New York is consistently among the top 10 states with the most expensive average annual car insurance rates. Every bit you can save on your car insurance in New York counts. Find out how to find cheap car insurance in New York and which insurance companies you should start shopping with first if you want lower car insurance rates.
Minimum Required Insurance in New York
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Like most states, New York requires its drivers to have liability insurance at a minimum. To legally drive in New York, a driver must have a liability insurance plan that includes:
- $25,000 of coverage for bodily injury per person per accident and $50,000 for death per person per accident
- $50,000 of coverage for total bodily injuries per accident and $100,000 for deaths per accident
- $10,000 of coverage for property damage
Liability insurance only covers other people and their property. Suppose a driver’s insurance policy only has liability coverage. In that case, the driver will not be reimbursed for any medical bills or damage to property if the driver is at fault for the accident. On the other side of that coin, a driver’s liability insurance won’t pay out if the other driver is at fault.
What Type of Car Insurance Do I Need?
As mentioned above, liability car insurance is the bare minimum level of insurance plan you need to operate your vehicle in New York. However, if you want to protect yourself more, you can upgrade your insurance plan with collision and comprehensive insurance policies.
Collision Insurance
Collision insurance helps you pay for repairing damages to your vehicle. This payment follows from the actual cash value of your vehicle, a figure your insurance company will determine. If the damages to your vehicle exceed that cash value, it’s considered totaled, and the insurance plan may pay out the maximum amount to help you replace the vehicle.
This type of insurance can pay out regardless of who is at fault. Generally, your collision insurance policy will have a deductible that you must pay before your insurance covers the rest up to its limit. You may have the option of increasing this deductible to bring down your monthly premium.
Comprehensive Insurance
If you want to protect your vehicle from a broader range of situations financially, consider upgrading your insurance with a comprehensive policy. Comprehensive insurance helps you pay for costs from incidents like damage from falling tree branches, theft, vandalism, and fire.
If you’re leasing your vehicle, you may be required to have collision and comprehensive coverage. Otherwise, you may want to base your decision on the types of car insurance available in the market, the deductibles you pay on the value of your vehicle, and how much you can afford every month.
Cheap Car Insurance Companies in New York
The cheapest car insurance companies in New York when it comes to annual costs for minimum liability plans are:
- USAA: $695
- Progressive: $732
- GEICO: $976
- State Farm: $1,011
- Travelers: $1,457
- Allstate: $1,638
Keep in mind that USAA is available only to members of the military and their immediate family members.
New York drivers pay $1,085 annually for their minimum liability insurance. If you want to get below that average, make sure you get quotes from multiple companies.
For example, it may be tempting to choose Progressive (if you’re not a member or veteran of the military). The most affordable company for one driver may not be the most affordable option for you. Each company has certain formulas to measure how much it will to charge you for your insurance.
Something else to keep in mind is that one plan might be more expensive than the other simply because it offers more. If benefits and discounts are something you look for in your car insurance, make sure you find a reasonable price for a plan that works for your needs, even if it isn’t the cheapest option.
Tips for Finding Cheap Car Insurance in New York
Each car insurance company primarily analyzes your information using several factors: age, credit scores, vehicle make and model, driving history, and more. Taking this information into consideration, the company decides how much to charge you for insurance. You can take some steps to help lower the cost of your car insurance.
Ask About Discounts
Before (or even after) you decide on a car insurance provider, look at the company’s discounts. If you can’t find them readily accessible, ask your agent about what the company offers. You can find deals for all aspects of insurance, such as bundling your insurance plans, going paperless, paying six months or a year at a time, and maintaining a clean driving record. Ask your agents which discounts for which you qualify.
Choose a Smaller Company
Just because you see commercials for a particular insurance company every hour doesn’t mean that it will be the best option for you. Look for smaller regional or local insurance options to determine whether they might fit what you’re seeking. These smaller companies often earn higher customer satisfaction ratings than the major insurance companies.
Change Your Plan as Your Car Ages
You can save quite a bit of money on your car insurance by reducing the amount you insure your vehicle for as it ages. Generally speaking, you shouldn’t insure a 10-year-old vehicle like you would a brand-new car. Consider dropping collision and comprehensive policies when your vehicle’s cash value drops below a certain level.
Get the Quotes You Need
When you shop for cheap car insurance plans, you should ask for a quote on how much the insurance company thinks it will charge you for its services. Obtain these quotes again and again for each insurance provider you consider.
Getting multiple quotes from several companies costs you nothing. Although the insurance company will check your credit score to develop a quote, it won’t affect your credit score. Get as many insurance quotes as you need to feel good about your decision to purchase cheap car insurance in New York.
At FIXD, our mission is to make car ownership as simple, easy, and affordable as possible. Our research team utilizes the latest automotive data and insights to create tools and resources that help drivers get peace of mind and save money over the life of their car.
