Expert Advice on Finding Cheap Car Insurance in New York
Expert Advice on Finding Cheap Car Insurance in New York
Expert Advice: Understanding Liability-Only Car Insurance
Mary-Jo Kranacher
ACFE Endowed Professor of Fraud Examination at York College, CUNY
What are the key factors drivers in New York should look for when searching for the best auto insurance coverage?
It is important to know that New York requires a minimum level of liability: $25,000 for bodily injury sustained by one person in any one accident, $50,000 for bodily injury sustained by two or more persons in that same accident, and $10,000 for property damage to another party’s vehicle or property. This is referred to as 25/50/10 split limits.
In addition, a NY auto policy also includes Uninsured or underinsured motorist (UIM) insurance which will cover your bodily injuries, if the other driver is uninsured or underinsured. The minimum required is 25/50. It also includes Personal Injury Protection coverage (PIP) which provides medical benefits for you and your passengers’ injuries regardless of who is at fault. This coverage is also referred to as “No-Fault” coverage and the minimum required in NY is $50,000. Keep in mind, that we live in a very litigious society where the minimum liability limits, while economical, may not offer you the needed security or peace of mind to protect your current or future earnings and assets if you are involved in a serious accident.
Working with an “A,” or better-rated insurance company, on the AM Best Insurance Ratings Scale, will ensure that your insurance company is financially sound and will be there when you need them.
Getting a comparative quote online may be quick and easy, but spending an extra 20 or 30 minutes on the phone with a knowledgeable insurance agent can be worth your time. If you omitted purchasing some valuable coverages and only find out when you have a claim, that could turn out to be a very expensive oversight, which could cost you the financial investment you’ve made in your vehicle, as well as your savings or future earnings. Professional advice may be key to providing you with the protection you need at a price you can afford.
What steps can drivers in New York take to find affordable car insurance?
There are several ways to reduce the cost of car insurance in New York, including:
- purchasing vehicles with safety features such as alarms, airbags, anti-lock breaks & daytime running lights;
- taking a defensive driving course every 3 years to reduce liability and collision premiums by 10%;
- selecting higher deductibles for comprehensive and collision coverages (effectively transfers more of the risk from the insurance company, which lowers the premium); and
- bundling your insurance—insuring your car with the same insurance company as your homeowner’s or renter’s policy—could save you money.
***Acknowledgment: Thanks to my friends at Petschauer Insurance (www.jpins.com) for their interest in this topic, and for making suggestions that have significantly added to the substance of this article. They are located at 377 Oak St., Ste. 404, Garden City, NY 11530 and can be reached by email at personallines@jpins.com or telephone (516) 419-5050.
