Reader’s Question:

Am I required to get collision and comprehensive coverages on my car if I have a lien on my vehicle in White Plains, New York?

Brenda

White Plains, NY

The state of New York state does not require you to carry physical damage coverages of collision and comprehensive on an automobile that has a lease or lien on it, but the lien holder will likely require you to get this physical damage coverages since the automobile is their asset which they have a lien upon. Many auto insurance carriers are filed with the state to require physical damage coverage if there is a lease or lien on a car.

If you have a vehicle with a lien on it in New York normally you would want to have comprehensive and collision coverages on the car since if the vehicle was totaled out or damaged in a hit and run or you were at fault in an accident or if the vehicle is stolen then the best way for you to make a car insurance claim would be if you had these physical damage coverages. If you are unable to repair or get paid the ACV for the car due to an accident then the lien holder would come to you for the monies since the vehicle which is their asset with the lien on it is not viable any more.