It is important to ask any questions you have as well as disclose all relevant information requested on an application even if it results in a higher premium. You may question the agent, broker or insurer about its practice with respect to non-renewal of policyholders and the insurer's surcharge policy. When obtaining a policy, ask the insurer about its guidelines on non-renewals and their relationship to any collision or comprehensive claims you may submit. It might make sense to choose a higher deductible, which would reduce the number of claims made, since only amounts over the deductible would result in a collision or comprehensive claim under your policy. It should be noted that all auto accidents, regardless of the amount of damage, must be reported to your insurer as required by your policy provisions. 

Be aware that many insurers consider your credit history in the underwriting process, with regard to accepting or rejecting your application, or in the determination of your rating tier (if the insurer has a "multi-tier" rating structure. However, the Insurance Law prohibits an insurance company from rejecting your application solely on the basis of credit information. See below for more information on uses of credit information.

Termination Period

An insurer may cancel a new policy (not a renewal policy) for any reason not contrary to New York Insurance Law by mailing a notice within the first 60 days. This termination period for cancellations permits insurers the time and opportunity to verify any underwriting information on a brand-new risk, in order to confirm that it wants to insure you. If your policy covers you for physical damage (comprehensive or collision) the insurer must inspect and photograph your vehicle to use for comparison purposes if future damages are claimed. This inspection is usually waived in the case of a brand new vehicle. Failure to comply with mandatory inspection requirements will result in a suspension of physical damage coverage for the period of time that the vehicle remains uninspected. There is no cost to you for this inspection.

In addition, an insurer is entitled to cancel any policy mid-term if it discovers any fraud or material misstatement made in the application for the policy. Discovery of fraud in making a claim may also subject any person involved to criminal prosecution and/or a civil penalty under the Insurance Law of up to $5,000, plus the value of the fraudulent claim.

Consumers should also be aware that there are computerized systems used by insurers, such as the Comprehensive Loss Underwriting Exchange (CLUE). This system, similar to a credit reporting agency, gathers data from insurers regarding past and present policyholders" claim histories. When an insurer writes or rates a policy, it may request a CLUE report on you. If you discover that information in a CLUE report has been used against you, you may obtain a copy of your report by contacting CLUE at the ChoicePoint Consumer Center at (800) 456-6004. There will be no charge for this report if your request is made within six months of its use by the insurer.

Redlining

An insurer is not permitted to reject an application for auto insurance based solely on the geographical location of the risk or of the producer. However, an insurer may decline an application based on sound underwriting and actuarial principles reasonably related to actual or anticipated loss experience. There are some insurers that only write in specified regions of the state as specialty or regional insurers. This marketing strategy does not necessarily constitute an illegal practice. However, if an insurer has "carved out" certain sections within larger areas in which they will not write business, this might warrant further investigation and you are urged to bring this to the attention of the Department.

Discrimination

The Insurance Law also forbids an insurance company from refusing to issue a policy or terminating a policy because of the race, creed, color, national origin, disability, sex, marital status or advanced age of an insured or applicant. Such refusal or termination would constitute illegal discrimination.

An insurer may not reject an applicant who possesses a New York driver's license for auto insurance solely on the basis that the applicant has not owned or insured a vehicle during the prior 39 months. (However an applicant who was on active service in the US Armed Forces and has maintained a continuous, valid out-of-state or out-of-country license for the prior 39 months will be treated as if continuously licensed in New York.)

Factors Impacting Your Premium

Auto insurance premiums vary widely because they depend in part upon the characteristics of the person insured, shown by statistical analysis and historical experience to be reliable predictors of future accidents. In New York, risks are grouped for rating purposes by classifications to assure that risks with similar characteristics such as age, sex, marital status, territories, annual mileage, vehicle use - pleasure/work and driving experience receive comparable pricing treatment. In this way, the risk of incurring losses is spread among many policyholders who have similar characteristics. There would be widespread unfair discrimination, which New York State law prohibits, in the absence of such a sound classification system.

You should notify your insurer of any changes while the policy is in force, such as a change of your address or the addition or deletion of a vehicle or driver. An insurer, by law, must revise your premium if it discovers certain information (e.g., that your vehicle is used for purposes other than those listed on your application, other persons operating your vehicle, or surchargeable accidents or convictions) that affect the rating exposures and/or characteristics.

