Living in New York City comes at price. Living expenses are among the highest in the United States for things like Rent and car insurance. As a driver, when buying a car insurance policy, you may be wondering how to find cheap car insurance in NY. In this article , we have reviewed cheap New York car insurance details for you.
Why does car insurance cost so much in New York?
Risk. Risk is something that insurance companies are constantly evaluating with their algorithms. New York City with its huge population naturally creates a lot of traffic and with that a lot of added risk driving and operating a car.
To acquire New York Car Insurance it involves a number of requirements to become honored. Majority of these specifications are currently put in place to make certain that both of the insured as well as the insurer are completely covered in different realistic elements and situations that may occur through possessing a car. Thus, having something goes wrong in spite of if you are driving or you are simply a passenger.
To firmly implement these basic requirements, the law currently in the state of New York requests that they’re followed stringently by everyone who desires to own a vehicle, and to prevent the rejection of ownership on a legal standpoint in the event the stipulations are not held up.
Knowing the significant requirements which the law has put in place for hopeful automobile owners in the city of New York. All drivers will have to guarantee that they have included at the very least several coverage, policies or plans set up to safeguard their own personal interests, which are for damages that occurred to your property, possible bodily injury, legal responsibility, loss of life, or even financial well being loss which is sometimes referred to, and uninsured motorist protection. Any time a driver is unable to meet these requirements by way of really missing out on anyone, his or her expectations about owning a car will probably be gone.
Although the coverage required might appear overly excessive, they have been introduced for a reason, and that is to protect the vehicle owners as well as the Passengers.
New York Car Insurance Laws
For motorists around the United States of America, it is important to find and purchase the right car insurance policy for themselves. There are 3 basic components in a car insurance policy: one is the mandatory legal minimal coverage, the second in the personal benefit coverage, and third are the extra benefits that you can purchase to protect your dream machine. Understanding how a car insurance policy is structured will help you make your choice of an ideal policy for yourself more easily.
There are some minimum legal mandates which motorists across USA need to follow in their car insurance. These mandates vary from one jurisdiction to another and from one state to another. In New York the mandates are as following:
- 3rd party liability: In New York it is mandatory for all car owners to have at least $25,000 per individual and $50,000 per accident of 3rd party 3rd party liability insurance. This money is paid off to any 3rd party who may have been injured in an accident which has been determined to be the fault of the car owner. A similar coverage needs to be purchased for the death of a 3rd party for 100,000 as well as a $10,000 coverage for damage to 3rd party property. These are the basics, and the car owner can purchase a higher level of insurance by choice.
- It is mandatory for all car owners and drivers to carry their car insurance documents and proof with them at all times while driving the vehicle. A law enforcement officer can stop you and ask for your proof of identification and insurance at any point of time. Not producing an insurance proof is considered offence.
- In the state of New York the validity of your car registration is largely dependent on the validity of your car insurance policy. Therefore, if your car insurance policy expires, then your car registration will also lapse. It is strongly recommended that if you are a car owner in New York state area, you should purchase your new car insurance policy well before your old one expires.
- The name on the car insurance policy document needs to be same as the owner of the car. If the insurance is purchased on a different name than as mentioned in the car registration document, it is not considered valid. Therefore, if one of your family members, for example your spouse or your children are driving a car that is registered in your name, it is mandatory that you purchase your car insurance policy also in your name. Alternatively you can have the car registered in the user's name.
- Pictures and photographs: In New York it is not mandatory for your insurance document to have either your or your car's photograph. However, many insurance providers have started including the photograph of the car in their documents for processing purposes.
