What kind of insurance do I need to drive in New York?
Nowadays, it’s a very common question: What kind of insurance do I need to drive in New York? Today, we will discuss car insurance coverage in New York. Types of New York’s auto insurance coverage, New York’s car insurance cost, Auto insurance claim process, and ways to reduce auto insurance costs in New York. In New York, third-party liability coverage is the most basic kind of auto insurance, and it is required. It shields you from having to pay for any damages to someone else’s property as the policyholder. In the event that you cause an accident that results in someone being hurt or killed, you will also be covered.
Types of New York’s auto insurance coverage
New York requires drivers to have minimum liability coverage, which includes:
- Bodily injury liability:
- Minimum Coverage: $25,000 per person / $50,000 per accident
- Property Damage Liability:
- Minimum Coverage: $10,000 per accident
- Personal Injury Protection (PIP):
- Minimum Coverage: $50,000 per person
These are the basic requirements, but you can choose to purchase additional coverage, such as:
- Uninsured/Underinsured Motorist Coverage: Protects you if you’re in an accident with a driver who doesn’t have insurance or enough coverage.
- Comprehensive Coverage: Covers non-collision-related incidents, like theft, vandalism, or natural disasters.
- Collision Coverage: Pays for damage to your car resulting from a collision with another vehicle or object.
- Rental Reimbursement: Covers the cost of a rental car if your vehicle is in the shop for covered repairs.
| Minimum Liability Coverage: 25/50/10 | Uninsured/Underinsured Motorist Coverage 25/50 | Personal Injury Protection (PIP) |
| $25,000 for bodily injury per person | $25,000 for bodily injury per person | $50,000 per person |
| $50,000 for bodily injury per accident | $50,000 for bodily injury per accident | |
| $10,000 for property damage per accident |
Coverage for optional auto insurance in New York State:
Although liability, UMBI, and PIP are required by New York law, most carriers give customers the choice to enhance or add more coverage to give them more security.
- Comprehensive: Although it does cover collisions with animals, comprehensive coverage shields your car from any non-collision damage.
- Collision: When you collide with a fixed object or another car, your vehicle is covered by collision coverage. However, bear in mind that comprehensive insurance only covers collisions with animal
- Gap coverage: It can be a good idea to have some built-in insurance to cover the difference between the amount you still owe on your loan and the real cash value of your automobile because most cars depreciate quickly. This is a fantastic alternative for people who don’t want to be caught upside down in a loan; it is also referred to as loan/lease coverage.
- Medical payments: Often called “med pay,” this coverage pays for your funeral or medical costs (as well as those of any passengers in your car). This coverage can be used regardless of fault and often has amounts between $5,000 and $10,000.
- Rental car reimbursement: This coverage may be used to cover the cost of a rented car while yours is being repaired if a covered loss renders your vehicle unusable. Terms and limits may change based on the firm you select.
- Roadside assistance: The cost of a tow, a battery charge, and various other related expenses are covered by this policy if you break down on the highway.
- Additional Personal Injury Protection (APIP): The coverage provided by APIP is an extension of your PIP. This boost, which is typically available in $50,000 increments, can be used to pay for unforeseen costs, missed income, or medical bills
- Optional Basic Economic Loss (OBEL): Similar to APIP, this is a PIP coverage extension that lets you boost your coverage above the first $50,000. Medical expenses and missed income can be covered under OBEL coverage.
New York’s car insurance cost?
Important Factors Affecting Auto Insurance Prices
Insurance companies evaluate driver risk and set premium prices based on a variety of factors, but most take into account the following:
- Your age (or the age of the policy’s youngest driver).
- What gender are you?
- Your history of driving.
- Your history of claims.
- the length of time you spend driving.
- The location of your car, including the city and state, as well as whether it is garaged.
- The model and make of your car.
- Your credit rating.
- The kind and scope of coverage.
- Your position as a married person.
How Age Affects Rates for Auto Insurance
Older drivers often had fewer accidents than younger drivers with less experience, according to the Insurance Information Institute. Still, as drivers get older, the number of accidents rises. Because middle-aged drivers are considered low-risk drivers, their premiums are often lower than those of youth and younger drivers. However, after the age of seventy, prices increase progressively.
