New York Car Insurance Guide
Just like everywhere else in the country, auto insurance is a must in the Big Apple. Currently, New York is one of the few states in the country considered a no-fault state when it comes to car insurance. That means fault or liability doesn’t really matter in the case of an accident, each party just uses their own auto insurance to pay for the damage. It helps cut back on the long court battles over car accidents, but it hasn’t helped New Yorkers save much on their insurance. Learn more about auto insurance in New York in this guide!
New York’s Minimum Insurance Requirements
As you may know, insurance laws are passed by the states, not the federal government. Each state has different laws regarding auto insurance, which is why it’s so important to stay up to date on your state. In New York, the liability coverage minimums are $25,000 for a single person, $50,000 for a single accident, and $10,000 for property. Aside from liability, New York is one of the few states to also require Personal Injury Protection (PIP) and Uninsured Motorist insurance. Just like the name says, PIP coverage is designed to cover the costs of medical care in the case of an accident. Uninsured motorists insurance provides you with coverage in the event of an accident that is caused by a driver that does not have insurance.
Car Insurance Rates in New York
Unfortunately for residents of New York, the state is ranked as one of the most expensive places to get car insurance. Despite the fact that rates dropped for several years, most drivers saw a fairly large rate hike in 2008. Even with fewer accidents and less people driving due to high gas prices, the average policy went up approximately 7%. Compared to other states, that increase is more than 4% higher than the national average of about 2.4%. It only gets worse when you consider that the average minimum insurance policy is over $1,000 in New York. Which means that even a policy that provides decent coverage is very expensive and many drivers are paying over $2,000 a year.
Keeping Insurance Costs Down
As any driver in New York could tell you, maintaining an auto insurance policy isn’t cheap. However, there are a couple ways to help keep your premiums down. Here’s a look at some tips to keep your insurance rates reasonable:
- If you don’t drive much and fancy yourself a safe driver, you could consider increasing your deductible. A larger deductible will typically get you lower premiums, but you’ll also have a larger bill if you ever need to make a claim.
- One of the main factors in determining your auto insurance rate is your credit score. Those with higher credit scores tend to receive better insurance premiums, so do whatever it takes to keep your score high.
- Perhaps the best way to save on auto insurance is to shop around for the best rates! There are hundreds of car insurance providers online, many of which can offer better rates than traditional insurance companies.