From state to state there are various mandatory insurance laws regardless of where you buy your used car at a new or used car dealer, or even at buy here pay here car lots. Specifically, New York’s policies will be discussed here. In New York all cars that are owned in the state must have at least some liability insurance, or insurance that covers the injury or damage after a car accident. Different insurance providers provide different plans. However, according to New York Department of Motor Vehicles (DMV), there is a 25000/50000 dollar minimum for injury, 50000/100000 dollar minimum for death, and 10000 dollars for property damage. The lower numbers signify the coverage that the company will cover for one person involved in the accident, or minimum coverage, while the larger numbers describe the maximum coverage that the company will cover for the accident as a whole. You can adjust the coverage to your liking. For example, if the car is a luxury one, then you will make sure to adjust your insurance coverage to cover all the extra assets and amenities.
Insurance companies are competing for your services. It is wise to get quotes from different providers so that you get the most appropriate coverage for the best price. Once you decide on the provider, the insurance company needs to send an electronic notification to the DMV showing proof of insurance for your car. Also needed by the DMV is proof of a physical insurance card that the company will provide to you. The company will send you two insurance cards, one of which you will give to the DMV to keep, while the other must stay in your car. Once both the electronic notification and the physical insurance card have been received by the DMV, only then are you legally insured and the car can be registered. At registration, proof of insurance is required.
If this is your first car, in the state of New York you must get the insurance prior to purchase of the car. If you already have insurance from an older car, there are a set number of days you have to inform the insurance company of the change in cars. If you want to adjust your coverage, you need to contact your insurance company and setup a new policy.
After determining the best insurance policy for your car and going through these processes, it is important to maintain the insurance by paying on time and not allowing the insurance to expire. If you happen to be dropped from the coverage plan several actions by the DMV and state will take place. Suspension of your license and registration of the car will occur. If you are involved in an accident when you are not covered, the state will take away your license for at least a year, or however long they feel is appropriate based on the severity of the accident. You will have to pay a 1500 dollar fine as well as 750 dollars if and when you decide to renew your license. If for some reason you are not able to make the payments anymore for your coverage, turn your license plates into the DMV. This will prevent you from going through all these hassles. As can be seen, it takes some time and research to determine the best policy for you and your new car. The state of New York takes car insurance coverage very seriously and so should you.
As stated above, the State of New York takes car insurance coverage very seriously.
Make your life as easy as possible and get insurance for all cars you possess. If you are from a state such as NY that does not have very strict car insurance laws, establish a car insurance policy that is appropriate for you. It will save you financial and emotional stresses if by chance you are involved in a car accident. For more information about New York State Laws regarding auto insurance, see http://dmv.ny.gov/insurance/looking-insurance-information.
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