What car insurance discounts are available in New York?

Car insurance in New York is expensive because it's a no-fault state with a high rate of insurance fraud. In New York, you can expect to pay approximately $4,451 per year for full coverage car insurance or $1,828 per year for minimum coverage. Car insurance in New York is more expensive than the national average, which is around $2,000 annually for … read full answerfull coverage and about $700 per year for minimum coverage.

The cost of car insurance is steadily increasing, too, both in New York and nationwide. As the cost of providing insurance goes up, the premiums insurers charge also rise. All insured drivers share the increasing cost of insurance. That is why your rates tend to go up every time your policy is renewed, regardless of whether any individual factors—like your driving record or location—have changed.

There are several unique reasons why car insurance goes up every year in New York, too, even if your details remain the same.

Top Reasons Car Insurance Is Expensive in New York

• People in New York are driving more. As a result, the number of accidents, claims, and payouts is rising, too. For example, there were approximately 981 fatal crashes in 2016 in New York, versus 980 fatal crashes in 2014.

• Auto repairs are getting more expensive. Vehicles today cost more to repair due to the added technology and features. For example, a National Association of Insurance Commissioners study found that the average cost of vehicle repairs was around 8% higher in 2018 than it was in 2014.

• People in New York drive uninsured. As the cost of car insurance continues to rise, more drivers take the risk of driving without car insurance. In 2019, 4% of drivers lacked even minimum liability insurance in New York. The cost of uninsured drivers is passed on to consumers through higher premiums.

• Healthcare in New York is getting more expensive. Car insurance companies are hit hardest when paying out claims involving medical bills, and it’s not getting any cheaper. Healthcare spending increases by an average of 4% every year in New York.

• New York is experiencing more severe weather. In New York, weather events like severe storms, serious winter weather, and tropical cyclones are becoming increasingly common. These weather events cause insurers to pay out a higher number of claims, which tend to be more expensive and less predictable. As a result, they have to raise rates to keep pace.

However, there could be other issues elevating your rates.

If your driving record is clean and your rates are still high, your car insurance might be expensive because of your:

Age. Drivers under 25 and older than 65 pay more for auto coverage because they are statistically more likely to be involved in serious and fatal accidents. In New York, 16-year-old drivers pay an average of $7,305, 25-year-old drivers pay an average of $2,181, and people over 65 pay an average of $1,909.

Location and driving patterns. Population-dense cities have higher premiums than rural areas because city living usually means more accidents, more property crime, and more frequent claims. In New York, the most expensive locations for insurance are Brooklyn, Queens Village, and Bronx. You can also expect rates to change based on your driving patterns—long commutes or regular driving in high-risk areas can cost you.

Financial responsibility. In New York, drivers with no credit pay 116% more on their premiums than drivers with excellent credit. You can also demonstrate financial responsibility by maintaining minimum car insurance with no gaps in coverage. Letting your coverage lapse could result in a higher rate when you get your next policy.

Claims history. Numerous recent claims can drive up your premiums. That's one reason why it sometimes makes sense to pay out of pocket rather than file a claim, especially if a claim won’t get you much more than your deductible.

How to Get Cheaper Car Insurance in New York

Multiple factors affect the cost of car insurance. Some things you can’t control, but you do have a say in most of the contributing factors. Driving safely, obeying traffic laws, and keeping a clean driving record are the best ways to keep your insurance costs down.

Other than that, the best way to lower your car insurance costs is to compare rates from at least three insurance companies. Ideally, you should check your rates every 6-12 months, when you renew your policy. But at a minimum, be sure to check your record and shop for rates every three to five years, since you may be able to get a lower rate if a traffic violation falls off your record.

In New York, the most expensive policies cost roughly $4,329, and the least expensive coverage costs around $502, when all driver profile information is the same. That means you could save as much as $3,827 simply by shopping around. Be sure to confirm you’re getting all the discounts you’re eligible for, too.

New York car insurance laws require $25,000 of bodily injury liability coverage per person, up to $50,000 per accident, as well as $10,000 of property damage liability coverage.

Bodily injury liability insurance pays for any injuries that you accidentally cause with your car, while property damage liability coverage helps pay for any material assets that you damage while driving, like another person’s car or mailbox. Your insurance company pays up to the limit specified by your policy for each type of car insurance coverage.… read full answer

You can face multiple penalties if you’re caught driving without at least the minimum car insurance required in New York, including fines and the suspension of your driver's license and registration . Another important New York car insurance law to note is the grace period for new residents. You have 30 days to register your car when you move to New York. You’ll need to bring proof of New York car insurance when you go to register, with coverage in each of the categories listed below.

