Few important terms and conditions about auto insurance in New York

Car policy comprise of some terms and conditions about, which a policyholder must be aware. 

 

If residing in New York and thinking to purchase an insurance policy for car, then you need to be aware with its terms and conditions, which is explained below-

Policy benefits will only be liable if policyholder’s car met following problem-

• Fire explosion by self-ignition or lightning
• Theft
• Damage because of riot and strike
• Earthquake damage
• Flood
• Accidental damage
• Malicious act
• Terrorist attack
• Landslide problem

During any of the aforementioned problems, there will be a subject of deduction in respect to replace the car parts, which are as follows-

• 50% of reduction on car rubber/nylon/plastic parts, tires, batteries and air bags
• 30% on fiber glass components
• Nil deprecation on parts made of glass

In addition to these three factors, deprecation also depends on age of car. To determine what deprecation you will have to face, following is the chart-

• Nil depreciation if not exceeding 6 months
• 5% depreciation, if exceeding 6 months but not 1 year
• 10% depreciation if exceeding 1 year and not 2 years
• 15% depreciation if exceeding 2 years and not 3 years
• 25% depreciation if exceeding 3 years and not 4 years
• 35% depreciation if exceeding 4 years and not 5 years
• 40% depreciation if exceeding 5 years and not 10 years
• 50% depreciation if exceeding 10 years

Few areas in which insurance company shall not be liable to pay any compensation for the loss-

• Accidental loss incurred outside Geographical Area
• Claim out of any contractual liability
• Accidental loss caused with private car
• Accidental loss caused because of nuclear weapon material

From the above stated points, you must have got an idea what are the rules and regulations or terms and conditions of auto insurance  NY.

If you are thinking to buy one, you need to make sure you are aware of all these facts stated in the document. However, these are not the only terms, you need to have words with insurance company so that you can get complete list of the terms and conditions regulated by the company.

In agreement to this, you need to be alert while signing an insurance policy because many companies are not reliable enough. You must research well and then make a decision.