Is Collision Car Insurance Coverage Required in New York
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.
Is There a Time Limit To File a Car Insurance Claim in New York?
Reader’s Question:
What is the time limit to file a claim to car insurance after a collision in New York?
Lincoln
Babylon, NY
You should contact your specific insurance company’s claims department to determine additional details on the time limits there are to make car collision claims. As for the NY state laws, you can contact your state insurance regulator to get more information on any time limits you have to make a car insurance claim and also on what the laws are regarding time limits for the insurance carrier to respond to the claim.
In New York, if your vehicle is damaged or stolen and you have car comprehensive or collision insurance coverage, you have the right to a fair and prompt settlement from your insurance carrier, either for the actual cash value of the vehicle or the amount of the damages, whichever is lower. If your vehicle is stolen and subsequently recovered, your insurance company must pay for the damage done to the vehicle while it was missing, the cost of any reasonable storage charges, towing and substitute transportation expenses.
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