The Cost of Car Insurance in New York: What You Need to Know

Table of Contents

1. Introduction
2. New York’s Car Insurance Costs: An Overview
   • National Average Vs New York Car Insurance Costs
3. Factors Contributing to High New York Car Insurance Costs
   • No-Fault State Insurance Requirements
   • High Accident Rates
   • High Medical Costs
   • Property Damage Claims and Repair Costs
   • Severe Weather Conditions
4. Tips for Finding Affordable Car Insurance in New York
   • Shop Around
   • Ask About Discounts
   • Track Your Driving
5. Conclusion

New York’s Car Insurance Costs: An Overview

If You live in New York and drive a car, you might have noticed that car insurance costs are higher here than they are in many other parts of the country. In fact, New York drivers pay an average of 88% more for car insurance than the national average. And with inflation and market tension driving up the price of coverage across the country, New Yorkers can expect those premiums to keep rising. But what actually makes car insurance so expensive in New York? Let's dive into it.

Factors Contributing to High New York Car Insurance Costs

No-Fault State Insurance Requirements

New York is one of the 12 no-fault states that require drivers to buy additional coverage on top of basic liability insurance. New York's insurance minimums include $25,000 of bodily injury liability per person, $50,000 of bodily injury liability per accident, $10,000 of property damage liability per accident, and $50,000 of personal injury protection. Drivers also need to buy uninsured motorist coverage that matches their liability insurance limits, and wrongful death liability insurance with limits of at least $50,000 per person and $100,000 per accident. That's a ton of coverage, and that's why even minimum coverage car insurance costs New Yorkers an average of $3,692 per year.

High Accident Rates

High accident rates also contribute to New York's elevated premiums. If you live in a rural area like The North Country or the Southern Tier, your area probably has a relatively low rate of crashes and claims. But in urban zip codes, near highways, and especially in New York City, traffic congestion and busy streets lead to a lot of crashes. In fact, the New York State Department of Health estimated that an average of three New Yorkers die every day in a car accident. That means even more New Yorkers are filing insurance claims every day leading to rising rates.

High Medical Costs

All these accidents come with medical bills that are on the rise in New York. The Department of Health found that New Yorkers rack up an estimated $1.1 billion each year in accident-related health care costs, and that figure is getting higher every year as medical care becomes more expensive.

Property Damage Claims and Repair Costs

Property damage claims are also growing, with auto repair shops charging more than ever for auto body and other repairs after accidents. As inflation continues to drive up the cost of repairs, insurance companies are starting to charge more for a policy in anticipation of those bigger claims.

Severe Weather Conditions

Finally, severe weather conditions play a part in New York's high car insurance rates. New York has always been subject to severe winter weather, especially in rural areas. And recent years have seen unprecedented blizzards and floods generating tons of auto insurance claims.

Tips for Finding Affordable Car Insurance in New York

Shop Around

Never take the first quote you see. Every insurance company quotes differently, and you'll never find the cheapest insurance unless you compare rates from multiple providers. Jerry makes this quick and convenient with our comparison app, but you can also call one of our agents to get a quote if you prefer to talk on the phone.

Ask About Discounts

Most insurance companies offer discounts Based on how you pay, how you drive, or your vehicle's safety features. Don't be shy, ask an agent about the discounts you might be eligible for, and don't be afraid to switch to a new provider for that sweet discount.

Track Your Driving

Most insurance companies offer a telematics program that lets you track your driving in real-time in exchange for potential discounts. Not only could you earn a lower rate just by signing up, but improving your driving means a lower risk of accidents and violations that could add surcharges to your premium.

Conclusion

Car insurance costs are high in New York, but that doesn't mean you're stuck paying through the roof. By shopping around, asking about discounts, and tracking your driving, you can find an affordable policy that gives you the coverage you need. Remember, Jerry's got your back when it comes to finding the right car insurance for you.

Highlights

• New York drivers pay an average of 88% more for car insurance than the national average.
• New York is one of the 12 no-fault states that require drivers to buy additional coverage on top of basic liability insurance.
• High accident rates contribute to elevated premiums in New York.
• New Yorkers rack up an estimated $1.1 billion each year in accident-related health care costs.
• Severe weather conditions generate tons of auto insurance claims in New York.

FAQ

Q: Why is car insurance so expensive in New York?

A: There are several factors that contribute to the high cost of car insurance in New York, including the state's no-fault insurance requirements, high accident rates, high medical costs, property damage claims and repair costs, and severe weather conditions.

Q: What are New York's insurance minimums?

A: New York's insurance minimums include $25,000 of bodily injury liability per person, $50,000 of bodily injury liability per accident, $10,000 of property damage liability per accident, and $50,000 of personal injury protection.

Q: What can I do to find affordable car insurance in New York?

A: To find affordable car insurance in New York, you can shop around, ask about discounts, and track your driving.