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Auto Insurance NYS Questions and Answers
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NY State Vehicle Financial Responsiblity Law - ✔✔1. All vehicles except for emergency vehicles must carry liability insurance. Insurance satisfies the states requirement that auto owners have enough funds to pay for losses that they are legally liable for.
- Proof of coverage must be carried. *Must include name and address of provider
- Both the owner and the driver are legally liable for accidents.
- The vehicle owners insurance is PRIMARY and will indemnify both the owner of the vehicle and the driver.
- The drivers insurance is EXCESS and will indemnify only the driver Comprehensive Motor Vehicles Reprarations Act - ✔✔This law stipulates the criteria for suing in NYS when someone is injured in an automobile accident. Tort Limitation - ✔✔A tort is a civil, not criminal wrong that violates the rights of another. Persons injured in an auto mobile accident in NYS can only sue if they meet a Verbal Threshold Verbal Threshold - ✔✔A person can only sue if serious injury is sustained:
- Death, dismemberment, or signficant disfiguration.
- Loss of an organ or loss of use of an organ
- Any fracture
- Any loss of a bodily function for 90 days or more.
Mandatory Photo Inspection - ✔✔Applies to vehicles with any physical damage coverage (Collision and/or Other Than Collison *Comprehensive) *This law gives the insurance company the right to inspect the vehicle *The insured has 5 days to complete the inspection *If not done in 5 days, then physical damage coverage will be suspended. *Suspended physical damage coverage will be reinstated upon inspection. Motor Vehicle Accident Indemnification Corporation - ✔✔This applies when both the injured person as well as the person causing the accident have no insurance. (ex. An uninsured passenger injured while an uninsured driver - or- an uninsured pedestrian injured when hit by an uninsured driver) *All auto insurers in NYS are assessed a fee for this program. *The program pays benefits to the injured party when caused by an uninsured motorist. *Limit is 25/ *Only covers accidents occuring within NYS. Insurance Information and Enforcement System (IIES) - ✔✔This is a NYS Vehicle and Traffic Law designed to reduce the number of uninsured vehicles. *The insurer must notify DMV within 7 days of issuing a policy. The insurer must notify DMV within 30 days of canceling a policy Cancellation Notice - ✔✔Insured can cancel at any time--may be required to cancel in writing.
Personal Auto Policy - ✔✔P.A.P. PAP Eligible Vehicles - ✔✔Private passenger vehicles (Includes autos, vans, and pick-ups) Private passenger vehicles used on the insured's farm is covered. YOU - ✔✔The person named on the declaration--also that persons spouse if they reside in the same household WE - ✔✔The insurance company Family Members - ✔✔A person related to you by blood, marraige, or adoption, and who is a resident of your household. Wards and foster children are also included. Bodily Injury - ✔✔Bodily harm, sickness, disease or death Occupying - ✔✔Means in, upon, getting in, getting on, getting out, or getting off a vehicle (NOT UNDER) Vehicles Covered - ✔✔P.A.P. covers both vehicles that you own as well as unowned vehicles
Who is insured under the P.A.P - ✔✔1. You
- Family Members
- Any person using your covered auto
- An organization that you are driving on behalf of. (ex. Employer, social club, religious institution) is always covered under the drivers policy. (There is no coverage when driving the organizations car) P.A.P. Liability Coverage - ✔✔*Includes Bodily Injury and Property Damage (These can be sold seperately or combined, depending on the insurer) *Mandatory Coverage *3rd Party Coverage Bodily Injury - ✔✔Pays 3rd party when you are legally liable for their injury or death B.I. Includes payments for: *Medical expenses of others *Pain and Suffering of others *Lost Wages of others *Funeral Expenses of others *Miscellaneous Expenses of others Property Damage - ✔✔Pays when you are legally liable for damages to the property of others
If the required minimum coverage in other state is higher than the insured's current NYS limits for BI and PD, policy will automatically increase their current NYS limit to the states minimum limit. Defense - ✔✔There is NO limit for defense---paid above and beyond any policy limit Insurance company has duty to defend insured No consent to settle Medical Payments - ✔✔*Optional Coverage **1st Party Coverage Who is covered for Medical Payments? - ✔✔Covers insured and passengers in the insured's vehicle Covers insured and family members if they are hit as pedestrians Medical Payment Coverages - ✔✔Pays actual medical bills on a no-fault basis Pays funeral expenses Medical Payment Limits - ✔✔There is a per person limit (amount varies) *There is a 3 year time limit
Personal Injury Protection (P.I.P.) - ✔✔This coverage was created by Comprehensive Motor Vehicles Reparations Act (Persons injured occupying automobiles are entitled to certain benefits) Mandatory Coverage Both 1st and 3rd Party Coverage Who is covered for P.I.P. Benefits? - ✔✔The insured and family members if hit as pedestrians (1st Party) **The insured's minor children if injured on a school bus (1st Party) **Pedestrians struck by the insured's vehicle (3rd Party) P.I.P. Vehicle Eligibility - ✔✔All vehicles are required to carry liability MUST carry P.I.P. Excluded Vehicles: *Vehicles on rails (trains and trolleys) *Agricultural and Contractors Mobile Equipment *Motorcycles School Buses P.I.P. Limits - ✔✔50,000 per person limit There are some time limits P.I.P. Medical Expense Coverages - ✔✔No time limit
Filing P.I.P. Claim - ✔✔Injured party should submit a claim within reasonable time frame--- 30 days Additional Personal Injury Protection - ✔✔Same as P.I.P.---Provides additional limits Optional Basis Economic Loss--OBEL - ✔✔This coverage can only be used after all PIP benefits have been exhausted.