Age

One of the most relevant classifications in auto insurance ratemaking is age because of its obvious relation to losses. Consistently, young drivers are disproportionately represented in auto accidents in relation to their percentage of the total driver population. If licensed less than three years at the start of the policy period, the principal operator of a vehicle, regardless of age, will receive an inexperienced operator surcharge. Drivers who are 25 years of age and over can generally obtain insurance at a considerably lower cost than younger drivers. Please be aware that most insurers will consider any member of your household with a learner's permit to be an insured operator of the vehicle for purposes of rating your policy, as this represents an increased exposure. There are a varying number of different age classifications, within which premiums generally tend to decrease as a person matures. However, some insurers" statistics indicate that, beyond a certain age, driving skills deteriorate. This causes the claims experience of senior citizens as a group to worsen, causing various insurers to charge higher premiums for those higher-age categories. On the other hand, many senior citizens may benefit from those insurers that vary their prices by the number of miles a car is driven each year, since they may drive less than the average insured.

Driving Record

Your driving record is crucial in determining your premium and your insurability. Most companies charge substantially more to insure drivers with a history of traffic violation convictions or chargeable accidents than those who have relatively clean records. Many insurers will not insure a driver whose recent driving record is poor, even if that driver's record was clean in the past. The reasons for an insurer's refusal to accept a risk varies with each company, and a risk declined by one insurance company may be found acceptable by another.

Basic premiums are calculated according to the loss experience of the group classification to which you belong. A driver's record of accidents or traffic convictions is also considered in determining the final premium. To further classify policyholders, auto insurance companies apply merit rating plans, which modify the premiums being charged according to an individual's driving record.

The resulting merit rating surcharge is used to properly price the exposure the insurer is writing, and not as a means to recoup payments previously made under a claim. Under many insurer rating plans, your first at-fault accident could result in a surcharge of up to 40% of your premium, and you could also lose a safe driver discount had you previously qualified for it.

Most insurers use a "point" system to assign surcharges for chargeable accidents and traffic violation convictions to your policy. Although both are based on your driving record, this insurance point system is separate and distinct from points against your driving license maintained by the New York State Department of Motor Vehicles (DMV).

Premium surcharges due to accidents or convictions are governed by the Insurance Law and regulations, which allow surcharges to be applied during the experience period (typically three years) for specified incidents, some of which are:

• accidents involving bodily injury or death, or losses to property in excess of $2,000, where the insured driver is at fault; or
• convictions for certain violations, including the following illustrations:
  • speeding more than 15 MPH over the legal limit;
  • driving while intoxicated or impaired by alcohol or drugs;
  • operating a vehicle while attempting to avoid apprehension by a law enforcement officer;
  • leaving the scene of an accident without reporting it;
  • operating a vehicle in a race or speed test;
  • driving without a license or knowingly permitting an unlicensed person to drive your vehicle; or
  • filing a false insurance claim.

However, surcharges are specifically not permitted if, for example:

• your vehicle was struck in the rear, without a moving violation conviction against you;
• your vehicle was struck while it was legally parked;
• you as the insured or your insurer is reimbursed or obtains a judgment of 1/3 or more (on a property damage or physical damage claim)
• the driver of your car was not at fault (on a bodily injury claim or No-Fault claim) or was struck by a hit-and-run vehicle;
• the total damage caused by the accident is less than $2,000 and there were no injuries (however, having 2 or more accidents under $2,000 is usually subject to a surcharge);
• you have a single minor moving violation of the Vehicle & Traffic Law other than those specifically set forth in the Insurance Law (some of which are listed above);
• the accident occurred while the insured was driving an employer’s vehicle in the course of business (this also includes police officers, firefighters, emergency medical service providers, and peace officers while on duty in their official vehicles, or while driving any vehicle in an emergency situation); or
• claims are made under comprehensive or towing coverages.

In general, no policy can be surcharged to a level where the premium exceeds more than three times the base premium for the highest rated vehicle covered by that policy (without the surcharge). Please note that surcharges only apply to the premiums for liability, No-Fault, and collision coverages.

