Know Your Insurance Limits?

When bad things happen and you’re in a car crash, you want your insurance to go the distance. Do you know what questions to ask your insurance agent? Many times, one more question, one small added line on your policy, can save you potentially tens of thousands of dollars when something goes wrong. No one knows what’s just around the corner, but you do need to know what to do next.

Over the years you’ve had questions about insurance, limits on your policies, and the potential impact those limits have if and when you’re injured. Whether it’s for your car, your home, etc, but in particular for your vehicle.

Insurance On The Internet

In this internet age, everybody shops on the internet and mostly it’s for price, and that’s not necessarily going to provide you with the best situation. The lowest price isn’t necessarily the best for you. The old adage is, you get what you pay for. So you need to understand what you are getting, what your coverages are, and these are detailed evaluations. And then decide what you can afford. Can you afford these liability limits? Can you afford different SUM limits? Can you afford SP spousal coverage, (Supplemental Spousal Liability insurance), collision coverage? There are all sorts of things that’s just for cars, let alone for your homeowners. And so you need to analyze what you can afford, what risk you are going to take, so you understand what you are risking when you’re paying the price you’re paying.

Understanding Insurance Limits in New York State for Accident Coverage

Accidents can happen unexpectedly, and the consequences can be both physically and financially devastating. In New York State (NYS), having the right insurance coverage is crucial to protect yourself and others in the event of an accident. One of the critical components of insurance policies is the insurance limits, which determine the maximum amount your insurance provider will pay for covered damages. In this article, we will delve into the various aspects of insurance limits in NYS as they relate to accident coverage.

1. Minimum Liability Insurance Limits

In NYS, all drivers are required to carry a minimum level of liability insurance to legally operate a vehicle. As of my last knowledge update in September 2021, the minimum liability insurance limits were as follows:

– $25,000 for bodily injury per person
– $50,000 for bodily injury per accident involving two or more people
– $10,000 for property damage per accident

It’s essential to note that these limits are the bare minimum required by law, and it’s generally advisable to consider higher coverage levels to adequately protect yourself in the event of a severe accident.

2. Supplemental Uninsured/Underinsured Motorist (UM/UIM) Coverage

While liability insurance protects you if you cause an accident, it doesn’t protect you if you are involved in an accident caused by an uninsured or underinsured driver. To safeguard against such situations, NYS insurance regulations require insurance companies to offer UM/UIM coverage to policyholders.

UM/UIM coverage essentially steps in when the at-fault driver lacks insurance or doesn’t have sufficient coverage to compensate for your injuries and damages. It is recommended to purchase as much UM/UIM coverage as you can afford to ensure comprehensive protection.

3. Personal Injury Protection (PIP) Coverage

New York is a no-fault insurance state, which means that regardless of who is responsible for an accident, each party’s insurance company pays for their medical expenses and other related costs. Personal Injury Protection (PIP) coverage is an integral part of the no-fault system in NYS.

PIP covers medical expenses, lost wages, and other necessary services for the policyholder and passengers injured in an accident, up to the policy limit. However, it’s essential to understand that PIP might not cover all damages, so additional coverage may be needed for more comprehensive protection.

4. Supplemental Liability Coverage

As mentioned earlier, the minimum liability coverage mandated by NYS may not be sufficient in cases of severe accidents. If you are at fault for an accident that results in significant injuries or property damage exceeding your liability limits, you may be personally responsible for the excess costs.

To protect yourself from such financial burdens, you can opt for higher supplemental liability coverage. Umbrella policies are an excellent option, as they provide additional liability coverage across various insurance policies, including auto insurance.

Having adequate insurance coverage is vital to protect yourself and others on the road. In New York State, understanding insurance limits is crucial for accident coverage. By adhering to the state’s minimum liability limits and considering additional coverages like UM/UIM, PIP, and supplemental liability coverage, you can better shield yourself from the financial fallout of an accident.

Remember to regularly review your insurance policy with your provider to ensure it meets your current needs and financial circumstances. Although we’ve covered the general aspects of insurance limits in NYS, it’s always a good idea to consult a licensed insurance agent for personalized advice regarding your specific insurance requirements and options. Stay safe and drive responsibly!