Minimum Coverage Required by New York Car Insurance Laws

• Bodily injury liability: $25,000 per person / $50,000 per accident
• Property damage liability: $10,000
• Personal injury protection: $50,000

The penalties for driving without insurance in New York include fines, suspension of license and registration, and imprisonment. You can avoid these consequences by meeting New York’s proof of financial responsibility requirements. New York requires that all drivers have at least $25,000 in bodily injury liability coverage, up to $50,000 per accident, along with $10,000 in liability coverage for property damage.… read full answer

Purchasing New York’s minimum liability car insurance coverage is the easiest way to satisfy the financial responsibility requirement. Drivers in New York pay an average of $1,448 per year to maintain the minimum amount of coverage. That’s nothing compared to the consequences of driving without insurance, especially if you get into an accident.

Penalties for Driving Without Insurance in New York

Drivers in New York can also have their car impounded for driving without insurance.

Not having car insurance and not being able to prove that you have it are two different violations. If you have insurance but cannot prove it when you get pulled over or at the scene of an accident, you are guilty of an “administrative violation,” similar to a seat-belt ticket. Your citation will not be dismissed even if you can provide the court with proof of valid insurance for the date of the citation.

Driving without car insurance at all is much more serious, and the penalties are more severe. In addition to the legal consequences, you can also expect your car insurance premium to go up. A single conviction for driving without insurance raises annual premiums by an average of 3%, or $34, in New York.

What happens if you get into a car accident without insurance in New York?

If you get into an accident while driving without insurance in New York, you will be cited and all the penalties for driving without insurance will apply, no matter who is at fault. Driving uninsured can make it difficult to be compensated for damages if you are not at fault and can have long-lasting and life-changing consequences if you are at fault.

If the accident is your fault, you’ll have to pay for all the damages out of your own pocket. In addition to the legal consequences for driving without insurance, you could easily be responsible for tens of thousands of dollars or more in damage to your vehicle, the other driver’s repair and hospital bills, and your own medical care. Both the other driver and their insurance company can sue you and have future wages and savings garnished to pay for damages. You could face mounting debt or even bankruptcy, especially if the other driver doesn’t carry uninsured motorist coverage or personal injury protection.

Even if the accident is not your fault, driving without insurance leaves you vulnerable to expensive hospital and repair bills. New York is an at-fault state. In at-fault states, the other driver is usually responsible for damage to your car and any medical treatment you may need—assuming the other driver is found completely at-fault. New York uses a N/A system, which means you may not be able to recover all the costs associated with the accident if you are found partially responsible for causing it.

Driving uninsured doesn’t negate the other driver’s fault entirely, but you’re almost certainly going to be penalized and unable to recover everything you would be entitled to if you had insurance.

You can get car insurance in New York, even if you are…

Uninsured: Unless you’re a newly licensed driver, having a history of driving without insurance or lapses in coverage is a risk to insurers. To insurance companies, it’s similar to a bad driving record, which is why drivers who let their insurance lapse for 60 days pay about 6% more than the average premium in New York.

USAA, State Farm, Nationwide, and Geico tend to have the lowest rates for drivers who want to regain coverage.

Driving someone else’s car: It’s not illegal to drive someone else’s car if you do not have insurance, but non-owner car insurance can protect you if you don’t have a car but still drive regularly. If you borrow a car from someone living in your own home, you should be listed on the car owner’s policy. But you may want to explore non-owner coverage if you need to reinstate a driver’s license, you rent or borrow cars frequently, or you want to maintain continuous auto coverage between vehicles.

Geico, State Farm, Nationwide, and The General good places to shop if you need non-driver car insurance.

High-Risk: If you’re a high-risk driver who has been denied coverage from traditional insurance companies, check out New York’s assigned risk program. Whether you require an assigned risk program or still qualify for high-risk insurance from conventional providers, you’ll pay more. In New York, drivers with just two speeding tickets pay an average of 21% more on their annual car insurance premiums, for example.

Depending on your driving record and the seriousness of your infractions, you could pay even more. Still, even though rates may be higher, at least you can drive legally and avoid more penalties.

Final Thoughts: How to avoid driving without insurance in New York

To avoid the penalties of driving without insurance, shop around for at least $25,000 in bodily injury liability coverage, up to $50,000 per accident, along with $10,000 in liability coverage for property damage In New York, you can find basic liability auto insurance for around $1,448 per year if you have a clean driving record. The consequences of driving without insurance are ultimately more costly than purchasing minimum auto insurance coverage.

No matter what your unique needs are, the best way to get accurate quotes and the best prices is to comparison shop.