Need to know how much car insurance costs in NY? We’re here to help. Here’s what you need to know about how car insurance companies price insurance, what coverage you need and how to determine what coverage is right for you.
How insurance companies in NY price insurance
Insurance companies use a variety of rating factors to price insurance. The types of coverage and the limits you choose to buy are the biggest factors in determining your car insurance policy’s cost. Other factors like garaging location, years of driving experience, driving record and type of car insured are also considered when it comes to pricing insurance. Individual companies may use additional factors.
Rates can vary greatly within a state. A person who lives in a city like Buffalo will likely pay a higher premium than they would pay if they lived in a suburban or rural town. Cities are more congested, and the risk of collision with another car is greater than if a person drives in a smaller town.
Minimum insurance requirements in NY
Car insurance is mandatory in New York, and you must carry at least the following coverage at following minimum limits:
| Required coverage | Minimum limits | |
| Bodily injury liability | $25,000 per person / $50,000 per accident | |
| Property damage liability | $10,000 per accident | |
| Personal injury protection | $50,000 per person | |
| Uninsured motorists | $25,000 per person / $50,000 per accident | |
So what do all of those coverages mean? Here’s some basic information regarding those coverage limits for New York car insurance:
Bodily injury liability coverage
This coverage protects you, a household member or another authorized driver of your vehicle against legal liability for the accidental injury or death of others caused by the operation of your car. You are required to buy at least $25,000 per-person and $50,000 per-accident for injuries to others that do not result in death. For injuries resulting in death, you are required to buy at least $50,000 per-person and $100,000 per accident.
Property damage liability coverage
This coverage pays for damage to another person’s property when you, a household member or another authorized driver cause a crash. There’s a minimum coverage limit of $10,000 per accident.
Personal injury protection
PIP pays for medical costs that you and your passengers incur in the event of an accident, no matter who was at fault. PIP also covers rehabilitation, replacement services and even lost wages. PIP is a requirement for car insurance policies in New York, with a minimum coverage limit of $50,000.
Uninsured motorists coverage
This coverage protects you, anyone you let drive your car, household members and passengers against losses caused by an uninsured driver within the state of New York. Uninsured drivers are those without insurance, as well as unidentified (“hit and run”) drivers. You are required to buy at least $25,000 per-person and $50,000 per-accident for injuries to others that do not result in death. For injuries resulting in death, you are required to buy at least $50,000 per-person and $100,000 per accident.
Supplementary uninsured/underinsured motorist coverage, or SUM coverage, is an optional coverage you can purchase that provides protection beyond your required uninsured motorist coverage. Not only does SUM cover everything UM covers, it also covers injuries from an underinsured motorist. An underinsured motorist is one whose liability limits are too low to cover the injuries they cause. SUM also covers you and your family anywhere in the United States, its territories and Canada.
What does full coverage mean?
When people say “full coverage”, they typically mean that a car insurance policy has both comprehensive and collision coverage for the car in addition to the required liability coverages. New York does not require coverage for damage to your own car. However, your lender or leaseholder may require you to carry those coverages as a condition of car loan or lease.
| Comprehensive coverage may cover: | Collision coverage may cover: |
| Natural disasters and storms | Hitting another vehicle |
| Vandalism | Damage caused by another vehicle |
| Damage caused by animals | Hitting a stationary object |
Collision insurance covers the cost to repair or replace your car after a collision with another vehicle or stationary object. It does not cover the damage you cause to other cars- that would fall under your property damage liability coverage. Mechanical breakdowns and wear and tear are also not covered by collision.
Comprehensive coverage protects your car from damage NOT related to a collision. This includes damage from fire, flood, animal strikes and natural disasters.
How to determine what level of insurance is right for you
Balancing financial risk and the cost of your insurance policy is a personal decision based on your own unique needs.
Consider aspects like the value of your car and the amount that you’re comfortable spending in the event of an accident or even a total loss. Your ability to pay for medical expenses for yourself or another party in the unfortunate case of an accident that causes injuries should also be an important factor when thinking about how much coverage you need.
Car insurance in NY cost details
Here are just a few of the ways car insurance can be priced in New York:
Coverage limits
It goes without saying, but the more coverage you have the higher your car insurance premiums will be. Saving with lesser coverage may mean paying more in the long run if you have a claim that exceeds your limits. Make sure you understand what your insurance covers so you can protect yourself, your family and your assets.
Type of Car
The kind of car you drive is a big factor when it comes to your insurance rates. Factors like your car’s make, model, age and its repair cost will affect how much your insurance premium costs.
Driving record
How you drive also makes a huge difference in how much your car insurance will cost. Accidents and moving violations on your record indicate to a car insurance company that you are riskier to insure. Car insurance companies may also consider new drivers to be riskier to insure. The best way to keep your car insurance costs down is to drive safely and maintain a clean driving record.
Conclusion: How much is car insurance in NY
How much your car insurance will cost in New York will vary based on the extent of your coverage. It is also priced based on other factors, like your driving record and the type of car you drive. Your personal financial situation is important to consider when deciding on coverage limits, and it’s always wise to carry more than the minimum coverage.
This is a general explanation of insurance requirements and costs. Actual coverage will depend on the terms and conditions of the policy you buy. If you’re looking for more information, including ways to bring the cost of your car insurance down, call Plymouth Rock today and see how much you can save!
