Everything You Need to Know About Car Insurance in New York

Last Updated:
October 28, 2022
Author:
Kay Nicole

Everything You Need to Know About Car Insurance in New York 

When there are so many options on the market, finding the best car insurance in New York can be a highly daunting task. That being said, if you know what it is you want from your insurance, you should be able to find what you need easily. For those who are less aware, there is this guide to help answer all the important questions.  

Regardless of if you know what you want, or don’t, NY Insurance Hub can help. They are the choice of many in NY looking for an independent company to help them find the best insurance. 

Is Auto Insurance Mandatory in The State of New York?

Each driver in New York must carry auto insurance. You cannot register a vehicle at the Department of Motor Vehicles (DMV) until you have a policy. The DMV requires you to show proof of insurance when you want to register your car, and only accepts insurance issued within the state.  

Is New York an At-Fault or No-Fault State?

New York is identified as a no-fault state. This means you must use your auto insurance to file most of your claims. For this reason, vehicle owners in the state are required to have personal injury protection (PIP), which has a coverage limit of $50,000. 

With all that said, no-fault insurance does not mean you can’t file a lawsuit against another person. If you’re in an accident that isn’t your fault you can sue the responsible party if the following happens: your medical bills, lost wages or other financial losses are over the $50,000 coverage limit of your PIP. 

What Factors Affect Your Auto Insurance Cost In New York?

There are a lot of factors that insurance companies look at when calculating premiums. This is why shopping around is important, as quotes can vary from company to company. For cheap NY car insurance, shopping around is an unfortunate reality that can be very time-consuming. 

Some of the factors they investigate are as follows: 

Age

All over the United States, young drivers between the ages of 16-25 have the highest auto insurance premiums because their lack of driving experience makes them a risk to insure. 

Driving Record

No matter where you are in New York, a poor driving record can make it hard to get affordable auto insurance. This includes at-fault accidents, general traffic violations, DUI and more. Unfortunately, these marks stay on your driving license for some time. For example, an accident remains on your record for three years, and unless your provider offers accident forgiveness, the premium may rise when you want to renew. 

Credit Scores

A bad credit score can raise the price of car insurance more than an accident or speeding. Many bad credit New York drivers pay high-interest rates, but you can keep your premiums low by comparing quotes from multiple auto insurance providers, and NY Insurance Hub can help with this task. 

Car Insurance History

If you are a new driver and this is your first car insurance, you can expect a higher premium. That's because car insurance companies don't have much information to assess your risk. 

 Another thing that can affect prices is if there are gaps in coverage. This is the period when you do not have car insurance. For example, if your car insurance company canceled you for non-payment, or you were between cars and didn't have car insurance. Insurers see a gap in coverage as a higher risk, which often results in higher premiums.

Car Park Location

Parking your car in a garage can change your premium. This is probably because it would be more difficult to steal a car from a secure garage than from the street, and it is also less likely that your car is less likely to be stolen from or hit by another passing car. 

 Your ZIP Code

Price factors that determine location are weather conditions, such as high hail, accidents, and car theft. Drivers living in the capital pay more for insurance coverage than drivers living in the suburbs because theft, vandalism and car accidents are more common. 

Other factors related to location include the cost of medical care, the cost of auto repairs, and the frequency of auto accident claims.  Find out more by contacting:

NY Insurance Hub Agency

125 Wolf Rd STE 404 Albany,

NY 12205 518-783-0105

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