Property Damage Protection Coverage in New York State
In the State of New York, motorists are required to carry liability insurance coverage. This type of insurance includes property damage protection, which covers the cost of damages that other sustain in the event of a motor vehicle accident. This damage can includes any type of personal property, such as vehicles, homes, and land.
Since this type of insurance is a requirement, it is important for New York drivers to understand exactly what it covers and how much coverage they need.
What Exactly does Property Damage Protection Cover?
Property damage protection provides coverage for any damage that occurs in the event that you are responsible for a car accident. The goal of this type of protection is to ensure that you will be able to pay for the damage to someone else’s property that you cause in a motor vehicle accident that is found to be your fault.
Examples of what this type of coverage protects include:
- Vehicle damage, including the cost of repairs, replacement parts, and the labor that is required to make repairs.
- Repairing damaged property, including homes, businesses, exterior signs, lamp posts, fences, flag posts, mailboxes, sheds, and so on.
- The income that a business loses in the event that it needs to be closed while the repairs from the damage you cause are being made.
- Legal fees, including the cost of an attorney, court fees, and other legal costs that may be associated should a property damage claim be filed
Property damage protection insurance does not, however, cover any damages to your own personal property. These damages would be covered by either a collision or a comprehensive insurance policy. Both of these policies are separate from property damage protection.
Property damage protection coverage works on a per accident basis. Your insurance company will only cover the costs of damages up to the limit of your policy. You would be responsible for paying for anything that exceeds your policy limits.
How Much Property Damage Protection is Required in New York
In the State of New York, drivers are required to carry a minimum coverage of $10,000 in property damage protection. You do have the option of purchasing additional coverage; however, as would be expected, the more coverage you have, the higher your premiums will be.
Purchasing coverage that exceeds the $10,000 minimum could be worth your while if you are considered a high-risk driver, or if you drive in areas where treacherous conditions are common. Furthermore, if the damage you caused exceeds the limits of your policy, you will be required to pay the difference. Additionally, you could face a lawsuit, in which cause you will have to pay what your policy doesn’t cover, as well as any additional reimbursement you may be required to pay, and any legal fees. Should you damage However, before you purchase additional coverage, keep in mind that the typically property damage claim is no more than a few thousand dollars. On average, the cost of a property damage claim was an estimated $3,200 in 2013. As the cost of everything rises, it can be expected that the cost of property damage claims have also risen; however, based on the average cost in 2013, in most cases, the minimum coverage of $10,000 in New York State will likely be enough to cover any damages.
How Much Does Property Damage Protection Coverage Cost?
Just like the cost of any other type of insurance, property damage liability protection varies from person to person. It is covered under your general liability coverage, and there are several factors that will determine the amount you will have to pay in premiums.
These factors include, but are not limited to, the following:
- Your age
- Your driving record
- The amount of claims that have been filed against you
- Where you live
- The type of vehicle you drive
As mentioned, you can purchase additional property damage protection coverage. Again, the cost for this additional coverage will vary. Not only will the above factors impact the cost of your coverage, but so will the amount of additional coverage you are purchasing. With that said, if you have a clean driving record, the amount it will cost to purchase additional coverage will be less than it would be for someone who has had several speeding tickets or who has been involved in motor vehicle accidents.
How to Find Fair Prices on Property Damage Protection Insurance
Drivers who have a clean driving history (they don’t have tickets and/or haven’t been involved in auto accidents) will receive lower rates for property damage protection insurance than those who have a lot of tickets and who have been involved in and found responsible for accidents. As such, being cautious and adhering to traffic laws is in your best interest to keep your rates as low as possible.