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NY Insurance: What You Don’t Know Can Hurt You

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Surprised man learning about his insurance policies
What You Do Know Can’t Hurt You when you apply it to the insurance coverage that you carry.

When it comes to auto, home and business insurance in New York State, what you don’t know about your coverage can hurt you. Many people assume, because they obtained their insurance policies through a NY insurance agency that they are covered adequately for all risks, but that is simply not the case for a great number of people.

It could be that you took out your policies 5, 10 or more years ago and have simply let them renew each year without reviewing coverages as your life has changed. Maybe you started your policies as a young professional with little to no assets and an entry level salary and have moved up to an executive position with a high salary while growing significant assets. Some people assume their insurance company will reach out to them for occasional reviews to address such situations but unfortunately, this type of insurance company to customer relationship has diminished over the past couple of decades.

Say you took out an auto policy when finances were tight and chose to take the NYS minimum required $25k/50k for bodily injury liability protection. This means that if you are in an accident where someone is injured and you are deemed at-fault for the crash and sued by the injured party, you are covered by the insurance company for up to $25k for one injured person and $50k total for the accident if two or more people are injured.

Over the years, as your income and accumulated wealth has increased a great deal, you’ve kept your auto insurance policy at the same minimum liability coverage of $25k/50 either not thinking about it or feeling it was the most cost effective option.

Now you’re driving down a busy highway and sun glare hits your eyes just as traffic is slowing, decreasing your reaction time and causing you to crash into the vehicle in front of you causing a significant injury to the other driver. Some time later after the accident you are served with a summons informing you that you are being sued.  Ultimately you learn that the injured driver is suing you for damages in the amount of $1,000,000.

Your insurance company will cover $25,000 and you could personally be on the hook for $975,000. You could say goodbye to a good portion or all of your assets, go on wage garnishment and even have a judgment named on your credit report for any unpaid amount.

This is not the position you want to be in. That’s why it’s so important to review your auto, home and business policies with an experienced insurance agent who will take the time to educate you on coverages while assessing your risks to suggest appropriate coverages to protect you for your specific financial scenario.

Keep in mind that we have just discussed only one very specific coverage on one type of policy. There are so many other very important coverages on auto, home and business insurance policies that can cause severe financial pain to an insured if either omitted or carried at an inadequate limit.

Taking a proactive approach to your insurance coverage is wise in today’s environment of huge claim awards. Remember that What You Do Know Can’t Hurt You when you apply it to the insurance coverage that you carry.

If you have any questions regarding auto, home and business insurance options, please contact us, we’re always glad to help.  The NY Insurance Hub serves Albany, Schenectady, Troy, Latham, Cohoes, Watervliet, Clifton Park, Saratoga Springs, surrounding Capital Region areas and all of New York State from NYC to Buffalo.

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