Car Insurance in New York
- Car Insurance in New York
From the Big Apple to the Hamptons, the Catskills to the Finger Lakes, or Albany to Buffalo, there are plenty of sights to see and lives to lead in the Empire State. However, before taking off on big adventures, all New Yorkers must ensure they’re familiar with the auto insurance laws in the state.
Every New Yorker must have an active and adequate car insurance policy before getting behind the wheel in the state. Let’s check out some helpful information about the auto insurance laws in the state, how much the average policy costs, how you can find the cheapest policy in the state, and anything else you’ll want to know before setting out on your big New York adventure.
Everything You Should Know About Car Insurance in New York
Whether you’re a new New Yorker, have finally decided the subway just isn’t for you, or are just curious about how much New York car insurance costs, you’ll need to narrow down a few key details before binding a policy in the Empire State. To get the most out of your policy, you must first figure out what you value most in a policy: cost or coverage.
If you value cost over coverage, you’ll likely want a minimum coverage policy from an insurer that offers base rates below the state average. If you value coverage over cost, you’ll likely want a full coverage policy from an insurer that offers a wide selection of optional, additional coverages.
If you call in the middle and value both cost and coverage equally, you may need to compromise on your values. Those who value cost and coverage equally generally go for full coverage policies from an insurer that offers lower-than-average base rates and plenty of opportunities for discounts to further reduce premiums.
How To Find the Best Auto Insurance in New York
The best car insurance in New York is highly subjective and often depends on the policyholder’s needs. However, objectively, the best policy will be a full coverage policy from an insurer that offers base rates below the state average. In the Empire State, the average full coverage policy will have higher limits of the legally required coverages and optional coverage types like comprehensive coverage, collision coverage, and gap coverage, among others.
Since car insurance is so subjective, there really isn’t such a thing as a “best” policy. The best policy for one driver may not be the best for another, as everyone has different needs and concerns when it comes to insurance. It’s essential to be confident in all aspects of your policy, including your premiums, deductibles, and coverage limits. If you’re comfortable with your coverage and how much you’re spending, it’s the best choice for you.
What Are the Best Insurance Companies in New York?
The best insurance companies in New York are Progressive, Geico, State Farm, Allstate, and Travelers. Each of these insurers offers full coverage policies with base rates at or below the average rate in the state. These insurers also offer a range of options when it comes to additional coverage types and top-tier customer service.
On top of lower-than-average base rates, each insurer offers various discounts policyholders can stack to further reduce their premiums. With both criteria-based and enrollment-based discounts to choose from, policyholders may be able to get up to 25% off their premiums.
How To Find Cheap Insurance in New York
Cheap car insurance in New York can be tricky to come by, but not entirely impossible. The key to finding the lowest rates you’re eligible for is to get and compare quotes from several insurers. By getting and comparing quotes from a variety of insurers, you can select the insurer that offers the lowest base rates for the coverage you desire.
If all of your quotes fall in the same general price range, the best way to lower your premiums even further is to research what discounts each company offers. Insurers offer various criteria- or enrollment-based discounts, which policyholders can use to reduce their premiums without sacrificing coverage.
For example, many insurers offer bundling, multi-car, or student discounts. These are some commonly offered criteria-based discounts, meaning the policyholder just has to meet a set of standards to be eligible for the discount. They aren’t typically the most significant discounts, but any little bit helps.
Enrollment-based discounts typically require policyholders to take an active role in their savings, whether that means participating in a program to receive their discount or enrolling in a class. For example, many insurers offer a good driver discount for those who take and pass a course through their insurance company. Some insurers may even offer a usage-based discount program in which policyholders use a telematics device to track and share their driving data with their insurers. Such discounts offer the most significant savings, sometimes up to 25% on one’s premiums.
Using discounts to lower the cost of a premium on a full coverage policy is the best and safest way to get a cheap policy in the Empire State. While reducing one’s policy from full to minimum coverage may offer the most significant savings, it definitely isn’t the safest way to keep some money in the bank. Maintaining a full coverage policy with several discounts applied is typically the best way to save on a policy without putting anyone’s safety at risk.
Who Has the Cheapest Insurance in New York?
Progressive is the cheapest insurance company in New York, with premiums for a full coverage policy averaging about $1,270 annually, or about 50% below the average premium in the state. The average full coverage policy in the state costs about $2,340, or about 30% more than the national average of about $1,670 annually.
