Searching for Auto Coverage in New York
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 defining responsibility in an accident. That means fault or liability doesn't really matter in the case of a wreck, each party just uses their own policies to pay for the damage. It helps cut back on the long court battles over car accidents, but it hasn't helped citizens save much on their monthly premiums. Learn more about protecting yourself on the roads in New York in this guide!
Understanding the Minimum Requirements
As you may know, insurance laws are passed by the states, not the federal government. Each state has different laws regarding auto policies, which is why it's so important to stay up to date in your specific region. In the 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, this is one of the few states to also require Personal Injury Protection (PIP) and Uninsured Motorist coverage. Just like the name says, PIP is designed to cover the costs of medical care in the case of a collision. Uninsured motorists insurance provides you with coverage in the event of an accident that is caused by a driver that does not have a policy.
How Residents Can Save Money
Unfortunately for residents, the state is ranked as one of the most expensive places to get covered. Despite the fact that costs dropped for several years, most drivers saw a fairly large premium 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 localities, 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 biannual premium is over $1,000 in the area. Which means that even a policy that provides decent coverage is very expensive and many drivers are paying over $2,000 a year.
Keeping Your Costs Down
As any driver in New York could tell you, maintaining a 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 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 rate is your credit score. Those with higher credit scores tend to qualify for lower 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 prices! There are hundreds of providers online, and sources like Automobile.com allow you to compare them in one spot!
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