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Understanding Your Auto Policy
Posted by: Joseph Stanley
November 19, 2009

How many times have you received your new policy in the mail, saw the size of it and set it aside?  How many of you have policies that are still in the original envelope?  Maybe you’ve met with your agent about adding or removing coverages only to leave with more questions than answers?

We’ve all been in these situations at some point.  Auto insurance can be confusing.  Most people don’t know what coverages are required and which ones are optional.  Even more people have coverages or endorsements they have no idea they had or even what they mean. 

Below you will find some of the more basic coverages, what they cover and which are required by law.  

MANDATORY COVERAGE:

http://www.ins.state.ny.us/auto/2008/auto0802.htm

Liability:  Covers you for damages that your car may cause to other people’s property.

Liability Bodily Injury: Minimum limit is $25,000 for injuries, $50,000 for injuries sustained by more than one person in any one accident. Commonly seen as 25/50. 

Liability Property Damage: Minimum limit is $10,000 for damage to someone else’s car or property.  Sometimes seen as a combination of 25/50/10.

Uninsured Motorist Coverage: Protects you, your passengers or family members from damages caused by an uninsured vehicle or a hit and run. May be abbreviated to (UM, UIM, UM/SUM).  This coverage applies only to bodily injury due to accidents occurring in New York State, and does not cover auto body damage.  The amount of coverage required is the same as the minimum bodily injury liability limits. 

No-Fault (a.k.a. Personal Injury Protection):  Covers medical expenses and lost earnings for you, or the driver, passenger or pedestrian injured by your car; up to $50,000.

ADDITIONAL OPTIONS

Liability:  All liability limits can be increased at a small cost.  Why increase your limits?  To protect yourself and your assets should an accident happen.  We have seen all too often the consequences to our clients when there isn’t enough insurance to cover what can be devastating losses.

Supplementary Underinsured/ Uninsured Motorist Coverage (SUM):  You can increase this coverage (as explained under the mandatory coverages) for up to $250,000 per person and $500,000 per accident.  Some insurers offer even more.  SUM coverage also covers out-of-state accidents which are not covered under the basic Uninsured Motorists Coverage.  It is important to know that the amount of SUM coverage may not exceed the bodily injury liability limits of your policy.

APIP (Additional Personal Injury Protection):  Many people think that the $50,000 afforded under the Mandatory Personal Injury Protection coverage/ No-Fault is plenty to cover injuries and lost wages.  Until it happens.  Most inpatient hospital stays more than 24 hours can easily exceed this.  With regard to lost wages, reimbursement is only 80% so if you exceed $2000 per month, this coverage can make up that difference.

Collision and Comprehensive:  The majority of insured vehicles carry this coverage but it’s easy to confuse one for the other.  Here is the difference in a nutshell:

Collision Coverage:  Your insurer pays you regardless of fault for damage to your vehicle caused by a collision with another car or any other object.  It also covers rollovers.

Comprehensive Coverage:  Your insurer pays you, regardless of fault, for damage to your car from all causes, other than collision.  Things like hitting a deer for example, windshield damage, falling objects, theft etc. 

MORE INFORMATION

http://www.ins.state.ny.us/auto/2008/auto0803.htm

There are several other optional coverages not listed.  There are also several policies and regulations that can make some of these coverages complicated depending on the circumstance.  When in doubt, speak with your agent.

If you are hurt in an accident, having knowledge of the provisions of your auto policy is crucial.  You can’t always rely on an adjuster or customer service representative to evaluate and explain your coverages and entitlements. 

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Car Accident Frequently Asked Questions
Posted by: Joseph Stanley
June 16, 2009

Frequently Asked Questions:

"I was injured in a car accident, someone told me that no-fault would pay my bills, what is it?"

No-Fault insurance (Personal Injury Protection), is an insurance benefit designed to cover an injured person(s), regardless of fault, for medical expenses, other reasonable necessary expenses and lost wages. An Eligible Injured Person is entitled to a maximum coverage of $50,000 under basic no-fault insurance. The coverage extends to the driver and/or passengers injured in your car or pedestrians injured by your vehicle. For more information on eligibility, benefits available and use or operation, refer to your auto policy endorsements, your insurance agent, company or the New York State Insurance Department (http://www.ins.state.ny.us/)

*Under New York State Insurance regulation, you must make your claim or put the insurance company on notice no later than 30 days from the date of your accident. *

"What about my pain and suffering?"

A claim or lawsuit may be filed against the party that was at fault for the accident. This is separate from your No-Fault coverage. In New York State, you must prove that you sustained a "serious injury" as defined by the insurance law.

Serious injury is defined as: A personal injury which results in death; dismemberment; significant disfigurement; a fracture; loss of a fetus; permanent loss of use of a body organ, member, function or system; permanent consequential limitation of use of a body organ or member; significant limitation of use of a body function or system; or a medically determined inquiry or impairment of a non-permanent nature which prevents the injured person from performing substantially all of the material acts which constitute such person's usual and customary daily activities for not less than ninety days during the one hundred eighty days immediately following the occurrence of the injury or impairment.

"I was hurt on a motorcycle, will No-Fault cover me?"

No, unfortunately motorcycles are excluded from No-Fault benefits.

"I'm spending so much money for gas, parking etc. going back and forth to doctor's appointments, does No-Fault cover this too?"

Yes, you may submit claims for mileage reimbursement for up to one (1) year from the date of the accident. You are entitled to no more than $25 per day for other necessary expenses. For example, lets say you have a housekeeper come to your home due to your disability and you pay him/her $25 for that day. You also have a doctor appointment on this day, you cannot claim mileage for the appointment because you have already maxed out your $25 expense.

"My doctor said I can't work because of my injuries, what should I do?"

If you have filed a claim for No-Fault benefits, you may also be entitled to wage loss reimbursement. This is 80% of lost earnings from work, up to a maximum payment of $2,000 per month for up to three years from the date of the accident; The wage reimbursement can be offset by New York State Disability Benefits, Social Security or Worker's Compensation benefits.

In addition to your lost wage claim under your No-Fault coverage, you should apply for New York State Disability. You will likely be eligible through your employer. To begin the application process, you must complete a DB-450. This form should be available to you by your employer. This two-sided form is to be completed by you and your doctor. The No-Fault Insurance carrier will sometimes provide you with this form as a courtesy. It is only as a courtesy and should not be sent back as it needs to be provided to your employer.

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