New York Law requires all vehicles to carry a minimum amount of liability insurance in the amount of $25,000 for bodily injury to one person, $50,000 for bodily injury to two or more persons (Uninsured motorists protection subject to the same minimums), $10,000 for damage to property of others, and $50,000 for Personal Injury Protection (PIP), also known as No-fault. These minimum coverages are applicable to any one accident. However, depending on your individual situation, it is advisable that you consider increasing the amounts of your liability coverages depending on your needs and the assets you would like to protect.
You may consider purchasing Comprehensive and Collision coverages to protect against theft or damage to your vehicle. Insurers also offer other valuable coverages to protect you and your family, such as Additional PIP and Supplementary Uninsured/Underinsured Motorists (SUM). It is recommended that you review the Department’s Consumer Guide to Automobile Insurance, located in the Automobile Insurance Resource Center at http://www.dfs.ny.gov/insurance/cauto.htm, for more general information about auto insurance. You may also consult with the producer or insurer to help determine the types of coverages that are ideal for you.
The NYAIP (also known as the “Assigned Risk Plan”) is a mechanism established by law to offer insurance to applicants that are unable to find insurance in the voluntary market. The NYAIP provides insurance as a last resort, so the premiums are generally higher than insurance obtained through the voluntary market. Consumers who shop around usually get the best insurance value for their money.
The standard auto policy does not automatically provide coverage for an insured against liability due to death of or injuries to a spouse. However, an insured may purchase Supplemental Spousal Liability, which does provide coverage for an insured against liability due to death of or injuries to a spouse.
Many insurers consider consumer credit information as part of their underwriting process and, for those that do, your credit history may have an affect on the premium charged. However, insurers are prohibited from rejecting an application for insurance solely on the basis of credit information and from using credit in any way to terminate a policy or increase the premium on a renewal policy. Insurers are required to disclose the use of credit information to their policyholders.
For policies procured through a broker, the insurance law allows the broker to charge a separate fee as long as you sign a written memorandum agreeing to the specified charge for services performed by the broker in obtaining the policy. For NYAIP policies, the maximum amount of the fee is limited to $50. Keep in mind that you have the option of contacting an insurer that deals directly with the public, to use an insurance agent, or to shop around for a broker that does not charge a fee for such services. It should be noted that unlike a broker, an insurance agent is not allowed to charge a fee for services rendered in the procurement of an insurance policy.
While all insurers are required to offer certain mandatory discounts (such as for vehicles equipped with air bags, anti-lock brakes or daytime running lights, or for taking a DMV approved Accident Prevention Course), many insurers have a wide range of other discounts that may also be applicable to you. Ask the insurer or producer about the discounts offered by the insurer to see if you qualify or could qualify for any of the available discounts.
Various insurers offer discounts geared toward youthful drivers. You may qualify for a reduced premium, if a youthful driver attends college over 100 miles away (i.e. “resident student”), meets certain academic requirements (i.e. “good student”), or has taken a driver’s education course.
This depends on your insurer’s underwriting guidelines. Generally, an insurer is allowed to non-renew up to approximately 2% of its policies per year based on objective criteria. Insurers are required to provide a notice stating the specific reason for non-renewal of the policy. You should also be aware that your premium is likely to be increased for a three-year period via a surcharge if you’re convicted of certain traffic violations (e.g. speeding more than 15 MPH over the legal limit, leaving the scene of an accident without reporting or driving while intoxicated).
Premiums charged for physical damage coverages (Collision and Comprehensive) are based on the estimated cost of future claims for damage to, or loss of, the vehicle. Higher-priced vehicles generally cost more to insure. Please refer to Sections X. Rating Basis For Physical Damage Coverages and XI. Difficult-To-Insure Vehicles of the Consumer Guide to Automobile Insurance for specific vehicle information regarding this matter. It is also recommended that you obtain an insurance quote prior to purchasing a new vehicle.
Discounts are available if you have higher deductibles, smoke detectors, sprinkler systems, fire extinguishers, dead bolt locks, hurricane shutters, or laminated glass.
The policy comes with a deductible that you can request to be higher or lower and there are windstorm, or hurricane deductibles for policies issued in certain areas.
The rates are affected by local fire protection, age and type of building, and use of the building.
The rates are affected by the kind of construction, such as brick vs. frame.
Mold damage is covered if it is due to a covered event. Many policies have a mold limitation for the payment of remediation services. Your policy has to be reviewed for the specific language.
The building and its contents are covered for the named perils. If it is an all risk policy every event is covered except for listed exclusions.
Some exclusions include flood, wear and tear, earth movement and acts of war.
Certain items such as computers, silverware, jewelry, guns, money, securities and others listed have monetary limitations. You maybe be able to buy a rider for these items.
You can purchase an umbrella policy, or rider, if available; flood coverage through the National Flood Insurance Program in many communities, higher levels of liability coverage, lower deductibles, earthquake, coverage for business pursuits on the premises. Just ask the producer concerning any type of coverage you may need.
