Insurers' rate calculations are based on expectations of investment income as well as anticipated loss experience. These calculations are also based on the assumption that the full premium is received at the beginning of the policy period. By not receiving the full premium up-front, the insurer is losing some of this investment income, as well as incurring additional service costs. Therefore insurers may charge fees to make up for some of this lost income. The Department's opinion, first expressed many years ago, is that premium installment payments are consumer credit transactions and therefore do not fall within the scope of the Insurance Law. However, all such fees, including those for bounced checks and late payments, must be reasonable and may be limited in the amounts charged by various other New York Laws, including the Banking Law.

Ask whether the person you are talking to is a licensed broker or agent (producer). If possible get a look at his/her license and jot down the insurance license number and the expiration date. If the license is not current, do not enter into any transaction with this person.

• The temporary ID card for your new policy must have the name and address of the producer as indicated on the license.
• Avoid paying a premium in cash and always obtain a breakdown of all moneys paid to the producer, signed by the producer (a detailed receipt). Also, insist that any non-premium related charges be paid separately.
• Always list the purpose of the payment on the check.
• Always fill out the application honestly.
• Never sign an incomplete application.
• Never sign any document without reading it.
• Always obtain a copy of the application and any other documents which you signed.

Be aware that producers often charge service fees. For a service fee to be collected, the insured must agree, in writing, to the amount charged. For NYAIP business, the producer's fee is limited to $50.00 per year plus the actual cost of the use of the Electronic Submission Procedure, DMV Reports for non-New York operators, Express Mail, and Certified Mail.

If you are unhappy about a service fee, you can attempt to negotiate with the producer or attempt to find another producer whose service fee policy is acceptable to you.

Study any other fees carefully. Some producers sell "Motor Clubs" which provide towing and possibly other services. Many of these clubs provide very limited services for a higher cost when compared with the better known national auto clubs. Also, you may already have towing services from another source. These services are not required for insurance purposes.

Yes, you have to pay the premium that the company is asking for. The company must charge the premium in accordance with the rates that they have on file with this Department. There are several reasons why the company's premium may be higher than the quote provided by the broker. For example, the company may be applying a surcharge for an accident or ticket that the broker was not aware of. If you feel that your broker gave you an erroneous quote deliberately in order to sell you the policy, you may file a complaint with this Department.

Yes, you have to pay the premium that the company is asking for. The company must charge the premium in accordance with the rates that they have on file with this Department. There are several reasons why the company's premium may be higher than the quote provided by the broker. For example, the company may be applying a surcharge for an accident or ticket that the broker was not aware of. If you feel that your broker gave you an erroneous quote deliberately in order to sell you the policy, you may file a complaint with this Department.

The broker is permitted by the Insurance Law to charge a fee over and above premiums, with the insured's signed consent. In order for the broker to collect a fee, the insured must sign an agreement acknowledging the amount to be charged. Once the proper form is signed, there is no limit on the amount to be charged, provided that the amount is acknowledged in the agreement. The New York Automobile Insurance Plan (Assigned Risk Plan) limits the broker's fee to a maximum of $50.00 for applications placed through the Assigned Risk Plan. Also, with an assigned risk policy, the broker may pass along to the insured the actual charges for the cost of the use of the Electronic Submission Procedure, DMV Reports for non-New York operators, Express Mail, or Certified Mail. The insured does have the right to shop around for a broker who does not charge a fee.

Please select this link to locate the name and address of the company in question. You may also contact this Department at 212-480-6400 or 1-800-342-3736.

Send a letter to the insurance company that you wish to file the claim with and ask for a claim form. You must also notify your own carrier.

There are two types of adjusters licensed by this Department, independent and public.

An Independent Adjuster handles claims on behalf of an insurance company. This person receives either fees or compensation from the company for which he/she is hired to review (adjust) claims.

A Public Adjuster is hired by the claimant to evaluate the loss and negotiates a loss payment on his or her behalf with either the insurance company or its adjuster. The Public Adjuster's fee is based on an agreed percentage of loss, limited to twelve and one half percent (12.5%), and must be listed in a signed agreement.

The appraisal clause is a provision which may be in your policy and is used to resolve a dispute where the only question is the amount of damages. The clause provides that the claimant and the company each pick an appraiser and the appraisers are left to come to an agreement. For issues that cannot be resolved by the appraisers, an umpire is chosen to make a determination.