While the average full coverage policy from Progressive may be lower than the state average, only some drivers will be eligible for such low rates. Premiums are highly subjective, as insurers consider a drive’s unique characteristics when calculating their rates. Premiums generally reflect a driver’s risk of filing a claim. If a driver is at higher-than-average risk of filing a claim, their insurer will compensate for such risk by charging them higher premiums.
Insurers use several factors when calculating a driver’s rates. For example, insurers may use a driver’s driving record, insurance history, ZIP code, gender, or age when determining their rates. Each of these characteristics gives insurers a glance at how at-risk a driver may be when it comes to filing a claim.
How Much Is Insurance in New York?
The average cost of auto insurance in New York is about $2,340 annually for a full coverage premium or about $1,170 annually for a minimum coverage one. Typically, a minimum coverage policy costs about half as much as a full coverage one because policyholders only get about half the coverage.
Premiums are highly subjective based on the driver, so not every New Yorker will be eligible for rates at or near the state average. Premiums are calculated individually depending on a driver’s risk of filing a claim. If a driver is at high risk of filing a claim, whether that’s because they have a history of at-fault accidents, driving uninsured, or if they live in a densely populated city like New York City, they’ll likely pay more than the average rate for their premiums.
New York is one of the country’s most expensive states for car insurance, so, on average, New Yorkers pay more for auto insurance than many Americans. Rates are high in the state for several reasons. Still, the most significant factor contributing to the cost is the population.
States with high populations, densely populated cities, or high populations of uninsured drivers generally have higher premiums because residents have a higher-than-average risk of getting into accidents and filing claims. Since New York City is the most populated city in the nation, residents of the entire state pay premiums above the national average.
What Is the Cheapest Car Insurance in New York?
The cheapest car insurance in New York is a minimum coverage policy from one of the state’s top insurers, as each insurer offers base rates below the state average. Since a full coverage policy costs, on average, about $2,340 annually, a minimum coverage policy costs half as much, or about $1,170 annually. While car insurance is expensive in the Empire State, saving on your policy is still possible.
The cheapest policy in the state will be a minimum coverage one. A minimum coverage policy will have all the coverage types required by state law but won’t exceed the mandated coverage limits. A minimum coverage policy in the state has at least $25,000 in bodily injury liability per person, $50,000 in bodily injury liability per accident, $10,000 in property damage liability per accident (25/50/10 liability coverage), $25,000 in uninsured and underinsured motorist bodily injury coverage (UMBI/UIMBI) per person, $50,000 in UMBI/UIMBI per accident (25/50 UMBI/UIMBI), and at least $50,000 in personal injury protection (PIP) per person.
While reducing one’s coverage to the legal minimum is the most significant way to save on auto insurance, it may not be the safest. Those with minimum coverage policies are protected in very few accident scenarios and have very little coverage for their own expenses.
What’s the Average Auto Insurance in New York?
While the average policy may not be the most affordable car insurance in New York, it’s definitely the safest. The average policy New Yorkers carry is a full coverage policy with several additional, optional coverages from an insurer that offers lower-than-average base rates and various discounts. Drivers in the Empire State must always carry a policy with the legal minimum amount of coverage. Still, many drivers opt to add more coverage for additional protection on the road.
In a state with such densely populated cities and such a high general population, it’s crucial for drivers to carry a wide range of protection when they get behind the wheel. While a minimum coverage policy in New York may offer more security than those in other states, it’s often not enough to fully protect drivers and their savings. A full coverage policy, while more expensive, is a wise investment in one’s safety and savings. It’s far easier to budget for a premium than risk financial ruin should the worst-case accident scenario occur.
New York Insurance Law Explained
In New York, the no-fault insurance law informs the legally mandated coverages and the rules of the road. New Yorkers must ensure they have an active and adequate car insurance policy before they get behind the wheel, as car insurance is required by state law.
New York auto insurance requirements mandate drivers to have at least 25/50/10 liability coverage, 25/50 UMBI/UIMBI coverage, and $50,000 in PIP per person. Those who lease or finance their vehicles may be required to have a full coverage policy so their car is more protected in unforeseen events.