New York requires the following minimum coverage limits:
Vehicles registered in the state of New York are required to have:
- Liability car insurance
- No-fault car insurance (personal injury protection)
- Uninsured motorist insurance
Minimum car insurance coverages in New York City:
- $25,000 injuries for one person
- $50,000 injuries for multiple people
- $50,000 death to one person
- $100,000 death for more than one person
- $10,000 damage to property
- (PIP) Personal injury protection otherwise known as called no-fault coverage, of at least $50,000
- Uninsured motorist bodily injury
- Optional coverages
Considering add ons:
- Comprehensive & getting cheap full coverage
- More PIP coverage to protect your assets further
- Medical coverage
- Collision coverage for accidents
- Rental car coverage if you travel and rent vehicles
- (SUM) coverage Supplemental uninsured/underinsured motorist for bodily injury
However, understanding what the different types of coverage entail will help you to make a more informed decision about which type of New York car insurance policy your situation requires.
New York Liability Insurance
In the state of New York, liability insurance protects you from being held responsible for damages you cause by crashing into another person’s car. This includes expenses for fixing the car that you crash into, if are deemed at fault, and any medical expenses that the other driver incurs as a result.
In the case that you are not at fault, the other person’s liability insurance should pay for your own medical expenses and vehicle repair. However, if you are involved in an accident in which you are at fault, or the other driver is uninsured, this type of insurance will not cover your own vehicle repairs. You can think of liability insurance as a safety net to keep you from becoming “liable” to another person for damages. It will not however, protect your own property.
New York State requires all drivers within the state to carry coverage that amounts to $25,000 per person and $50,000 per accident in the case of injury, as well as $10,000 for property damage. Your liability coverage must also be able to pay out at least $50,000 per person and $100,000 per accident in the case of death.
New York Personal Injury Protection
New York Personal Injury Protection, also referred to as New York PIP, is legally compulsory car insurance to lawfully drive a vehicle anywhere in the State of New York.
It is a “no-fault” insurance coverage, which means that your car insurer will protect you financially from accident claims irrespective of who was at fault for the vehicle accident.
PIP in New York is intended to keep a lid on insurance costs by simplifying the claims process for automobile accidents. The idea being to reduce the time and cost of getting the necessary financial help needed for such things as medical treatment and rehabilitation, which is essential to get an injured person back to health and back in work.
Because PIP is compulsory car insurance provided by your car insurer, in an accident you must raise your claim with your car insurance company irrespective of fault.
However, PIP regulations will allow a driver to sue another driver under certain conditions. The first is if there is “severe personal injury” such as dismemberment, death or permanent injury as a result of the accident.
The second situation is if a person’s accident claim for such things as medical costs and financial loss, exceeds the driver’s PIP threshold, meaning there is insufficient PIP cover to satisfy the drivers claim.
In such circumstances, the driver may sue the driver at fault to recover any outstanding expenses and costs that his insurer will not cover under his PIP insurance.
The minimum PIP coverage that all drivers must have in New York is $25,000 per person injured in an accident, and $50,000 per accident regardless of the number of people injured.
What is Covered by New York Personal Injury Protection (PIP)?
Personal Injury Protection coverage provides insured drivers with a financial backstop to cover the following:
- Medical treatment & rehabilitation costs
- Pain and suffering
- Death benefits
- Other household expenses incurred as a direct result of an accident, such as travel expenses to attended treatment, or lost wages up to $2000 per month
Drivers can purchase additional coverage known as APIP or additional Personal Injury Protection, which is not a compulsory requirement. If this additional car insurance is purchased, basic PIP coverage is extended to $100,000.
There are various options available to extend PIP, so you can include for example, work loss and driving outside of New York state. If you have little or no personal health insurance cover, PIP coverage can be a very important form of protection for you and your family, if accident. It may therefore be in your interest to increase the minimum PIP coverage in certain circumstances such as these.
New York Underinsured and Uninsured Motorist Car Insurance
New York uninsured and underinsured motorist car insurance are mandatory in New York City and State.
NY Driver’s must have insurance coverage of at least $25,000 per injured person, and $50,000 per accident where 2 or more people are injured, as protection against accidents involving either uninsured motorists or underinsured motorists.
These policy types provide you, your family & other passengers, financial protection if you are involved in an accident with another vehicle that is either not insured, or where the driver’s policy doesn’t have enough Liability Coverage to settle your accident claim.