You may obtain a value for your automobile by writing to this Department and including the following information:

• The Vehicle Identification Number(VIN);
• Year, make, and model;
• Four door/two door/station wagon/hatchback;
• Engine size, e.g., 4, 6, or 8 cylinder;
• All major options - a/c, p/w, a/t, or m/t, etc.;
• Mileage;
• Date of loss;
• A daytime phone number where you can be reached should additional information be needed.
• any after market options;
• Zip Code

After your request is processed, you will be mailed a valuation based on the Red Book and the NADA book retail values.

No. Pursuant to Regulation 64, insurance companies are allowed to use a number of different methods when valuing a Total Loss. Although the average of the Red Book and the NADA book is an allowable method available to insurers, it is not the only one. Some of the other methods include a market survey or obtaining "a quotation for a substantially similar vehicle, obtained by the insurer from a qualified dealer located reasonably convenient to the insured."

Pursuant to Regulation 64, concerning the calculation of most vehicle total losses, you have 35 days from the date of mailing of the settlement check to deliver a letter to the company stating that you are unable to find a comparable vehicle for the offer made. Then the company (or you) must find a substantially similar vehicle (same year, make, model, condition, and similar mileage) that is available for sale and either pay the difference, or with the insured's permission buy the vehicle.

New York Law requires all vehicles to carry a minimum amount of liability insurance in the amount of $25,000 for bodily injury to one person, $50,000 for bodily injury to two or more persons (Uninsured motorists protection subject to the same minimums), $10,000 for damage to property of others, and $50,000 for Personal Injury Protection (PIP), also known as No-fault. These minimum coverages are applicable to any one accident. However, depending on your individual situation, it is advisable that you consider increasing the amounts of your liability coverages depending on your needs and the assets you would like to protect.

You may consider purchasing Comprehensive and Collision coverage to protect against theft or damage to your vehicle. Insurers also offer other valuable coverage to protect you and your family, such as Additional PIP and Supplementary Uninsured/Underinsured Motorists (SUM).

It is recommended that you review the Department’s guide to Shopping For Automobile Insurance for more general information about auto insurance.

You may also consult with the producer or insurer to help determine the types of coverage that are ideal for you.

The NYAIP (also known as the “Assigned Risk Plan”) is a mechanism established by law to offer insurance to applicants that are unable to find insurance in the voluntary market. The NYAIP provides insurance as a last resort, so the premiums are generally higher than insurance obtained through the voluntary market. Consumers who shop around usually get the best insurance value for their money.

The standard auto policy does not automatically provide coverage for an insured against liability due to death of or injuries to a spouse. However, an insured may purchase Supplemental Spousal Liability, which does provide coverage for an insured against liability due to death of or injuries to a spouse.

Many insurers consider consumer credit information as part of their underwriting process and, for those that do, your credit history may have an affect on the premium charged. However, insurers are prohibited from rejecting an application for insurance solely on the basis of credit information and from using credit in any way to terminate a policy or increase the premium on a renewal policy. Insurers are required to disclose the use of credit information to their policyholders.

For policies procured through a broker, the insurance law allows the broker to charge a separate fee as long as you sign a written memorandum agreeing to the specified charge for services performed by the broker in obtaining the policy. For NYAIP policies, the maximum amount of the fee is limited to $50. Keep in mind that you have the option of contacting an insurer that deals directly with the public, to use an insurance agent, or to shop around for a broker that does not charge a fee for such services. It should be noted that unlike a broker, an insurance agent is not allowed to charge a fee for services rendered in the procurement of an insurance policy.

While all insurers are required to offer certain mandatory discounts (such as for vehicles equipped with air bags, anti-lock brakes or daytime running lights, or for taking a DMV approved Accident Prevention Course), many insurers have a wide range of other discounts that may also be applicable to you. Ask the insurer or producer about the discounts offered by the insurer to see if you qualify or could qualify for any of the available discounts.

Various insurers offer discounts geared toward youthful drivers. You may qualify for a reduced premium, if a youthful driver attends college over 100 miles away (i.e. “resident student”), meets certain academic requirements (i.e. “good student”), or has taken a driver’s education course.