The New York auto plan facilitates auto insurance for drivers who can’t find coverage in the voluntary market. The plan assigns a driver to an insurer using a quota system. Every insurer that writes auto insurance in New York must participate in the plan. The NYAIP offers basic personal injury protection (PIP)—sometimes called no-fault insurance—up to $50,000 per person and basic property damage liability up to $100,000. It also provides optional basic economic loss (OBEL) coverage up to $25,000 for loss of earnings, child care expenses, funeral costs and other losses. Drivers may buy higher limits of physical coverage and choose deductible options.
Premiums for autoplan are based on actuarial information compiled from similar drivers. If you’re in the plan, your experience and characteristics are re-evaluated every three years. If you have good driving habits and a clean record, you may eventually qualify for standard auto insurance.
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There are a variety of factors that affect your policy cost, including coverages, deductibles and discounts. Talk to your agent about which coverages are right for you.
In addition to the minimum liability coverage required in most states, you can add coverage for uninsured/underinsured motorists and comprehensive/collision damage. These coverages pay for your expenses if you are involved in an accident with an uninsured or underinsured driver or if your vehicle is damaged by an act of vandalism, theft, fire or weather. You can also purchase an umbrella policy that “floats” above your other coverage limits to provide extra protection if you are sued for damages that exceed your policy’s limit.