Your insurer must notify you of the exact dollar amount of any surcharges (and discounts) being applied to your policy as well as the dates of any accidents or convictions on which those surcharges are based. This information must be on, or attached to, your policy declarations page, which contains key identifying information about you and your policy. The insurer must also include information with your policy regarding circumstances under which surcharges must be refunded.

Among these are:

• the insurer has established a claim file, but no claim was submitted for a period of three years after the date of the incident or the statute of limitations has run and no suit has been filed.
• if a surcharge was levied through mistake, misinformation or other error; or
• if the conviction for a chargeable violation or traffic infraction is ultimately reversed;
• when it is subsequently established that the accident for which a surcharge was applied falls under one of the exceptions enumerated in the insurer’s merit plan;

Credit History

Over the past several years, insurers have also used consumer credit information, along with other information to decide whether to issue you a private passenger auto policy and how to price it.

Under New York law, insurers that use credit information must adhere to the following consumer safeguards:

• If an insurer uses credit information in rating or underwriting a policy, they must send you a notice disclosing this fact, including the name of the credit reporting agency.
• If your premium is higher than it would be if you had a “better” credit score, you will receive a notice advising you of this fact. The notice will include an explanation of credit-related factors that affected your score.
• If there is an error in your credit report, you should contact the credit reporting agency to correct the report, and then inform your insurer or agent of the correction, as it may affect your premium and entitle you to a refund.
• Your insurer must review your current credit information at least once every 3 years, upon your request, unless it reviews updated credit information more frequently (e.g. annually) as part of their renewal process. When the company reviews the updated credit information, if your credit information has improved, you may be entitled to a lower premium, and the company must make any necessary adjustments at such time.
• Your company may not terminate your policy or increase your renewal premium based on credit information.

The minimum coverage and amounts of insurance that must be purchased to satisfy the financial responsibility requirements needed to register your car and obtain license plates include:

1. No-Fault (Personal Injury Protection) - to pay medical expenses, lost earnings, and other reasonable and necessary expenses, for example household help and transportation to medical providers, for a driver or passenger injured in, or a pedestrian injured by, your car;
2. Liability - to protect against the harm your car, or any car you drive with the owner's permission, might do to other people and their property; and
3. Uninsured Motorists - to protect against the injuries you, your family or your passengers might suffer in a hit-and-run accident or in an accident with an uninsured vehicle.

No-Fault Benefits-Personal Injury Protection (PIP)

No-Fault, also called Personal Injury Protection (PIP), is designed to pay promptly, regardless of who is at fault or whether there was any negligence, for economic losses (meaning medical/health expenses, lost earnings, and certain other reasonable and necessary expenses related to injuries sustained), up to $50,000 per person ("basic No-Fault coverage"), to the driver and all passengers injured in your car as well as any pedestrians injured by your car, because of its use or operation in New York State.

The purpose of No-Fault insurance is to restore individuals hurt in auto accidents to health and productivity as swiftly as possible. Because of New York's No-Fault law, lawsuits due to auto accidents can be brought only for economic losses that exceed No-Fault benefits and for non-economic damages (such as pain and suffering) only if a "serious injury" (as defined in the Insurance Law) is sustained.

No-Fault is a personal injury coverage and does not pay for auto body repair of your car or damage to any other party’s motor vehicle or other personal property. No-Fault is also primary to health insurance, which means it pays first in the event injury is due to an auto accident.

Under this coverage, your insurer provides you and all relatives who reside in your household with protection against economic losses arising from injuries sustained in motor vehicle accidents anywhere within the United States, its territories and possessions, or Canada. It also provides coverage for any passengers injured in accidents in New York State while in your vehicle, as well as any guest passengers who are New York State residents injured in your vehicle anywhere in the United States, its territories and possessions, or Canada, if they are not covered under another auto insurance policy in New York State.

All pedestrians injured by motor vehicles in New York State are also protected by No-Fault.

