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Q: |
What is the minimum amount of insurance that is required by law? |
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A:
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New York State law only requires that you carry liability insurance with
limits of $25,000/$50,000 and $10,000.
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Q: |
I financed a car and I was told I need "full coverage",
what does this mean? |
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A:
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These means your insurance policy must cover physical damage to your
automobile as well as provide liability coverage.
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Q: |
What is physical damage coverage? |
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A:
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Physical damage coverage includes comprehensive coverage and collision.
Comprehensive coverage covers losses due to vandalism, fire, theft, and
animal collision. Often with comprehensive coverage full glass coverage can be
purchased. Full glass coverage covers window glass in your car with no
deductible. Collision coverage for your automobile if you collide with another
car, or standing object, and are not reimbursed by another insurance carrier.
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Q: |
What is a deductible? |
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A:
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A deductible is most often associated with comprehensive and collision
coverage. For example, if you have a $250 deductible, you pay first $250 of
your claim.
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Q: |
What should I do if my insurance is
canceled? |
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A:
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New York State requires you to have liability insurance if you have New
York State License plates. Everyday you have the license plates without
insurance, the department of Motor Vehicles will fine you $8. Therefore you
must acquire insurance or turn in your plates. Also, many companies give
discounts for prior insurance coverage, so it is important not to let your
insurance lapse, otherwise, you will not receive this discount from your next
insurer.
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Q: |
Why should I take the defensive driver
course? |
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A:
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Taking the defensive driver course will reduce your insurance by about
10%. For younger drivers, many companies will also give a 10% discount for the
driver training course. This credit is available until the insured reaches age
21.
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Q. |
Should I buy
insurance from a rental car agency when renting a car? |
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A:
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No, not if you have a private passenger car insurance policy issued in
New York State. Every New York policy contains a provision that covers you for
collision damage to a private passenger rental car. Your policy will include
the coverage even if you do not carry collision on your own cars. However,
this provision does not extend to business use trucks and vans or recreational
vehicles. Also, there is no coverage for corporations or partnerships. While
this coverage is unique to New York insurance policies, it also covers you when
you rent a car in another state or Canada, but not in Mexico or any other
countries.
In addition to collision coverage, your personal car insurance also provides
liability and no-fault insurance at no additional charge.
_______________________________________________________________ This is not intended to be a comprehensive description of coverage, laws,
regulations or policy forms. When you need specific answers to your insurance
questions, please call your insurance professional. |