Should I Use My Collision Coverage or the Other Driver’s Insurer?

Looking for clear guidance on NYC car insurance after being in a car accident? This article will explain New York’s insurance options after you’ve been involved in a motor vehicle accident.

Key Takeaways

• New York law mandates that drivers carry liability insurance with specified minimums for bodily injury and property damage, as well as Personal Injury Protection (PIP) to cover medical expenses and lost wages regardless of fault.
• Collision and comprehensive coverages are optional but beneficial additions to a car insurance policy, offering financial protection against vehicle damage from collisions and non-collision incidents, respectively.
• Using your own collision coverage can expedite vehicle repairs but involves a deductible, with your insurer seeking reimbursement from the at-fault driver’s insurance through subrogation.

Understanding NYC Car Insurance Requirements

While it can be challenging to navigate the labyrinth of New York car insurance requirements, every driver must undertake this task. New York law mandates that all drivers carry liability insurance to ensure minimum protection on the roads. Therefore, if you’re driving in the Empire State, it’s crucial to familiarize yourself with and abide by these regulations to prevent any legal issues.

At the heart of these requirements is liability insurance, which is split into bodily injury liability and property damage liability. The minimum coverage for bodily injury liability is $25,000 per person and $50,000 per accident, ensuring that victims receive some compensation for their injuries. On the other hand, property damage liability requires at least $10,000 in coverage per accident, covering the costs of repairing or replacing damaged property.

Beyond liability coverage, Personal Injury Protection (PIP) is another crucial component. New York mandates a minimum of $50,000 in PIP per person, covering medical expenses, lost wages, and even funeral costs, regardless of who is at fault. This comprehensive safety net is designed to provide swift financial support following an accident, underscoring the state’s commitment to protecting its drivers.

Types of Car Insurance Coverage in NYC

Making informed decisions about your policy requires a thorough understanding of the various types of car insurance coverage available in New York City. Besides the mandatory liability coverage, drivers have the option to add collision and comprehensive coverage to their policies. These additional coverages offer enhanced protection, ensuring you’re covered for a wider range of incidents and not just basic liability.

Liability Coverage

Liability coverage is a cornerstone of any car insurance policy in New York, encompassing both property damage and bodily injury. Having this type of coverage is vital because it provides financial protection if you’re found to be at fault in an accident.

New York law mandates minimum liability limits, including $25,000 per person and $50,000 per accident for bodily injury, and at least $10,000 for property damage. However, opting for higher limits can provide greater security. For instance, policies with limits of $50,000/$100,000 or even $250,000/$500,000 are available for those seeking more comprehensive protection.

Interestingly, some insurers offer policies with a combined single limit, covering both bodily injury and property damage under one umbrella. This can simplify claims and provide a more streamlined approach to coverage. Exploring these options could ensure you have the most effective protection in place and potentially save money.

Collision Coverage

Collision coverage is particularly valuable for those with newer or high-end vehicles. This type of insurance pays for damages to your car resulting from a collision, irrespective of who is at fault. This safeguard can significantly alleviate the financial burden of repairing or replacing your vehicle following an accident.

Moreover, collision coverage often includes additional benefits like payment for towing, storage, and substitute transportation expenses if your car is stolen and later recovered. These extras can provide peace of mind, ensuring that you’re not left stranded or out of pocket for incidental costs associated with vehicle collisions.

Comprehensive Coverage

Comprehensive coverage goes beyond collision, protecting your vehicle from non-accident-related incidents. This optional but highly beneficial insurance covers damages caused by events such as theft, vandalism, and natural disasters like fires and floods.

In addition to safeguarding against these unpredictable events, comprehensive coverage also provides for transportation expenses like rental cars if your vehicle is stolen. This provision can be invaluable, as it ensures you won’t be left stranded without transportation while your claim is being processed.

No-Fault Insurance in NYC

New York’s no-fault insurance system streamlines the claims process, providing rapid access to financial support following an accident. Under this system, all drivers must file claims with their own insurance company for medical expenses, regardless of who was at fault. This approach aims to reduce the burden on the legal system and provide faster relief to accident victims.

Accident personal injury protection, also known as Personal Injury Protection (PIP), is a key component of no-fault insurance, covering medical costs for you and your passengers. This includes a wide range of expenses, such as:

• Ambulance services
• Necessary surgeries
• Prescription drugs
• Psychiatric treatment

PIP also covers lost wages at 80% of your income, which can be a significant aid if you’re unable to work following an accident.

