Understanding New York State Auto Insurance

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Purchasing and understanding insurance coverage is often a confusing and frustrating endeavor for most consumers. I have met very few insurance agents who are willing to take the time to fully explain the different types of coverage that are available. As a result, many motorists do not fully understand their coverage, nor the importance of additional coverage, until it is too late. If you don't want to find yourself without needed coverage that you "thought" you had until after an accident occurs, you need to be fully familiar with the different types of coverage available to you. The following is an explanation of the basic required limits for New York State. Please also read the article on additional coverage, as I cannot stress how important it is to understand the differences between required coverage and additional coverage (you may not be as covered as you think, if you only have basic coverage!), as well as the importance of adding additional coverage. So take notes and then refer to your own policy to see how your coverage measures up and to determine how much additional coverage you need to add to your current policy!

In New York State, certain amounts and types of automobile insurance are required by law. The amount of coverage which you are required to purchase is merely a minimum. You can, and in most instances, should purchase additional insurance in order to make sure you are adequately protected.

The three types of insurance required to register your car and obtain license plates in NY are:

• No Fault Coverage (Personal Injury Protection-PIP)
• Liability Coverage
• Uninsured Motorists Coverage

Motorcycles are not eligible for no-fault coverage, but are required to carry liability and uninsured motorist insurance.

1. No Fault Benefits:

What is it and what's covered?

Every automobile insurance policy written in New York State must provide for $50,000 in No Fault Coverage. No Fault Coverage, otherwise known as Personal Injury Protection (PIP), is coverage the provides exactly what it sounds like--personal injury protection for you or anyone else who is injured in your vehicle, regardless of whose fault the accident was. Your No Fault coverage will also cover any pedestrian who is struck by your car. No Fault does not pay for repair to your vehicle or damage to any other person's vehicle or personal property. Accidents occurring in the United States, its territories and possessions, and in Canada are covered under No Fault benefits. Also covered are any passengers injured in New York State while in your vehicle, as well as any passengers who are New York State residents injured in your vehicle anywhere in the US, its territories, possessions, and Canada, if they are not covered under another auto insurance policy in New York State.

No Fault Coverage will pay for the following expenses until the $50,000 limit is exhausted:

• all necessary expenses incurred for medical, hospital, ambulance services, diagnostic testing, prescriptions, and other related medical expenses without any time limitation.
• # 80% of your lost earnings from work of $2,000 a month, whichever is less, for up to three years. (if you are eligible for New York State Disability payments or Workers Compensation benefits, the amount you are eligible for from No Fault for lost earnings will be reduced by the amount of your disability or compensation payments)
• $25 a day for other incidental expenses, such as transportation and housekeeping, for up to a year after the accident. No Fault will pay an additional death benefit of $2,000 to the Estate of anyone killed in an automobile accident.

No Fault Insurance takes precedence over any health insurance that you might have. You health insurance carrier does not have to pay your medical bills if they are covered by No Fault. It is therefore very important that you find out who the No Fault carrier is and file a claim as soon as possible after an accident.

Reminder: No Fault coverage is not afforded to individuals with are injured as a result of the use or operation of a motorcycle.

Ineligibility for No Fault Benefits
Under most policies certain actions and conditions can make you ineligible for No Fault benefits. These include driving while intoxicated or under the influence of a drug, intentionally causing injuries to themselves, riding an all-terrain vehicle or a motorcycle, while committing a felony, while in a vehicle known to be stolen, or being an owner of an uninsured vehicle.

2. Liability Insurance:

What is it and what's covered?

Liability insurance, also known as bodily injury and property damage, is also required under New York State Law. This coverage protects you and anyone driving your car with your permission if a claim is made against you by another person alleging that you were at fault for an accident. This coverage pays on your behalf to that injured party. The minimum limits are often referred to as "25/50/10."

They are as follows:

• $25,000 for bodily injury (not resulting in death), or $50,000 for any injury resulting in death sustained by any one person in any one accident.
• $50,000 for bodily injury (not resulting in death) sustained by two or more persons in any one accident, or $100,000 for any injuries resulting in death sustained by two or more persons in any one accident.
• $10,000 per accident for damage to another party's car or property.

If you are injured or your vehicle is damaged in an accident that was the other vehicle's fault, you can make a claim against the other vehicle's insurance policy. If you were not operating or riding a motorcycle, you have the right to sue for pain and suffering if you sustained a "serious injury" (as defined by the Insurance Law) as well as for property damage and any other economic loss that is either not covered or exceeds the limits of your No Fault coverage. If you were operating or riding a motorcycle, you can sue for any economic loss which you incurred as well as for your pain and suffering and property damage. Since motorcycle riders are not covered by No Fault, they do not have to prove that they had a "serious injury" in order to recover for their pain and suffering.

Whenever you are involved in an accident, you should seek legal advice as soon as possible in order to make sure that you obtain all the benefits and compensation to which you are entitled.

* Please note that while coverage is provided for every passenger in your car injured in an accident caused by the driver's negligence, it will most likely not provide any liability coverage when the injured passenger is your spouse. Your spouse would still be eligible for No Fault coverage and some companies offer additional insurance which does cover your spouse for liability.

3. Uninsured Motorists Coverage:

What is it and what's covered?

Uninsured Motorists Coverage is bodily injury protection for you if you are injured as a result of an accident involving an uninsured vehicle or a hit and run driver. It also provides coverage for any family members who are injured by an uninsured vehicle who live in your household and do not own their own vehicle, as well as for anyone who is injured while a passenger in your vehicle. This coverage only applies to bodily injury of accidents occurring in New York and does not cover damage to your vehicle. The only way to be covered in accidents occurring outside of New York is to add the highly suggested Supplemental Uninsured Motorists Coverage (SUM). A collision with an uninsured or underinsured vehicle will almost certainly leave a motorist wishing that he had purchased SUM for his policy.

New York State law requires that every policy carry at least $25,000 of uninsured motorist protection. If you are injured by a hit and run or uninsured motor vehicle, you can make an uninsured motorist claim against your own insurance company and recover under the provisions of your policy so long as you can prove fault on the part of the uninsured vehicle.

Should you be injured while unknowingly occupying an uninsured vehicle or are injured as a pedestrian by an uninsured or hit and run driver, you can make a claim with your auto insurance company. If you do not have auto insurance but a relative in your household does, you can make a claim under that policy. If you are not covered by any policy and are injured as a pedestrian by an uninsured or hit and run driver, or injured as a passenger in an uninsured vehicle, you may still be eligible for uninsured motorist protection to the extent of basic No Fault coverage and minimum limits for bodily injury as set by New York State Insurance Law.

And Finally...

Now that you have finished this article, please take a look at your own policy and continue reading the article on Additional Coverage. You may be quite surprised to see where you lack coverage and how important purchasing additional coverage is. We suggest purchasing the highest limits you can afford in order to protect yourself.

Learn More about New York Auto Insurance

To learn more about New York auto insurance laws, or to schedule a consultation with one of our car accident lawyers, please contact Proner & Proner today.