Regardless if you live in the Bronx or Manhattan, on Long Island, or even in upstate New York, ensuring that you have the right car insurance is not only important, but it’s required. To obtain the license plates for your vehicle, you need to provide proof of proper protection, and that’s why looking for cheap car insurance in NY is a good idea. The information offered by Truly Insurance can give you better insight into types of insurance, New York insurance laws, and more.

Expensive Car Insurance in New York

When you spend some time comparing various insurance quotes, you’re likely to notice one thing: it’s not cheap. According to statistics, New York ranks third for having the highest car insurance rates, running right behind New Jersey and Michigan.

Nearly 88% of New York’s population resides in urban areas, and that causes the risk of an accident happening to skyrocket. In addition to that, New York is also a no-fault system state, which causes premiums to rise as there is an increase in fraud. Keep in mind that just because you live in New York, doesn’t mean that you can’t get a comparable and decent insurance quote.

Finding Cheaper Insurance

Auto insurance is a personal product, so the quote that you receive from insurers is going to reflect upon the type of coverage that you want, along with other factors such as your zip code, driving record, credit history, and other variables. If you’re going to get the cheapest insurance, then you need to compare quotes and policies against each other.

One of the cheapest ways to obtain insurance is by skipping over basic, plus, or premium insurance and going straight for New York state’s minimum requirements. The minimum requirements get you:

  • Bodily injury: $25,000 per person or $50,000 per accident
  • Property damage: $10,000 minimum
  • Uninsured or underinsured bodily injury: $25,000 per person minimum or $50,000 per accident
  • Basic personal injury protection: $50,000 minimum

Since New York is a no-fault insurance state, it does add to the cost of your insurance, and you are required to have that additional coverage. The no-fault system aids with covering the costs of an accident regardless of who is at fault. The basic no-fault coverage has a limit of $50,000 per person, and it includes the following:

  • Medical expenses caused by an accident
  • Covers 80% of lost income because of car accident injuries, up to a cap of $2,000 per month for a maximum of three years
  • Maximum of $25 per day for household expenses such as hired help for up to one year
  • Provides a $2,000 death benefit in addition to the $50,000 limit

It’s important to keep in mind that your no-fault insurance covers accident-related medical expenses before your health insurance does. If the medical costs exceed the coverage limit, your health insurance then takes over.

Affording New York Car Insurance

It’s not a secret that people might be tempted to opt out of insurance entirely because of the costs, but don’t let yourself be one of them. Take the time that you need to accurately compare quotes and different policies to find the lowest prices—minimum insurance is better than none. The penalties for driving without insurance are severe, and if you don’t have any, you need to stay off the road.

Your registration can get suspended if you have a lapse in coverage, and if the lapse exceeds 90 days, you need to surrender both your plates and registration. Additionally, your license can get suspended which costs you extra to get it reinstated.

If you get caught driving without insurance, or worse, get into an accident, the fines and consequences can be very high. You can get a ticket, your car can get impounded, and you can even get arrested.

Your fines can reach up to $1,500 plus an additional $750 to restore your license. Make sure that you are always insured; otherwise, it’s likely to cost you more money and inconvenience in the long run.

Average Auto Insurance Rates

As previously mentioned, New York has some of the highest insurance premiums in the USA. The national average is approximately $1,010, whereas New York has an approximate average of $1,360.

It’s essential to remember that you might pay less depending on your vehicle, coverage, zip code, and other facts. These factors are all things to consider when you are speaking to an insurer about cheap car insurance in NY.

Why Does Zip Code Matter?

Insurance quotes vary by location because of a variety of reasons. Agencies look at the zip code and the number of claims submitted, as well as medical expenses and repair services.

An area’s population and traffic play a significant part in assessing specific quotes. If the area you are in has a higher population, there’s a higher risk of getting into an accident. This is the primary reason why New York rates are cheaper in upstate than they are in areas such as Yonkers, Mount Vernon, Brooklyn, and New York City.

How Much Insurance Do You Need in New York?

One of the benefits with New York is that the state minimum is compared against the basic policies that other states offer. So, if you have a “beater” car and opt-in on the state minimum insurance, there’s a good chance that you’re going to be okay. If you can afford more than the minimum, it’s highly suggested that you purchase more extensive policies to ensure that you are covered in case of a severe accident that exceeds your insurance limits.

All insurance agencies are going to be able to provide you with a rundown of particular policies and why they think they are the best for you after assessing your factors. While it isn’t likely that they are going to tell you every element that’s helping them decide on the quote they are giving, you can expect to get professional advice and a thorough rundown of the cost of each liability you are choosing.

The Bottom Line

It’s always recommended to have more coverage than less, even if it may cost you extra. While New York does have a no-fault policy, it’s still possible to get sued if the accident causes serious damage.

Regardless of what you are looking for, the only ways to ensure you get what you need for the cheapest cost is to understand insurance and compare quotes with multiple agencies. It’s also a good idea to keep searching for better quotes even after you’ve chosen a policy.