Multiple factors affect your rate, such as driver history, vehicle details and location. To reduce costs further, increase your deductible or select different coverages to decrease rates.
Each policy varies and contains specific terms, conditions, and exclusions that vary by provider. On this Declarations page you can identify your policy number as well as gather important details regarding its coverage.
Liability coverage is required by most states and covers other drivers’ car repairs and medical costs when you cause an accident. If possible, choose as high an indemnity limit as you can afford and consider purchasing additional umbrella policies to round out your coverage.
Most policies also include collision and comprehensive coverage. Collision covers damage caused when your car collides with an object or another vehicle; comprehensive reimburses you if your car is stolen; many lenders require these coverages as part of a loan or lease agreement. Each coverage has limits and deductibles that vary by state; liability limits and deductibles also vary accordingly.
Collision coverage provides repairs or replacement for damage sustained in an accident that was your responsibility, such as tree or pole collisions, in addition to covering other sources like tree and pole falls that cause collision damage to vehicles. Collision policies usually come with an option of selecting your deductible which affects premium payments.
NerdWallet’s auto insurance experts recommend selecting a deductible amount you can comfortably afford in case of a claim. In general, choosing a higher deductible reduces premium costs.
Collision coverage might make sense when your vehicle is still relatively valuable or has an outstanding loan on it, but over time most cars depreciate to such an extent that collision coverage no longer justifies its cost.
Comprehensive insurance covers your vehicle against non-collision damages such as theft, fire or natural disasters that do not result from collision. Lenders usually require comprehensive coverage if leasing or financing your car.
Comprehensive vehicle coverage limits are determined by subtracting your chosen deductible amount from its actual cash value, for instance if your car was damaged in a hailstorm and repair costs totaled $900; your deductible would cover $100 of this total cost. Some may opt not to purchase comprehensive insurance due to fear their vehicle is less at risk than usual or due to natural disaster, however it’s wise to carefully assess all risks versus costs before making this decision.
Uninsured Motorist Coverage
Uninsured motorist coverage is mandatory in New York and provides protection in case you’re involved in an accident with someone who does not carry enough car insurance, or fails to carry enough coverage. This type of policy helps cover medical bills, lost income and property damage caused by an incident not caused by you.
Underinsured motorist coverage provides additional help in situations when an at-fault driver has just enough insurance coverage for all your expenses, such as when their minimum liability limits do not cover everything or they hit-and-run you. Policies typically come with two limits – bodily injury and property damage. Some states permit stacking multiple policies together to increase these limits further.
Underinsured Motorist Coverage
Uninsured and underinsured motorist coverages (UM and UIM, respectively) help you and your family recover in an accident caused by drivers without sufficient coverage, or who have liability limits that don’t fully compensate them for all damages they caused. UIM and UM policies are often sold together but may also be purchased separately.
While most states mandate auto insurance for drivers, many still opt out. If an uninsured motorist causes injury to you, filing a claim through your own policy’s coverage would be appropriate in such instances.
Underinsured motorist coverage comes in handy when the at-fault driver’s liability limit falls short of what your medical bills are estimated to cost. Depending on your state of residence, higher limits for underinsured motorist coverage can usually be chosen than for liability policies – this helps safeguard your financial assets.