The New York Department of Insurance (DOI) in a recent announcement highlighted the advantages of having a car insurance policy that extends beyond the minimum types of financial protection required by state law.
In the announcement, the DOI outlined a number of scenarios in which having optional but
recommended auto insurance coverage types would have provided protection for policyholders, while a motorist with a basic no-fault or liability policy would have to pay out of pocket for the same damages.
State financial responsibility laws require resident motorists to carry either no-fault or liability coverage or both. And although required property damage liability should pay for damages that the policyholder causes to other cars, it provides no protection for damages sustained by the insured car. That means damages resulting from weather- and nature-related events would not be covered under a policy. Damage from hail, potholes, falling tree limbs or hitting a deer are just a few examples.
In order to get insured against these types of events, a driver would have to purchase comprehensive or collision coverage, neither of which are legally required in any state. Collision would provide protection against pothole-related damages, and comprehensive would protect the policyholder from having to pay for repairs caused by falling objects or animals hitting a car, among other things.
These types of insurance can be purchased for relatively low prices. The nationwide average premium in 2008 for collision was about $300, and it was about $133 for comprehensive. It should be noted, though, that these additional forms of protection come with deductibles, meaning that the policyholder will have to pay a certain dollar amount before coverage kicks in in the event of a claim.
To find out more about comprehensive and collision and whether to add coverage beyond state-required minimums, readers can go to
http://www.onlineautoinsurance.com/coverage/ where visitors will find informative resource pages and a quote-comparison generator that can help consumers evaluate personally tailored rate estimates from a variety of carriers.