No-fault insurance provides the following benefits, and a discount applies:

• Medical expenses
• Lost wages
• Up to $25 per day for other reasonable expenses, such as transportation to medical appointments or household help
• Up to $50,000 per injured person

This coverage offers comprehensive protection to ensure safety for everyone involved in the accident.

Filing a no-fault claim involves submitting an Application for Benefits form as soon as possible after the accident. If there’s a delay or denial of your claim, the insurer must pay 2% interest per month on unpaid amounts. You have the right to file a complaint, request arbitration, or take legal action if your claim is not handled promptly.

Filing a Car Insurance Claim in NYC

Although filing a car insurance claim in New York City involves several detailed steps, grasping these steps can simplify the process. Immediately after an accident, you should report it to both your insurance company and the local police department. If the damage exceeds $1,000 or if there are any injuries, you must also file an accident report with the Department of Motor Vehicles using form MV-104.

Adhering to these reporting requirements, traffic law, and vehicle registration regulations is crucial to preventing complications like the suspension of your driver’s license. Regulation 64 ensures that insurers handle collision coverage claims promptly and fairly. Knowing and closely following your policy’s specific requirements is vital for a hassle-free claims process involving your driver’s license.

Using Your Collision Coverage

When deciding whether to use your collision coverage or the other driver’s insurer, several factors come into play. Using your own collision coverage can expedite the repair or replacement of your vehicle, reducing stress and aggravation. However, the compensation will be reduced by your deductible, which could be a significant out-of-pocket expense.

On the other hand, your collision carrier will seek reimbursement from the other driver’s insurance company through subrogation, including your deductible. This process ensures that the responsible party ultimately bears the financial burden, even if you initially use your own coverage.

Filing a collision coverage claim requires a ‘Certification of Automobile Repairs’ form from both you and the repair shop. This documentation is crucial for processing your claim and ensuring that repairs are completed to a satisfactory standard.

Filing a Claim With The Other Carrier

If you are not at fault for an accident and/or you do not have collision coverage on your policy, you can pursue a property damage claim through the other party’s insurance carrier. However, this could take time. After inspecting your car, the other carrier must take certain steps before making an offer. The other carrier will need to ensure their coverage is in order. You may have to wait for them to obtain the police accident report and get a statement from their driver or a statement from a witness before determining who was at fault (even if the facts of the accident appear clear). This is all part of their investigation. Your property damage claim cannot be settled until the other party’s insurance company has completed its investigation. This can take several weeks or months.

Plus, any payment made to you by the other insurance company on the damage to your vehicle, towing expenses, or storage costs will be made only to the extent of their insured’s liability. For example, if their position is that they were only 80% at fault and you were 20% at fault, they will only offer 80% of the above charges.

Contact Greenstein & Milbauer Today

Remember, you are not alone in this process. Whether you file a claim with their insurance company or your own carrier with your collision coverage, we are here to provide comprehensive support and guide you every step of the way, ensuring you feel reassured and less overwhelmed.

The NYC accident attorneys at Greenstein & Milbauer, LLP have represented injured accident victims for over 25 years. If you have been injured in a car accident, the experienced NYC personal injury attorneys at Greenstein & Milbauer, LLP, can help. Our firm’s motto is “Don’t Be A Victim Twice”. If you are in a car accident in New York City, call 1-800-VICTIM2 (1-800-842-8462) to schedule a confidential consultation. The call is free. The consultation is free. You don’t pay us unless we are successful. That’s our “Our Fee Guarantee – No Fee Unless Successful. We are here to provide you with the legal support and representation you need, ensuring you feel confident in your decisions and the process.

Frequently Asked Questions

What is the minimum liability coverage required in New York?

In New York, the minimum liability coverage required is $25,000 per person and $50,000 per accident for bodily injury, as well as $10,000 for property damage.

What does Personal Injury Protection (PIP) cover in New York?

In New York, Personal Injury Protection (PIP) covers medical expenses, lost wages, and funeral costs, providing up to $50,000 per person, regardless of fault in an accident.

How does no-fault insurance work in New York?

No-fault insurance in New York requires drivers to file claims with their own insurance company for medical expenses, regardless of fault, providing coverage for medical bills and lost wages.

What are the benefits of using collision coverage?

Using collision coverage can expedite vehicle repairs or replacement, reducing stress and ensuring quicker financial support, though it involves a deductible. It offers a valuable financial safety net in case of accidents.

When should I file a claim with the other driver’s insurer?

You should file a claim with the other driver’s insurer if you are not at fault for the accident and do not have collision coverage. This process may take longer, but it’s an option to pursue a property damage claim.