Garrett Durland September 12, 2016 16 Comments

Auto Insurance CoverageThere was an unfortunate car accident in our area that resulted in massive property damages requiring “hundreds of thousands of dollars” in repairs. It was noted that the driver at fault was unlikely to have adequate insurance to pay for all the damage and, therefore, would need to pay for those significant damages “out-of-pocket.”

This incident truly exemplifies the importance of proper insurance counsel and protection. What people need to better realize is that insurance is meant for the extreme financial burdens that result from rare, catastrophic events like the one above. Insurance sold with inadequate limits (as is a common theme through talking geckos and other 1-800 or on-line options) results in inadequate coverage and a potentially lifelong financial problem. There is every likelihood that the responsible party will be ordered by the courts to reimburse those damages paid by the insurance carrier who settled the first party property damage claim. This might be handled by liens and/or wages being garnished for a very long time.

If your car is registered with the NY DMV, the minimum liability coverages (i.e. the cheapest coverages) are:

  • Bodily Injury – Minimum $25,000 per person / $50,000 per accident
  • Property Damage – Minimum $10,000
  • Basic Personal Injury Protection minimum – Minimum $50,000

These minimum limits are simply not enough to provide proper protection on a day-to-day basis in today’s world. Lets say the individual above had the minimum property damage of $10,000. They could now be well over $200,000 in debt, rather than having their insurance carrier handle the entire loss.

In another scenario that happened, a distracted driver crashed into the back of one vehicle, resulting in that vehicle to subsequently be pushed into another. This sort of chain-vehicle damage alone could easily cost $50,000 or more, not taking into account any bodily injury and the potential lawsuit(s) for those injuries.

What if you were driving home from work when the sun blinded you for an instant, and you slam into the side of a Mercedes or Porche? What if an animal or child ran out in front of your car, causing you to swerve into a utility pole? What if your brakes failed and you landed into another’s business or home? These are accidents that happen all the time! Speak with your Independent Insurance Agent and know your options; providing you proper advice and protections is what we do best!

— 16 Comments —

  1. I just bought my first car and need to buy auto insurance before I start driving it. I like how you point out that car insurance is meant for the extreme financial burdens that result from rare events. Making sure you have enough insurance to cover all these possible events will help you be protected should something unfortunate happen to you while driving your car.

  2. I really appreciate the insight here in this post and confident it’s going to be helpful to me and many others. Thanks for sharing all the information and tips.

  3. I really like how the first paragraph describes in vivid detail how important it is to have automobile insurance. I was hit in my car by another car a few years ago and the driver had no insurance. It was unfortunate but I was lucky to have a special insurance plan that helped me pay for it anyways. If I was looking into getting a good policy , I would go to an insurance agency and make sure that I have this policy.

  4. My husband put a down payment on a Telsa that he should be receiving here in the next three months. Our last car was totaled and we didn’t’ have insurance on it since we bought of his buddy from college. It was phenomenal to see if the article that minimum limits are simply not enough to provide proper protection on a day-to-day basis in today’s world. We will be sure to talk to a professional about getting the right insurance for the car just in case we get in a crash or something!

  5. Ya, it is a fact that for most of newer car owners car insurance is just like pain than a benefit. It is just because of higher premium values that they are going to pay initially. But here, in the following I want to mention some of the reasons which indicate why car insurance is important.
    1)It covers the expenses in the event of car damage or injuries to other drivers.
    2)It provides the financial support when the car is stolen or destroyed by fire.
    3)Driving the car without insurance is illegal. That means insurance helps the driver by avoiding unnecessary penalties.
    So, to remain safe and protect car, car insurance is very important. I want to suggest everyone being a responsible car owner, everyone should go with car insurance for betterment. Thank you.

  6. Wow, it crazy to think that the smallest amount of property damage you can get coverage from NY’s DMC is a minimum $10,000. That doesn’t seem like the right about of auto insurance. If I live in a busy city I would want as much coverage as possible. Just so I don’t have to worry about covering an auto repair bill myself.

  7. Last month, my sister bought her first car. She wants to make sure that her hatch-back is covered properly, but she’s not sure what to look for in an auto insurance policy. I didn’t realize that the minimum limits set by law are often not enough to provide proper protection. I’ll make sure my sister is aware of this info.

  8. I recently just bought my first brand new car, and I am wanting to do everything I can to keep it around for a long time. It’s good to know that when it comes to auto insurance, that there are different benefits for getting it. I like that you pointed out that not only will it help pay to fix the car, but it will also help pay for any medical bills that I may get from it.

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  10. Wow! I didn’t know that there are things that I needed to know when filing an auto insurance. Good thing I read this article because my fiance was planning to get a new car next month. Thanks for the tips!

  11. I like that you mention how literally anything could happen while driving which makes insurance so important. My sister is skeptical about insurance but is looking to buy it. I’ll be sure to talk to her about how insurance on anything can save her when something goes wrong.

  12. It was really helpful when you said at the beginning of the article that insurances were intended to pay for extreme financial burdens that were resulted by rare, catastrophic events. Personally, I am a very careful driver. I have been driving an SUV to work for more than three years now, and I am proud to say that not once have I been charged with breaking traffic laws and such. However, I feel strongly that a car needs to be insured so much that I have decided to get my new car insured as soon as I buy it. Thanks for sharing. I hope it helps others as well.

  13. Like health insurance, the auto insurance is also obligatory for the persons who have already owned a vehicle. When it comes to the vehicle insurance, different states have different laws. That means, if a motorist drives the vehicle without insuring his asset, then he will pay fine for not complying with the state laws. Well, the car insurances is a kind of protection in the event of an accident. Different auto insurance coverage options are there. For example- Collision coverage, Liability coverage, comprehensive coverage etc. Depending on the state of affair, a coverage facility shows its usability. For example- Collision insurance coverage helps to protect your speculation from theft, fire, and despoilers etc. So, if you are lucky enough to own an automobile, then you should abide your state laws and choose the right auto insurance policy to protect your vehicle during a crash and protect you while compensating the losses of other people.

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