New York Car Insurance 101

New York car insurance covers automobile drivers and car owners in the state. Also known as auto insurance, car insurance in New York provides financial protection for car owners and their insured relatives in the event of loss or accident that involves their automobiles or another person’s car. When a driver carries car insurance, the insurance company licensed to sell the coverage takes up the financial responsibility of fixing or replacing the car they are driving if it is involved in an accident or stolen. Suppose an insured vehicle is involved in an accident that causes bodily injury to the owner, any of their relatives, or a third party. In that case, car insurance will cover the cost of the resulting damage.

Since New York is a no-fault state, if you sustain bodily injuries in an accident, your own (personal injury protection - PIP) insurance pays for it - regardless of who was at fault. If the bills for the medical expenses exceed your coverage limits, you can get the coverage from the guilty party. Meanwhile, property damage is paid by the at-fault party.

There are about 11.4 million vehicles that are registered in the state of New York, and they get into a lot of accidents:

Between 2018 and 2021, on average - annually in New York, there were 395,216 crashes, resulting in 942 fatalities. Personal injuries were sustained in 27.79% of cases while property damage was caused in 71.96% of the time.

While a car owner or driver can decide to purchase full coverage car insurance, the New York State’s minimum coverage for auto insurance includes:

• Bodily injury liability coverage

This covers the medical expenses of a third party injured when a car insurance policyholder is involved in an auto accident. This coverage kicks in when you are at fault. The New York insurance law requires that drivers carry bodily injury liability coverage with a minimum of $25,000 per person and a maximum of $50,000 per accident.

• Personal injury protection coverage

Personal injury protection (PIP) coverage is for medical treatment and lost wages and lost wages of the insured and their passengers regardless of who is at fault in the event of an accident. New York drivers must carry at least $50,000 of coverage per accident for personal injury protection coverage.

• Property damage liability coverage

This coverage is to fix or replace what is damaged. This can be the insured’s car, another person’s car, or any other property. The New York car insurance law requires all drivers in the state to carry property damage liability coverage with a minimum limit of $10,000 for an accident.

• Uninsured/underinsured coverage

This coverage provides financial protection for the insured driver by covering medical payments for them or their passengers when an uninsured, underinsured, or unknown driver causes the accident. The state-required minimum coverage limit is $25,000 for a person and $50,000 for an accident (the same as the Bodily Injury Liability) (the same as the Bodily Injury Liability).

• Auto death benefit coverage

This covers the death expenses of an insured driver, their family members, or a third party if they are involved in an auto accident that leads to their death. New York drivers are required to carry a minimum of $50,000 limit in auto death benefit for one person and $100,000 for two or more persons.

The numbers described above are state-required minimum limits. Most insured New York drivers tend to buy higher limits of coverage, to make sure that they are fully covered after an accident, regardless of its scale and the amount of vehicles and people involved.

Discuss your New York car insurance insurance with a state-licensed property insurance agent who can assess your needs, recommend multiple solutions from different insurers, and help you compare car insurance quotes.

The numbers described above are state-required minimum limits. Most insured New York drivers tend to buy higher limits of coverage, to make sure that they are fully covered after an accident, regardless of its scale and the amount of vehicles and people involved.

Discuss your New York car insurance insurance with a state-licensed property insurance agent who can assess your auto insurance needs and recommend multiple solutions from different insurers.

Why Do you Need Auto Insurance in New York?

Apart from the fact that auto insurance protects the vehicle, the vehicle owner, and their family members, and even the pedestrians, and even the pedestrians, drivers in New York need auto insurance for the following reasons:

• To meet a requirement for registering a car in New York

• To avoid paying fines for driving any car without an active auto insurance policy

• To avoid the revocation of one’s driver’s license

• To guide against getting one’s license plate and registration revoked as a result of driving a vehicle without auto insurance for a period of time

Driving an uninsured vehicle in New York may attract a fine of up to $1,500. The New York Traffic Court decides the amount to pay as a fine. Driving a car insurance for which has lapsed is a crime that leads to a civil penalty. The penalty is based on the duration of the lapse.

Therefore, the owner of a car whose insurance lapsed 50 days ago ago will pay a civil penalty of $440 ($240 for the first 30 days + $200 for the remaining 20 days). For a car where coverage has lapsed for 90 days, the owner must pay a sum of $900 as a civil penalty to DMV. In addition, if the Department of Motor Vehicles revokes a license, the person affected will pay an extra $750 to get their license back.

Note: If you are not driving the vehicle, you can surrender the vehicle's registration and license plate to DMV to avoid paying the penalties.

