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.

DWI Car Insurance Coverage in New York

Reader’s Question:

On my way to my mother’s house I parked next to the curb, got out of my car, but noticed it was a little too far so I parked it closer. What ended up happening was the rear end of my car hit the front bumper of the car behind me. The driver came out and called the cops. I got two tickets for DWI and reckless driving. I know I will need to go to the courts for this but first I need to know how to make an accident claim in New York?

John

Tyler, TX

If you have collision and comprehensive coverage in New York, then you can make a claim with your insurance company. Normally, if you were in an accident where your vehicle has sustained physical damage, the claim would go under your collision coverage and the deductible associated with this coverage would be due.

Since you’re the one at fault for the accident, you can file a first party claim with your own insurance company. If you have sustained damage to your own vehicle, you would need to place a claim under your collision coverage claim. Then you will need to pay the deductible that you choose at the inception of your policy when you use your own physical damage coverage to repair your vehicle.

Be ready to explain the situation that occurred and have witness statement available to the insurance company to make the claims process easier. Since the claims process can vary a bit from one insurance provider to another, speak to your insurance agent to know the specifics about how to place a claim.