Car insurance is mandatory in nearly every state as it protects victims of accidents from incurring financially devasting outcomes and gives drivers an easy way to demonstrate financial responsibility if required by police officers, as well as for registration or renewal of vehicles.
State minimum requirements typically cover bodily injury liability, property damage liability, and personal injury protection (PIP). Additional types of coverage available at an additional premium include comprehensive and collision coverage, providing extra protection in cases like theft or natural disasters.
Bodily Injury Liability
Nearly every state requiring car insurance requires liability coverage, which covers other parties for medical costs and property damage incurred when at-fault in an accident. Some states also mandate uninsured/underinsured motorist coverage so you’re protected in case the other driver doesn’t carry enough or any at all.
Liability limits vary by state, but most require at least a per-person and per-accident limit of $50,000 and an accident limit of $100,000 or higher for vehicles involved in collisions. Many drivers opt for higher limits to protect themselves in case of a severe collision.
As part of their state requirements for car insurance, most states mandate minimum property damage coverage as well. This coverage typically pays for repairs or replacement of another car or fixed structures like light poles and mailboxes hit by your car, such as light poles. Some policies also offer collision coverage, which covers your own vehicle even when at fault; this coverage isn’t mandated in every state, and some drivers opt to purchase separate collision and comprehensive policies instead.
Property Damage Liability
Most states mandate minimum car insurance requirements include property damage liability coverage (PD). This form of coverage helps pay for any damage you cause to another’s property in an accident (like their car). In case your vehicle hits and damages someone’s mailbox on its way to their house, your property damage liability coverage would help cover repairs or replacement. Some states mandate minimum limits of $15,000 per person and $30,000 per accident for this type of coverage.
Insurance professionals typically advise purchasing higher policy limits than the state minimums to safeguard against financial uncertainty and ensure you have enough protection for yourself and your lifestyle. Furthermore, reviewing coverage every year will allow you to ensure it fits perfectly into your plans.
If you need assistance with your coverage, our dedicated insurance experts are always happy to provide assistance. Get a quote online or by phone now so we can start understanding how we can meet your unique auto insurance needs. We look forward to speaking with you. *Based on Bankrate’s average rates for 2022 Toyota Camrys driven 12,000 miles annually with five-day work weeks and commute distance of 10 miles each way.
Uninsured/Underinsured Motorist Coverage
Car insurance policies that cover legal liability to pay damages to third parties. Their terms and conditions are detailed in a certificate issued to them from their insurer.
Each state varies in its minimum coverage requirements, but most require liability coverage for bodily injury and property damage (BI/PD). Some also mandate uninsured/underinsured motorist coverage so drivers can pay damages when an at-fault driver lacks enough coverage. Furthermore, certain states mandate medical payments coverage—also referred to as personal injury protection or PIP—so medical expenses are taken care of regardless of who was at fault in an accident.
Although most don’t realize it, vehicle accidents can be financially catastrophic. That is why experts usually advise purchasing higher car insurance limits than what are required by law. Our auto insurance calculator allows you to easily estimate how much coverage is necessary based on state minimums and your particular circumstances.
Collision Coverage
State minimum coverage levels exist to protect victims of crashes you cause while safeguarding your own assets. Full coverage offers added protection for your car by covering damages caused by outside causes like deer collisions or hailstorms and theft. Many drivers opt to include comprehensive and collision coverage when financing or leasing their car, particularly if financing or leasing may be involved.
Collision coverage, an optional policy feature in all states, can help shield you and any household members who drive your car (assuming they are not excluded drivers on your policy) from having to cover repair or replacement costs out of pocket should the collision be your responsibility. Furthermore, collision coverage covers losses to your car caused by another driver regardless of fault—less your deductible amount, of course!
Though the minimum New York state auto insurance requirements provide adequate financial protection, they may not provide enough if an accident involved an expensive vehicle or serious injuries. Therefore, most insurance professionals advise purchasing higher policy limits than what’s legally mandated to provide greater financial security for drivers involved in accidents.
Comprehensive Coverage
Comprehensive car insurance provides protection from non-collision-related damages such as fallen trees from neighboring yards, theft of your vehicle, and hailstorm damage. Your insurer will cover repair costs (minus your deductible amount) or provide compensation if they deem your car to be a total loss. It is not mandatory in most states but would be wise to consider taking out this policy for added peace of mind.
Insurance against uninsured drivers can save your assets if you’re hit by one. Furthermore, leasing or financing your car might even require it; additionally, it will protect personal assets if your car is damaged or destroyed.
Remember, if your car insurance does not meet state-mandated minimum coverage requirements, you could face fines or license suspension. To understand which coverage best meets your situation, it’s a good idea to discuss options with an experienced, independent insurance professional like those at Plymouth Rock who will explain all available coverages before helping select an optimal solution for you.