Not having car insurance in New York predisposes uninsured drivers to significant financial losses in the event of an accident:

• According to the Centers for Disease Control and Prevention (CDC) in 2018, more than 1,000 people in New York were killed in motor vehicle traffic crashes. The total cost of traffic crash deaths was $1.44 billion, including $17 million in medical costs and $1.42 billion in work loss costs.

• Between 2019 and 2021, there were over 1.1 million crashes in New York, with 2,876 of them fatal. On average, personal injury occurred in every fourth accident, while property damage was recorded in 3 out of 4 events.

Where to Get Auto Insurance in New York?

To get auto insurance in New York, get quotes from state-licensed property insurance agents. According to the NYS Department of Financial Services, 138 insurance companies sell auto insurance in New York. These insurance companies are to provide car insurance coverage for New York drivers. Apart from these 138 insurance companies that domicile in New York, there are still many more insurance companies that offer auto insurance in New York but do not domicile in the state. While a few of the insurance companies sell private auto insurance alone, most of these companies sell both private and commercial auto insurance coverages.

However, if you are unable to acquire minimum state-required liability auto insurance coverage from any insurer, you will be able to get it from the New York Auto Insurance Plan (NYAIP). The State of New York set up NYAIP so that high-risk drivers in New York who cannot find any insurance company to cover them can be helped to get coverage. New York drivers who cannot get auto insurance on their own can subscribe to the New York Auto Insurance Plan. NYAIP then assigns the drivers in their pool to different insurers whom the plan will mandate to provide coverage for the assigned driver. As a result of the program being for considered high-risk drivers, the cost of getting auto insurance through NYAIP can be higher than when getting it directly from a regular insurer. To be considered for NYAIP, the affected driver must have successfully looked for insurers on their own for at least 60 days.

If you need auto insurance or if you are just looking for alternative quotes to compare, speak with a knowledgeable New York-licensed auto insurance agent who can help you find the best car insurance companies for your auto insurance needs.

What Type of Insurance is Auto Insurance?

Any New York insurance that protects a driver, their motor vehicle, and other third parties against financial burdens arising from an auto accident, damage, or theft is called auto insurance. In addition, any insurance policy that provides financial protection against property loss or economic loss caused by an auto accident is auto insurance.

Auto Insurance falls into 9 main categories:

1. Liability

2. Collision

3. Comprehensive

4. UM/UIM

5. Non-Owner

6. Parked Car

7. Gap

8. Temporary

9. Additional and optional coverages

LIABILITY INSURANCE

Under auto insurance, liability insurance provides some financial protection for the driver of an insured vehicle if the driver is responsible for an accident that causes bodily injury, property damage, or death of a third party. Once the vehicle is insured and the premium is paid, the vehicle owner is covered if an accident occurs. Suppose another person who is under the insured’s auto insurance policy drives the vehicle and an accident occurs warranting some financial obligation, such as vehicle repairs. In that case, the policy will cover the financial responsibility.

Liability insurance is part of New York State’s minimum coverage limits. Vehicle owners or drivers in the state are expected to carry two different forms of liability insurance: Bodily Injury and Property Damage.

• Bodily injury liability insurance

This covers financial obligations if your vehicle is involved in an accident when you or another person you allow to drive the vehicle is at fault. An at-fault accident is one that the insured is responsible for. If the accident results in the death of a third party or a third party is injured, this policy will cover the resulting expenses. New York drivers are expected to carry bodily injury liability coverage with a minimum limit of $25,000 per person if the accident does not result in death and $50,000 per person if it results in death. For the bodily injury of more than one person, the minimum coverage must be $50,000 if the accident does not lead to death and $100,000 if it leads to death.

• Property damage liability insurance

This policy only covers the cost of fixing or replacing the property or the cost of vehicle repairs of another person involved in an accident with your car. For this policy to cover the loss or damage, the accident must have resulted from your negligence or the negligence of the person who drove your car (only if the person is listed under your auto insurance policy or permitted to drive your car). The New York auto insurance law requires all drivers in the state to carry this coverage. The minimum liability property damage coverage that a driver in New York must carry is $10,000.

COLLISION INSURANCE

Collision insurance covers the cost of repairing or replacing the insured's car if damaged due to a collision with another vehicle. This type of policy kicks in if the collision that caused the damage to the insured’s car was caused by the insured. Collision coverage does not cover any damage a third party causes or events not within the insured's control, such as malicious vandalism and theft. Collision insurance is optional, but if the vehicle is being financed, the loan lender may require it.

