New York is one of the most expensive states to live in the USA. Car ownership is one of the lowest in the country with only 570 automobiles per capita. Good public transport facilities may be the main reason behind low vehicle ownership figures. Numbers of Uninsured Drivers are pretty low at 5% compared to 14% national average. This is great news not only for motorists but also general public since their losses are likely to be paid by liabilities policies. It appears that motorists get cheap auto insurance in New York on average.
However, in some areas especially in the New York City it can be really high. There is no surprise there since it is a well-known fact that city motorists pay a lot more for insuring their automobiles. Risks are higher in cosmopolitan areas due to over-congestion, high auto theft and vandalism crimes and lack of private parking. You should have a look at them and see if you can reduce costs if you are living in NY City.
Minimum Liability Car Insurance Requirements
New York is a “no-fault” state. It has strict insurance and vehicle registration rules. You can check them here at NY Department of Motor Vehicles site. Minimum State Required Coverage are;
- $25,000/$50,000 for injury
- $50,000/$100,000 for death
- $10,000 for property damage
Liability Coverage in in this state must be bought in the name of vehicle registrant. If the vehicle is sold the cover lapses and the new owner must buy cover immediately. The liability coverage must be kept as long as the vehicle remain registered even it is not in use. If the policy is not going to be kept vehicle registration must be returned to the DMV. Also, you cannot operate a NY registered vehicle with an out of state insurance coverage. You must buy one in NY following state laws.
You can see that this state is a bit more restrictive in the way it legislates vehicle registration and insurance. There are many people every year moving to this state and they should familiarize themselves with the rules here and make sure that they follow. It can be a lot different from other states. Especially you should learn about implications of no-fault. In addition, you should think carefully how you will insure it before you buy a car in New York. Auto ownership affects the way you must insure it.
If you have just moved to the state you may want to talk to an Independent Broker. You can buy your policy in a few different ways. You can go direct by calling one or two companies or use a comparison website to find them. You would probably be able to buy state minimum coverage off the shelf as companies are not allowed to sell anything less anyway. However, find out what “no-fault” requirements and specific rules in the state as early as you can.
How Much Does Car Insurance Cost in New York?
It is one of those states in which where you live is very important when you want to know how much does it cost. While there are a few nice little towns in the state there are number of highly populated regions as well. If you know enough about vehicle insurance you probably know already that moving from a picture perfect little town to a city like NY would mean hundreds of dollars increase on your premium.
There are some parts of NY city that are considered high risk zone and the rates there are much higher than the rest of the city. When you accidentally end up in one of those spots you will see how fast your rates will shoot up. The situation may appear to be even worse with some insurers quoting thousands of dollars to insure you. But this shouldn’t dishearten you since there are ways to find lower prices no matter where you live in.
When we look at the average premium expenditure we see interesting readings. According to NAIC the average cost of insurance per vehicle is $1,182 and it is one of the most expensive in the US. However, you can get inexpensive full coverage in NY at about $1,050, according to an independent study.
This suggest that most policyholders in this state buy full coverage policies or more. You may be confused but you can have many optional add ons on top of your full coverage policy. A standard full coverage policy may be cheap. But your premium start going up dramatically when you start tailoring it the way you want.
Cheap New York Auto Insurance Companies
While the average cost is reasonably cheap in the state this doesn’t necessarily apply to NY City and its suburbs where vehicle insurance costs can be seriously high. That is why it is very important to shop around for the best deals, especially when you are living in a high risk area like New York City. The price differences can be thousands of dollars between the cheapest company and the most expensive ones without any exaggeration. Don’t count on your luck when you can economize by just shopping around. Start with getting a few quotes and compare them. You might as well start with the companies below.
Here are the cheapest automobile insurance companies.
- GEICO, $799
- Erie, $907
- Allstate, $969
These companies can easily shave half of your premium off. The good news is that they are consistently the cheapest insurers across the state. You can count on them no matter where you live; a highly congested high crime suburb or a smaller town. You may still find companies that are cheaper than these ones depending on where you live. Remember that each company reviews own rates several times a year that can quickly change the dynamics in the market.
Also, what you are looking for in an insurer can determine your view of the leading auto insurance companies. Some people may just look at the price but you may be looking for a reliable insurer in terms of claim payments, or prefer a local company to a large conglomerate. Most people don’t realize that it can be pretty personal arrangement in many ways. You decide what type of coverage you need, what to include or leave out to start with. Then you have unique driving history and choose to include more drivers on your policy or restrict them to the people you list on your policy.
There are certain principles that can help you find great rates no matter where you live. Take a little time to familiarize yourself with possible discounts you can ask for, get a few quotes and find the best policy for your circumstances.