If you live in New York, you must have car insurance and no-fault insurance. By New York State law, no-fault insurance must have a minimum coverage value of at least $50,000. No-fault types of insurance are particularly beneficial because they provide coverage for medical expenses and, in some cases, even lost wages for car passengers. Unlike other insurance, these benefits are applied to anyone who was in the car, regardless of whose fault it was.
New York and twelve other states have required drivers to opt for no-fault types of insurance since the functionality of this insurance speeds up the claims process and reduces the number of lawsuits. In addition to no-fault insurance or bodily injury protection, there are other types of auto insurance you can consider. Here are some of the different types of auto insurance you can consider.
1. Motor vehicle liability insurance
Liability insurance mainly covers the medical expenses of other people involved in the accident and even the damage to the vehicle that you have caused. However, it does not cover the expenses of the driver or any of the passengers. When it comes to auto liability insurance, it doesn’t matter whether you need it or not, but in most states you are required by law to have one if you want to drive legally on the road.
2. Motor vehicle collision insurance
Auto collision insurance will cover damage to your vehicle if you are ever involved in a car accident and hitting a stationary object, having an accident involving a single car, or having an accident with another car. Car collision insurance is mandatory for drivers who have the car on loan or lease. Additionally, auto collision insurance will cover the cost of repairs or damage. So it’s better to get one if you can bear unexpected prices.
3. Full car insurance
Unlike other types of Assurance, comprehensive car insurance covers damage to your vehicle caused by any reason other than an accident. So if someone has vandalized your car or a branch has fallen on the windshield, then comprehensive insurance would cover the cost of repairs. It’s a good idea to get comprehensive insurance if you can’t afford unexpected repairs.
4. Personal Injury Protection or No-Fault Insurance
This insurance will cover all medical expenses for you and the passengers involved in the car accident. Unlike other types of insurance, no-fault insurance can even cover expenses such as lost wages, childcare, and in some cases, even funeral expenses. According to NY No Fault Assurance rules, a person must be insured for at least $50,000.
No-fault insurance is mandatory in thirteen states nationwide, including: Florida, Michigan, New Jersey, New York, Pennsylvania, Hawaii, Kentucky, Massachusetts, Minnesota, North Dakota and Utah . Additionally, Puerto Rico is also on the list since it is a US territory.
5. Coverage for uninsured or underinsured motorists
There are times when people are involved in an accident with an uninsured driver who is not covered by any type of insurance that could cover the cost of your damages. There are twenty-two states in the country where it is mandatory to purchase uninsured coverage, such as Connecticut, District of Columbia, Illinois, Kansas, Maryland, Maine, Minnesota, Massachusetts, Missouri, Nebraska, North Carolina, New Hampshire, New Jersey. , New York, North Dakota, Oregon, South Carolina, South Dakota, Vermont, Virginia, West Virginia and Wisconsin. One should purchase this type of insurance if you do not have overlapping coverage, such as no-fault or collision insurance.
6. Medical payment coverage
This type of coverage is also known as MedPay and covers accident-related expenses for passengers. In addition to providing coverage, a MedPay will cover co-payments for other insurance policies. From a broader perspective, MedPay is very similar to no-fault insurance, but its coverage and scope are more limited. Additionally, MedPay is mandatory for drivers in New Hampshire and Maine.
7. Guaranteed automatic protection
As soon as you start your new vehicle in or out of town, the overall value of the vehicle begins to depreciate. Thus, in the event of an accident that causes you complete damage, the insurer will only pay you the actual monetary value of your car after adjusting for depreciation. In many cases, this amount often turns out to be less than what you already owe the bank. So, gap insurance will prove beneficial to pay the sum between your loan amount balance and what your car is actually worth.
8. Rental refund
If your car is in the repair shop, you still need a rental for your daily trips. The cost of a rental car will be covered by rental reimbursement insurance. However, the insurer will only pay to a certain extent, but this is often enough to cover the majority of the rent.
9. Assistance in the event of mechanical breakdown
This is a type of insurance that can cover the cost of mechanical repairs. Mechanical breakdown assistance is similar to extended warranties and service contracts, but you pay monthly rather than a lump sum.
10. Umbrella Support
It is not a type of auto insurance per se, but rather general liability protection. Umbrella liability protection covers assets of $1 million or more.
11. Usage Based Insurance
It’s not a single or different way to pay for insurance, but it’s just a new way to pay for different types of insurance. So, depending on your driving habits and various other factors, the insurer may offer other discounts and benefits.
In addition to these eleven types of insurance and supplementary cover, there are still other types. You should do extensive research before choosing the types of insurance you need.