How to know if you have enough auto insurance coverage.
It can seem tempting to opt for minimum auto insurance coverage in order to keep your monthly premiums low. You know you need car insurance in New York, but why pay for something you don’t need when you’re a safe driver? This is a common belief by many motorists across the country. Unfortunately, the reality is that accidents happen. Even if you’re a safe driver and only total a few hundred miles a month, you’re still at risk for disasters. Knowing that you have enough auto insurance coverage can help to protect your journey and give you peace of mind on the roads.
In New York, auto liability insurance coverage is mandatory. The minimum amount of liability coverage is:
- $10,000 for property damage for a single accident
- $25,000 for bodily injury and $50,000 for death for a person involved in an accident
- $50,000 for bodily injury and $100,000 for death for two or more people in an accident
In general, if you only have the minimum liability insurance, you could be underinsured. You have the minimum legal level of liability cover, but that may not be enough for vehicle accidents, especially if several cars and passengers are involved. On top of that, opting for minimum coverage won’t cover you for your vehicle damage and your medical expenses. For such coverage, you should consider getting more insurance protection.
There’s no specific limit that separates ‘well-insured’ drivers from ‘underinsured’ drivers. But how can you tell if you lack coverage? If you cause an accident, and the minimum liability coverage limits on your plan cannot pay for all the damage, then you’re under-insured in that situation. That means that once your auto insurance policy has been exhausted, you are on the hook for remaining expenses. As a result, you may be out thousands of dollars and your assets may be on the line. Consider increasing your coverage to protect your finances and assets.
While you may have taken the time to review your coverage and improve your limits, many other drivers on the roads won’t have done so. If a driver who is underinsured or uninsured causes you to be in an accident, they may not have the means to pay for liability expenses. Fortunately, if you have underinsured/uninsured motorist coverage in your policy, your own insurance will kick in to help cover the damage costs.