Basic No-Fault auto insurance coverage includes:

• reasonable and necessary accident related medical and rehabilitation expenses (in accordance with established fee schedules);
• 80% of lost earnings from work, up to a maximum payment of $2,000 per month for up to three years from the date of the accident; subject to statutory offsets for New York State disability, Worker’s Compensation and Federal Social Security disability benefits.
• up to $25 a day, for up to a year from the date of the accident, to reimburse other reasonable and necessary expenses, (e.g., household help, and transportation expenses to/from medical treatment) resulting from the auto accident; and
• a $2,000 death benefit (in addition to the $50,000 basic No-Fault limit), payable to the estate of a person eligible for No-Fault benefits who is killed in a motor vehicle accident.

However, under most insurance policies, a person will be ineligible for No-Fault benefits, if:

driving while intoxicated or impaired by use of a drug that contributes to the accident, except for emergency health related services performed in a general hospital or by an ambulance worker outside of a general hospital. However, the No-Fault insurer has the right to recover from the intoxicated or impaired driver the full amount of those No-Fault payments made by the automobile insurer for the emergency services provided to the driver if the driver is convicted of driving while intoxicated or impaired by the use of alcohol or drugs

• intentionally causing his or her own injuries
• riding an all-terrain vehicle (ATV) or a motorcycle as operator or passenger (a pedestrian struck by a motorcycle or ATV is covered)
• injured while committing a felony
• injured while in a vehicle known to be stolen, or
• an owner of an uninsured vehicle

Liability Insurance-Bodily Injury & Property Damage

This liability coverage protects you (and anyone driving your car with your permission), if a claim is made against you by another person (“third-party”), alleging that you were negligent or otherwise at fault, so this coverage will make payments on your behalf to that injured third-party in the event your car is involved in an accident that results in serious injury or death to others or damage to their property.

In addition, your insurance company must provide you with a legal defense against such claims, without reducing your policy's liability limits.

The minimum limits of third-party bodily injury liability coverage mandated by New York's Vehicle and Traffic Law are:

• $25,000 for bodily injury (not resulting in death), or $50,000 for any injury resulting in death, sustained by any one person in any one accident;
• $50,000 for bodily injury (not resulting in death) sustained by two or more persons in any one accident, or $100,000 for any injuries resulting in death sustained by two or more persons in any one accident (subject to the above per person limits).

Since the minimum limit of coverage required by law for property damage liability protection, for damage to another party’s car or property, is $10,000 per accident, these minimum liability limits in New York are sometimes together referred to as “$25,000/$50,000/$10,000” or “25/50/10”.

If, however, your vehicle is used or operated in another state or Canadian province that requires higher liability limits than the above New York mandated limits or what is purchased, your policy will provide coverage for those limits required by such other jurisdiction.

If you are injured in an auto accident, or your car is damaged, due to someone else’s negligence, you may be able to make a claim against that other person’s auto insurance policy for bodily injury and property damage liability. You must establish that the other party was at fault. You have a right to sue another party involved in the auto accident for pain and suffering, only if you sustained a “serious injury” as defined in the Insurance Law. You can also go to court against a third party for property damage and, when bodily injury has been sustained, for other economic loss not covered by, or exceeding the limits of, your No-Fault coverage.

Suing another party would be your own personal action and does not involve your insurance company under the provisions of your policy. If you decide to sue someone else, your insurer under your own policy is not required to provide or pay for a lawyer you might want or need to handle your claim against another party.

While your automobile liability insurance policy provides coverage for every passenger in your vehicle injured in an accident caused by the driver’s negligence, it will most likely not provide any liability coverage when the injured passenger is your spouse unless you purchase Supplemental Spousal Liability Insurance. However, your spouse would still be eligible for basic No-Fault coverage as discussed earlier. When shopping for insurance, please check with your insurance company, agent or broker about whether your policy affords bodily injury liability coverage to your spouse.

Uninsured Motorists Coverage

Another important feature of your auto insurance policy is bodily injury protection for you, all family members who reside in your household, and occupants of your car, in the event you or they are injured as the result of negligent actions by an uninsured vehicle or hit-and-run motorist. This mandatory coverage applies only in regard to bodily injury due to accidents occurring in New York State and does not cover auto body damage to your car or damage to other property.