In such uninsured or underinsured accident claims, your insurance company will cover the shortfall in your claim to compensate you for pain and suffering, medical bills and some other economic losses you may suffer in an car accident. It will not cover you for any property damage you may sustain.
Uninsured & Underinsured Drivers – Are You Adequately Insured?
If the minimum statutory limits of $25,000/$50,000, as mentioned above, are not sufficient for your needs, you can increase the limits so that the value is at least equal to your Liability Coverage limit.
You cannot raise this limit to a value that is in excess of your Liability Coverage limit. For example, if your liability coverage is $50,000 and you would like to increase your Uninsured and Underinsured Motorist Coverage, you will first have to increase your Liability Coverage.
More than 15 percent of drivers in the US are uninsured, which means that there is a significant risk that if you have an car accident, it will be with a driver that has no insurance.
New York Insured Motorist Car Insurance - An Example
Let's say you are the innocent victim of a car accident and the other driver is found to be uninsured. You and a passenger in your vehicle suffer injuries valued at $60,000, plus damage to your vehicle, valued at $8,000.
The first $50,000 for medical treatment and other economic losses suffered as a direct result of the accident will be paid by your insurance company under the terms of your New York Personal Injury Protection Coverage (PIP). This is paid by your insurer irrespective of fault.
PIP will not pay for property damage, and your insurance company will not pay more than the $50,000 limit.
This means that to recover the damage to your car and for the additional $10,000 that you spent on medical treatment and other out-of-pocket expenses, you may need to sue the driver that caused the accident.
The problem is that the driver is not insured and likely doesn’t have the financial means to pay you. Uninsured Motorist Coverage protects you financially in such situations.
The minimum coverage in New York is set at $25,000 per injured person and $50,000 per accident if 2 or more people are injured. It does not include property damage. You may still be left out-of-pocket unless you obtain insurance against property damage.
New York Underinsured Motorist Car Insurance – An Example
If in the example above, the driver has car insurance but is only carrying the minimum coverage required in New York of $25,000/$50,000, Underinsured Motorist Coverage can help to protect you financially if the driver at fault is not carrying enough insurance to settle your claim.
Your insurance company will only pay out under the terms of your underinsured coverage if the limit purchased on this coverage is higher than the other driver’s liability coverage.
What this means in practice is that if you only have minimum coverage limits of $25,000/$50,000 and the other driver in the accident has minimum Liability Coverage of $25,000/$50,000, you will not be entitled to claim the $10,000 shortfall (in the example given above) under your Underinsured Motorist Coverage.
Also, you will have no protection in respect of property damage. Which means that you may need to recover any losses suffered by pursuing civil court action against the driver responsible.
With so many drivers looking to make savings, many are only obtaining minimum liability coverage, which means there is a significant risk if you have an accident, that the driver responsible for the collision has low insurance coverage.
The good news is that to increase benefit levels for both uninsured and underinsured motorist coverage, is inexpensive.
Collision Coverage will pay for damages to your car that are a result of an accident in which you are at fault. Although this insurance is not required in New York, it will prevent you from having to pay out-of-pocket for expensive damages in the unfortunate occurrence of accident. This coverage comes with necessarily higher premiums.
Comprehensive Coverage pays for damages to your car that are not caused by an automobile accident. This might include: fire damage, storm damage, vandalism, or any number of other causes. Each comprehensive coverage plan offers a different set of included services and exclusions.
Full Coverage Car Insurance in NY City
Many New York state drivers choose to take out “full coverage” insurance. Full coverage car insurance is not a protection type. Describes the combination of more than one protection. You can eliminate all the risks by adding most options to your policy.
So What Does this Mean?
This means that if a person brings a claim against you for property damage or bodily injury or both as a result of, for example, an accident whilst driving in NY City, and the total of those claims exceed your auto policy limits on liability coverage, your insurance company will protect you up to the amount of your policy limit.