COMPREHENSIVE AUTO

Comprehensive auto insurance coverage covers unforeseen events that are not within the insured’s control. For example, suppose there is a natural occurrence (like an earthquake, flood, falling of trees on the car) or a traffic accident other than a collision that damages an insured’s automobile. In that case, their comprehensive auto insurance coverage will cover the cost of repairing or replacing the vehicle. However, comprehensive auto insurance does not cover any negligence or recklessness on the part of the insured, which causes an accident that damages their car. Comprehensive auto insurance coverage is optional in New York.

UNINSURED / UNDERINSURED MOTORIST INSURANCE

Uninsured motorist coverage or underinsured motorist insurance is compulsory auto insurance coverage that covers the cost of treating the insured and their passengers if they are injured. Unlike in some other states, you cannot purchase Uninsured or Underinsured Property Damage (UMPD) coverage in New York. Instead, you get collision insurance. On the other hand, underinsured motorist insurance coverage covers the remaining cost of settling financial losses if the other driver who was at fault does not have enough auto liability protection. For example, a person with uninsured motorist insurance coverage will be covered if a hit-and-run driver hits their vehicle and causes bodily injuries.

Considering that less than 5 percent of the drivers in New York are uninsured, that is nearly 600 thousand uninsured vehicles driving on the roads of our state. You simply never know how much coverage the car next to you will have. If you are ready for the worst, you are always prepared.

NON-OWNER CAR INSURANCE

Non-owner car insurance is a type of auto insurance that drivers who do not personally own a car carry to protect themselves against any financial loss in case of a liability auto accident while driving a borrowed car. In New York, driving without an active auto insurance policy is illegal. Therefore, individuals who often drive rental cars or vehicles belonging to people on whose car insurance policy they are not included, need non-owner car insurance in New York.

Non-owner car insurance only covers liability claims on bodily injury and property damage to another person. It does not cover the cost of fixing or replacing the car the non-owner car insurance policyholder is driving. The car insurance policy of the actual owner will cover such. As a result of its limited coverage, it is cheaper than a standard New York car insurance policy.

Non-owner auto insurance coverage is different from a standard NY auto policy in two ways, apart from its limited coverage:

• It does not cover family members or other passengers of the insured as it is just for the person who purchased the policy.

• It does not have any deductible because it is expected to augment the auto insurance policy on the car driven.

In New York, you may need non-owner car insurance if:

• You often use rental cars

• You often drive cars that belong to other people whose auto insurance policy does not cover you

• You want to reinstate your suspended driver's license; having minimum auto liability coverage is a requirement

• You once had a car, but you do not want to have a gap in your auto insurance coverage

However, you do not need non-owner car insurance if:

• You have a car. In this case, you need standard car insurance in New York

• You seldom use rental cars

• You drive the car of your family member who has an auto insurance policy that covers you

• You drive your business car for business purposes. If any accident occurs, the commercial auto liability insurance policy for the business will cover such

• You drive other people's cars with their permission, and you are listed on their auto insurance policy

PARKED CAR INSURANCE

Parked car insurance in New York is offered as storage insurance for cars that one does not drive for a long time or cars that one occasionally drives. This auto insurance coverage is meant for cars parked in owners' private garages, not on the street. Because these cars are parked in secure locations, there are some coverages that this auto insurance policy excludes. For example, parked car insurance does not provide liability protection or collision insurance for cars because it deals with events that are within the insured's control. Therefore, parked car insurance provides comprehensive auto insurance coverage, which may involve:

• Vandalism

• Theft

• Acts of nature (fallen trees, flooding, etc.)

Parked car insurance does not cover a car parked by the roadside. If a parked car is hit by another vehicle, the auto insurance of the owner of the affected car or the driver who caused the accident will cover the financial loss. New York law does not mandate car owners in the state to have parked car insurance, but it is a good investment to protect cars that one will not drive for a while.

GAP INSURANCE

Gap (guaranteed auto protection) insurance in New York covers the difference between what your car insurance provider pays as the current value of your car and what you still owe to your car’s lienholder if you total your car. This auto insurance policy provides financial protection for you if your car is no longer drivable due to an accident or it is stolen, and you still owe more on your car than it is worth. Gap insurance is not for fixing damages or settling claims if an insured vehicle is involved in an accident that results in damages or loss. Instead, it covers the insured vehicle if it is totaled and there is an upside-down loan on it.

For example, if you purchase a new car and finance the full amount, the vehicle starts depreciating as soon as it leaves the dealer’s lot. This results in the loan being upside-down until you pay down the debt enough, so that the balance catches up with the vehicle’s depreciated value.

