Car insurance is a necessary expense for all drivers. It can be overwhelming to navigate the many different types of coverage and options available. In this guide, we’ll break down the basics of car insurance to help you make an informed decision.
- Liability Coverage Liability coverage is the most basic form of car insurance and is required by New York State. It covers damages or injuries you cause to other people and their property. Liability coverage is split into two categories: bodily injury and property damage. Bodily injury covers medical expenses and lost wages for the other party in an accident. Property damage covers repairs or replacement of their vehicle or other property.
- Collision Coverage Collision coverage pays for damages to your own vehicle in the event of a collision, regardless of who is at fault. It can also cover damages caused by hitting an object like a tree or a fence. Collision coverage is usually optional, but if you have a loan on your car, your lender may require it.
- Comprehensive Coverage Comprehensive coverage covers damage to your vehicle that is not caused by a collision. This can include theft, vandalism, natural disasters, and hitting an animal. Comprehensive coverage is also optional, but like collision coverage, your lender may require it if you have a loan on your car.
- Personal Injury Protection Personal Injury Protection (PIP) covers medical expenses and lost wages for you and your passengers in the event of an accident, regardless of who is at fault. PIP is required in New York State.
- Uninsured/Underinsured Motorist Coverage Uninsured/Underinsured Motorist Coverage protects you in the event that you are in an accident with a driver who does not have insurance or does not have enough insurance to cover the damages. This coverage is mandatory in NY State.
When shopping for car insurance, it’s important to consider your individual needs and budget. You may want to consult with an insurance agent to help you determine the best coverage for your situation. It’s also a good idea to review your policy annually and make adjustments as necessary to ensure you have adequate coverage. With this guide, you should have a better understanding of the different types of car insurance coverage available to you.