Any amount over and above this coverage will be "your" responsibility, which means that you need to make sure that you have adequate insurance cover to properly protect you.
So how does full coverage car insurance in NY City work in practice?
Let’s say that you cause a car accident when you accidentally hit another vehicle containing two adults, both of whom suffer injury.
Your insurance company is notified of the claim and presented with costs for bodily injury, lost wages and medical costs of $30,000. The damage to the vehicle is valued at $15,000.
If you have full coverage, your insurance company will cover your claim up to $50,000 as there are two people injured in the accident. It will also pay medical costs and lost wages up to the maximum of $50,000, including any legal costs.
Your insurance company will also indemnify you for property damage caused up to $10,000.
Since the damage to the vehicle is valued at $15,000, you will be personally responsible to pay the remaining $5,000 of the claim.
For many drivers that can’t afford to pay these additional claims for costs, it could mean filing for bankruptcy protection. If you own your property, bankruptcy protection will not necessarily protect your home, which means in cases of moderate to serious accident claims, you could put your home at risk.
With cost of medical treatment in the US being expensive, it would not take much for bodily injury claims to exceed minimum liability limits.
For example, if some of the treatment required is one or two days of intensive care treatment, total cost can quickly exceed minimum liability insurance limits.
Having proof of insurance in New York City
When you sign up and get approved for car insurance in New York City keep your insurance ID card. Keep one copy in your car and have another copy to provide to the DMV location where you are registering your car.
You have registered with the DMV they will compare your ID card with the electronic notification the insurance company is required to send to the DMV. Depending on how you set up your policy it may have different renewal dates. Quarterly or yearly for example. Each time it renews your New York car insurance company should send you an updated card.
If there is no car insurance on a registered vehicle being driven, the license plates should be surrendered to DMV as soon as possible. The same should be done if there is a lapse in car insurance. There’s also a possibility that the driver’s license will be suspended if insurance lapse gets longer than 91 days and car plates have not been surrendered.
In cases where a car owner has difficulty finding a car insurance provider for whatever reason (such as bad driving record), one can apply car insurance via the New York Automobile Insurance Plan or NYAIP and through this, the owner will be assigned a car insurance.
New York City Car Insurance Company
There are literally dozens of car insurance companies who operate in the state of New York. And you are likely to find that although many of them offer similar services, there is a wide divergence when it comes to the quality and pricing of these services. In addition, each insurance carrier seems to have a ‘target audience’ that it prefers to work with. While one company may specialize in young drivers, another may have the target audience of low-risk drivers.
Because of this large spread, there is no one company that is perfect for everyone. Therefore, the best way to find an insurance policy that can serve your specific needs with an affordable price is to look at quotes from as many insurance companies as possible.
You may also want to get some more specific information regarding the background of each of the companies that you are considering. Below, we’ve listed a few of the largest insurers and included a few basic facts about their history and credibility.
GEICO was originally established in 1936 to provide car insurance solely for government employees. In fact, GEICO stands for Government Employee Insurance Company. They assumed correctly that these drivers would have a lower than average accident rate. But in the 1970s, GEICO decided to expand their business into the realm of the public.
Today they offer some of the most competitive rates in New York State, especially for low risk drivers. GEICO limits their insurance services to automobile insurance alone.
This company (USAA) offers insurance only to members of the United States military and their families. However, those that are eligible for United Services will have access to the absolute lowest car insurance rates in the state of New York.
Allstate is one of the largest overall insurance companies in the United States. Established in 1931, they offer multiple kinds of insurance including car and homeowner’s insurance. They offer plans with a large variety of rates heavily dependent on the level of coverage.
State Farm is even larger than Allstate, and covers 20% of all registered drivers in the U.S. Similar to Allstate, they offer multiple forms of insurance and are not limited to car insurance. Tthey also have a very high customer service rating in comparison to other companies offering car insurance in New York. State Farm has been in service since 1922.