Another example of how an upside-down loan situation may occur is if you had a previously totalled vehicle, where you were upside down, and without Gap coverage you had to get that extra debt financed as part of the newly purchased vehicle. This results in you owing more than the vehicle is worth.

Since auto insurance pays only the actual value of the insured vehicle, if there is extra debt - it's covered by Gap insurance. For example, if the payout from your comprehensive or collision coverage is $10,000 while you still owe the financial institution $16,000, your gap insurance will cover the remaining $6,000.

You may consider purchasing gap insurance if:

• You made a down payment of less than 20% of the total price of the car to the lender

• You are financing your vehicle for five years or longer

• You are leasing your vehicle

• The car you purchased depreciates fast

• You have a negative loan repayment report on your last car loan

In New York, gap insurance is optional auto insurance coverage. To be eligible for gap insurance:

• Your car must be new or less than 2-3 years old

• You must have purchased both comprehensive and collision coverage for your car

• You must be the original lease or loan holder

TEMPORARY CAR INSURANCE

Also known as short term car insurance, true temporary auto insurance in New York is a rarely offered coverage. Since most auto insurers write policies for six months or a year at a time, if you need short term auto coverage your best option is buying the best coverage you can and canceling it when you no longer need it. Whatever premium was paid in, the unused portion of the auto policy’s term is prorated and refunded to the insured. So, even if you need coverage for 1 month or a week, getting and then canceling a less expensive 6-month or 1-year policy is typically your best option.

If you need to compare car insurance quotes for temporary car insurance in New York, speak with a knowledgeable state-licensed auto insurance agent with access to various insurers.

ADDITIONAL AUTO COVERAGES

Other coverages typically purchased by the New York drivers are:

• Roadside assistance coverage (also known as Towing and Labor coverage) - every year thousands of New York state residents get stranded on the side of the road and at home due to some issue with the vehicle. In most cases the stop is due to a deflated tire, an accident, or running out of gas. Average annual cost for roadside assistance is typically under $20 and it can be a great alternative to auto clubs.

• Accident forgiveness coverage guarantees that if you do not get into an accident more often than stipulated by the insurer, your premiums will not go up. The accident-free time period is typically 2 and 5 years, depending on the insurer. Expect this coverage to increase your average annual insurance cost by around $100 per year.

• Rental reimbursement helps recoup the cost of renting a vehicle in case your car is damaged or stolen. The average annual cost of this coverage will fluctuate based on the price of the selected tier: Economy class rental reimbursement coverage typically costs under $50 per year, while a family-size SUV will cost closer to $120-$150 per year.

• Rideshare insurance (also known as RideShare Gap) provides coverage to drivers who are using their vehicle as commercial transportation through a program like Uber or Lyft. Rideshare provides coverage to the driver while they are working, but are waiting for the passenger.

• New Car Replacement Insurance provides coverage beyond the Actual Value of the vehicle if it is totalled or stolen. NCRI coverage typically offers 15%-20% in extra coverage, to ease the insured’s process of getting a new car after an accident or theft.

(Note: If the vehicle has Gap coverage, it is typically not eligible for Car Replacement Insurance until the gap between the value and the debt is paid off and the Gap coverage is removed)

• Medical payments pay the insured drivers and/or their passenger’s medical expenses regardless of who was at fault in an accident. It is frequently used to cover the health insurance deductible and copayments. Typically, you can choose the coverage options between $1,000 and $100,000. The average annual cost is between $10 and $100 per year.

What is a Car Insurance Premium?

A car insurance premium is an amount you pay to have your automobile insured in New York. Once a premium is paid, your car insurer is responsible for covering your vehicle's claims or liabilities. This premium can be paid annually or monthly, depending on your agreement with your insurance provider. The premium you pay for your car insurance is determined by factors that affect you, your car, and the coverage type you want. The factors that insurance companies use to determine car insurance premiums include:

• Personal details of the policyholder

The policyholder's age and gender affect the amount they will pay for their car insurance. Teen drivers tend to pay more for their policies. Also, young drivers between 18 and 25 tend to pay higher premiums than older drivers because auto insurance companies consider them high-risk drivers. The price for coverage tends to go up for drivers 60 to 70 years old. Female drivers tend to pay lesser premiums than their male counterparts because female drivers are considered more careful when driving. Furthermore, where the policyholder lives and parks their car influences the premium they pay. For example, New York auto insurance policyholders living in rural areas such as Rhinebeck, Fairport, and Aurora pay lesser premiums than drivers or car owners who reside in urban areas such as the Bronx, Brooklyn, and Manhattan because of the high crime rate in urban areas.

