Why Having the Minimum Auto Insurance Policy Is a Bad Idea
By Ross Cellino
Auto insurance is one of those things that many drivers will try to get for the lowest cost possible. While we can all understand the value in saving money where you can, should you always opt for the cheapest auto insurance coverages? When it comes to NYS auto insurance, the minimum required coverage options may not be enough to truly protect you in the event of an accident.
If you’re involved in an accident with a driver carrying the policy minimums, reaching out to an attorney can help you navigate the process of recovering adequate compensation.
What Are New York’s Minimum Auto Insurance Requirements?
New York requires drivers to carry the following coverages:
- Personal Injury Protection (PIP) / No-Fault: $50,000 per person to cover medical expenses and lost wages, as they relate to the accident, regardless of fault.
- Uninsured/Underinsured Motorist Coverage (UM/UIM): $25,000 per person and $50,000 per accident to cover costs like medical expenses, lost wages and pain and suffering.
- Liability Coverage: $25,000 for bodily injury per person ($50,000 for death), $50,000 for bodily injury per accident ($100,000 for death), $10,000 for property damage per accident.
At first glance, these limits might seem sufficient. However, once you take a closer look at the potential costs of an accident, it becomes clear why these state minimums often fall short.
What Are New York’s Elective Coverage Options To Consider?
While the minimum required coverage may meet the legal standards set forth by New York State, additional coverage options can offer greater protection for you in the event of a collision. Some additional coverage options to consider include:
- Higher UM/UIM Limits: Increasing your UM/UIM coverage can help to protect you from paying out-of-pocket expenses if the at-fault driver lacks sufficient coverage.
- Comprehensive & Collision Coverage: In the event that your vehicle incurs significant body damage that exceeds the at-fault party’s liability limits, this coverage will help to cover expenses necessary to fix your car.
- Medical Payments (MedPay) Coverage: MedPay is an elective coverage that can help to cover medical expenses and lost wages as they relate to your accident if your no-fault limits are exceeded.
How Minimum Insurance Coverage Can End Up Costing You More
Many drivers choose the minimum coverage options to help them save on monthly costs, but it can actually end up costing them much more in the event of an accident. Here’s how:
Medical Bills Can Exceed Minimum Coverage Fast
If you’re injured in a car accident, medical expenses can add up quickly. Even seemingly minor injuries can result in thousands of dollars worth of missed work or medical expenses, especially if ongoing treatment is needed. Emergency room visits, specialist appointments, surgeries, and necessary prescriptions can easily exceed the $50,000 no-fault limit on your policy, leaving your personal insurance to cover the rest.
If the other driver is responsible for your injuries, their coverage dictates the amount of compensation you can receive for your remaining expenses. The lower their coverage limits, the less you will be able to recover to pay for your remaining medical expenses.
Uninsured and Underinsured Drivers Are a Bigger Problem Than You Think
Even though New York requires all drivers to carry auto insurance, some people still drive without it or only with the bare minimum legally required. If you’re hit by a driver that is either uninsured or underinsured, your own UM/UIM coverage can help.
However, if you carry the state minimum policy for UM/UIM coverage at $25,000 per person/ $50,000 per accident, you may still have injuries that are worth well in excess of the state minimum limits. Opting for a higher UM/UIM coverage option can help to ensure that your damages are sufficiently covered in the event of an accident with an uninsured or underinsured driver.
Insufficient Liability Coverage Can Leave You Out Of Pocket Costs
If you’re hit by a driver that only carries the state’s minimum liability coverage, you might find yourself left without a safety net under your own insurance policy. The at-fault driver’s insurance will only cover up to their policy limits, meaning if the value of your injuries for pain and suffering, medical bills, lost wages, and other damages exceed their coverage, you could be left covering the difference. This is especially concerning for serious injuries, where costs can easily surpass $25,000 per person or $50,000 per accident.
Having additional UM/UIM coverage and collision coverage on your policy can help to ensure that you don’t incur any additional expenses as a result of the accident.
The Cost Of Additional Coverage Isn’t As High As You Think
One of the biggest reasons that people stick with minimum coverage is due to the idea that adding additional coverage options will cost them a substantial amount of money. But the difference between minimum coverage and sufficient, higher coverage is often surprisingly small — especially when compared to the potential out-of-pocket costs that can accumulate due to insufficient coverage.
Many insurance companies offer discounts for bundling policies, maintaining a good driving record, or taking defensive driving courses. Investing in your insurance premiums now could save you the headache and potential expenses if you’re involved in an accident.
What To Do If You’re In An Accident With Someone Who Has Minimum or No Insurance
If you’re involved in an accident who carries the NYS minimums on their insurance policy — or has no coverage at all — here’s what you should do:
- Call 911: Always file a police report, even if the accident is relatively minor in nature. An official police report can help establish liability and corroborate your claim.
- Document Everything: Take photos and videos of the scene and gather witness information.
- Seek Medical Attention: Even if you don’t feel significantly injured, it’s still wise to seek the advice of a medical professional.
- Consult An Attorney: If the accident was serious in nature and you sustained injuries, a personal injury attorney can help you navigate the legal process.
- File A Claim With Your Insurance: If you were injured, your no-fault insurance will cover your medical expenses and lost wages up to $50,000. In the event you’re involved in an uninsured motorist, your own UM converge may help to cover damages.
Car Crash? Call Cellino
While carrying the policy minimums in New York meets the legal requirements, it doesn’t provide enough protection for most auto accidents where an injury is involved. Medical bills, property damage, and liability claims can quickly exceed these limits, leaving you financially vulnerable.
If you’ve been involved in an accident where you’ve sustained an injury, our team of attorneys can help you to recover the compensation you deserve from the at-fault driver’s policy and help you to secure appropriate compensation from your own policies. Call Cellino Law today for a free case consultation at 888-888-8888 or contact us here.
Content checked by the personal injury attorney Ross Cellino
Ross Cellino
As a family man and a trial attorney, I pride myself on winning cases and serving the community. With over 35 years of experience, I understand the function of a jury, how juries arrive at conclusions, and the role that the jury plays in administering justice. I know how to win cases. You can find us in Manhattan, Buffalo, Melville, Rochester, Brooklyn, The Bronx, Queens and other locations throughout New York.
