At Plymouth Rock, we do more than just help drivers get car insurance. We want to help you pick the right policy with the right coverage so you can feel comfortable that you and your loved ones are protected moving forward.
Part of the way we do that involves helping people understand car insurance coverage in New York in the first place. We’ll show you what it does and, more importantly, what it doesn’t do.
Here are general descriptions of basic auto insurance concepts, and the minimum auto insurance coverage in New York. It’s not intended to describe every condition and exclusion of your insurance policy. Consult with your Plymouth Rock agent to talk about your particular needs.
New York is a No Fault state
As a No-Fault state, New York requires you to have Personal Injury Protection (PIP). This provides medical coverage for you and your passengers if there’s an accident, no matter who was at fault. PIP also covers bodily injury to pedestrians and cyclists that you cause.
This is different from Liability coverage, which covers bodily injury and property damage that you cause to another driver or their passengers when you’re at fault.
Understanding Your New York Auto Insurance Limits
The terms “auto insurance limits” and “coverage limits” refer to the maximum amount an insurer will pay in the event of a loss that is covered under your insurance policy.
The higher the limit, the more the insurer will pay in the event of an accident. You’ll pay less out of pocket, but your insurance policy will cost more. Carrying lower limits can reduce your premium payments, but it comes with the risk that you’ll be responsible for higher out-of-pocket costs in the event of an accident.
Don’t worry – it’s not as complicated as it sounds. Balancing financial risk and the cost of your insurance policy is a personal decision based on your own unique needs.
Consider aspects like the value of your car and the amount that you’re comfortable spending in the event of an accident or even a total loss. Your ability to pay for medical expenses for yourself or another party in the unfortunate case of an accident that causes injuries should also be an important factor when thinking about how much coverage you need. If you have any questions, the passionate insurance experts at Plymouth Rock would love to discuss your particular needs.
Each state has different coverage limits and requirements. Those limits refer to the “per-person” and “per-accident” limits for bodily liability coverage, and the property damage liability limit. So what is your car insurance legally required to cover in New York?
NY State Minimum Auto Insurance Coverage Minimum Requirements
New York state law requires that you carry Bodily Injury Liability limits of at least $25,000 per-person and $50,000 per-accident. The Property Damage liability limit is required to cover at least $10,000. You must also carry coverage of at least $25,000 per-person and $50,000 per-accident for Bodily Injury Caused by Uninsured/Underinsured Auto. As a No Fault State, New York requires you to have at least $50,000 of Personal Injury Protection per-person on your car insurance policy.
Insurance professionals sometimes short-hand how much your policy covers for easy reference. For example, a car insurance policy with the New York minimum insurance limits will be shown as 25/50/10. These numbers indicate the coverage limits for the insurance policy in thousands of dollars.
In the New York state minimum auto insurance coverage example, those numbers represent the $25,000 bodily injury liability per-person, $50,000 bodily injury liability per-accident and $10,000 for property damage liability per-accident coverage.
So what do all of those coverages mean? Here’s some basic information regarding those coverage limits for New York car insurance:
Bodily Injury to others
This protects you against legal liability for the accidental injury or death of others (excluding your passengers) caused by the operation of your car. You are required to be covered up to a basic limit of $25,000 per-person and $50,000 per-accident by your car insurance in New York.
This pays for damage to another person’s property when you, a household member or another authorized driver cause an accident. Typically, this will be another person’s vehicle. You need at least $10,000 of coverage to meet the New York minimum insurance limit requirement.
Bodily injury caused by uninsured/underinsured Auto
This protects you, anyone you let drive your car, household members and passengers against losses caused by an uninsured or underinsured driver. Some states have these separated, but in New York they come together and are a requirement.
Uninsured drivers are those without insurance, and this also covers unidentified (“hit and run”) drivers as well. An underinsured driver is one who has liability insurance, but not enough to cover your injuries. New York state requires a minimum limit of $25,000 per-person and $50,000 per-accident.
Personal Injury Protection (PIP)
This pays for medical costs for you and your passengers are in the event of an accident, no matter who was at fault. PIP also covers rehabilitation, replacement services and even lost wages. PIP is a requirement for car insurance policies in New York, with a minimum coverage limit of $10,000.
Major Types of Optional Auto Insurance Coverage
Plymouth Rock offers you additional coverage options for all you car insurance needs in New York.
Common optional coverages our car insurance customers in New York buy:
Comprehensive coverage protects your car from damage NOT related to a collision with another vehicle. This includes things like natural disasters and storms, fires, vandalism damages caused by hitting an animal and more.
Collision insurance covers the cost to repair or replace your car after a collision with another vehicle or stationary object. This collision coverage only covers damage to your car or someone else’s car that you are operating with owner permission.
It does not cover the damage you cause to other vehicles, however. You’ll need property damage liability coverage in that case. Collision does not cover mechanical breakdowns or wear and tear.
If you car requires repairs from a Collision or Comprehensive claims, coverage for substitute transportation is available. We offer car rental limits ranging from $15 per day/$450 maximum up to $100 per day/$3,000 maximum.
Coverage for medical payments beyond the mandatory PIP requirement takes care of reasonable expenses for necessary medical and funeral services incurred by anyone occupying your vehicle as a result of an accident, or incurred by you and any household member if struck by an auto or while occupying someone else’s auto at the time of an accident. We offer limits ranging from $1,000 up to $25,000.
Loan/lease gap insurance covers you in the case you’ve totaled your car to the point where the repair cost of repairing it exceeds its actual cash value, but you’re still making payments.
Collision and Comprehensive coverages pay no more than the actual cash value of your vehicle just before the accident occurred. Sometimes, you might owe more than that on your loan or lease.
For a covered Collision or Comprehensive loss, loan/leap coverage will pay the difference between the actual cash value of your car and the remaining balance on your loan or lease.