The Empire State has the highest car insurance rates in the country for a liability only policy and second highest for full coverage. In a few states, policyholders pay less for full coverage on average than what motorists in this state pay for a liability only policy. It is one of the most expensive states to live in the USA too. Car ownership is one of the lowest in the country with 71% of households owning at least one automobile. Good public transport facilities may be the main reason behind low ownership figures. The ratio of Uninsured Drivers is also one of the lowest in the country with 4.1% and only 1/3 of the national average.
Premiums in some parts of New York City 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 automobiles. Risks are higher in cosmopolitan areas due to over-congestion, high auto theft and vandalism crimes and lack of private parking.
Minimum Vehicle Insurance Requirements in NY
New York is a “no-fault” state and has strict rules. You can check them at the Department of Motor Vehicles site. Minimum Required Coverage are;
- $25,000/$50,000 for injury
- $50,000/$100,000 for death
- $10,000 for property damage
Personal Injury Protection (PIP) is required too, as well as Uninsured Motorist (UM) coverage, and your insurer must offer Supplementary Uninsured Motorists coverage (SUM), with the following minimum limits:
- PIP: $50,000
- UM: $25,000 per person, $50,000 per accident
- SUM: Motorists can purchase SUM at limits up to the bodily injury limits they carry, or reject it with a signed waiver
Personal Injury Protection covers your medical costs, plus lost wages and death benefits, and can pay out even if you’re at fault. Uninsured Motorist coverage covers medical expenses for you and your passengers if you’re hit by a driver with no insurance if the accident occurs in the Empire State. SUM applies to accidents that occur out of the state of New York.
Liability coverage must be bought in the name of vehicle registrant. If the auto is sold, it lapses and the new owner must buy a new policy immediately. The minimum liability component must be kept as long as the vehicle remains registered even if it is not in use. If the car insurance coverage is not going to be kept, vehicle registration must be returned to the DMV. Also, you cannot operate a NY registered car with an out of state policy. It must follow the rules here.
You can see that it is a bit more restrictive in the way it legislates vehicle registration and insurance. There are many people every year moving here. They should familiarize themselves with the rules and make sure that they follow. You should learn about the implications of no-fault. In addition, you should think carefully how you will insure the auto before buying since ownership affects the way you must arrange it.
Car Insurance Costs in New York?
It is one of those states in which where you live is very important when you want to know premium costs. While there are a few nice little towns, there are a number of highly populated regions as well. You probably know already that moving from a picture perfect little town to NYC would mean hundreds of dollars increase on premiums.
There are some parts in the Big Apple that are considered high risk zones and rates there are much higher than the rest of the state. When you accidentally end up in one of those spots you will see how fast rates will shoot up. The situation may appear to be even worse with some insurers quoting thousands of dollars to compensate for the exposure. But this shouldn’t dishearten you since there are ways to find lower prices no matter where you live.
The average cost of state required minimum coverage vehicle insurance policy is $1,371 and it is the most expensive in the US. The average cost of full coverage is $3,139 and it is the second most expensive in the country.
Your rates may be much lower if you live in a less populated part of the state or much higher if you live in a high-risk zip code as the averages are affected by really high rates in certain areas.
New York Competitive Auto Insurance Companies
While the average cost is already very high, it can go higher in NY City and its suburbs where premiums 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. Don’t count on your luck when you can economize by just shopping around. Start with getting car insurance quotes from the below cheapest carriers in the state and a few others and see who offers you the best price.
Here are the companies with the best deals;
- Progressive
- Erie
- Geico
These automobile insurers have the potential to significantly lower your premium. Fortunately, this reduction is applicable in most locations, whether it’s a densely populated high-crime area or a smaller town. It’s important to note that insurance companies regularly review rates, which can lead to dynamic changes in the market throughout the year.
Individual preferences greatly influence one’s perception of car insurance providers. While some focus solely on price, others prioritize a reputable company with a record of prompt claim payments. Additionally, personal inclinations may lead one to favor a local entity over a larger corporation. The process of purchasing vehicle insurance is inherently personalized. It involves determining the necessary coverage and tailoring the policy to fit your unique driving history.
Important New York Auto Insurance and Driving Facts
- New York allows vehicle insurers to offer zero-deductible glass coverage but it is not a state requirement.
- New York state has one of the lowest drunk driving incidents in the country.
- In this state automobile insurers are required to report all policy cancellations, renewals and issuance of new policies to DMV. This information is then stored in an electronic database to track insurance coverage on state registered vehicles. Failing to maintain continuous liability coverage can result in penalties, including suspension of vehicle registration and driver’s license. So, the state will know when you cancel your policy and if you purchased a replacement policy or not.
- If you move to New York state, you must register your vehicle and exchange your out-of-state driver’s license to a New York license within 30 days. Since you cannot register a vehicle in NY with out-of-state insurance, you must buy a state compliant policy as well.
- NY drivers have one of the lowest average yearly mileages of just over 10,000.
- Toyota RAV4, Jeep Grand Cherokee, Honda CR-V, Chevrolet Equinox and Chevrolet Silverado are the most popular cars in NY state.
- A speeding ticket may increase your vehicle insurance rates by on average 16% and an at-fault accident by 29% in New York, according to Forbes.
Regardless of your location, there are key principles that can assist in securing favorable car insurance rates. By taking the time to understand potential discounts available, obtaining multiple quotes, and selecting the optimal policy for your situation, you can make substantial savings. Notably, residents of New York might experience significant automobile insurance cost reductions through comparison shopping, as the state’s high rates create ample room for potential savings of a few hundred dollars.