Basic Car Accident Insurance Definitions

Posted almost 6 years ago. Applies to New York, 3 helpful votes

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1

BODILY INJURY LIABILITY (BI)

Covers other people's bodily injuries or death for which you are responsible. It also provides for a legal defense if another party in the accident files a lawsuit against you. Claims for bodily injury in New York are for pain and suffering resulting from a serious injury. When you are purchasing liability coverage, you want make sure you have enough insurance to cover a judgment against you in a lawsuit without jeopardizing your personal assets. Bodily Injury Liability coverage of at least $ 25,000/$50,000 is mandatory in New York, however it is highly recommended that you purchase coverage in higher amounts.

2

PROPERTY DAMAGE LIABILITY (PD)

Covers you if your car damages someone's property. Usually it is their car, but it could be a fence, a house or any other property damaged in an accident. It also provides you with legal defense if another party files a lawsuit against you. It is a good idea to purchase enough of this insurance to cover the amount of damage your car might do to another vehicle or object. Coverage is limited to the terms and conditions contained in the policy.

3

COMPREHENSIVE COVERAGE (COMP)

Covers your vehicle, and other vehicles (in some cases) you may be driving for losses resulting from incidents other than collision. For example, comprehensive insurance covers damage to your car if it is stolen; or damaged by flood, fire, or animals. It pays to fix your vehicle less the deductible you choose. To keep your premiums low, select as high a deductible as you feel comfortable paying out of pocket. Coverage is limited to the terms and conditions contained in the policy. This is not required by a state, but if you have a leased vehicle then the lien holder will require it.

4

COLLISION COVERAGE (COLL)

Covers damage to your car when your car hits, or is hit by, another vehicle, or other object. This coverage pays to fix your vehicle less the deductible you choose. To keep your premiums low, select as high a deductible as you feel comfortable paying out of pocket. For older cars, consider dropping this coverage, since coverage is normally limited to the cash value of your car. Coverage is limited to the terms and conditions contained in the policy. This is not required by a state, but if you have a leased vehicle then the lien holder will require it.

5

UNINSURED MOTORIST (UM)

Covers you, the insured relatives of your household and your passengers for bodily/personal injuries, damages, or death caused by an at-fault uninsured or hit-and-run driver. If you are involved in an accident where the other driver is at fault but has no insurance, your policy will cover a claim for pain and suffering, up to the UM coverage limit. Coverage is limited to the terms and conditions contained in the policy and the mandatory UM minimum you must purchase in New York is $ 25,000/$50,000.

6

UNDERINSURED MOTORIST BODILY INJURY (UIM)

Covers you, the insured relatives of your household and your passengers for injuries, damages or death caused by the negligence of a person with insufficient insurance. If you have an accident with a person whose coverage cannot meet your damages, your policy may meet the difference-up to the limit of liability listed on your policy. Coverage is limited to the terms and conditions contained in the UIM policy. This coverage is not mandatory in New York, but highly recommended.

7

PERSONAL INJURY PROTECTION COVERAGE (PIP or No-Fault)

Covers within the specified limits, necessary medical, hospital and funeral expenses of the insured, others in his vehicles and pedestrians struck by that person. Also covers mileage to and from health care providers, necessary household expenses and lost wages. Minimum mandatory PIP coverage in New York is $ 50,000 per person. Coverage is limited to the terms and conditions contained in the No Fault endorsement.

Additional Resources

Long Island New York Accident Attorney

New York State Insurance Department

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