Full Coverage Auto Insurance: Understanding New York's Unique Requirements

Full coverage auto insurance in New York is mandatory and includes liability insurance, personal injury protection, and uninsured motorist insurance. The average cost of full coverage auto insurance in New York is $2,075 per year or $173 per month. The cheapest full coverage auto insurance in New York is offered by Progressive, with an average rate of $1,460 per year or $121 per month.

Full coverage auto insurance in New York is more expensive than the national average

High Healthcare Costs

The cost of healthcare in New York is higher than in most other states, with New York residents paying the eighth-highest insurance rates in the country. As a result, insurance companies have to pay out more in claims to cover the cost of treating injuries, which leads to higher policy premiums.

Additional Insurance Requirements

New York mandates additional insurance requirements beyond what is typically seen in most states. In addition to liability insurance, New York drivers must also carry Personal Injury Protection (PIP) and uninsured motorist coverage. These additional coverages increase the overall cost of insurance for New York drivers.

Severe Weather Risks

New York is located in the Mid-Atlantic region, which is prone to hurricanes and winter storms. These severe weather events increase the risk of accidents and total losses, resulting in higher insurance payouts and premiums.

High-Risk of Theft or Vandalism

New York, particularly New York City, has a high rate of theft and vandalism. Neighborhood crime rates impact insurance costs, and the high incidence of these crimes in New York contributes to higher insurance rates.

Other Factors

Other factors that contribute to higher insurance rates in New York include population size and the number of uninsured drivers. Additionally, insurance companies may set higher premiums to compensate for revenue loss via claims.

While full coverage auto insurance in New York is more expensive than the national average, drivers can explore ways to save money, such as comparing quotes from different providers, bundling policies, and taking advantage of available discounts.

The cheapest full coverage auto insurance in New York is offered by Progressive

In New York, drivers are required to have auto liability coverage, personal injury protection, and uninsured/underinsured bodily injury coverage. The minimum amount of bodily injury liability coverage per person is $25,000, with a minimum total of $50,000 per accident. For property damage liability coverage, the minimum amount is $10,000 per accident. Personal injury protection has a minimum coverage of $50,000, while uninsured motorist coverage has a minimum of $25,000 per person.

The cheapest full-coverage auto insurance in New York is offered by Progressive, with an average monthly rate of $121 to $129, depending on the source. This is 30% to 32% lower than the state average of $185 to $343 per month. Progressive also offers the cheapest rates for minimum coverage, with an average monthly rate of $52, which is 41% lower than the state average of $88.

Progressive allows customers to customize their policies' coverages, limits, and deductibles. The company also offers various discounts, such as good student discounts and savings for bundling home and auto insurance. Additionally, Progressive provides coverage for accidents caused by the policyholder, injuries suffered by the policyholder or their passengers, damage to the policyholder's vehicle, and other situations.

The minimum auto insurance coverage in New York is more expensive than the national average

There are several reasons why auto insurance in New York is pricier than in other states. Firstly, New York is a "no-fault state," which means that drivers file claims through their own insurer, regardless of who is at fault in an accident. This can lead to higher costs for insurance companies, which are passed on to consumers in the form of higher premiums.

Another factor contributing to high insurance rates in New York is the state's high population density, particularly in cities like New York City and Buffalo. More vehicles on the road means a higher risk of accidents and insurance claims, which insurers take into account when setting rates.

Additionally, New York has a relatively high number of uninsured drivers. In 2023, the state ranked seventh in the country for car thefts, with 32,715 reported incidents. This likely leads to increased costs for insurance companies, as they have to cover the damages caused by uninsured drivers.

How to Get Cheap Car Insurance in New York

Despite the high cost of car insurance in New York, there are several ways to get cheaper coverage. Here are some strategies to consider:

• Compare Car Insurance Quotes: Shop around and get quotes from multiple insurance providers. Rates can vary significantly from one company to another, so taking the time to compare can save you hundreds of dollars per year.
• Apply for Car Insurance Discounts: Most insurance companies offer a variety of discounts, such as good driver discounts, senior discounts, and anti-theft discounts. Ask your insurer about what discounts you may be eligible for.
• Raise Your Deductible: Opting for a higher deductible can lower your insurance premiums. Just keep in mind that a higher deductible means you'll pay more out of pocket if you need to make a claim.
• Drop Coverage Add-Ons: Optional protections like rental car reimbursement and roadside assistance can increase your premium. Consider which add-ons you really need and remove the ones you can do without.
• Consider a Telematics Program: Many insurance companies now offer usage-based programs that monitor your driving habits and offer discounts for safe driving. These programs can help lower your premiums, but be aware that unsafe driving behaviors may actually increase your rates.
• Reduce Your Coverage Limits: While not recommended, you can lower your premiums by reducing your coverage limits or switching to minimum liability insurance. However, this comes with significant financial risk, as you may have to pay for repairs or medical bills out of pocket if you're in an accident.

The cheapest minimum coverage auto insurance in New York is offered by Progressive

According to MarketWatch, Progressive offers the cheapest minimum coverage auto insurance in New York, with an average monthly rate of $129. This is 30% lower than the state average of $185 per month. Progressive customizes coverages and discounts so you can drive with reliable and affordable auto insurance.

Full coverage includes both collision and comprehensive insurance, which means the damages to your car are covered. Adding on personal injury protection or medical payments coverage to a full-coverage policy will ensure that you and your passengers' injuries are covered. Liability insurance only pays for other drivers' medical bills and property damages.

New York's Minimum Auto Insurance Requirements

Drivers in New York are required to have auto liability coverage, personal injury protection, and uninsured/underinsured bodily injury coverage with specified limits. New York is a no-fault state, which means that drivers file claims through their own insurer, and their own insurance covers some or all of their medical expenses after a car accident, regardless of who's at fault.

How to Get Cheap Auto Insurance in New York

Even though New York has above-average car insurance rates, there are ways to bring down your coverage premiums. Firstly, you can compare car insurance quotes from multiple providers. Secondly, you can apply for car insurance discounts, such as senior or good driver discounts. Thirdly, you can raise your deductible, meaning you'll pay less each month but more if you need to claim. Lastly, you can consider a telematics program, which monitors your driving habits and adjusts coverage rates accordingly.

No-fault insurance is mandatory in New York

The purpose of No-Fault insurance is to restore individuals hurt in auto accidents to health and productivity as swiftly as possible. It is important to note that there is a very short time frame, usually only 30 days from the date of the accident, to file an application for these benefits.

In addition to No-Fault insurance, New York also requires registered motor vehicles to have liability insurance and uninsured motorist coverage. The minimum coverage limits in New York for liability insurance are:

• $25,000 bodily injury liability per person.
• $50,000 bodily injury liability per accident.
• $50,000 liability for death per person.
• $100,000 liability for death per accident.
• $10,000 property damage liability per accident.

For uninsured motorist coverage, the minimum limits are:

• $25,000 bodily injury per person.
• $50,000 bodily injury per accident.

Frequently asked questions