What insurance coverage do i need?

At a minimum, you should purchase your state's minimum auto insurance requirements. However, state minimums are woefully inadequate and don't offer any coverage for your own car repair bills. If you want better coverage, you'll need to buy more than the minimum requirements. Comprehensive: covers the cost of various damages to your car not caused by a collision, such as fire and theft.

As with collision coverage, you should choose a deductible. The higher the deductible you choose, the lower your premium. Comprehensive coverage is generally sold together with collision coverage, and both are often referred to as physical damage coverage. If the car is leased or financed, the leasing company or lender may require you to have physical injury coverage, even if state law doesn't require it.

Your insurance cards must have the same name as the name that appears on your vehicle registration application. However, the DMV will not accept a card if the DMV barcode reader cannot read (scan) the barcode. Coverage for underinsured drivers (UIM) provides coverage if the liability limits of the at-fault driver are too low to cover all of their medical bills or damages. You should take out all the liability coverage you can afford when buying a car and make sure you have enough liability coverage to cover the full value of your assets (your home, your car, savings, investments, etc.).

The exact amount you'll pay for car insurance will depend on several people, factors such as your age, where you live, the make and model of your car, and your driving history. Setting low coverage limits may mean low rates, but you risk having to pay a lot, much more than you'll save if you skimp on coverage.


and other features vary between insurers, vary by state, and are not available in all states. However, the PIP has some benefits that your health insurance doesn't offer, such as reimbursement for services and lost wages.

Personal Injury Protection (“PIP” or “No Fault”): This coverage, required by law in some states, covers your medical costs and those of your passengers, regardless of who was responsible for the accident. Because your limits per person and per accident are far above the claim amount, your insurance could fully pay the injured driver's medical bills. Some states require PIP as part of their “no-fault” car insurance laws, while in other states you can purchase PIP as an optional type of coverage. If you are responsible for an accident and don't have enough coverage to pay for it, your assets may be seized and your wages may be forfeited to cover the costs.

Your New York State insurance identification cards and the electronic insurance notice together verify your insurance coverage. Most major auto insurance companies offer additional coverage options in addition to the standard coverage that constitutes a full coverage policy. States set minimum requirements for liability coverage, but they're too low to fully cover it after a serious accident. You can also consider temporary coverage insurance, which will pay the rest of your lease or loan payments if your car is full and you still owe more money than it's worth.

This optional coverage pays the difference between what you owe for your vehicle and what it's worth.

Marcie Macvicar
Marcie Macvicar

Typical food expert. Evil zombie lover. Evil troublemaker. Hipster-friendly troublemaker. General social media nerd.