For New York accidents, the amount of uninsured motorists protection required to be provided is the same minimum bodily injury limits as required for liability insurance. For a small additional charge, this uninsured motorists coverage can be extended to provide coverage for out-of-state accidents by endorsement, so you should check with your agent, broker or insurer if you want this extension of coverage.

If anyone in your car is injured by the driver of an uninsured vehicle or a hit-and-run motorist, a claim should be filed with your auto insurance company under this coverage. Similarly, you should file a claim with your automobile insurer if you or a member of your family is injured while unknowingly occupying an uninsured vehicle or injured as a pedestrian by an uninsured or hit-and-run motorist. If you do not own a car, but a relative in your household does, you may file a claim under that policy.

If you don’t have your own policy and are not covered by a family member’s policy in your household and if you are injured as a pedestrian by an uninsured vehicle or hit-and-run driver or as an occupant of an uninsured vehicle in New York State, you may still be eligible for uninsured motorists protection and No-Fault coverage. You or your representative should immediately report the accident to proper authorities, and then promptly (because there are stringent time limits) file a claim with the Motor Vehicle Accident Indemnification Corporation (MVAIC), located at 110 William Street, 19th Floor, New York, New York 10038 (Tel: 646-205-7800) (Fax: 212-732-1826). Additional information on the MVAIC website.

Insurance Information and Enforcement System (IIES)

Be aware of the importance of maintaining required motor vehicle insurance coverage on a continuous basis as long as you own a car. The New York Department of Motor Vehicles (DMV) has a system, called the Insurance Information and Enforcement System (IIES), that detects uninsured vehicles.

Insurers are required to report to the DMV information, such as cancellations, renewals, and issuance of new policies, on all persons they insure for motor vehicle insurance. This information is entered into an electronic database that will continuously track insurance coverage for each registered vehicle. Failure to maintain liability insurance coverage for your car at all times can result in the suspension of your vehicle registration and driver’s license, as well as other substantial monetary penalties.

These procedures could result in you getting a letter from the DMV inquiring about your insurance status – even if your vehicle is currently insured. Don’t delay in handling any correspondence of this nature you receive from the DMV, even if you are confident that your insurance is in effect. Contact your insurance agent, broker or company for assistance in responding to these letters or contact the DMV directly for information on how to handle such correspondence.

When you receive your policy, check that the information used to determine your premium is correct. An auto insurer is required by law to provide specific rating information pages with your policy that explain how your policy is rated, what the classification codes mean, as well as how its surcharge system works. You should also check the information in your policy against these pages, and verify that:

• your mailing and/or place of garaging address is correct
• each vehicle is properly classified
• all discounts to which you are entitled have been applied
• the make and model of your vehicle(s) are correct
• the age/birthdate(s) of the driver(s) are correct
• the dates of any chargeable accident(s) and conviction(s) identified are correct

As an insurance shopper, you should check with your insurance company or agent or broker about possible discounts that may be applicable to you, such as those for senior citizens, car pools, low annual mileage and the “good student discount” offered to youthful operators meeting certain academic requirements. You can also save money with a “multi-car discount” by insuring all your cars with the same insurance company. Since rates are generally highest for youthful drivers, young drivers should inquire about a “driver training” discount offered by many insurers for those who have taken driver’s education classes.

Discounts are generally available in the following situations:

