DO ALL DRIVERS CARRY THE MINIMUM INSURANCE?

No. Many drivers purchase more insurance than the minimal insurance required by law. They do so in case they are responsible for an accident and the injured plaintiff is seriously injured or killed. In those situations, the damages can easily exceed the minimum insurance amounts. If this happens, the injured plaintiff can sue and obtain a judgment for more than the insurance amount. The defendant is responsible for damages that exceed their insurance coverage.

This could place the defendant in financial jeopardy if they have to pay such judgment out of their own assets. If cash and assets are insufficient to cover the judgment, a long-term wage garnishment could be placed on the insured wages as a collection tool.

DOES NEW YORK MANDATE COVERAGE TO PROTECT YOUR OWN VEHICLE?

No. NYS does not require what is called collision insurance. However, most lenders and lease agreements do require the owner or person registering the vehicle to purchase said insurance. Collision insurance pays for damage to your vehicle caused by an accident. It does not take into consideration fault in providing payment or repairs to the vehicle. However, fault could affect future premiums or cost of your insurance. Most collision insurance requires what is called a deductible amount. This is the amount you as the insured must pay first for damages to your vehicle before the carrier. Typical deductible amounts are $500 to $1,000. Collision insurance will cover the repairs to your vehicle even in situations where you may accidently hit a tree or post, and no other vehicle is involved.

There are also other coverages a consumer can purchase as part of an automobile insurance policy. Typically, glass coverage, car rental costs, and comprehensive coverage for damages caused by fire, theft, and vandalism are available.

All NYS automobile insurance policies have uninsured coverage provisions. In the event you are seriously injured by a vehicle that is uninsured, your insurance carrier will reimburse you up to the amount of uninsured coverage provided in your policy. There is also underinsured coverage available for purchase in the event the defendant you are suing has coverage that does not meet the amount of your damages.

WHAT IS NOT COVERED BY NEW YORK’S NO-FAULT INSURANCE?

While NYS’s no-fault insurance covers the majority of every-day insurance claims, there several exclusions.

a) Injuries to a driver or passenger of an uninsured vehicle.

b) Injuries to a driver or passenger who acts intentionally causing his/her own personal

injury.

c) Injuries to an intoxicated driver or a driver who is impaired by drug use.

d) Injuries to the driver of a stolen car.

e) Injuries to a driver operating a car in a race or speed test.

f) Injuries sustained by a driver who is committing a felony or fleeing from pursuing law enforcement officer.

g) Injuries to a driver or passenger of a motorcycle.

Where a policy limits the insurer’s liability to certain designated uses of the insured vehicle, like personal use, then damages will not be paid by the insurer if, at the time of the accident, the vehicle is being used for other purposes like delivering pizzas or as an Uber driver.