How Much Is Car Insurance in New York?

Fran
Lucy Lazarony
November 13, 2020

Feel like you’re paying a lot for car insurance in the state of New York? You’re not alone. 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 a year. That is a lot of money for car insurance in New York City and the state average is on the high side as well. Wherever you live in New York you’ll want to find ways to lower your car insurance premiums. And that means being a smart shopper. You want the car insurance coverage that you need to protect you and your family but you want that price to be as low as possible. Money-saving tips and strategies come later on. First, let’s take a closer look at car insurance in New York. Car insurance is regulated at the state level and in New York there are state minimum liability requirements, and requirements for uninsured motorist coverage and personal injury protection (PIP).

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

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?

In New York, drivers are required to pay for PIP coverage and uninsured motorist coverage and this increases the cost of car insurance in New York. New York is home to New York City and other high-density cities. These dense and congested metro areas bring a high risk of car crashes. In addition, there is a higher risk of vandalism and theft in New York and this increases car insurance rates.

Cheapest and Most Expensive Cities in New York for Car Insurance

Want to pay less for car insurance in New York? Move to Irondequoit. This city has the cheapest car insurance in the whole state of New York. Which city is paying the most for car insurance in New York? The city with the most expensive insurance in New York is Hempstead.

Not familiar with these two cities? Irondequoit is a suburb of Rochester and Hempstead is located in the western half of Long Island.

The Cost of a Comprehensive Policy in New York

In New York, an auto insurance policy with collision coverage and comprehensive coverage and $1,000 deductibles would cost about $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 events include theft, fire and vandalism and damages from weather such as a windstorm, a hailstorm, a hurricane and a tornado.

If you are still financing your car, your lender will require that you carry both collision and comprehensive coverages until the loan is complete. 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 and comprehensive coverages come with deductibles.

One way to lower your insurance premium is to choose a high deductible. A deductible of $1,000 or more will help to lower your auto insurance premium.

How Much Insurance Should You Buy?

First off, you’ll need to meet the insurance requirements for the state of New York. That means buying uninsured motorist coverage of $25,000 bodily injury coverage per person and $50,000 bodily injury coverage per accident. And you’ll also need to buy $50,000 in PIP coverage. You’ll also want to make sure you meet the minimum liability requirements in the state of New York, which 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. Like many states, New York’s minimum liability requirements are very low and these liability limits may not be enough to pay for injuries and damages if you are in a serious accident. Most experts recommend at least $100,000 bodily injury liability coverage per person and $300,000 bodily injury liability coverage per accident. The Insurance Information Institute recommends both these amounts as well as $100,000 property damage liability insurance. As mentioned earlier, if you are financing a car you will need to buy comprehensive coverage and collision coverage for your car. So you will have several different types of insurance working to help you and your family should you be in a car accident.

Find Affordable Car Insurance in New York

How To Save Money on Car Insurance in New York

Follow these tips for lower car insurance premiums in New York.

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. But if you break the 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.

Insure More Than One Car. Insure more than one car with the same company and save with a multi-car discount.

Pay Once or Twice a Year. Rather than paying monthly bills, pay the entire annual amount or six-months amount. Your auto insurance 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.

Choose a High Deductible. As mentioned earlier, choosing a high deductible is one way to lower your auto 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 auto insurance claim.

Get Married. 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.

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.

Shop Around. One of the best ways to save money on auto insurance is to shop around. SmartFinancial makes this easy to do. Visit SmartFinancial and you’ll be reviewing 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 coverage and price that you are looking for.

Get a Free Auto Insurance Quote Online Now.

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