• The insured’s driving history

Insurance companies also consider the policyholder's driving history to determine the premium they pay for their car insurance. Insureds who drive regularly pay higher premiums than policyholders who drive occasionally. Also, policyholders involved in many auto accidents are considered high-risk and pay more than drivers with fewer accident records.

• The number of people on the policy

Policyholders can add members of their households to their policy for them to be covered when they drive their family car or drive another person’s car. The higher the number of household members added to an auto insurance policy, the higher the policy’s premium.

• Credit history of an intending policyholder

The credit history of an intending policyholder determines their car insurance rates. In New York, insurance companies run checks on the credit records of their intending customers to fix their rates. Therefore, a driver with a poor credit score will have to pay a higher premium than an individual with a good credit score. For example, a poor credit score can increase an individual's premium by 50%.

• The age of the car

Newer cars attract higher premiums than older cars. This is because auto insurers in New York consider the age of the car that a driver wants to insure before calculating the driver's premium.

• The coverage types and limits

The New York car insurance law mandates drivers to carry auto insurance with specific coverage limits. According to the New York financial responsibility law, drivers in New York must carry:

• $10,000 for property damage

• $25,000 for just bodily injury, and $50,000 for the death of one person in an auto liability accident

• $50,000 for just bodily injury, and $100,000 for the death of more than one person in an auto accident

There are optional coverages that policyholders can add to their policy which will increase their car insurance cost. In addition, if a policyholder decides to reduce or increase their coverage limits, it will also affect the premium they pay.

• Deductible amount

The amount a policyholder agrees to pay out of pocket in the event of an auto accident that causes damage or loss of property also determines the premium. Suppose a policyholder agrees to pay $1,000 out of pocket when there is a claim. In that case, their premium will not be as much as the premium that another policyholder who has the same policy with a $500 deductible will pay.

• Discounts

Insurance companies that sell auto insurance policies in New York have different discounts for drivers. An insured vehicle with safety features (such as anti-theft system or LoJack) may be considered for a discount. A policyholder can be considered for a loyalty discount for being a longtime client of an insurance provider. Likewise, a vehicle owner can bundle their auto insurance policy with other insurance policies from the same insurance provider to qualify for a discount on their auto insurance policy. An insured can also get a discount for paying their premiums upfront. Car insurance discounts allow the insured to access affordable car insurance in New York.

Although these factors can lower or raise your auto insurance premiums, licensed auto insurance agents in New York can help you get cheap car insurance quotes by comparing multiple insurers and their available discounts against your car insurance needs.

What is a Car Insurance Deductible?

In New York, a car insurance deductible is an amount a policyholder agrees to pay out of pocket in an at-fault accident which damages their own insured car. You are expected to pay a deductible when you file any claim under the comprehensive and collision coverage of your car insurance. Car insurance deductibles do not apply to Gap insurance and it is not applicable to liability claims or any claim that has to do with bodily injury. It is mainly for physical property damage that the insured incurs.

Auto insurance policyholders in New York may opt for $0, $250, $500, or $1,000 as a deductible. Insureds may decide to opt for a lower deductible or a deductible that is more than $1,000. However, the New York Insurance Law states that insureds cannot opt for less than $50 for fire, theft, or comprehensive insurance coverage and $100 for collision coverage. For comprehensive insurance coverage that an insured gets through NYAIP, the deductible cannot be less than $100.

The amount a policyholder agrees to pay as a deductible influences the cost of their car insurance and determines the amount their insurance provider will pay when they file a claim. For instance, Policyholder A and Policyholder B are twins who just purchased two identical vehicles and insured them using the same insurer, using the same exact coverages. Twin A chose a $500 deductible, while Twin B went with $1,000. The two insured will not pay the same amount for their policies; Twin A will pay more than Twin B. If the two policyholders file claims of $5,000, their insurer will pay Twin A $4,500 and Twin B $4,000 if their insurer accepts their claims. Opting for a higher deductible is another way to get cheap auto insurance in New York.

How Does Car Insurance Work in New York if I am Not at Fault?

