How Does No-Fault New York Car Insurance Really Work?
Posted in:
Car Insurance Articles
By: Michael F. McDonough
Posted on: Sep 11, 2009 - 5:53:50 PM
How Does No-Fault New York Car Insurance Really Work?
Before we get into an in-depth discussion about New York car insurance, let me clear something up really quick. There's a LOT more to driving in New York than trying to deal with the nightmare that is the New York City streets. Believe it or not, reputation aside New York State is almost entirely cow country! That doesn't, however, affect the amount of New York car insurance you're going to need-or the fact that you're going to be driving under the rules of a no-fault system.
|
If you grew up in New York and were licensed here you're probably already familiar with the ins and outs of a no-fault system, and you can stop reading now! If you're new to the New York highways, however, the prospect of a no-fault system is probably a little mind boggling. Here's what you need to know about no-fault insurance, New York car insurance and what it takes to save money when you're behind the wheel!
First and foremost, understand that no-fault doesn't actually mean no fault. That probably doesn't make a whole lot of sense, but what it means is that in the event of an accident each driver is going to be protected by their own car insurance company. This cuts down on the amount of lawsuits that roll through the New York court system every year and makes it easy for each driver to get back on the road as quickly as possible.
Even though your insurance company is going to be the one taking care of your car insurance claims you're not going to see your insurance rates go up unless you were actually the one responsible for the accident in the first place.
You're still going to have to carry liability insurance, however, as loopholes in the New York car insurance no-fault system allow victims to sue for excessive medical bills if they're well beyond what is considered "acceptable" for a no-fault insurance claims. Most experts recommend you carry at least $100,000 in liability per person and $300,000 per incident, just to be safe.
Being in a no-fault state makes it even more important for you to carry collision and comprehensive insurance on your vehicle, since you don't have anyone to sue for those damages. You're also going to see some new items added to your insurance policy as soon as you switch to New York auto insurance-namely, Personal Injury Protection. This covers your medical expenses, as well as funeral expenses, after you've been in an accident.
Finally, let's talk about underinsured motorist insurance. You're still going to have to carry it, which may seem superfluous at the moment but can be a lifesaver if you're ever in an accident with an uninsured or underinsured driver. Just go with it. You'll be glad you did.
New York car insurance is one of the most non-optional expenses you're going to have living inside the state limits, but you can save big time on your premiums if you talk to your insurance agent about discounts, keep your driving record clean and remember to shop around for the best possible price on your coverage. You'll be amazed at what can save you money on your insurance.
Happy driving, and welcome to the Empire State!
