Often times our clients ask if “full coverage” insurance is required, and our answer is always “YES”. This can come off as demanding, excessive, and unnecessary to the client as they may never have had an accident, and don’t plan to. Then again, none of us plan to have an accident, but when we do………………..we’re glad we have insurance.
If you aren’t familiar with New York State motor vehicle law, at a minimum, liability insurance is required in order for a registered vehicle to be operated on our roads. Any lapse in insurance – specifically liability coverage – will result in the registration being suspended, fines being levied, and possible impoundment of the vehicle. These charges can run into thousands of dollars depending upon the length of time the vehicle was without insurance and the license plates not being surrendered to the DMV. Such a situation will impact your ability to register and operate a vehicle in the future – do not let your insurance lapse!!
Comprehensive and collision coverage is required by lenders in order to protect their collateral (the vehicle that was financed). This particular coverage is the largest portion of the premium expense to the insured and is typically why a customer does not want to carry it. However, “comp and collision” also protects the customer/insured !! If someone pays on their car for two years and has an accident that totals the vehicle with no collision coverage, everything that they have paid toward the vehicle has gone to waste. There is nothing to show for the payments made, and the likelihood of getting a new car financed is highly unlikely. In an instance where a loan balance is low and the value of the car higher than it, a check to the customer would not occur – perhaps thousands of dollars towards the purchase of a new vehicle – is not realized due to lack of collision coverage. The old saying………..”pennywise and dollar foolish” would apply in this case.
If you have any questions regarding insurance coverage and requirements, please reach out to our knowledgeable staff. We would be happy to answer any questions you might have.
Happy driving!!
Gerry