New York is a no-fault state. When you are not at fault in an auto accident involving your insured car, your auto insurance provider will cover the medical bills of the car's driver and passengers. If any member of the policyholder's household listed on the policy is also involved, the insurer will also cover their medical treatment. This coverage is under personal injury protection (PIP) coverage. If your vehicle is damaged in an accident and you are not at fault, your no-fault coverage does not cover repairs or replacement of the vehicle. This means that, regardless of who causes an auto accident, New York car insurance still covers:

• The insured driving the car or any other person whom the insured permits to drive the car

• Any passenger in the insured’s car

• Any cyclist or pedestrian hit by the insured’s vehicle

However, the policyholder, their family members covered by their auto insurance policy, and any other person who is a passenger in the vehicle will not be eligible for a no-fault benefit if:

• The driver was driving under the influence of alcohol or any other substance

• They intentionally cause their injuries

• The policyholder or their family members covered by their auto insurance were riding all-terrain vehicles or motorcycles

• The covered driver was involved in an accident that caused them an injury while committing a felony offense

• The injured driver with their passengers was driving a stolen automobile

• The policyholder or their family members were driving an uninsured vehicle

If you are not at fault in an auto accident in New York, but you sustained some injuries, your personal injury protection may:

• Cover your medical and rehabilitation expenses

• Pay you up to 80% of your lost earnings from work. This covered lost income does not exceed $2,000 per month for three years starting from when the accident occurred.

• Pay you up to $25 a day for one year from when the accident occurred. This payment is for reasonable and necessary expenses you incur due to the injury you sustained.

• Pay a death benefit of $2,000 to the person authorized to collect it if the accident leads to the death of the policyholder, their passenger, or a third party that the vehicle hits.

To file a no-fault insurance claim in New York, the concerned individual must fulfill the following requirements.

• Fill out Form NF-2 and submit it to your insurance provider. This form is for no-fault applications.

• File the no-fault insurance claim within 30 days that the accident occurred.

• In the absence of other coverage, check if you qualify to file the no-fault claim with the New York State Motor Vehicle Accident Indemnification Corporation online or over the phone at (646) 205-7800, or mail:

100 William Street, 14th Floor

New York, NY 10038

It is advisable to consult with knowledgeable New York-licensed auto insurance agents to get more information on what happens when you are not at fault. Licensed auto insurance agents in New York can explain to you how it works and guide you on how to file no-fault claims.

What is Covered by Car Insurance in New York?

New York auto insurance covers:

• Bodily injury coverage covers the medical bills of treating bodily injuries that a third party sustains when an insured or someone listed on the policy is involved in an at-fault accident. It also covers the insured when they are driving another person's car with the permission of the owner.

• Personal injury protection coverage covers the following:

  • The cost of treating the insured and the passengers in their vehicle

  • The loss of income of the affected individuals in the insured’s car

  • The funeral cost if the accident leads to the death of the insured or any of their passengers

Auto insurance in New York will cover the medical expenses of the policyholder or persons listed on their policy driving their car with their permission and their passengers if they are injured in an auto accident. For the loss of income, car insurance companies in New York cover up to 80% of the earnings of the affected person, to the tune of $2,000 per month for three years. For the funeral cost, the PIP coverage of the insured will cover the funeral cost of any person who died in a car crash.

• Property damage liability coverage covers the following if you are involved in an at fault accident that causes the damage:

  • Damage to another person’s car or properties

  • Damage to public properties such as telephone poles and lamp posts

When properties of a third party are damaged by accident, the insurer covering the vehicle will cover the cost of fixing or replacing what is damaged.

• Uninsured/underinsured liability coverage covers economic losses. According to New York insurance law, economic losses include the cost of settling medical bills of the affected person and loss of income. This policy will kick in if the insured or anyone listed on their policy is hit by an underinsured or uninsured driver or a hit-and-run driver.

Summarily, basic New York auto insurance covers expenses resulting from:

• Bodily injury

• Death

• Loss of income

However, New York auto insurance does not cover losses or injuries that result from auto accidents when:

• The insured driver is intoxicated

• The person driving the insured vehicle is not permitted by the policyholder to drive it

• The policyholder or anyone who is covered by the policyholder's plan is driving an uninsured or business car

• The affected individual has committed a felony and is trying to escape driving a car

Who is Covered by Car Insurance in New York?

Auto insurance in New York covers the insured driver, their family members listed on the policy, and third parties they permit to drive their car. New York auto insurance also covers people who are in the policyholder's car when there is an accident as long as the car is covered. Whether the policyholder is driving their own car or another person's car, their car insurance covers them should there be an accident. Auto insurance covers the owner of an insured car even when they are not driving the car.

By covering the insured driver, liability New York car insurance extends its coverage to the other drivers, their vehicles, and passengers. If the insured causes damage, those who get hurt or damaged are covered.

Speak with a professional New York auto insurance agent to learn more about who is covered and who is not. Some auto insurance providers do not cover damage or loss when the policyholders allow a third party to drive their car; as such, it is only a person listed on the policy of the insured that the policy will cover. A knowledgeable car insurance agent licensed in New York can answer questions, give you more information on the specifics of each insurance company licensed to sell auto insurance in New York, and help you compare car insurance quotes.

