Do I Have Enough Car Insurance Coverage?
Last Updated on November 19, 2020
Car insurance is essential for staying safe on the road. If you get into an accident, car insurance will pay for medical bills and property damage. New York state has specific car insurance requirements, but in many cases, you’ll want to purchase more car insurance than the state legally requires. It’s often worthwhile to invest in a slightly more expensive car insurance plan in order to make sure you’re covered if you get into a serious accident. Here’s what to look at when determining if you have enough car insurance coverage.
New York Liability Coverage Requirements
The first thing to consider is New York State’s requirements for liability coverage. You’ll need to carry at least this much coverage in order to be out on the road, and if you’re caught driving without it, you could incur fines or even lose your license. The minimum amount of car insurance required in New York state is $10,000 for property damage, $25,000 for bodily injury of one person, $50,000 for bodily injury of two or more people, $50,000 for the death of one person, and $100,000 for the death of two people. If you can afford to carry a slightly higher liability policy, it’s worth considering, as it will offer you superior financial protection in an accident. However, if you carry too much liability insurance, it could make you a target for lawsuits if you do get into an accident. You’ll want to find a middle ground that works for your budget. Liability coverage pays for the other party’s property damage if you’re found at fault in an accident. New York is a no-fault state, which means your own insurance company will pay your medical bills in an accident, regardless of who is found at fault.
Collision Insurance
Collision insurance pays for property damage to your vehicle in an accident. It also covers damage from one-party collisions – for example, hitting a tree or other stationary object. This type of insurance is not required in New York state, but most insurance companies will encourage you to invest in it. Collision insurance is a good investment for most drivers. You can feel more confident knowing that you’ll be covered for property damage in an accident, regardless of who is at fault. You won’t have to rely on the other party being found at fault for the accident in order to get your vehicle repaired. The only instance in which you might not need collision insurance is if you have an older car that isn’t worth much money. In an accident, the car would likely be totaled and not worth replacing, and it would make more sense to purchase a new car. In this case, it’s worth saving your money on collision insurance and putting it towards savings for a new car.
Comprehensive Insurance
Comprehensive insurance covers damage to your car that is not caused by a collision. For example, you can use comprehensive insurance to pay for damage caused by a hailstorm or flooding or to pay for the damage as a result of vandalism. Although it is not mandatory, it is highly recommended by insurance agencies, and many people can benefit from it. If you park your car on the street or in a public garage, comprehensive insurance is a must. This is especially true for people living in one of New York’s larger cities, which are dense and more likely to experience crime. There are some situations where you may be able to forgo comprehensive insurance. For example, if you park your car in a secure garage on your property, it’s far less likely to experience weather damage or be vandalized. This is also true if you live in a big city, park your car in a garage, and only drive it on longer trips out of the city. This is a common arrangement for many people in New York City, and if this is your situation, you may not need comprehensive insurance.
Uninsured/Underinsured Motorist Insurance
This type of car insurance will pay for your property damage if you get into an accident with someone who is not insured or doesn’t have enough insurance to cover the damages. It can also cover you if you are involved in a hit-and-run as a pedestrian. Since many people drive with only the minimum required amount of liability coverage, this is a helpful type of insurance to have, particularly if you can get it at an affordable price. If you live in one of New York’s many large cities, this type of insurance is very helpful, as your chances of being hit by someone who doesn’t have insurance are higher than normal just due to proximity.
Gap Insurance
This type of insurance will cover the remaining payments on your car if it is totaled in an accident. This insurance is helpful if you still owe money on a car you purchased, as well as if you’re leasing and would owe the leaseholder for damages on the car. If you are currently making payments on your car, it’s often worthwhile to add this type of coverage to your policy. However, if you already own your car outright or don’t have many payments left to go, you won’t need it.
Roadside Assistance
Many car insurance companies offer roadside assistance as part of their insurance policies. It’s usually just a few extra dollars a month, but it’s worth the extra coverage. Roadside assistance will help you if your car breaks down while driving, you run out of gas, or you lock yourself out of your car. It’s particularly important to have if you make long drives frequently or if you drive through sparsely populated areas.
Ultimately, the amount of insurance you can purchase will depend on your budget. Raising your deductible is a good way to lower your monthly insurance payment without sacrificing your overall coverage level if you get into an accident. It’s generally better to play it safe than sorry when it comes to car insurance – you’ll never want to be in a situation where you owe thousands of dollars after an accident.
