How much liability insurance do I need in New York?

You need enough liability insurance to cover your net worth. Having coverage equal to the value of the assets you own and all the money you have, minus your debt, protects you financially in case of a serious car accident.

When to Carry Only the Minimum Liability Coverage

Although almost every state requires drivers to carry liability insurance, the minimum coverage is not always enough to cover the cost of an accident. It’s always best to carry as much liability coverage as you can afford, especially if you have a high net worth. You can generally get away with a lower property damage liability limit if you want to save, however, since property damage liability claims are usually less expensive than bodily injury liability claims.… read full answer

If you don’t have many assets or think the risk is worth it, you might be comfortable with carrying only the minimum coverage. But no matter what, make sure you’re carrying enough insurance to comply with state law and avoid paying fines for driving uninsured.

Liability Limits on Auto Insurance

Liability limits on auto insurance are the maximum amount that your insurance company will pay for injuries and property damage in accidents that you cause. Liability limits are typically written as three numbers divided by slashes.

For example, Arizona’s liability coverage requirements are 50/30/10. That means drivers need to carry $50,000 in bodily injury liability coverage per person, $30,000 in bodily injury liability coverage per accident, and $10,000 in property damage liability coverage overall.

Why You Need More Liability Insurance Than the State Minimum

Your insurance company will never pay for anything beyond the limits of your policy. Using the Arizona example, if you cause an accident that leads to $70,000 in medical bills for the other driver, you will have to pay for $40,000 if you are only carrying the minimum insurance required. And if you can’t afford to pay the full amount, the other driver can sue, and you can have your assets seized or wages garnished to cover the remainder.

Yes, uninsured motorist coverage is required in New York. Drivers in New York are required to carry $25,000 in uninsured motorist bodily injury (UMBI) coverage per person (up to $50,000 per accident) as well as $25,000 in underinsured motorist bodily injury coverage per person (up to $50,000 per accident). New York does not require drivers to have … read full answeruninsured motorist property damage (UMPD) insurance, however.

Uninsured motorist insurance covers the policyholder’s expenses after an accident if the other driver doesn’t have insurance or doesn’t have enough coverage to pay for the damage. UMBI pays for the policyholder’s medial bills, while UMPD pays to repair or replace their vehicle. Instead of UMPD, drivers in New York can use collision insurance, which covers repairs after any car accident.

How Uninsured Motorist Coverage Works in New York

Normally, a New York driver can collect damages from the at-fault driver’s liability insurance after an accident. However, if the other driver is uninsured, getting compensation can be time-consuming or nearly impossible. That’s where uninsured motorist coverage can help. Instead of having to file a lawsuit, you can file a claim with your own insurance company in order to pay your bills and get the repairs or treatment you need without waiting for the courts.

Even though car insurance is required in New York, an average of 6% of drivers in the state don’t have car insurance. Car accidents in New York can be extremely expensive, too. For example, fatal accidents in New York have a total cost of $1.44 billion each year. As a result, uninsured motorist insurance is a smart investment for New York drivers.

Key Facts About Uninsured Motorist Coverage in New York:

• Uninsured Motorist Bodily Injury Coverage: $25,000 per person and up to $50,000 per accident
• Underinsured Motorist Bodily Injury Coverage: $25,000 per person and up to $50,000 per accident
• Uninsured Drivers on the Road: 6%
• Total Annual Cost of Fatal Accidents:$1.44 billion

Yes, personal injury protection (PIP) is required in New York. Drivers in New York are required to have at least at least $50,000 of PIP coverage for medical expenses, plus additional categories of coverage for especially serious accidents.

Personal injury protection helps ensure that everyone on the road in New York has some financial assistance for medical payments in the event of a collision. Drivers in all no-fault states are required to have it because they are restricted in terms of when they can sue another driver for compensation after an accident. That means PIP coverage is their first line of defense if they face hospital bills or a long recovery from an injury.… read full answer