Auto Insurance FAQ's
- How can I keep my auto insurance costs down?
- What is a deductible?
- Can my insurance company automatically include my children on my policy?
- Can the insurance company raise my premium due to an accident or ticket?
- What is auto liability coverage?
- How much coverage do I need in New York State?
- What is "assigned risk?"
- Are my rates affected by where I live?
- What is uninsured motorist coverage?
- What is underinsured motorist coverage?
- What's the difference between collision and comprehensive coverage?
How can I keep my auto insurance costs down?
We have a number of ways to help. Start by keeping a good driving record and credit rating. Combine your auto and home policies to create a multi policy discount or package policy. Take an accident prevention class for a cost reduction. Increase your deductibles. Price insurance costs before you choose your next car. Review your policies annually to assure accuracy and make sure you are receiving all eligible discounts.
We have plenty of other ways to help you save. Give us a no-obligation, toll-free call and let's talk.
What is a deductible?
A deductible is simply the amount of money you are willing to pay in the event of a loss under the collision or comprehensive coverage of your policy. The higher the deductible, the less the insurance company is liable for which results in a lower premium for you.
Can my insurance company automatically include my children on my policy?
Yes. The insurance company is allowed to consider all residents of the household and list them as drivers of the insured vehicles in the rating of a policy. Most companies will remove additional drivers if he or she has their own car and auto insurance.
Can the insurance company raise my premium due to an accident or ticket?
Yes. It's called a surcharge and is applied to properly price the risk of the insurer to carry your policy. It's based on data that shows those with frequent violations and/or accidents are more likely to be involved in future accidents. This surcharge is not assessed to recoup prior payments made under a claim.
What is auto liability coverage?
There are two common types of auto liability coverage:
- Bodily injury, which pays for claims to a person you may have injured.
- Property Damage, which pays to repair or replace another's car or property you have damaged.
Remember: you don't have to be 100% at fault in an accident to be financially liable!
How much coverage do I need in New York State?
You must carry the following minimums: $25,000 per person for bodily injury and $50,000 per accident. $10,000 for property damage. $50,000 for "no-fault" or personal injury protection (PIP) coverage. The law also requires all auto insurance policies to provide $25,000 per person and $50,000 per accident for uninsured motorists coverage (for bodily injury). In addition, SUM (Supplementary Uninsured/Underinsured Motorists) coverage can also be purchased.
Many drivers carry higher liability limits and additional personal injury protection. Being under-insured can lead to financial disaster.
What is "assigned risk?"
The NYAIP (New York Automobile Insurance Plan) is a mechanism through which consumers are assigned to insurance companies on an involuntary basis. These are usually drivers with poor driving records, a minimum of driving experience or those who have a certain "frequency of claims."
Drive with the mindset to avoid such coverage, which can become quite expensive.
Are my rates affected by where I live?
Yes. New York State is divided into approximately 70 rating territories to reflect claim costs and other factors, from traffic patterns to population breakdown, to the cost of goods and services. Should you live in an area that has higher loss experiences, you will pay more for the same coverage.
What is uninsured motorist coverage?
This part of your policy protects you and the other occupants of your car in the event they're injured as the result of negligent driving by an uninsured vehicle or hit-and-run motorist. It is one of the most important parts of your coverage. See our Case History.
What is underinsured motorist coverage?
Underinsured motorist coverage protects you and your passengers from someone who has insurance but is underinsured causes an accident which results in a serious injury.
What's the difference between collision and comprehensive coverage?
Collision coverage pays for physical damage to your car if it collides with another vehicle or runs into an object.
Comprehensive coverage goes much further and pays for physical damage to your car caused by vandalism, animals, fire, hail, and theft among others.
We're sure you have more questions, maybe about your motorcycle or recreation vehicle, too. Call us any time with questions.
