Posts Tagged ‘new york auto insurance’

NY Auto Insurance: Liability Insurance Coverage

Saturday, August 6th, 2011

NY auto insurance companies must provide quotes which include liability insurance coverage. The state has passed a law stating that all drivers must have bodily injury and property damage liability coverage in place to stay legal.

Bodily injury liability insurance protects the policyholder from having to pay for claims made by the occupants of the other vehicle in an at-fault accident personally. This type of insurance pays for claims for medical bills and economic loss stemming from the accident. It also covers claims made for pain and suffering and the legal fees associated with defending a lawsuit to recover damages.

The government has determined that at least $25,000 must be put in place to pay for injuries and damages sustained by one accident victim and $50,000 to pay for all injuries and damages stemming from the same accident.

Property damage liability protection is also required under New York state law. It pays for the cost of repairing the other driver’s vehicle and any public property damaged in the accident. The minimum level of this type of coverage that all drivers must put in place is $10,000.

Drivers who buy only the minimum level of coverage required by law may not have enough coverage in place to fully cover damages they are responsible for causing in an at-fault accident. Since they are responsible for paying the difference between the level of coverage they have in place and the actual damages personally, buying a policy with a higher limit is a better choice for consumers.

 

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Posted in New York, USA |

NY Auto Insurance: Liability Insurance

Saturday, August 6th, 2011

New York auto insurance buyers must have two types of liability protection in place to comply with state law. Both types of coverage pay for damages claimed by the occupants of the other vehicle in an at-fault accident.

Bodily injury liability insurance covers the following types of claims:

  • Medical bills
  • Pain and suffering
  • Lost wages

It also pays for legal fees incurred in defending a lawsuit launched by the other driver and/or a passenger in the vehicle at the time of the accident.

The minimum level of bodily injury liability protection required by law is $25,000 to pay for injuries and damages sustained by a single accident victim. At least $50,000 in coverage must be bought to compensate all occupants of the other vehicle for their injuries and damages.

Property damage coverage pays for repairs to the other driver’s vehicle. It also pays for the cost of repairs to public property damaged or destroyed in the accident. Public property includes fences, sheds, guard rails, sidewalks, mail boxes and sign posts. It also pays for legal fees associated with defending a legal action associated with a claim for property damage.

The minimum level of property damage liability coverage required by law is $10,000.

A driver in New York who is looking for liability auto insurance coverage can choose to buy a policy with a higher level of protection, if they wish. The higher the policy limit, the greater the level of protection against claims for damages the driver will have.

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Posted in New York, USA |

NY Auto Insurance Liability Rule

Friday, August 5th, 2011

NY’s auto insurance liability rule states that all registered vehicles being driven on a public road or highway must carry liability insurance coverage. Cars which are registered in another state and being driven in New York must comply with the state’s financial responsibility law.

Liability insurance coverage is put in place to protect a driver from having to pay for damages caused in an at-fault accident personally. It compensates the occupants of the other vehicle for medical bills and economic loss sustained as a result of the accident. This type of coverage also pays for repairs to the other vehicle and other property damaged in the accident.

Even cars which are off the road and being kept in storage must be covered under a liability insurance policy. There is an exception to the rule for motorcycles, which must carry liability insurance when being operated on a roadway.

The insurance policy and registration for the vehicle must indicate the same name and address. Proof of coverage should be kept in the vehicle at all times.

Drivers in New York must buy their liability coverage from a company licensed to sell policies in the state.  A policy written by a company in a different jurisdiction is not accepted as valid.

When a New York auto insurance company issues a policy for a driver, it must provide electronic confirmation to the state Department of Motor Vehicles (DMV). The insurance company issues an electronic insurance card which must be presented to the DMV when the vehicle is registered. Both paper and electronic proof of coverage are required under the NY auto insurance liability rule.

 

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Posted in New York, USA |

How New York Car Insurance Companies Set Rates

Saturday, June 18th, 2011

New York car insurance companies consider a number of factors when determining how much to charge policyholders. Each company uses its own formula for setting rates and while the details are confidential, it’s a safe bet that one of the main considerations is the applicant’s driving record. The insurance company looks at past events as a way to predict how someone will behave in the future, and one of the best ways to qualify for preferred rates on coverage is to maintain a clean driving record.

The applicant’s age and gender are also considered by the insurance company when setting rates. Young and newly-licensed drivers pay more for their coverage, since they are more likely to be involved in car accidents. Gender factors in because young male drivers are at a high risk for being involved in accidents. By the time a person has celebrated his or her 25th birthday, coverage rates should start to come down to a more affordable level.

Location is another important factor when insurance companies are setting rates for customers. Urban dwellers who are driving on roads where there are multiple vehicles are more likely to be involved in an accident than their rural counterparts. As a result, city dwellers can expect to pay more for their coverage. Customers who live in an area with a history of multiple claims for car thefts or vandalism will also be paying more for their coverage.

 

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Posted in Car Insurance Rates, New York, USA |

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