Whether you're a seasoned driver or a new license holder, navigating the complex auto insurance jargon can feel like deciphering a foreign language. Let's continue reading to break down some of the most common yet confusing auto insurance terms for drivers in New York and Pennsylvania.
This coverage protects your vehicle from damage caused by events other than collisions. Think of it as coverage for the unexpected. In New York and Pennsylvania, comprehensive coverage is optional but highly recommended. Examples of covered events include:
This coverage pays for repairs to your vehicle if you collide with another car or object. Like comprehensive coverage, collision coverage is not mandatory in NY or PA. However, if you have a financed car, your lender will likely require it.
This is the amount you'll pay out of pocket before your insurance kicks in for a covered claim. For example, if you have a $500 deductible and get into a $1,000 accident, you'll be responsible for the first $500, and your insurance will cover the remaining $500. Choosing a higher deductible can lower your monthly premium, but be sure you can comfortably afford the upfront cost in case of a claim.
It protects you financially if you are found at fault for an accident and injure someone else or damage their property. There are two main types of liability coverage:
This covers medical expenses for people injured in an accident you cause up to your policy limit. New York requires minimum BI coverage of $25,000 per person and $50,000 per accident, while Pennsylvania requires $15,000 per person and $30,000 per accident.
This covers repairs to another person's vehicle or property damaged in an accident you cause. New York requires minimum PD coverage of $10,000 per accident, while Pennsylvania requires $5,000.
While both New York and Pennsylvania require minimum liability coverage, there are some key differences to consider. New York is a "no-fault" state, meaning that regardless of who caused the accident, your own insurance will, in most cases, pay for your medical bills and lost wages up to a certain limit.
Many other coverage options are available, depending on your needs. Here are a few examples:
Protects you if the driver who hits you doesn't have insurance (uninsured) or doesn't have enough insurance (underinsured) to cover your damages.
Pays for your medical bills and those of your passengers, regardless of who is at fault for an accident, up to the policy limit.
The best way to navigate auto insurance is to understand your specific policy. Don't hesitate to reach out to our knowledgeable advisors at Tompkins Insurance Agencies if you have any questions about your coverage or need help choosing the right options for your needs. Contact us today for a free auto insurance quote, and let us guide you through the process. Call us at 1-888-261-2688 to get started.
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