• You may reduce your premium by taking a New York State Department of Motor Vehicles-approved accident prevention course in a classroom setting or via the internet. Your auto insurer is required to provide you with a listing of all sponsors of these courses with your policy or billing statement. The Department of Motor Vehicles maintains a current listing of approved sponsors that offer classroom courses and/or internet courses on its website. Auto insurers must apply a discount to the liability, collision and No-Fault coverages of your auto insurance policy for three years, if the principal operator of a vehicle has completed a qualified accident prevention course. In addition, taking this course entitles you to up to a four-point reduction of accumulated points from your driver's license. Contact the DMV for more details about how this benefits your driving record.
• If your car is equipped with automatic seat belts or air bags, you qualify for a discount on your premiums for No-Fault and medical payments coverages. All private passenger automobiles that are model year 1990 or later are required by federal law to be equipped with at least one of these devices.
• If your car is equipped with factory installed anti-lock braking system (ABS), you are entitled to a discount on the premiums for your liability, collision, No-Fault and medical payments coverages.
• Several anti-theft devices qualify for a reduction on the comprehensive portion of the auto insurance premium. Eligible devices are generally alarm systems or permanently installed devices that prevent a car from being started. In addition, discounts are available for cars equipped with certain electronic-tracking devices, or in which the window glass (windshield, door glass, rear window, and sun/moon roof or T-Top) has been etched with the Vehicle Identification Number (VIN) or other identifying symbol qualifying under the law.
• If your car is equipped with factory installed daytime running lamps (DRL), you are entitled to a discount on the premium for your liability, collision, No-Fault and medical payments coverages.
• Some insurers give a discount for vehicles participating in a Combat Auto Theft (CAT) Program, in which vehicles displaying an official decal may be stopped, without other cause, by law enforcement officers if operated between 1 a.m. and 5 a.m., the prime vehicle theft period. This program is available in many areas of New York State, and requires the participation of the local police department. You may contact your local police precinct and your insurer to see if you are eligible for this program.
• Some insurers give a “Careful Driver” or comparable discount for drivers who have been without a major incident (e.g., accident or conviction) for a certain period of time.
• Some insurers offer a “Multi-Policy” or “Account” discount, which reduces your premiums on both auto and homeowners coverages when purchased from the same insurer.
• Some insurers give discounts for senior citizens or retirees, because it is assumed that they drive less frequently than others.
• Some insurers offer a discount for vehicles participating in a Telematics / Usage Based Insurance (UBI) program. The discount may be based on specific driving statistics uploaded from a telematics device installed in the vehicle (e.g. miles driven, time of day, acceleration and braking patterns, location (using GPS), etc.).
• Some insurers offer a discount for vehicles equipped with certain safety/collision avoidance systems; for example, backup camera, lane assist or brake assist.
• You may reduce your auto insurance costs by raising the deductibles on physical damage (collision and comprehensive) coverages or by eliminating these coverages on older vehicles. Review the amount of the deductibles you now carry on these coverages to determine whether it makes sense for you to absorb a larger portion of your loss in the event of an accident, in return for a lower premium charge. Your insurer is required to furnish you with information about how much you may save by adjusting deductibles.

Discounts List

A listing of various discounts and programs offered by top auto insurers is available for comparison.

Since the actual amount of these discounts may vary among insurers, ask your insurance company, agent or broker about any discounts that may apply to you. Most likely, you already get information about these discounts with your policy or billing statements. In addition, as stated previously, the dollar amount savings of any discounts required by law must be stated on the declarations page, or attachment thereto, of your policy.

Consumers can also save money by informing the insurer of any new conditions that may affect the nature of the insurance exposure, such as when a young driver in your family leaves home, or if a young driver goes to college more than 100 miles away and does not take the car. Most importantly, maintaining a good driving record will save you more by allowing you to qualify for the best rate.

Your final auto insurance premium will be based on many separate factors unique to each driver that may vary among insurance companies. Use the Automobile Insurance Checklist (PDF) handy when you shop for coverage. You'll be able to list the coverage limits and deductibles that you want in your policy and make sure that you receive all the discounts you’re entitled to.

Beyond the coverage required by law, most insurance companies offer a wide range of optional auto insurance coverages at additional cost. The most popular and valuable options are discussed here.

Bodily Injury Liability

Buying increased bodily injury liability limits is a good idea for consumers seeking to protect their assets in case of a lawsuit resulting from an auto accident. If you have assets that you wish to protect, you should seriously consider purchasing higher limits of bodily injury liability coverage -- $50,000/$100,000, $100,000/$300,000, $250,000/$500,000 or even higher. Some insurers offer policies with a combined single overall limit for both bodily injury liability and property damage liability, rather than separate limits, which would then pay up to a single maximum amount for all damages caused by one accident regardless of how many persons are injured (e.g., $100,000, $300,000 or $500,000).

Property Damage Liability

Although the requirement for third party property damage liability coverage is currently $10,000, many cars today are worth far more. Given the high cost of automobile replacement and/or repair, the purchase of property damage liability limits higher than the required minimum limit of $10,000 should be considered by insureds. Property damage limits of $15,000, $25,000, $50,000 and higher are generally available for an additional premium.