Progressive Corporation was founded in 1937 and specialized in insurance for automobiles as well as other vehicles such as motorboats and motorcycles. They do not provide other insurance services such as life insurance or homeowner’s insurance. Progressive offers four distinct levels of coverage including minimum coverage, economy coverage, recommended coverage, and plus coverage. Their rates, while not especially competitive, tend to be relatively affordable.
New York City Car Insurance Rates
New York car insurance rates average minimum prices are :
|New York Minimum Car Insurance Coverage||$841 - $1,065|
|New York Minimum Full Coverage Car Insurance||$1,608 - $1,877|
|New York Minimum Car Insurance Coverage for Young Drivers||$1,561 - $1,795|
|New York Minimum Full Coverage Car Insurance for Young Drivers||$2,328 - $2,569|
|Average car insurance New York per month||$70 - $214|
These rates depend on many factors.Especially car insurance is more expensive for New York, Buffalo, Rochester, Syracuse and Yonkers residents.The risk is increasing because the traffic is intense in such areas.As the risks increase, insurance companies are increasing their policy costs.
Finding Cheap Car Insurance in New York
Finding an affordable car insurance rate in New York can be a challenge, especially since New York has much higher minimum car insurance requirements than many other states. If you take the time to thoroughly research your options, you should still be able to find an affordable rate without making sacrifices in quality.
One of the most effective ways to find cheap car insurance in New York State is to compare several quotes from as many car insurance companies as possible. By looking at multiple New York car insurance quotes side by side, you can find a policy that is cheap and suits your specific needs.
By understanding the different methods by which companies determine your rates, as well as comparing several insurance policies before you buy, you can give yourself the best possible chance for finding a low cost New York car insurance rate.
Car insurance rates in New York can run from anywhere around a few hundred dollars per six months to as much as a few thousand dollars. Being aware of this huge divergence between prices, anyone who is new to purchasing car insurance may become confused. While it is true that some of the price differences can be explained away as arbitrary variations in company policy from one company to the next, it is important to also note the role that elements such as the quality of coverage, the amount of the deductible and the age and gender of the driver play in determining rates.
- Know the Quote First. Before buying a vehicle, you must check first the car insurance quote New York. You must be aware that car insurance premiums are based on its overall safety features, cost for its repair, and so on. Insurance companies provide discounts for features that lower the risk of accidents or any misfortunes on the road.
- The old vehicle model, the better. You can’t afford expensive insurance coverage then don’t ever think to buy luxurious car model. The modern your vehicle model is, the higher the premiums will be, or the other way round.
- Nothing beats loyalty. Loyalty matters to every car insurance companies. Try to combine all your insurance policy and entrust it to only one insurer. In that way you can earn discounts for yourself. Most insurers offer discounts for loyal customers.
- Drive Responsibly. Responsible motorists are more bless compared to careless one. Insurers offer discounts for your insurance policy once they acknowledge that you are a responsible driver. Avoid over speeding and always follow the rule, you will never know how much money you can save for being responsible.
- Multiple options will always be the best. Don’t be contented on one company alone, or you might regret your choice in the end. Just shop around first, it will provide you various options that might result in closing a good deal. Collect insurers as much as possible as choose from them. Car insurance quote New York list down all professional and accredited insurers in the entire city. Take time to study and analyze what they are offering then make a wise decision to buy.
There are also a few other methods you can use to make sure you that you get the most inexpensive New York car insurance rate possible.
1. Find Out About Any Available Discounts
First of all you might want to find out about any discounts that are offered by the insurance companies that you are considering. Many insurers will give you a discount for putting two or more cars on the same policy. This can save a lot of money for families with multiple drivers. In addition, car insurance companies who also offer other forms of insurance often give discounts for combining insurance policies. For example, if you were to place your car and your home on a single policy you might be eligible for discount.
Other available discounts are many times directly related to your daily habits. Refraining from drinking alcohol or smoking cigarettes may make you eligible for discount. Shortening your commute time is likely to make you eligible for a discount as well. For teenagers and young adults, something as simple as having good grades in school might even have a discount associated with it. Of course, each company has a different set of discounts and regulations pertaining to them, so it’s a good idea to find out about any that might be available from each of the companies that you are considering.