Those who drive without insurance or fail to meet the state’s minimum requirements may face various legal penalties. The penalties for driving without insurance in the Empire State may be fines, fees, license and registration suspension, or even jail time. The consequence of this crime often depends on the severity and frequency of the offense.
It’s generally far more expensive to take the risk and drive without coverage, as the legal penalties and future insurance premiums cost far more than the average premium in the state.
What Is the Minimum Auto Insurance Coverage in New York?
In New York, liability insurance, UMBI/UIMBI coverage, and PIP are the minimum coverages required by law. All drivers must have a minimum limit of each of these coverages lest they be considered uninsured. Driving uninsured has severe legal consequences in the state and may significantly increase future insurance premiums.
Is New York Uninsured Motorist Coverage Required?
Yes, all drivers must maintain a limit of uninsured motorist coverage in New York. While some states require drivers to have both UMBI/UIMBI and uninsured and underinsured property damage coverage (UMPD/UIMPD), New Yorkers must have at least 25/50 UMBI/UIMBI on their policies. Drivers may add UMPD/UIMPD coverage to their full coverage policies, though it isn’t legally required coverage.
UMBI/UIMBI will help cover a policyholder’s medical expenses should they be injured in an accident caused by an uninsured or underinsured driver. However, the policyholder is liable for their medical expenses should they exceed their UMBI/UIMBI coverage limit. Higher UMBI/UIMBI coverage limits can be purchased with a full coverage policy.
Driving Without Insurance in New York Penalty Explained
Driving without insurance in New York is illegal. Those who fail to carry the state-mandated coverages may face legal penalties like fines, fees, license and registration suspension, and possibly jail time.
Uninsured drivers may face other significant financial consequences outside legal penalties for driving without coverage.
Those who have their license or registration revoked due to driving without insurance coverage typically require SR-22 insurance. While SR-22 insurance isn’t actually required in the Empire State, it’s important to note that it isn’t a type of policy or coverage but rather a form filed by an insurer on behalf of a high-risk driver. The existence of such a form on one’s record tends to raise premiums significantly, sometimes to double or triple the state average.
What’s High-Risk Auto Insurance in New York?
High-risk auto insurance in New York comes in a few different forms, one of which is the New York Auto Insurance Plan or NYAIP. High-risk drivers may have a tough time finding auto insurance on the voluntary market, where drivers voluntarily pick and choose their insurers, so, as a last resort, they may enroll in the NYAIP, which serves as New York’s auto insurance pool or involuntary insurance market. Drivers in the NYAIP can’t choose their insurer and are instead assigned one at random. Policies through the NYAIP are often a last resort because they tend to be quite pricey.
Is New York a No-Fault State?
Yes, accidents are treated with no fault in New York. This means that in an accident, instead of assigning fault to a driver so the victim can receive liability coverage benefits, as is the case in tort states, drivers default to their own insurance coverage to cover their expenses. Generally, the fault doesn’t need to be assigned right away because drivers have PIP to rely on. Eventually, fault is assigned in accidents in no-fault states, especially when a driver’s medical expenses exceed their coverage limits, and they need liability coverage to cover the rest of their bills.
No-fault states like New York generally require drivers to carry a first-party medical benefit (FPMB) on their auto insurance policies. Many no-fault states require drivers to have a minimum limit of PIP, as is the case for the Empire State. Still, some states mandate minimum limits of medical payments coverage (MedPay) instead. An FPMB is a type of coverage the policyholder may use to cover the medical expenses they incur in an accident, regardless of who’s at fault.
Personal Injury Protection in New York Requirements
In New York, PIP coverage is a required protection for all drivers on their auto insurance policies. New Yorkers must have at least $50,000 in PIP coverage per person. PIP is a unique coverage type because it typically follows the driver instead of the car and generally extends to the driver’s passengers or immediate family members should it be necessary. Sometimes, PIP can be used if the policyholder is a pedestrian or a bicyclist injured in an accident caused by a reckless driver.
How To Find Car Insurance Quotes in New York
Whether you’re on the hunt for the best auto insurance rates in New York or just curious about what types of policies are available in the Empire State, the best way to find the right policy for you is to get and compare quotes online. By getting and comparing quotes from several insurers, you can ensure your policy best suits your lifestyle and budget.
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The editorial content on Clovered’s website is meant to be informational material and should not be considered legal advice.