What Are the Auto Insurance Policy Minimums in New York, and What Do Insurance Companies Do About It?
The minimum insurance policy required by the state of New York is not always the best option. Insurance companies play around with these minimum standards by offering skewed rates. With a simple upgrade, customers can find a far more expansive and encompassing policy package. What are the current state minimums, and which type is worth upgrading first?
Liability Minimums in NY
The most significant package for customers is the $25,000 PIP or personal injury protection. This is the one that customers must have, and it is also the one worth upgrading before any other. Personal injury lawsuits can range wildly, and hundreds of thousands of dollars are often paid out in the aftermath of a vehicle accident. The state also requires vehicle operators to carry a $100,000 total wrongful death accident protection, as well as a $50,000 personal injury accident protection. These numbers are detailed per person.
Insurance Companies Know the Minimum Policy
The minimum policy coverage is well known in company circles. Insurance companies have notably agreed upon and enacted minimum policies alongside the state of New York that are bound by law. Many of the insurance companies have formed their insurance prices around the standards and expectations of consumers. More specifically, they know that their customers have to have a certain policy status. They will charge a proportionally high amount for that initial package that meets the minimum law because they know that most customers will want to save money with the legal minimum. Interestingly, the cost of taking it up just a little bit is marginal. Customers act on what they perceive to be the cheapest price by a long shot (New York state minimum policy). But, an upgrade to a superior personal injury, a lower out-of-pocket, and other changes are only slightly more expensive. They may altogether be equally as affordable.
Customers smart enough to know this insurance policy trick can avoid a potential disaster and obtain a far more effective and fulfilling policy. Senior Partner Edward Gersowitz of the locally famous lawyertime.com is a veteran of personal injury law as it specifically relates to motor accidents.
