Our New York car accident lawyers know that many are concerned about rising premiums for auto insurance. As CNN Money reports, the average driver’s premiums have increased 23 percent over the past five years while inflation has only increased seven percent. This means that the typical insurance premiums for a 40-year-old man now total $1,510 and could be as high as $2,700 for auto insurance. 
While rising car insurance premium costs may lead some drivers to consider dropping coverage, experts from the Consumer Federation of America indicate that there are some policy provisions you definitely don’t want to drop and some kinds of insurance that you shouldn’t skimp on buying.
The critical areas where you want to ensure you have sufficient auto insurance coverage include the following:
- Liability insurance: For most drivers, this part of the policy accounts for the greatest portion of premium costs. However, lowering coverage is a bad idea because if you cause an accident, the other driver could sue you for serious injuries. If your insurance doesn’t cover the costs, then the injured motorist could come after your personal assets. This is such a major risk that experts suggest buying above the state mandated minimum to ensure your assets are protected.
- Uninsured motorist coverage: As many as one driver out of every seven on the road is lacking in the required liability insurance. Not only that, but 20 percent of drivers buy only the minimum liability coverage that is required. If you are in an accident and the motorist who caused your collision has limited or no insurance, you may need to turn to uninsured or underinsured coverage to get the costs of serious medical injuries covered.
- A rider to ensure you get factory parts in repairs. When you need to get your car repaired after an accident happens, the parts that are used in the repair can have both a major impact on the vehicle’s value and a major impact on the way that the vehicle operates. Aftermarket parts may not work as well in your vehicle as original manufacturer parts, but many insurance policies will require their use, especially once your car is a few years old. There should be a section of your insurance policy outlining the “Limit of Liability” and this section will explain what your insurer’s policy is on the use of aftermarket parts. If your policy covers original factory parts for repairs only during a set period of time (usually the first three years), you may wish to look into buying a rider to extend the amount of time that the factory parts would be covered. While this can add about 10 percent to the cost of a collision and comprehensive policy, it also ensures that you’ll be able to get your car repaired as-good-as-new if you are in an accident and need to make a claim.
While no one likes to pay for high auto insurance premiums, the fact is that accidents happen every day in New York and car insurance protects you from financial disaster. Make sure that you have sufficient coverage so you won’t have to worry if you are in an accident.
The Law Offices of Nicholas Rose, PLLC offers free consultations to car accident victims. Call 1-877-313-7673.
More Blog Entries:
Protecting Our Youngest Passengers — Child Passenger Safety Week, New York Injury Lawyer Blog, September 24, 2013
