Pepe Insurance Agency BLOG
Your auto insurance company typically provides policyholders with the option to choose from different liability amounts, either using a split limit or a combined single limit. The type of limit you have determines how much your auto insurance company will cover if you are responsible for bodily injury or property damage. Here we look at the difference between split limit and combined single limit liability coverage and give an example how they both work in the case of an accident.
You are driving down the road listening to your favorite music. The next moment you hear a sudden bang on your windshield and a crack suddenly appears. Something hit your front windshield and now it is damaged. Whether it was a small rock, a loose grain of sand that fell of a construction truck, or a stick that fell of a tree, you need to get your windshield fixed. It needs to be done since you can be pulled over and issued a driving violation if your windshield is cracked and obstructing your driving view. But will your insurance company pay for the damage?
No-fault insurance is a type of auto insurance coverage that helps pay for your or your passengers' medical bills if you are injured in an accident, regardless of who caused the accident. No-fault insurance is also called personal injury protection, or PIP. New York is one of a few states who follow this type of system. PIP is a mandatory and not an optional part of your New York auto policy. The minimum amount of PIP coverage in New York is $50,000. You can purchase more PIP for extra premium.
You are taking a vacation and decide to rent a car for the week. You are now standing at the rental car counter and the agent asks you if you want to purchase car rental insurance. You didn't spend any time researching your options and are unsure if you need to purchase the insurance. Do you need it?
Collision and comprehensive coverage offer you protection when your vehicle is damaged either in a collision or other-than-collision. Comprehensive is the term used for other-than-collision.
With basic liability coverage, your auto insurance policy will only cover damage to other people and their property in a collision. It does not cover the cost of repairing your own vehicle. It does not include collision coverage and New York does not require you to carry collision coverage. Basic liability coverage is the bare minimum you are required to purchase in New York.