HomeAutoInsuranceLifestyle4 Tips for Young Adults Who Are Choosing a Car Insurance Provider
Choosing car insurance can be daunting. Here is some information to help youunderstand what impacts your insurance policy choices and costs.
ConsiderYour Driving Record
Your driving record will affect your insurancerates because insurers see your driving history as an indicator of how you willdrive in the future. If you have a clean driving record, they’ll expect you tocontinue to be a safe driver. However, if you have traffic violations, or havebeen involved in accidents whichyou were at fault for, then you may be assessed as a higher risk insured whichmay result in a higher premium for your insurance policy.
Explorethe Different Types of Coverage
Before choosing a policy and insuranceprovider, it is important to familiarize yourself with the different coveragesand insurance terminology that are involved when youpurchase a policy. While some coveragesare mandatory, there are others that are elective. Let’s take a look at what isrequired in New York State for Automobile Insurance Coverage. The following are optional coverages you mayadd to your auto insurancepolicy:
New York State law requires all vehicles beinsured with a minimum liability coverage of $25,000 per person, $50,000 peraccident for bodily injury and $10,000 for property damage in any oneaccident. New York State also requires aminimum of $50,000. in mandatory NoFault Coverages. All NYS insurance policiesare also required to provide Supplementary Uninsured/Underinsured Motoristcoverage, often referred to as SUM coverage.
MANDATORY COVERAGE
Bodily Injury Liability Insurance Coverage: In the event that youare at fault for injuring passengers in your vehicle, occupants of anothervehicle and/or pedestrians, their claims for bodily injury pain and sufferingwould be made under this coverage BodilyInjury Coverage does not cover intentional harm or injury. (NYS Minimumrequires coverage of $25,000 per person, $50,000 peraccident for bodily injury).
Property Damage Liability InsuranceCoverage: Similar to bodily injury liability, thiscoverage applies if you’re at fault for damaging someone else’s property as a result of an automobileaccident. Repair and/or replacement of damaged property such as fences, trees, houses and vehicles is usually covered.(NYS Minimumrequires coverage of $10,000 for property damage in anyone accident.)
No-fault Coverage: This coverage provides payment for medicaltreatments related to injuries arising from an automobile accident. No-FaultInsurance laws require every driver to file a claim with their own insurancecompany after an accident, regardless of who was at fault. With this coverage, your medical bills alongwith any of your passengers who sustained injuries will be taken care of up tothe policy limit no matter who is at fault for the accident. Insurers will alsopay medical expenses, provide dental care, or cover funeral costs for injuredpassengers in your vehicle. No-fault coverage is mandatory on all auto policiesin the State of New York. Eligibilityfor no-fault benefits could be different when the accident occurs outside ofNYS. (NYS Minimum requires coverage of $50,000. Per person in mandatory No Fault Coverages).
Statutory Uninsured/Underinsured MotoristProtection (SUM): Car accidents are inevitable. In the eventthat you’re hit by someone that is uninsured or underinsured (carriesinsufficient liability limits to cover your loss) and you sustain seriousbodily injuries, this coverage may handle expenses and pain and suffering thatare not covered by the at-fault party. New York residents are required to have SUMcoverage equal to the Bodily Injury Coverage limit. Your policy is entitled to anoffset of whatever coverage the at-fault party may have. Example: You have$100,000 in SUM coverage and the person who hit you has $25,000. If yourinjuries are serious enough, you would collect the $25,000 from the at-faultparty and potentially $75,000 from your own SUM coverage.
(NYSminimum statutory limit in NY is $25,000 per person, $50,000 per accident)
Collision Coverage: Coverage applies to damages to yourinsured vehicle due to an accident involving a collision orcontact with another vehicle or object. This coverage will pay for repairs to yourcovered vehicle as a result of an automobile accident. This is an added coverage which you must elect to place onyour policy for an additional premium.If you have a loan on your vehicle, your bank(lienholder) will likelyrequire this coverage be added to your policy. This coverage is subject to a deductible.
Comprehensive Coverage: In the event that you hit an animal , or your vehicle is damaged byweather, a falling tree, or some other type damage occurs from a non-autoaccident, comprehensive coverage pays for repairs to you vehicle. This coverage is often subject to adeductible.
EstimateHow Much Money You are Able to Spend on a Deductible
A deductible is the amount you are responsiblefor and have agreed to pay, before the insurance company willpay for your claim. For example, if your deductible is $500 and the repair costis $900, you’re responsible for the first $500. Typically, the higherdeductible you have on your policy the lower your premium payment will be. Deductible usually applies to Comprehensive,Collision and No Fault Coverages.
ConsiderWhat Car You Will Be Driving
Insurers look at the year, make and model ofyour car when providing your rates. Takethe time to financially plan whether you can afford carinsurance for the vehicle you may purchase.You can get a quote from your local agent to help you project yourexpense for insurance based on different types of vehicles.
Insurance Agents in your community areavailable and ready to help guide you through the process of selecting yourinsurance policy, and to ensure you are obtaining a policy to fit yourneeds. If you would like to find an agentnear you, click hereand you will be provided with a local agent that will be happy to assistyou and provide you with a peace of mind while making these importantdecisions.