How to Save on Auto Insurance in New York?

There are different ways through which you can save money on your auto coverage in New York. You can save on your auto insurance by:

• Taking a New York State Department of Motor Vehicles-approved accident prevention course. Doing this shows your auto insurance company that you are low-risk, making them offer you a discount.

• Bundling auto insurance with either homeowner’s or renter’s insurance with the same insurer. The policyholder may be considered for some discounts on their auto and homeowner's or renter's insurance.

• Opting for a higher deductible. The amount a policyholder pays out of pocket when there is a claim determines the amount they are charged for their coverage. Therefore, policyholders can save some money on their auto insurance coverages by deciding to pay a higher amount as a deductible.

• Getting all the vehicles in your family covered by one auto insurance policy. Listing all the cars in your family on the same auto insurance policy is a good way to save money on your car insurance in New York. This will make you eligible for discounts.

• Maintaining a good driving record. Generally, New York drivers with no records of auto accidents tend to pay lower premiums, while high-risk drivers attract higher premiums. Ask your insurer or the agent about a good driver discount.

• Maintaining a good credit score. Insurers in New York offer some discounts to policyholders with good credit scores. Maintaining a good credit score may make you eligible for up to a 20% discount off your auto insurance cost annually.

• Paying your car insurance bill upfront. Lump-sum payments tend to come with some reduction in the total premium expected to be paid.

• Buying low-maintenance pre-owned cars. Low-maintenance vehicles that do not depreciate fast and are not frequent targets for theft cost less to insure than high-maintenance and newer cars.

• Mitigating the car’s theft or damage risk. When shopping for a vehicle, look for one with useful safety features which could save you money on insurance during the ownership. If your car did not come with them, you could try installing anti-theft devices, electronic-tracking devices, anti-locking braking systems, and safety or collision avoidance systems, that may reduce the premium you have to pay

• Dropping some coverages. It is reasonable to drop some coverages, such as collision and comprehensive coverage, as the car gets older and depreciates, or gap coverage, once the loan balance catches up with the valuation. This could save you money on insuring them as you reduce your coverage limits.

• Multiple vehicles. If you own multiple cars, you can save money by insuring them under the same policy. Multiple items under one policy or under the same insured usually result in a bulk policy discount

• Asking for discounts. Insurance companies that sell car insurance in New York have different forms of discounts for auto insurance. When talking to the agent, ask for a list of discounts for which may be eligible considering all your insurance needs.

The best way to save on car insurance in New York is to speak with a knowledgeable and state-licensed insurance agent who specializes in auto insurance and works with multiple competing insurance companies. An experienced insurance professional can help you find the best car insurance by evaluating your auto insurance needs and comparing them with the locally available insurers and their offered plans. The agent knows different ways you can save on your auto insurance and can help you through the application process.

Car Insurance Discounts in New York

Discounts on auto insurance allow you to buy car insurance in New York for a cheaper price, considering some factors. There are different auto insurance discounts in New York, some of which are:

• Multi-policy Discount

This discount is for people who have different insurance policies with the same insurance company. For example, if you bundle home and auto insurance, it is a good way to qualify for a multi-policy discount.

• Multi-car Discount

Some auto insurance companies in New York offer discounts to policyholders with many vehicles listed on their policies. Having two or more cars covered by an auto insurance policy is almost always cheaper than having different policies for each vehicle.

Note: Most insurers in New York allow the unmarried significant others to be on a joint policy. If you live with a loved one, you can get a discount on car insurance.

• Accident-free Discount

Accident-free discount (also known as the Good Driver discount) is for New York drivers with clean driving histories, or with minor auto accidents. Many auto insurance companies consider the driving records of insured and the people they list on their auto insurance policies to consider their eligibility for this discount.

• Accident Prevention Course Discount

In New York, auto insurance companies give discounts to drivers who have taken the New York State Department of Motor Vehicles-approved accident prevention course. If a policyholder takes this course, auto insurers in New York are expected to offer discounts to them on liability, collision, and no fault coverages. This course can be taken in a classroom or online. You can find the course providers via the New York Department of Motor Vehicles.

• Anti-theft Devices Discount

Anti-theft devices that auto insurance companies in New York consider for discounts include:

• Alarm systems

• Active disabling devices

• Passive disabling devices

• Window glass etching

• Window glass etching

• Electronic tracking devices

These devices or processes make vehicles less vulnerable to theft and help during the recovery, if stolen.

• Telematics/Usage Based Insurance Discount

This discount is offered by some auto insurers in New York to policyholders that allow their auto insurers to track their driving. The insurers will track how they speed, apply brakes, and when and how often they drive. Drivers with good driving records become eligible for some discount on their auto insurance.