New York car insurance costs by age:
| Age | Average Annual Premium |
| 16 | $5,369.60 |
| 17 | $5,542.77 |
| 18 | $4,509.16 |
| 19 | $3,368.45 |
| 20s | $1,898.06 |
| 30s | $1,436.29 |
| 40s | $1,391.62 |
| 50s | $1,347.40 |
| 60s | $1,389.33 |
| 70s | $1,541.22 |
How Gender Affects Rates for Auto Insurance
According to the Insurance Information Institute, women are not as likely as men to be involved in accidents. Additionally, their accidents are less likely to involve DUIs, which may indicate that they drive more sensibly and take fewer chances. Additionally, women are less likely to be involved in major accidents.
| Gender | Average Annual Rate |
| Male | $1,443.92 |
| Female | $1,467.38 |
Age and Gender Effects on Auto Insurance
The most significant factor influencing auto insurance rates is the combination of age and gender. The average difference in insurance rates between males and females under 20 is 14%.
This could be the case since, according to IIHS data, young men between the ages of 16 and 19 are more than twice as likely to be the cause of a fatal car accident than women in the same age range. Once drivers hit middle age, the gender difference in insurance costs drops to just 1%.
Average annual auto insurance rates for teens by gender
| Age | Gender | Avg. Annual Premium |
|---|---|---|
| 16 | Male | $6,701 |
| 16 | Female | $5,969 |
| 17 | Female | $5,014 |
| 17 | Male | $5,634 |
| 18 | Female | $4,483 |
| 18 | Male | $5,064 |
| 19 | Female | $3,486 |
| 19 | Male | $3,963 |
Average annual auto insurance rates for drivers in their 20s by gender
| Age | Gender | Avg. Annual Premium |
|---|---|---|
| 20 | Male | $3,602 |
| 20 | Female | $3,189 |
| 21 | Male | $2,891 |
| 21 | Female | $2,596 |
| 22 | Female | $2,416 |
| 22 | Male | $2,654 |
| 23 | Female | $2,280 |
| 23 | Male | $2,478 |
| 24 | Male | $2,340 |
| 24 | Female | $2,169 |
New York’s average car insurance rates broken down by marital status
A benefit of marriage, besides the gifts given at the wedding, is the reduction in auto insurance costs for drivers. Married drivers in New York save $45 a year on their auto insurance. This is less than married drivers’ average savings of $76 across the country.
| Marital Status | Average Annual Premium Single |
| Single | $1,443.92 |
| Married | $1,399.06 |
| Divorced | $1,424.47 |
| Widowed | $1,424.47 |
New York’s average car insurance prices broken down by degree of coverage
The monthly premium for auto insurance is determined by the level of protection a driver chooses to carry. In general, liability-only insurance is less expensive than comprehensive coverage with a low deductible. Comparing quotes and locating a higher-deductible policy that satisfies your demands and fits within your budget is one way to prevent paying excessive amounts for auto insurance.
| Coverage Limits/Level | Average Annual Premium |
| $100K/$300K/$100K Bodily Injury/Property Damage — Liability Only | $1,092 |
| $100K/$300K/$100K Bodily Injury/Property Damage: $1,000 Comprehensive/Collision | $1,730 |
| $100K/$300K/$100K Bodily Injury/Property Damage: $500 Comprehensive/Collision | $1,895 |
| $50K/$100K/$50K Bodily Injury/Property Damage — Liability Only | $983 |
| $50K/$100K/$50K Bodily Injury/Property Damage: $1,000 Comprehensive/Collision | $1,621 |
| $50K/$100K/$50K Bodily Injury/Property Damage: $500 Comprehensive/Collision | $1,786 |
| State Minimum — Liability Only | $887 |
| State Minimum: $1,000 Comprehensive/Collision | $1,525 |
| State Minimum: $500 Comprehensive/Collision | $1,690 |
New York’s Average Auto Insurance Prices Broken Down by Credit Score
The price of your auto insurance is significantly influenced by your credit score. In New York, drivers with bad credit pay $5,849 a year on average, compared to $1,580 for those with great credit. Depending on their credit score, drivers in New York typically spend the following amounts:
- Fantastic: $1,580 annually
- Good: $1,968 annually
- Fair: $2,568 annually
- Below reasonable: $3,624 annually
- Poor: $5,849 annually
Finding cheap auto insurance in New York for drivers with bad credit requires comparison shopping because different insurers may punish drivers for having lower credit ratings.
