New York is known for having high costs of living, and auto insurance is no exception. Premiums in the Empire State are some of the highest in the country. But what exactly causes these high rates?
The high number of accidents and claims in New York
New York is a bustling city with a high number of cars on the road. Not surprisingly, the state also has one of the highest car insurance rates in the country. New Yorkers pay an average of $2,855 per year for car insurance. The high cost of car insurance is due in part to the high number of accidents and claims in New York. Car insurance companies factor in both the number of accidents and the cost of claims when determining rates. As a result, New York car insurance rates are much higher than those in other areas.
New York is a no-fault state
This means that regardless of who is at fault for an accident, each driver’s insurance company pays for their own medical bills and damages. This means that even if an accident is not your fault, you could still be on the hook for costly medical bills and other damages. This leads to a high volume of claims and costs for insurance companies, which are passed on to drivers in the form of higher premiums.
The cost of medical care and car repairs in the state
The cost of medical care is much higher than in other states, and car repairs are also more expensive due to the cost of labor and parts. As a result, insurance companies have to pay out more in claims and pass the costs on to drivers in the form of higher premiums.
The number of uninsured drivers on the road
Uninsured drivers pose a risk to other motorists, as they are not insured and therefore cannot be held accountable for any damages they may cause. This increases the risk of accidents as well as the cost of insurance claims, which is passed on to drivers in the form of higher premiums.
Traffic congestion and the need for more parking spaces
Traffic congestion is an inevitable part of life in a big city like New York and it increases the chances of collisions on the roads. Additionally, parking is at a premium in the city, and the cost of parking is often passed on to drivers in the form of higher premiums.
All of these factors contribute to New York’s high auto insurance premiums. It’s important for drivers in the state to shop around and compare rates before choosing a policy to ensure they are getting the best deal possible. Here are a few more tips to help lower those high insurance costs:
Top tips to get cheaper insurance in New York:
1. Compare rates online and get quotes from multiple providers
By shopping around and comparing rates, you can find cheaper car insurance that still meets your needs. There are a number of websites that allow you to compare quotes from multiple providers, so you can be sure you’re getting the best rate possible.
2. Raise your deductible to lower your premiums
Raising your deductible can help to lower your premiums, as you’re taking on more risk but paying less in premiums. Be sure to choose a deductible that you can afford to pay should the need arise.
3. Bundle your policies with one provider for discounts
Many auto insurers offer discounts, such as multi-policy discounts, for customers who bundle their policies together. By bundling your auto and home insurance with one provider, you can save money on your premiums.
4. Pay your premium in full to avoid monthly fees
Pay your premium in full to avoid extra charges or fees that come with monthly payments. This can help you save money on your annual premium, as well as save you time and hassle.
5. Take advantage of special discounts
Many insurers offer discounts for certain groups, such as good drivers, students, or members of the military. Be sure to ask your provider about any special discounts you may be eligible for.
6. Choose a higher excess if you’re comfortable with taking on more risk
Choosing a higher excess can help you to reduce your premiums, as you’ll be taking on more risk in exchange for lower payments. It’s important to make sure you can afford the excess should you need to claim, so be sure to factor this into your decision.
7. Don’t file small claims – they’ll only increase your premiums
If you’re in an accident and the damage is minor, it’s often best to pay for the repairs yourself rather than filing a claim. Filing a claim can lead to an increase in your premiums, so it’s usually only worth doing if the damage is significant.
