Rodman and Campbell, P.C.-Bronx Lawyers-Automobile Accidents

                    UNDERSTANDING YOUR NEW YORK MOTOR
                               VEHICLE INSURANCE POLICIES:
                      IS YOUR INSURANCE COVERAGE ADEQUATE?

                BY: HUGH W. CAMPBELL, ESQ.

Very often when I ask clients what type of automobile insurance coverage they

carry, I am usually given the response; “I have full coverage”. The term “full

coverage” is frequently misunderstood, and as such too many motor vehicle owners

operate their vehicles without adequate insurance coverage.

New York State Insurance Laws provide that every motor vehicle operated on

the

roads of the state must carry minimum insurance coverage. The mandatory

insurance required for motor vehicles are usually broken down into four categories;

(I) Liability Coverage;

which insures the owner and driver against claims from an

injured person. The law requires that every automobile insured in the State of New

York must be insured with a minimum liability coverage of $25,000.00/$50,000.00.

In the event you carry the minimum insurance coverage required by law of

$25,000.00/$50,000.00, and one person is seriously injured as a result of the

negligence of the driver of your vehicle; the maximum your insurance company will

pay the injured person on your behalf will be $25,000.00. If more than one person is

seriously injured as a result of the negligence of the driver of your vehicle, the

maximum your insurance company will pay to be shared between all the injured

individuals on your behalf will be $50,000.00.

(2) Property Damage;

which insures

the owner and driver with a minimum of $10,000.00 in the event your vehicle causes

damage to another person’s vehicle or property as a result of

the negligence of the

driver of your vehicle. (This coverage does require your Insurance Company to

make repairs to your vehicle in the event it is damaged in an accident).

(3)

Personal Injury Protection,

(usually refereed to as “No-Fault”). This coverage

pays for the injured person’s reasonable and necessary medical bills, lost wages,

transportation expenses to and from medical providers, medication, etc., up to

$50,000.00, irrespective of who caused the accident. The insurance company of the

vehicle you are operating, or in which you are a passenger is responsible to pay for

your “No-Fault benefits (this may be different if you are a passenger on a bus). In

the case of a pedestrian, the insurance company of the vehicle that struck the

pedestrian must provide “No-Fault” coverage. An injured person is entitled to recover

their “No-Fault” benefits even if their injuries do not meet the “Serious Injury”

criteria of the Insurance Laws.

(4) Supplemental Insurance.

Supplemental

Insurance is mandatory, and it is the least understood. It is a part of every

automobile policy written in New York. This type of insurance provides coverage to

the operator and passengers of your vehicle in the event the operator and/or

passengers were injured by a vehicle that did not have insurance coverage, or in the

event your vehicle was hit by a hit and run vehicle. Although it is always a very

difficult concept for vehicle owners to understand, an injured member of your

household can make a claim against your insurance company, even though your

vehicle was parked and locked in the garage and had absolutely nothing to do with

their accident.

If you are an operator or a passenger in a vehicle and your vehicle is involved

in an accident with a vehicle that does not have insurance coverage, the operator and

passengers of your vehicle can make a claim against your own insurance company

under the Supplemental Insurance portion of your policy to recover for their

Personal Injuries. If a member of your household is struck by a vehicle while they

are a pedestrian, and the striking vehicle does not have insurance, or did not stop, the

injured member of your household can make a claim against the Supplemental

Insurance portion of your insurance policy.

This portion of your insurance coverage also benefits you and injured members

of your household if you carry a higher insurance coverage than the vehicle that

caused the accident. For example; if you, your passengers, or a member of your

household was seriously injured by a vehicle that carried the minimum liability

insurance coverage of $25,000.00, and you carried a higher Liability Coverage of

$100,000.00, and Supplemental Coverage of $100,000.00, you, your passengers or a

member of your household could make a claim against your own insurance company

for the difference between the other vehicle’s $25,000.00 and your $100,000.00

Supplemental Coverage. If the injuries were caused by a vehicle that had no

insurance or a hit and run vehicle, a claim can be made for the full amount of your

Supplemental Insurance coverage.

A common mistake that many motor vehicle owners make is they carry high

insurance coverage against which someone else can recover, however they fail to

spend the very nominal amount which is required to increase their Supplemental

Insurance coverage above the minimum of $25,000.00. In order to adequately

protect yourself and your family, the limits of your Supplemental Insurance

Coverage should always be as high as your liability coverage.

Traditionally, in New York and many other states, if one spouse was seriously

injured in a motor vehicle operated by the other spouse, the injured spouse could not

recover from the insurance company of the negligent spouse.

This was changed on January 1, 2003 when a new law became effective,

which requires insurance companies to offer optional S

upplemental Spousal

Liability

Insurance. In accordance with the new law, insurance companies must

now notify their insured of the existence of this new type of insurance coverage, and

the company must offer this coverage if requested. If this Supplemental Coverage is

purchased, and one spouse is seriously injured as a result of the negligence of the

other spouse, the injured spouse can now sue the negligent spouse and recover from

the negligent spouse’s insurance company. It is important to keep in mind that this

coverage is optional, and not mandatory; therefore the insured must add this

coverage to their existing insurance policy.

In order to adequately protect yourself and your family, it is highly suggested

that you carefully review your automobile polices to ensure that you carry the

appropriate coverage, and that the coverage is adequate. It is also suggested that you

consult with your insurance broker from time to time and update your policies.

In light of the many recent changes to the laws which affect automobile

insurance policies, if you are involved in an automobile accident, you should consult

an attorney immediately to

protect your rights in a timely manner.

LAW OFFICES OF
RODMAN and CAMPBELL, P.C.

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1428 East Gun Hill Road
Bronx, New York 10469
Tel: 718-882-2681
Fax:718-654-3641

LAW OFFICES OF
RODMAN and CAMPBELL, P.C.

LAW OFFICES OF
RODMAN and CAMPBELL, P.C.

Lawyers Dedicated to Fighting
for the Rights of Our Clients

Tel: 718-882-2681

This web site is designed for general information only. The information presented at this site
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agreement between this law firm and the potential client.

Hugh W. Campbell

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