How Auto Insurance Works

Auto insurance is designed to help provide financial protection in case of accidents, theft and various unexpected events. This coverage is highly customizable, so it’s crucial to work closely with an experienced local agent to get appropriate car insurance coverage at a great rate.

Is Auto Insurance Required?

Like other states, New York has mandatory auto insurance laws to ensure that drivers maintain financial responsibility for potential accidents and injuries on the road. These laws are designed to protect both motorists and passengers.

New York requires all registered vehicles to have liability insurance coverage, which may help provide financial protection if you are responsible for injuring someone else or damaging their property in an accident.

Personal injury protection (PIP) coverage is a part of auto insurance policies to help cover medical expenses and other related costs. New York also requires uninsured motorist coverage as part of auto insurance policies. This coverage helps protect you if you’re involved in an accident with a driver who doesn’t have insurance or doesn’t have enough coverage to pay for your injuries or damages.

In addition to the required coverage, you can purchase additional auto insurance coverages, such as collision coverage and comprehensive coverage. If you lease or finance your car, the lienholder may require full coverage insurance, which typically includes comprehensive and collision coverage.

Auto Insurance Premiums

You pay regular premiums to your insurance company to maintain car insurance coverage. Premiums can vary widely based on numerous factors, including the driver’s age, claims history, driving history, vehicle type and location.

Discounts are often available for safe driving, bundling policies and other factors that reduce your risk as a policyholder.

Auto Insurance Deductibles

When you make a claim, you may be required to pay a deductible before your insurance kicks in. Deductibles can range from a few hundred to several thousand dollars. Higher deductibles typically result in lower premiums, but you’ll have to pay more out of pocket if you need to make a claim.

Coverage Limits

Auto insurance coverage comes with limits, which are the maximum amounts your insurance company will pay in case of a claim. You can choose coverage limits that suit your needs and budget.

It’s crucial to select limits that provide adequate protection, especially for liability coverage, as insufficient coverage could leave you personally liable for damages exceeding your policy limits.

Contact Us

Insurance rates can vary significantly from one company to another. It’s wise to shop around and compare quotes to find the coverage that best suits your needs and budget. Contact James V. Funaro Agency in Bethpage, NY, to start comparing auto insurance quotes.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.