When securing an auto insurance policy in New York, it is essential that you understand the coverage options and choose the ones that will benefit you the most. It helps to think ahead and to know how the law works in the state.
New York is a no-fault state, which means each person handles his or her own losses in an auto accident regardless of who is at fault. Due to this, the law requires that you carry personal injury protection coverage on your auto insurance policy, according to Forbes.
PIP coverage will pay for the injuries to your passengers and yourself in an accident. It will usually provide you with payments to cover any medical expenses, replacement services for help you may need due to injuries, rehabilitation expenses, funeral costs, survivor benefits and lost wages.
PIP will cover you, anyone in your vehicle and pedestrians involved in the accident.
By law, you must carry PIP coverage on your insurance policy. Policies are available for up to $50,000. You can configure your coverage to provide you with up to $2,000 per month of lost wage payments, a $2,000 death benefit and up to $25 per day for other related expenses.
The law also permits you to sue the other party who holds responsibility for the accident if your expenses go over $50,000. You may also take the person to court if you suffer from a significant injury in the accident that will alter your life for at least 90 days following the injury.