Even though all drivers in the state of New York are required to meet our state's liability coverage minimums, which includes property damage and bodily injury coverage, most drivers have difficulty understanding their policy. In some cases, a driver may be confused about how their policy will apply if they are at-fault for an accident. In other cases, a driver may have questions about how they can seek compensation if they are a victim of another driver's negligence.
In today's post, we'd like to take a look at the two main parts of insurance coverage in New York – property damage and bodily injury – to help today's readers better understand how their policy may work in the event of a crash or collision with another motor vehicle.
Most people know that if they become involved in an accident they should report the crash to their insurance company who will then pay compensation up to the policy's limit. But what most people don't understand is that property damage and bodily injury claims are handled separately in our state. While one deals with damage expenses for a vehicle or property, a bodily injury claim deals with compensation for medical expenses, lost wages and even pain and suffering.
Some people may not even realize that even if they were at fault for an accident, they may still be able to trigger coverage of their policy. This may include property damage and bodily injury.
Although staying on top of your insurance policy is considered a good idea, this can be difficult if you do not understand the law and what policy is best for in what situation. Any naiveté about an insurance policy could lead to legal issues, particularly in situations where a driver thought they were covered or had enough coverage when in fact this was not the case.
Sources: All State, "What is Bodily Injury Liability Insurance, and What Does It Typically Cover?" January 2016
The New York Bicycling Coalition, "Understanding No Fault Laws in New York," Daniel Flanzig and James B. Reed, Esq., May 8, 2013
Geico, "New York Car Insurance," Accessed March 30, 2016