What does $25/$50/$10 mean for an auto policy in New York?

What does $25/$50/$10 mean for an auto policy in New York?

Some inside insurance people talk in terms of liability limits and often state the minimum limits in New York – which is $25/$50/$10. But what does THAT mean? In simple terms it means $25,000 per person coverage, $50,000 per accident and $10,000 for any property damage. These limits have not changed since the 1950’s and in my opinion, underserving the driving public. Think about this – how many cars on the road are NOT valued at the very least $10,000?

Car accident in parking lot

Hit while parked

Let’s say you don’t stop in time at a stop light, rear end the car in front, who rear-ends another car. This accident can easily cause $15,000 to $20,000 of damage, with the high cost of auto repairs today. If you had the bare minimum limits of $25/$50/$10, then you would have $10,000 to cover those damages. So where does the other $5,000 come from in a $15,000 claim? Your wages get attached or your house now has a lien (judgement) against it until paid or out-of-pocket by you.

What does $25/$50/$10 mean for an auto policy in New York?

In our agency, the minimum we write is said in terms of $100/$300/$100, so you have the proper coverage in most situations. We do strongly urge even higher at $250/$500/$100 to protect the assets you and your family may have accumulated. The more assets you have to protect, the better coverage you need to protect those assets. Which gets back to some of the insurance companies advertising low, low rates or a “name-your-own-price” tool.

What these online or 1-800 insurance companies are doing, is lowing your liability limits until you get to a price you like. Not a coverage amount you like but a payment amount you like. The problem is, they never ask what your risk tolerance is, what assets you are trying to protect or how best to protect them.

Dangerous motorcycle accident

Motorcycle Accident

We love helping New Yorker’s understand the confusing world of insurance – because we care. It goes against the TV hawking insurance companies who keep telling you it is all about price. For smart consumers, it is more about coverage 1st, than it is about price but it is a balance. That is what us insurance professionals are for, to help guide in the purchase of insurance. It is not a one size fits all solution but one that takes in ALL the information and then help decide the very best solution.

Tom Larsen,

Licensed Insurance Broker

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