An umbrella policy or rider provides additional higher limits for liability coverage for your home, auto and watercraft. It may also provide coverage for events not covered by your homeowners policy.
You need life insurance if you want to provide financial protection for your dependents (or to your creditors) in the event of your death. A business may want to use life insurance to fund its employee benefit plans, protect against the premature death of a key person or to provide for business continuation.
The following are typical examples of family and business purposes to consider when assessing the need for life insurance:
Should one or more of these examples apply to you, the purchase of life insurance may be suitable for your needs.
The amount of life insurance a person needs will depend on their own particular circumstances and the reasons for purchasing the policy. One approach to determine how much life insurance you should purchase is to analyze the various needs of your family in the event of the death of a family member. Life insurance may satisfy a number of these needs by providing a fund that can be used to:
Thus, the current and future financial needs particular to your family can be a significant consideration in determining the amount of life insurance that is right for you. Another factor that may be taken into consideration in determining how much life insurance you need is the amount of your annual salary.
While there are many types and variations of life insurance products available in today’s marketplace, there are basically two types of life insurance: term insurance and permanent insurance. Term life insurance provides death benefit protection for a certain period of time such as one or ten years. Death benefits are paid to the beneficiary only if the insured dies during that term period. Generally, term policies do not build up any cash values. Permanent life insurance can provide death benefit protection for your lifetime and the policy will provide for the build up of a cash value. The cash value may be used in several different ways e.g. you may borrow against the cash value by taking a loan. Permanent insurance includes several different types of policies such as whole life, universal life and variable universal life.
There are two types of life insurance companies i.e. stock companies and mutual companies. Stock insurers are corporations owned by the shareholders of the corporation. Mutual insurers are owned by their policyowners who may receive a yearly dividend if one is declared by the company’s board of directors. Both stock insurers and mutual insurers offer suitable policies for purchase.
Some factors you may want to consider when selecting a company include the following:
Individual life insurance can be sold directly from an insurance company through an agent or broker, through the mail, over the internet, over the telephone as well as from banks or other financial institutions. You may also be able to purchase insurance from a fraternal benefit organization if you are a member. Group insurance may be available through your job or from associations or other organizations in which you participate.
Underwriting is the process an insurance company uses when it selects applicants it is willing to insure and determines the cost of providing coverage. There are common factors that insurance companies may use to decide how much to charge you for the kind and amount of coverage you want to buy, such as:
The insurance company receives this information from your application, and may ask you to fill out a health questionnaire or have a health examination or certain medical tests. In addition, the company may request that you consent to the preparation of an investigative consumer report or a Medical Information Bureau (MIB) report. It should be noted that there are varying levels of underwriting including full underwriting, simplified underwriting and guaranteed issue. Each type of underwriting impacts the premium rates to be charged. Ask your agent or the company which type of underwriting is applicable to the policy you are interested in purchasing and what type of medical information, if any, needs to be provided. Often group life insurance is subject to different types of underwriting. In some cases, employees actively at work do not need to provide any medical information if they enroll within a specified period of time.
To compare the costs of purchasing a life insurance policy, it is recommended that consumers obtain quotes for similar policies from different companies. Comparing costs only makes sense if you are comparing similar policies. Comparison of costs can become increasingly complicated when products include such non-guaranteed features as dividends or additional amounts. There is no guarantee that a company’s past practices with respect to non-guaranteed features will continue. Quotes for various products can be readily obtained from many sources, including local agents and brokers, telephone quote services and the internet. Make sure that you can afford the amount of coverage you intend to purchase. Premiums for some products can change over time and your circumstances i.e. your ability to pay the premiums over an extended period of time may change as well. When comparing the costs of policies be sure to ask if the premiums, death benefit, or cash values can change over time.
A sales illustration is a detailed projection of future policy values based upon the variables selected by you and your agent in conjunction with the purchase you are considering. The illustration can help to show you how the policy is expected to work. The illustration will show you what costs and benefits are guaranteed and what costs and benefits are not guaranteed. It is recommended that consumers request a sales illustration if available, prior to purchase.
You will have a period that can be anywhere between 10 and 30 days, depending on the terms of the policy, after you receive the insurance policy to return the policy if you are not satisfied and receive a refund of premium. This period of time is called the “free-look” period, and a “free-look” notice is required to be displayed on the cover page of the policy. Use the free look period to read your policy carefully. If there is something in the policy you do not understand call your agent or contact the company for an explanation.
Replacing an existing life insurance policy can be costly and may not be in your best interest. When you apply for a life insurance policy you will be provided with a “Definition of Replacement” form which will explain what constitutes a replacement. If you intend to replace your policy, than no later than when you sign an application for a policy to replace your current policy with a new policy, you will receive a copy of an "Important Notice Regarding Replacement or Change of Life Insurance Policies or Annuity Contracts," and a “Disclosure Statement.” These documents give you information to think about before replacing your life insurance policy or annuity contract.
Some factors you should take into consideration if you are thinking of replacing your policy: