How to Find the Most Affordable Car Insurance in New York

Fran
Lucy Lazarony
July 21, 2020

The average annual car insurance premium for the state of New York is $1,582, which is almost 11 percent more than the national average. Of course, New York residents who live in New York City pay much more for car insurance, more than $3,000 per year. Wherever you live in New York, it’s clear you could use more affordable car insurance. There are tips and strategies for saving money on car insurance that we’ll share a bit later on but first let’s take a closer look at car insurance in New York.

State Minimum Liability Requirements

Liability coverage helps pay for the other person’s expenses if you are at fault in an accident. Each state has liability requirements for the drivers in their state.

In New York, the minimum liability requirements are $25,000 bodily injury liability coverage per person, $50,000 bodily injury liability coverage per accident and $10,000 property damage liability coverage per accident.

Uninsured Motorist Coverage

Uninsured motorist coverage helps pay for damages caused by a driver who doesn’t have insurance.

New York requires drivers to carry uninsured motorist coverage of $25,000 bodily injury coverage per person and $50,000 bodily injury coverage per accident.

Personal Injury Protection (PIP)

Also known as no-fault insurance, PIP coverage pays the cost of lost wages and medical bills up to the policy limit. PIP will pay these expenses regardless of who is responsible for the accident.

New York is a no-fault state and requires drivers to carry $50,000 in PIP coverage.

Why Is Car Insurance So Expensive in New York?

New York drivers are required to pay for PIP and uninsured motorist coverages and this increases the cost of their car insurance coverage.

New York is home to New York City and other high-density cities. These dense and congested areas bring a higher risk of car crashes. There is also a higher risk of vandalism and theft in New York and this increases car insurance rates.

Cheapest and Most Expensive Cities for Car Insurance

The city with the cheapest car insurance in New York is Irondequoit. The city with the most expensive car insurance is Hempstead, beating out New York City.

Irondequoit is a suburb of Rochester. Hempstead is located in the western half of Long Island.

Check out rates in New York

A Comprehensive Policy Costs More

In New York, a more comprehensive policy with collision coverage and comprehensive coverage and $1,000 deductibles would cost around $1,428 per year.

Collision insurance is coverage that helps to repair or replace your car if it’s damaged in an accident with another vehicle or object such as a tree or a fence. Comprehensive auto insurance covers events that aren’t covered by collision coverage. These include theft, fire and vandalism and damages from weather such as a windstorm, a hailstorm, a hurricane and a tornado. If there is a loan on your car, your lender will require that you carry both collision and comprehensive coverages. A deductible is the amount you need to pay before your insurance company begins to pay for damages to your car and losses. Both collision insurance and comprehensive insurance require deductibles. Choosing a high deductible is one way to keep your auto insurance premium low.

How to Save Money on Car Insurance

Ready for those money-saving tips on car insurance? Here they come.

Be a married motorist. If you are married, you will pay less on car insurance. There is a correlation between being married and exhibiting safe driving behavior. Because of this, married motorists pay less for car insurance than singles. In New York, married motorists save an average of $45 a year on car insurance.

Follow the rules of the road. If you are a safe and responsible driver and follow the rules of the road you will save money on your car insurance. Good drivers get good driver discounts and it is a nice savings. But if you break rules, you will pay more on car insurance. In New York, a DUI can raise insurance rates by as much as $646 each year. So follow the rules, no DUIs, no speeding tickets, no at-fault accidents and your car insurance rates will stay low.

Get a good credit score. Insurance companies have been using consumer credit data to assign risk pools and set insurance rates since the mid-1990s. Drivers with good or excellent credit pay much less for car insurance than drivers with no or bad credit. In New York, a driver with excellent credit scores saves about $1,572 per year on car insurance compared to a driver with bad credit. Need to boost your credit score? Get all past due accounts current, pay down debt and stop taking on new debt. Also get in the habit of paying your credit bills on-time. This will help you build up a positive payment history, which is good for your credit score.

Choose a high deductible. As mentioned earlier, choosing a high deductible is one way to lower your car insurance premium. Just be sure to put the deductible amount in a small emergency fund. That way the money will be there should you need to make an insurance claim.

Use a multi-car discount. Insure more than one car with the same insurance company and save money with a multi-car discount.

Pay more, less often. Rather than paying monthly auto insurance bills, pay the entire annual amount or six-months amount. Your premium is lower when you pay once or twice a year.

Try bundling. Bundle your auto insurance policy with another insurance policy such as a homeowners policy and save money on your premium.

Spend less on older cars. The maximum payout for collision coverage and comprehensive coverage is limited by the value of the car. So if your older car has a low market value, it may not make financial sense to carry collision and comprehensive coverages any longer.

Research memberships. Members of some professional organizations and affiliates get discounts on car insurance. So research the membership cards in your wallet. Are any of them worth a discount on your car insurance? You won’t know until you ask.

Check safety features. Having certain anti-theft and safety features on your car will lower your car insurance. Check to see if the features on your car qualify for a discount.

Be a female driver. Women make fewer accident claims than men and are rewarded with lower auto insurance rates. Men make more accident claims and pay more.

Check for discounts. A good driver discount already has been mentioned. But there are discounts for students and veterans too. So be sure to reach out to your insurance company if you qualify.

Stick by auto coverage. You’ll pay higher auto insurance rates if you don’t maintain continuous coverage of your auto insurance. So stick with your auto insurance coverage and save money.

Get by with low miles. Being a low-mileage driver will save you money on your car insurance. Heavy commuters who rack up the miles pay more. So drive less and pay less on your auto insurance. Check your age. Drivers who are younger than 25 and older than 65 have more serious accidents and pay more for car insurance. Drivers of the ages in-between pay less.

Own a home. Statistics show that people who own homes drive more safely. So let your insurance company know that you own your home and enjoy the savings on your auto insurance premium.

Choose safety. If you live in a neighborhood with high accident claims and auto theft, you are going to pay more for your car insurance. If you live in a neighborhood with low accident claims and a low crime, you’re going to pay less for car insurance. So choose a safe neighborhood and save money on your car insurance premium.

Shop around. One of the best ways to save money on car insurance is to shop around. You will want to look at insurance quotes from several different auto insurance companies. SmartFinancial makes it easy to do. Just input the type of insurance you are looking for and a zip code to get started.

Next, answer a few, quick questions and you’ll be comparing auto insurance rates in New York in no time.

SmartFinancial has access to more than 200 insurance companies so you are bound to find the insurance coverage and price that you want.

So shop smart for auto insurance drive safely along the roadways of New York.

Get a Free Auto Insurance Quote Online Now.

Related Articles

Auto Insurance 7 Tips for Buying a First Car

Buying your first car is exciting. You can’t wait to have your very own set of wheels. But you do have a budget to keep in mind. So you’ll be looking at the finest that economy vehicles have to offer.

Auto Insurance Halloween Car Safety Tips

Here are tips from the American Academy of Pediatrics on reducing your child’s risk of a pedestrian injury, the most common injury to children on Halloween.

Looking for Auto Insurance?

Compare rates from dozens of companies in less than 3 minutes.