Additional PIP (No-Fault) Benefits

It is often smart to buy more No-Fault protection, over the basic $50,000 minimum coverage limit of No-Fault benefits required by law. Because of No-Fault’s cost-effective design, extended No-Fault benefits represent a relatively inexpensive option.

For a modest additional premium, optional coverages are available that will pay more than the required basic No-Fault benefits. Consumers now have two choices:

• You may purchase Additional PIP coverage, to raise the overall limit of No-Fault benefits available in case of an accident up to $100,000 or higher and, in the process, increase the potential maximum amounts of lost earnings payments, other necessary expenses or the death benefit, depending on the limit you select. Additional PIP also includes coverage for you and your family and, unlike basic No-Fault, extends to all out-of-state guest occupants in your car when driving anywhere in the United States, its territories and possessions, or Canada. For a minimal charge, you may also purchase additional personal injury protection solely to cover such guest occupants, without increasing the overall limit of No-Fault benefits.
• Insurers must offer Optional Basic Economic Loss (OBEL) coverage. If purchased, this coverage elevates the required $50,000 of basic economic loss coverage by an additional $25,000. When the basic limit of $50,000 has been reached on a claim, this $25,000 can be designated by the injured person to be applied specifically to payments for loss of earnings from work (wage loss), for rehabilitation, or to all elements of basic economic loss.

Neither of these two additional No-Fault coverage options lengthens the three-year limit within which wage loss benefits are payable.

The availability of these No-Fault options makes optional medical payments coverage (see below) no longer as important as it had been, because that coverage (except for funeral expenses) responds only if No-Fault does not cover the situation or after No-Fault benefits, when applicable, are first exhausted.

Supplementary Uninsured/Underinsured Motorists (SUM) Coverage

One of the basic mandatory minimum coverages that comes with your auto policy is bodily injury protection against the negligent actions of an uninsured or hit-and-run motorist. You have the option to expand this basic protection. Supplementary Uninsured/Underinsured Motorists (SUM) coverage provides coverage for accidents occurring out-of-state (i.e., in any state or Canadian province) and if you have an accident with another vehicle that is insured but has bodily injury liability limits lower than yours. These instances are not covered under the basic required Uninsured Motorists coverage. However, the amount of SUM coverage may not exceed the bodily injury liability limits of your policy.

When you initially purchase an auto policy, your insurer will include SUM coverage in an amount equal to the bodily injury liability insurance limits of coverage under your auto liability insurance policy, unless you decline the coverage in its entirety or select a lower amount of coverage through a signed written waiver or electronically signed form provided by your insurer.

If you already have an auto policy, at least once a year, your insurer will notify you in writing of the availability of SUM coverage, an explanation of such coverage, and the coverage limits that can be purchased.

If SUM coverage has been purchased and you have an accident with another vehicle that is insured but has bodily injury liability limits lower than yours, or if such vehicle has no insurance at all, SUM coverage will be activated. The amounts paid under SUM by your policy up to its SUM limits will be reduced, or offset, by any amounts recovered from another party's auto insurance liability policy. Thus, if you are ever involved in an accident with other drivers, you can be sure that all family members who reside in your household are protected at least up to the amount of SUM coverage you have purchased from your own insurer.

Collision Coverage

With this optional insurance, your own insurer pays you, without regard to fault, for damage to your car caused by a collision with another car or any other object or your car overturning.

If you do not have collision coverage, and your car is damaged in an accident where the other party is at least partially at fault, you may still recover all or part of the damages to your vehicle by making a claim against that other vehicle's property damage liability insurance coverage for the proportion of damages for which the other driver was at fault.

Comprehensive Coverage

Under comprehensive coverage, your insurer pays you, without regard to fault, for damage to your car from all causes, other than collision, such as theft (of the car itself or its parts), fire, flood, windstorm, glass breakage, vandalism, hitting or being hit by an animal, or by falling or flying objects.

If your car is stolen comprehensive coverage will also provide a certain amount per day specified in your policy for transportation expenses (rental car, public transportation, etc.). Generally, this coverage is provided until the time the company makes an offer to settle your claim.

