Understanding Auto Insurance Coverage Types in New York

Auto insurance can be confusing with all its different coverage types and options. New York has specific requirements for auto insurance, and understanding what each coverage type does will help you make informed decisions about protecting yourself and your vehicle.

New York State Required Coverage

New York law requires all registered vehicles to carry minimum insurance coverage:

Liability Coverage

Liability insurance pays for injuries and property damage you cause to others in an accident. NY minimums are:

• $25,000 per person for bodily injury
• $50,000 per accident for bodily injury
• $10,000 per accident for property damage

Important: These minimums are often inadequate for serious accidents. We recommend higher limits to protect your assets.

Personal Injury Protection (PIP/No-Fault)

New York is a "no-fault" state, meaning your own insurance pays for your medical expenses regardless of who caused the accident. The minimum required PIP coverage is $50,000, covering medical expenses, lost wages, and other reasonable expenses.

Uninsured/Underinsured Motorist Coverage

This coverage protects you if you're hit by a driver without insurance or without enough insurance. NY requires minimum coverage of $25,000 per person and $50,000 per accident for bodily injury.

Optional Coverage Types

Collision Coverage

Collision coverage pays to repair or replace your vehicle if it's damaged in an accident, regardless of who is at fault. This coverage is typically required if you have a car loan or lease.

Comprehensive Coverage

Comprehensive covers damage to your vehicle from non-collision events such as theft, vandalism, fire, falling objects, animal collisions (including deer), hail, and flooding. This is especially important in Upstate NY where deer collisions and severe weather are common.

Rental Reimbursement

Pays for a rental car while your vehicle is being repaired after a covered claim. This is an affordable add-on that can save you significant out-of-pocket expenses.

Roadside Assistance

Covers services like towing, flat tire changes, battery jumps, and lockout assistance. A valuable addition especially during harsh Upstate NY winters.

Deductibles Explained

Your deductible is the amount you pay out of pocket before insurance kicks in. Higher deductibles mean lower premiums, but you'll pay more if you have a claim. Common deductibles are $250, $500, and $1,000. Choose a deductible you can comfortably afford to pay.

Ways to Save on Auto Insurance

• Complete a defensive driving course for a 10% discount
• Bundle auto and home insurance for multi-policy discounts
• Set up automatic payments for billing discounts
• Maintain a clean driving record
• Ask about good student discounts for young drivers

Get an Auto Insurance Quote

The Steele Agency can help you explore auto insurance coverage options. Contact us for a free quote and coverage review.