• Factory-installed Anti-lock Braking System Discount

For a car with anti lock brakes, the car owner is offered some discount on their liability, collision, and no fault coverages.

• Factory-installed Daytime Running Lamps Discount

This discount is for cars with daytime running lamps. These lamps help make your vehicle more visible to other drivers during the day to avoid or reduce the possibility of your vehicle being hit by another driver; thereby, reducing your accident risk.

• Passive Restraints Discount

A car with a passive restraint system such as an automatic or self-locking seat belt is considered for some discounts when insuring them. This is because these passive restraints limit the effect of an auto accident on the driver and their passenger.

• Senior Citizen / Retiree Discount

Some New York insurers offer discounts for senior citizens.

• Collision Avoidance System Discount

Drivers who drive cars with a collision avoidance system that uses radar, cameras, and other scanning devices to detect and warn drivers of cars ahead of them can get discounts on their auto insurance. This system helps drivers avoid possible accidents that may happen.

• New Vehicle Discount

Some auto insurance providers offer discounts when the car that a person wants to insure is new.

• Payment Plan Discount

The payment plan that a policyholder opts for may make them eligible for a reduction in the price of their auto insurance in New York. Some auto insurance companies in New York offer a discount for lump-sum payment plans.

• Renewal Discount

Some auto insurers in New York give policyholders who decide to renew their car insurance with them a discount when they renew their policies. This is a way of appreciating their loyalty.

You can speak with a knowledgeable New York-licensed auto insurance agent about the discounts available on your auto insurance policy. They can analyze your eligibility and help you get the discount you qualify for.

How Much is Auto Insurance in New York?

Private Auto insurance: The average cost of full coverage car insurance in New York is around $3,000 per year ($1,500 per 6 months, or $250 per month), while minimum coverage average is around $1,800 ($900 per 6 months, or $150 per month).

Commercial Auto insurance: The average cost of Commercial Vehicle Insurance in New York depends largely on the type of the insured vehicles and what they do for the business. While a leased business vehicle driven as a regular car (to and from work) averages around $4,200 per year, commercial truck fleet policy can cost between $5,000 and $25,000 per year, depending on the size of the fleet and the types of cargo that they transport.

The true costs can be obtained only by getting a quote. Consult with a licensed auto insurance agent in New York to find affordable car insurance. Discuss your insurance needs with a knowledgeable private and/or commercial insurance agent who has access to multiple insurers for quote comparison.

How to Get Auto Insurance in New York?

Regardless if you are buying private auto or commercial auto insurance, there are three main ways through which you can get New York auto insurance. They are:

• In-person purchase

• Through an insurance agent

• Online

You can get auto insurance in person by contacting an insurance company licensed to sell auto insurance products on your own if you know that the insurer sells the coverage you want. When you approach a company on your own, you will speak with their staff auto insurance agent and they explain the list of coverages and prices of what they offer. The staff (captive) agent can offer you only what their employer sells.Getting auto insurance yourself may be tricky because the cheapest car insurance companies may not offer what you need, or by not shopping around you may purchase needlessly expensive coverage while a much cheaper option is available elsewhere.

If you want to research various options, which you should if you are looking for the best coverage, you can get auto insurance quotes through a knowledgeable independent auto insurance agent who represents multiple competing insurers in New York. An experienced agent helps you get affordable car insurance and saves you time and stress.

You can get auto insurance coverage in New York through an insurance agent by taking the following steps:

• Contact a knowledgeable insurance agent who is licensed to sell your type of auto insurance in New York

• Discuss your auto insurance needs with your chosen auto insurance agent and ask for the assessment of those needs

• The agent will help you find, apply for, and get a coverage that suits your needs the best

• Pay for the policy to get the coverage going - since commercial insurance is typically paid up front for the entire year, if you want to break the costs into more manageable payments the agent can help you with premium financing.

When you get your auto insurance policy through an independent insurance agent, the agent who sold you the policy typically becomes your link to the insurer company. If you have further questions or need help with the claims, speak with your agent.

You can also purchase auto insurance through insurance agents that sell auto insurance policies online. Many insurance companies offer New York car insurance quotes online, and individuals and businesses can get the car insurance rates online. When you contact the company online or submit a request for a quote, a staff agent from the company will be reaching back to you. Similar to the in-person shopping version, the staff agent is limited to the offering from their company and cannot discuss competition. To get the right protection that fits your needs and to shop around for the best price, contact a knowledgeable New York licensed property insurance agent who can get car insurance quotes from multiple insurers.