- Optional Coverage
- 1st and 3rd Party (3rd party only applies to a pedestrian struck by your car) OBEL Limit - ✔✔$25, The claimant decides how to spend the money from the following: A. Economic losses from medical bills, loss of earnings, or misc. expenses B. Loss of Earnings only C. Psychiatric, physical or occupational therapy and rehab D. Combination of B & C Once the claimant decides on which option to spend the money on, that choice CANNOT be changed Uninsured Motorist Coverage - ✔✔*Mandatory Coverage
*1st Party Coverage Uninsured Motorist Coverages - ✔✔Medical Expenses *Pain and Suffering *Lost Wages *Funeral Expenses Misc. Expenses Who is covered under Uninsured Motorist? - ✔✔The insured either in the vehicle or as a pedestrian *Passengers in the insured's vehicle When does Uninsured Motorist Apply? - ✔✔Both of the following MUST apply *Accident must NOT be at fault (3rd party must be negligent) *Accident must have occured within NYS Any ONE of the following MUST apply *The negligent 3rd party has no insurance *The negligent 3rd party insurance company denies the claim (Insolvent or claim excluded) *Hit and Run Accident
Physical Damage Coverages - ✔✔Optional coverages that provide benefits to the insured's own vehicle **Optional Coverage **1st Party Coverage **Coverage's are Collision and/or Other Than Collision (Comprehensive) Collision - ✔✔This coverage provides benefits for your vehicle when loss is caused by: *Impact with any object, except an alive animal *Upset (rollover) Collision Deductibles - ✔✔Minimum deductible in NY is $ Other Than Collision--Comprehensive - ✔✔This is an open peril coverage that provides benefits to your vehicle. Covers losses due to:
- Missles or falling Objects *Fire *Theft *Explosions *Earthquake *Windstorm *Hail *Flood
*Malicious Mischief or Vandalism *Riot or Civil Commotion *Contact with an alive animal or bird Glass breakage (Can also be covered under collision) Comprehensive Exclusions - ✔✔All policy exclusions apply *Collision Comprehensive Deductible - ✔✔Minimum in NY is $ Transportation Expense - ✔✔Pays for substitute transportation if the insured's vehicle is disabled due to a covered loss Optional 1st Party Benefit Transportation Limit - ✔✔Pays up to $20 per day Pays maximum of $600 per occurence Transportation Waiting Periods - ✔✔Waiting period for theft--- 48 hours **Waiting period for everything else-- 24 hrs. ex. Bill rents a car for 5 days after the theft of his vehicle. How much will his insurance pay? Answer: 3 days @ $20 per day= $
Joint Ownership Coverage - ✔✔Optional Endorsement Adds an additional person as Named Insured if the car is co-owned Named Non-Owned - ✔✔Optional Endorsement Allows policy to be written with no listed vehicle Spousal Liability - ✔✔Optional Endorsement Provides Liablity coverage if your spouse sues you. (This endorsement must be offered to its policyholder every year) Misc. Type Vehicle Coverage/Recreational Vehicles - ✔✔Optional Endorsement This is availabe as an endorsement or as a stand alone policy Provides coverage for recreational vehicles including: Owned Golf Carts All Terrain Vehicles (ATV) Liability is mandatory Motor Homes Exclusions - ✔✔These apply to all coverages on the PAP except PIP
- Intentional Injury
- Personal property owned by the insured
- Property in the insured's care, custody and control. (ex. You hit a lawnmower on side of the road--covered. You hit a lawnmower that you borrowed---excluded)
- Injuries to domestic employees covered by workers compensation
- Livery or taxi use (share the expense exposures are covered)
- Garage Business (Need Garagekeepers Policy to cover customers car) Not covered if driving in customers car
- Business use of a business auto (company car)
- Cars driven without permission
- War and Nuclear
- Vehicles with fewer than 4 wheels
- Vehicles designed for off road use (dunebuggies, etc)
- Vehicles available for the insured's regular and frequent use (not owned or listed on the policy)
- Racing or competition in a facility designed for racing
- Wear and Tear
- Freezing
- Mechanical Breakdown
- Road damage to tires
- Electronic Equipment
- Awnings, cabanas and tents
- Customization of vans and pick ups
- Government Action Electronic Equipment - ✔✔*Limit $ *All non-permanently installed electronic equipment is excluded *Permanently installed electronic equipment IS covered
*Non-payment *Suspension or revocation of license Failure to provide underwriting or accident information AIP Eligibility - ✔✔Any vehicle in NYS no matter where the owner resides. Must have attempted to obtain insurance from 3 voluntary carriers in the past 60 days. AIP Coverage - ✔✔Minimum Limits: 25/50/ *Maximum Limits: 250/500/
