If you have a vehicle in New Windsor, NY, you already know you need car insurance. That said, not all insurance policies are the same, and if you’ve had your vehicle long enough, you might wonder if it still needs full coverage. This little guide from us at Windgate Insurance Agency Inc. can help you think about that.

Differences in Coverage

First, let’s be clear. The idea of dropping from comprehensive to liability-only coverage doesn’t have to happen simultaneously. You can step down coverage for the vehicle as it ages and certain coverage components start to feel superfluous.

Also, make sure to understand that liability-only coverage means that you get absolutely no compensation if your vehicle is damaged or stolen. Liability-only is what it sounds like. It only covers liabilities when you’re at fault in an accident. 

Lastly, liability coverage is required by state law. You can’t get rid of this coverage aspect, but generally speaking, it costs a lot less than comprehensive coverage.

When to Make the Change

Mostly, the decision comes down to money, and two situations justify a drop to liability only.

The first is when the value of the vehicle depreciates enough. If the car is only worth a few thousand dollars (or less), it might not be worth comprehensive coverage anymore. Your best test is to see how many months of insurance premiums it takes to equal the car’s total value. If you’re paying more than the car is worth in insurance every year, it’s time to lower your coverage.

The other situation is when another policy covers the vehicle. It doesn’t happen often, but you might get vehicle coverage through a job or a family member. There’s no reason to have two comprehensive plans on one vehicle.

If you think you might be in a situation that merits a change to your vehicle’s coverage, talk with your representative at Windgate Insurance Agency Inc. We can review your assets, existing policies, and specifics that might affect a New Windsor, NY, resident to help you make the best decision.

Most states require drivers to carry auto liability insurance as a minimum. However, this doesn’t mean that you won’t be required to carry more than the minimum. If you finance your car, your lender will likely require you to carry full coverage auto insurance. Also, if you have a late-model car, it may be wise to invest in full coverage insurance even if you’ve paid it off. The repair of a late-model car can be really expensive, making auto insurance a wise investment.

Our Windgate Insurance Agency Inc. team is committed to helping New Windsor, NY drivers understand the benefits of auto insurance. 

What is Auto Insurance?

Auto insurance is designed to provide both financial and liability protection for drivers. It’s a contract between you and the auto insurance company that has preset limits and guidelines in terms of what’s covered. If you have an accident, auto insurance can pay for the repair or replacement of your vehicle, depending on the type of coverage you have.

Auto insurance can also cover damage to someone else’s car as well as bodily injury coverage if someone is physically harmed as a result of an accident that you’re liable/responsible for. You pay a monthly premium to maintain your coverage. Also, auto insurance can provide coverage for non-moving accidents, vandalism, and theft, depending on the type of coverage you invest in. 

My car is fifteen years old. Do I need more than auto liability coverage?

Generally, full coverage auto insurance may cost you more than the value of your car if your car is ten years old or more. The amount you pay annually in insurance premiums may likely exceed the value of your car. This means that if you were in an accident, the cost of repairs would probably exceed your car’s value, making it a total loss.

Your insurance company probably wouldn’t pay for the repair or replacement of your car as a result. If your annual premiums don’t exceed the value of your car, your premiums may be almost fifty percent of your car’s value.  

We Are Here To Help!

If you have questions regarding the best coverage for your car, call us at Windgate Insurance Agency Inc. We’d be happy to help you explore your options in New Windsor, NY and surrounding areas.

Every state has its own requirements for motorists, and like others, New York requires its drivers to have auto insurance. In the state, proof of that insurance must be available at all times while you’re driving. If you drive in New York, don’t face fines, fees, and other penalties. Give us a call at Windgate Insurance Agency Inc. in New Windsor, NY to find out more. 

Liability Coverage

There are two types of liability coverage that are required in New York auto insurance, and three different amounts are required. There is an amount necessary for bodily injury for when one person becomes injured in an accident caused by you. Then, there is a second amount that is for bodily injury liability for an accident that you cause. Third, there is an amount required for property damage that is done to a third party. This can be damage to their vehicle or to anything else that was struck. These amounts are very low when compared to other states. It can be a smart decision to get more coverage than the law requires so that you are better protected. 

Uninsured and Underinsured Motorist

This coverage is required for bodily injury to you and your passengers if you were struck by a motorist with no insurance or not enough insurance to pay for your medical bills. This can also be used if you were hit by a hit-and-run driver. 

Personal Injury Protection

This coverage is required to pay for your own injuries after an accident. The required amount is on par with other states that require it, but adding to it can be helpful. 

Stay Protected With Auto Insurance

If you are a driver in New York, you have to have all of these coverage types. Don’t risk fees or having an accident without insurance. To get started, give us a call at Windgate Insurance Agency Inc. in New Windsor, NY.

Auto insurance is a unique expense. Not only does auto insurance provide us with a necessary service each month, but it also fulfills a legal obligation we have to our communities and other drivers. This gives auto insurance a top priority status in our budgets. The only way you can make wise insurance decisions is if you have the right insurance information available. At Windgate Insurance Agency, Inc., serving New Windsor, NY, we are committed to bringing you solid insurance information. Let’s take a look at what you need to know about auto insurance. 

Why Am I Obligated to Carry Auto Insurance?

In addition to the fact that most states require that drivers carry at least liability insurance, there is also an unspoken obligation to the other drivers out there. Driving is a risky business. If a car accident occurs, the drivers in danger of being injured are also in danger of being hit financially with medical bills for treatment of their injuries and the cost of having their car repaired or replaced. These financial risks could leave an individual financially vulnerable following a car wreck that was not their fault. The driver that was at fault could face the same financial dangers. Automobile insurance relieves those risks by providing a policy that will pay in the event these things happen. 

What Does Car Insurance Cover?

Most car insurance policies will provide you with collision insurance that will pay for the repair or replacement of your vehicle if you should damage it in a wreck, a natural disaster, or lost through burglary. Liability insurance is a type of coverage that will pay for the costs of another driver’s repairs or medical bills if you cause them to be in a wreck. 

If you would like to learn more about our services, please contact Windgate Insurance Agency Inc, serving New Windsor, NY.