Many people seriously hurt in a car accident were struck by someone with either no insurance or minimum liability insurance cover, which is $25,000 for New York car insurance.
Take the example of a driver who only has the New York State minimum liability insurance of $25,000 – let's say he hits you and you end up with serious injuries. You have new york car insurance with liability insurance limits of $300,000, but the insurance company didn't include any underinsured coverage on your policy. This often happens as some companies don't use brokers very much, and often don't explain things in as much detail as a broker would.
For a small fee, you could have purchased underinsured coverage of $300,000 which would have allowed you to recover $300,000 for your injuries instead of $25,000. You can buy underinsured coverage up to the value of your liability coverage, which is what most brokers and companies recommend these days.
Underinsured motorist coverage will pay you money from your own New York car insurance policy if you have been hurt in a car accident by someone who was negligent for causing your injury and who had less liability insurance coverage than you did. Uninsured motorist coverage will pay you when the other car did not have any insurance coverage or the identity of the other car is unknown.
Underinsured and uninsured coverage is so important that a couple of states now require coverage limits matching your liability insurance limits, unless you decline the coverage in writing.
Why should you buy new york car insurance through an independent insurance broker? The courts have defined the reason. There have been several "malpractice" lawsuits against insurance companies for failure to offer underinsured and uninsured motorists coverage limits matching the liability limits.
However, when the insurance company sells directly to consumers, these cases have gone in favor of the insurance companies. The courts found that when a consumer buys insurance directly from an insurance company, rather than an insurance broker, the consumer is only buying insurance and is not paying for advice.
When you buy auto insurance from an independent insurance broker who represents several different insurance companies, you get the advantage of an insurance professional who can evaluate your needs and advise you accordingly. Additionally, only an independent insurance broker can provide you with a choice of insurance companies and premiums, so you get the best coverage at the lowest price.
Whether you buy your New York car insurance directly from an insurance company or through an independent insurance broker, always make sure that you purchase matching uninsured and underinsured motorist coverage and the maximum medical payment benefits.