Comprehensive and collision deductible options generally offered are $100, $200 (standard), $250, $500 and $1,000. Coverage may also be sold where the deductible does not apply to window glass damage. Remember, generally, you will not be paid more than the actual cash value of your car (i.e., what the car is worth) at the time of an accident, which takes depreciation into account. Some insurers also offer "replacement coverage" which will pay the cost to replace a vehicle with a brand new vehicle of the same make and model. This coverage usually applies in limited circumstances, for example, only up to one to three years after the car is purchased.

Medical Payments Coverage

This insurance pays, without regard to fault, medical expenses and funeral expenses for you and your passengers, if an accident occurs involving your car, up to its stated limits.

Accidental Death and Dismemberment (AD&D) Coverage

Some insurers offer coverage that will pay you, your family members, or other occupants of your car, under the terms of the policy, a set amount for certain serious injuries or death caused by an accident while in your car. These AD&D amounts are payable in addition to any amounts collected under the No-Fault, liability, or other parts of the policy.

Supplemental Spousal Liability Insurance

Supplemental Spousal Liability (SSL) insurance covers the liability of an insured because of the death of or injury to the insured’s spouse for the liability insurance limits provided under the policy.

When you initially purchase insurance and indicate on the insurance application that you are married, your insurance company will send you a notice explaining that SSL insurance is provided unless declined, an explanation of the insurance along with the premium for the insurance, and the Supplemental Spousal Liability Insurance Declination Form to be used if you wish to decline this insurance. Even if you decline this insurance, a spouse is still eligible for no-fault insurance benefits as discussed earlier. If you did not indicate that you are married on the application, your insurance company will send you a notice upon policy issuance and at least once a year advising that SSL insurance is available, an explanation of the insurance along with the premium for the insurance.

If you currently have this insurance, your insurance company will send you a notice at renewal or amendment of the policy advising that the policy includes SSL insurance unless you decline the insurance, an explanation of the insurance along with the premium for this insurance and the Supplemental Spousal Liability Insurance Declination Form to  be used if you wish to decline this insurance. 

Other Coverage

Other optional coverages available from some companies are Towing and Labor Coverage, Extended Transportation Coverage (Rental Reimbursement) and Mechanical Breakdown Coverage. You should contact your insurer, agent or broker to discuss whether it would be advisable for you to purchase them. Some additional coverage may only be offered when comprehensive and/or collision coverage is purchased on the insured vehicle.

Premiums charged for physical damage coverages (collision and comprehensive) are based on the estimated cost of future claims for damage to, or loss of, the vehicle. Accordingly, higher-priced cars generally cost more to insure. In addition, repair cost, theft record, and the nature of damage a particular vehicle may incur in a crash impact the cost of insuring a particular vehicle. For example, vehicle A, which might be more expensive than vehicle B, may cost less to insure if it has a record of exhibiting less severe damage in crashes, or if it is stolen less frequently, when compared to vehicle B.

All new vehicles sold in New York State must have a "bumper-quality" sticker, specifying the maximum speed at which the vehicle would sustain no body damage and only minimal damage to the bumper and attachment hardware. This information can be useful, as vehicle damageability is a key factor in determining insurance costs.

Insurability will be higher, and physical damage insurance premiums will be lower, if your car has a good physical damage rating, relative to other makes and models. This rating reflects a car's strength and safety characteristics as well as its reparability and auto theft record.

Illustrations of the relative cost of insuring certain vehicles are set forth on the following page. This listing has been compiled from the Insurance Services Office, Inc. (ISO) Rating Symbol program, which may be utilized by many auto insurers in New York. ISO utilizes a 75 Symbol program and separate symbols for collision and comprehensive coverages, reflecting the differing loss experience between the two coverages. It should be noted that these collision and comprehensive symbols are subject to change periodically. Please also be aware that the list of vehicle symbols provided is only a sample listing of vehicles. In any case, you may wish to check with your insurance representative for an insurance cost quote on a particular vehicle before purchasing one.

Higher symbol numbers reflect greater claim cost and, therefore, higher premiums.

• 2024 ISO Comprehensive & Collision Symbols and Vehicle Descriptions