If you’re a licensed driver in New York, the law requires you to carry insurance so that accident victims will be compensated if you’re involved in a collision that results in injury to another person. You might think that it’s best to try to spend the least amount of money possible on car insurance. However, numerous problems may arise if you are underinsured.
In this state, you’re required to carry a minimum of $25,000 coverage for third party injuries in a collision. There are several reasons why this might not be enough, especially if you’re involved in a collision where more than one person in suffers injuries.
There’s a $50,000 minimum if more than one person suffers injuries
The $25,000 third party injury insurance coverage New York law requires you to have on your vehicle is for one person per accident. The minimum coverage amount is increased to $50,000 if two or more people suffer injuries. Both of these requirements pertain only to non-fatal injuries.
You must have liability protection coverage of $100,000 per person if you have caused a motor vehicle collision that resulted in a fatality.
Why minimum coverage often isn’t enough
If you carry the minimum required third party liability coverage as a licensed driver in New York, you are acting within the law. However, that doesn’t necessarily mean it will be enough to cover accident-related expenses, such as medical bills and lost wages.
Especially if someone suffers a catastrophic injury, medical bills can be far greater than $25,000. If another person (or more than one person) has filed a claim stating that your negligence caused a collision, which resulted in his or her (or their) injuries, you might wind up wishing that you had secured more than the minimum-required coverage.