What type of insurance do I need to drive?

So, you have your license and you finally found a great deal on a car. What’s next? It can be confusing for a first-time car-buyer to deal with insurance choices. Full coverage? Liability? Deductibles? What is all that stuff? Where do I go to get a policy? How much will this cost me? What happens if I have an accident?

The first thing you should know is that you may or may not have a choice when it comes to coverage. Many banks require individuals who take out a loan on a car to purchase full coverage (which basically means regular Liability plus Comprehensive and Collision coverage). Although it costs more to purchase than just liability, it offers a greater safety net for your vehicle if you get into an accident.

There are so many options for insurance that it can be absolutely mind-boggling! With some research and knowledge, you can purchase a policy tailored to your specific needs. Here’s a breakdown of the insurance you need before you can drive along New York streets:

1) Comprehensive coverage covers things like fires, theft, vandalism and malicious mischief, falling objects, animal damage, and flood. This type of coverage is subject to a deductible- a specific amount of money that each customer must pay before an insurance company will pay a claim. For example, if the deductible on a policy is $500 and the covered vehicle suffers animal damage totaling $1,000, the customer would pay $500 and the insurance company would pay $500.
2) Collision coverage pays for accidents with another car or object. This includes telephone poles, signs, mailboxes, frozen ponds, trees, even potholes! The deductible works the same for Collision as it does for Comprehensive. So, for a $1,000 loss, the customer would pay the first $500.
3) The State of New York requires many types of coverage including Personal Injury Protection, or PIP. This is the only true “no-fault” coverage in New York State. This coverage provides $50,000 for injuries, lost wages, therapy, etc., for you and your passengers, regardless of fault.
4) Full Glass is coverage in New York that you can add on to your Comprehensive coverage. In the event that your windshield breaks, but there’s no other damage your car, the insurance company will pay to have the glass replaced at NO OUT-OF-POCKET COST. That means that if you are driving down the road and a rock flies into the windshield, cracking or shattering it, you can call your carrier and arrange repair without having to come up with a deductible.