Your residence location in New York has a big influence on your auto insurance costs. For example, the cost of a full coverage policy for drivers is highest in New York City ($3,060 annually) and lowest in Rochester ($1,257 annually). In places like New York City with heavier traffic and denser populations, auto insurance premiums are typically higher.
|
City
|
Full Coverage Annual Premium
|
Minimum Coverage Annual Premium
|
|---|---|---|
|
Buffalo |
$1,617 |
$953 |
|
New York |
$3,060 |
$1,761 |
|
Rochester |
$1,257 |
$723 |
|
Syracuse |
$1,356 |
$764 |
|
Yonkers |
$2,296 |
$1,284 |
Age: 22-29
| City | Full Coverage Annual Premium | Minimum Coverage Annual Premium |
| Buffalo | $1,890 | $1,090 |
| New York | $3,576 | $2,015 |
| Rochester | $1,474 | $828 |
| Syracuse | $1,596 | $878 |
| Yonkers | $2,736 | $1,503 |
The average price of auto insurance in New York following speeding convictions and infractions
Your insurance premiums will inevitably increase if you are determined to be at fault in a car accident or if you are found guilty of a moving violation. The cost of auto insurance increases as a driver’s violation record increases.
In New York, an additional $70 is added to each annual driver’s insurance premium for their first small at-fault collision. A DUI, one of the most serious driving offenses, can increase your annual insurance premiums in New York by as much as $645.
| Violation | Average Yearly Rate |
| DUI or DWI | $2,228 |
| Reckless Driving | $2,524 |
| At-Fault Accident (<$1,000) | $1,512 |
| At-Fault Accident ($1,000-$2,000) | $1,993 |
| At-Fault Accident (>$2,000) | $1,940 |
| Open Container | $1,553 |
| Speeding (21-25 MPH > limit) | $1,581 |
| Speeding (16-20 MPH > limit) | $1,581 |
Consider comparing quotes to locate affordable motor insurance coverage that satisfies state minimum criteria if you’re dealing with pricey auto insurance following a ticket.
Ways to Reduce Auto Insurance Costs in New York
Getting by in the concrete jungle without going over your budget? The following advice can help you save money on auto insurance in the Empire State. Also, you can read this blog about Ways to Reduce Auto Insurance Costs.
- Shop Around: New York is a diverse insurance market. Get quotes from various providers to find the best rates.
- Bundle Policies: Consolidate your insurance needs. Bundling auto with home or renter’s insurance can lead to significant discounts.
- Safe Driving Pays Off: The bustling streets of New York can be challenging, but a clean driving record can lead to lower premiums.
- Opt for Higher Deductibles: Consider a higher deductible for lower monthly premiums; just ensure it’s a comfortable amount in case of a claim.
- Explore Discounts: Inquire about specific New York discounts, such as those for good driving habits or safety features in your vehicle.
- Consider Public Transportation: If applicable, using public transit can lower your mileage and potentially your insurance costs.
- Maintain Good Credit: In some states, including New York, credit scores can influence your premium. Keep your credit in good shape for potential savings.
- Drive a Safer Car: New York insurers may favor vehicles with safety features, potentially reducing your premium.
- Review and Adjust Coverage: Regularly assess your coverage needs. Dropping unnecessary coverage can lead to savings.
- Ask About New York-Specific Programs: Inquire about any state-specific programs or initiatives that could offer additional discounts or benefits.
I believe if you can observe my entire blog, you may get a valid idea of car insurance coverage in New York. Types of New York’s auto insurance coverage, New York’s car insurance cost, Auto insurance claim process and ways to reduce auto insurance costs in New York.