Here are just some often overlooked savings that we can look at for you to get you a great deal on your auto car insurance:
- New York good driver discounts
- Good student discounts
- Discount for taking a state-approved Defensive Driving Course
- New York drivers that install an anti-theft device in their car, such as a car alarm, remote ignition disabler or a “Lojack” GPS tracking device
- Bundling additional insurance policies such as home insurance, tenant insurance and life insurance
- Low mileage commuting to work discount
- ZIP codes and intersection level discounts
- Long-term loyalty discount
- Pre-paying an entire year up front
- Low-risk occupation discounts
- Lower premium payments for increased deductibles
- And many others.
2. Choose The Right Amount Of Coverage
Of course, you can also get cheap New York car insurance by going for a plan with just the bare essentials. If you choose to only buy the minimum amount of coverage that is required by law, you are likely to find that your monthly premiums will be much lower. For example, if you choose to buy only the required liability coverage and no-fault coverage, your rates will probably cheaper than if you go with a plan that includes collision or comprehensive coverage.
3. The Amount Of The Deductible
Some rates will also be lower as the result of being attached to a policy with a higher deductible. A deductible is an amount of money that you will be required to pay for damages out-of-pocket before your insurance kicks in. As a general rule, it’s a good idea to go for a plan with a low deductible since this will be the most convenient about accident.Choosing a plan with a higher deductible can also keep your monthly payments down. Having a higher deductible will allow the insurer to offer you lower premiums. However, about an accident you will be responsible for a greater percentage of the incurred expenses.
New York Car Insurance FAQ
If you still have a question in mind, you can check the following frequently asked questions and subject answers.
What is liability insurance?
Liability insurance is just what it sounds like. It is a policy that prevents you from becoming “liable” for another party’s damages about accident. If you are involved in an accident that is deemed to be your fault, your liability insurance will pay the other driver for any damages that may result from the accident. This way, you are not held financially responsible for those damages.
Liability coverage will not pay for any damages to your vehicle. If the accident was not your fault, the other driver’s liability insurance should cover your damages.
What is ‘no-fault’ coverage?
No-fault coverage, required in New York, insures you against any damages resulting from an accident in which neither driver is at fault.
What is uninsured motorists coverage?
Uninsured motorists coverage will insure you in the case that you collide with a driver who does not carry insurance or carries an insufficient amount of insurance by providing compensation for any damages to your vehicle. This coverage is also mandatory in New York.
What is collision coverage?
Collision coverage will pay for any damages to your vehicle in the case that you are involved in an accident that is considered to be your fault. Although, it is not mandatory, collision coverage can save you from being left without a vehicle in the unfortunate case that you happen to cause accident.
What is comprehensive coverage?
Comprehensive coverage takes care of any damages to your vehicle that do not result from an automobile accident. This might be damage that results from a storm, a wild fire, vandalism, road-kill, or any other number of possibilities. Most comprehensive plans do not cover every possibility, so make sure that you understand each policy’s exclusions before making a final decision.
What is a premium?
A car insurance premium is the monthly payment you make to your insurance company for coverage.
What is a deductible?
A deductible is an amount of money that you will be required to pay out of pocket for damages before your insurance kicks in. In the best case, you will want to find a plan that has no deductible or at least a deductible that is fairly low. The price of the deductible is generally heavily contingent upon both the level of the coverage and the price of the premiums.
Which insurance company offers the lowest rates to New York drivers?
Unfortunately, there is no one insurance company who can offer the very most competitive rates to everyone. A company who offers cheap liability coverage may not have the best rates for collision coverage, or a company that offers cheap insurance to adults may not have the lowest rates for teens.
Therefore a more relevant question would be, which insurance company can offer the lowest possible rate for my specific situation? To answer this question, you will need to actively compare rates from as many insurance companies as possible.