If you generally employ diligent safety practices when driving and you have adequate insurance coverage, you may feel like you don’t need to worry much the risk of being involved in a crash. However, the liability insurance system used in New York means that you’ll depend on another driver’s coverage to some degree if you’re ever involved in a significant collision. While you almost certainly have some no-fault coverage on your policy, that will typically only apply to the basic medical expenses you have and some of your lost wages.
Expanding the insurance coverage that you carry can protect you from a number of difficult situations, including a scenario wherein the other driver can’t fully reimburse you for your losses. Underinsured motorist coverage is insurance protection that will cover additional expenses when you have completely used up the other driver’s coverage. Here are just a few reasons to consider adding underinsured motorist coverage to your policy.
1. Property damage can be expensive
If you drive a nearly-new prestige vehicle, an import or a wheelchair-accessible van, the cost to repair your vehicle after a crash could be far more than the basic coverage provided by another driver. Many people in New York have just $10,000 in property damage liability coverage, which may not be enough to buy a new vehicle comparable to the one you currently own.
2. You deserve adequate protection
When you look at the minimum medical liability coverage required in New York, you have to consider that this portion of someone’s policy is what pays for not just your hospital expenses but also your lost wages. Although no-fault coverage will help, it typically only pays, at most, 80% of an average worker’s lost wages, and even then, you can only receive up to $2,000 per month.
If you are out of work for six weeks over a broken arm or six months recovering from a traumatic brain injury, you suffer a total loss of income during that time. The other driver’s $25,000 in bodily injury liability coverage may not be enough for your needs.
Adding supplemental underinsured motorist coverage to a motor vehicle policy can protect those who earn decent wages from a scenario in which they have lost income that the other driver’s policy won’t fully cover. Underinsured motorist coverage is an excellent supplement to no-fault coverage and liability protection for many drivers.
Thinking about how a New York car crash might lead to financial losses can help to better ensure that you have the right coverage in place for all kinds of difficult situations.