of the other party’s vehicle or property that was damaged due to your fault in an accident.
It’s important to note that the minimum liability limits mandated by the state may not be sufficient to cover all potential damages. Consider evaluating your personal circumstances and selecting higher coverage limits to protect your assets adequately.
Personal Injury Protection (“PIP”)
New York is a no-fault insurance state, meaning that regardless of who caused the accident, each party’s insurance company pays for their medical expenses and other accident-related costs. Personal Injury Protection (PIP) coverage, often referred to as “no-fault insurance,” provides benefits such as medical expenses, lost wages, and other necessary services for injuries sustained in an accident, regardless of fault.
Uninsured/Underinsured Motorist Coverage (“UM/UIM”)
New York law also requires every driver to purchase “UM” coverage. To safeguard yourself from accidents involving uninsured or underinsured motorists, it’s crucial to select adequate coverage to your policy. This coverage protects you in case you’re involved in an accident with a driver who lacks insurance or has insufficient coverage to compensate for your losses. This coverage will also protect you if you are the victim of a hit and run accident and the driver that fled the scene of the accident is never identified.
Collision Coverage
Collision coverage pays for the repair or replacement of your vehicle if it is damaged in a collision, regardless of fault. While this coverage is not mandatory in New York, it can be beneficial if you have a newer or valuable vehicle. It provides peace of mind knowing that your own insurance will cover the costs of repairing or replacing your vehicle, regardless of who was at fault.
Having a comprehensive understanding of the protections provided by your New York car insurance policy is vital for your financial well-being and peace of mind. It is recommended to review your policy regularly, consult with your insurance agent, and assess your coverage needs based on your individual circumstances. By doing so, you can ensure you have the right level of protection in place and be prepared for any unforeseen circumstances that may arise on the road.
Contact Walker & Mackenzie, P.C. today to review your coverages with one of our experienced car accident attorneys and learn how your coverage can affect your personal injury claim. We offer free, no obligation, consultations. Call us today – (631) 791-5090.