High-Risk Auto Insurance For New York Drivers: Where To Go?

If you're a high-risk driver in New York, you may be wondering where to turn for auto insurance. High-risk drivers are those with a history of traffic violations, accidents, or other factors that increase their likelihood of filing a claim. In New York, high-risk drivers often face higher insurance premiums and may even be denied coverage by some companies. However, there are still options available for those who need it.

One option is to shop around and compare quotes from different insurance providers. Some companies, such as Erie, State Farm, and GEICO, offer more affordable rates for high-risk drivers. It's important to get quotes from multiple insurers to find the best deal. Additionally, you can look into non-standard insurance carriers, which specialize in insuring high-risk drivers. If you're unable to find coverage through these options, you may need to turn to a state-assigned risk pool, such as the New York Automobile Insurance Plan (NYAIP). This program assigns high-risk drivers to insurance companies based on a quota system and provides the minimum required coverages. While NYAIP coverage is typically more expensive, it can be a last resort for those who cannot find coverage elsewhere.

High-risk driver insurance in New York: What you need to know

If you live in New York and have a history of traffic violations or accidents, you may be considered a high-risk driver. A high-risk driver is someone who, according to an insurance company, is more likely to file a claim in the future. In New York, high-risk drivers pay an average of $3,349 annually for car insurance, compared to $2,332 for drivers with a clean record. That's a difference of $1,017, or about 44%.

Who is a high-risk driver?

High-risk drivers are those with a history of serious traffic offenses, such as:

• Drag racing
• Driving under the influence of drugs or alcohol (DUI)
• Driving with a suspended or revoked license
• Reckless driving
• Multiple speeding tickets or at-fault accidents
• Teen drivers with less experience on the road

The cost of high-risk insurance in New York will vary depending on the insurance company and the type and severity of the violation(s) on your driving record. For example, a speeding ticket in New York will typically increase your full coverage insurance rate from $3,697 to $4,036 per year. On the other hand, a DUI conviction may have a more significant impact on your insurance premium and eligibility for coverage.

How to lower your rate if you are a high-risk driver

• Shop around: Compare quotes from multiple insurance companies, as each company uses its own underwriting method, and you may find lower rates with a different insurer.
• Drive an older car: Newer cars are typically more expensive to insure, so opting for an older vehicle with safety features can help you save on rates.
• Improve your credit: In New York, car insurance companies may use credit-based insurance scores when determining your risk level, so improving your credit score may lower your premium.
• Raise your insurance deductible: A higher deductible usually results in a lower insurance rate, but make sure you can afford to pay the deductible if you need to file a claim.

Where to find high-risk insurance in New York

If you're having trouble finding an insurance company that will cover you, you can apply for the New York Automobile Insurance Plan (NYAIP). The NYAIP is a special insurance facility established under New York State law to provide coverage for high-risk drivers who cannot find insurance in the voluntary market. You can contact the NYAIP by calling (212) 943-5100 or visiting their website.

How to find cheap auto insurance as a high-risk driver in New York

Being a high-risk driver in New York can make it challenging to find affordable auto insurance. Still, there are ways to get cheaper coverage. Here are some tips to help you find cheap auto insurance as a high-risk driver in New York:

Shop around for insurance

Compare quotes from different insurance providers to find the best deal. Each company has its own underwriting formula, so you will likely get different quotes from each insurer. You can use online tools or work with a car insurance agent to compare rates.

Consider your coverage needs

Evaluate your liability coverage limits and consider reducing your coverage if possible. Liability insurance includes bodily injury liability, property damage liability, and uninsured motorist coverage. You can choose coverage limits higher than the state minimum, but this will increase your premium. If you have an older car with low value, you might consider reducing or opting out of comprehensive and collision coverage.

Increase your deductible

Raising your deductible can lower your monthly premium. Just make sure the deductible amount is something you can afford to pay if you need to make a claim.

Look for discounts

Many insurance companies offer discounts based on various factors such as a clean driving record, good academic performance for students, taking a defensive driving course, having safety features in your vehicle, or bundling your auto insurance with other types of insurance policies.

Improve your credit score

In New York, insurance companies may use credit-based insurance scores when determining premiums. Improving your credit score may help lower your insurance rate over time.

Consider usage-based insurance

Usage-based insurance (UBI) tracks your driving behavior through a smartphone app or a plug-in device to determine your premium. Safe driving habits can lead to a lower monthly premium with UBI.

Contact the New York Automobile Insurance Plan (NYAIP)

If you are unable to find an insurance company that will sell you a policy, you can apply for coverage through the NYAIP. This is a special insurance facility established by New York State law to provide coverage to high-risk drivers who cannot obtain insurance in the voluntary market.

Other tips

• Choose an older, less expensive vehicle as it may cost less to insure.
• Compare rates from both national and local insurance companies.
• Maintain a good driving record by avoiding accidents, speeding tickets, and other violations.

How to lower your premium as a high-risk driver in New York

High-risk drivers in New York tend to pay higher insurance premiums due to the increased likelihood of filing claims. However, there are several strategies that can help lower your premium. Here are some ways to reduce your car insurance costs if you're a high-risk driver in New York:

• Shop around for insurance providers: Different insurance companies use their own underwriting methods, so you're likely to get varying quotes. Compare multiple quotes to find the most affordable option for your needs.
• Choose an older vehicle: Newer cars are typically more expensive to replace, resulting in higher insurance rates. Opting for an older, safer vehicle can help reduce your premium.
• Improve your credit score: In New York, insurance companies may use credit-based insurance scores to assess a driver's risk. Improving your credit score may lead to a lower premium when your policy is up for renewal.
• Increase your insurance deductible: A higher deductible often results in a lower insurance rate. Just ensure that you can afford to pay the higher deductible in the event of a claim.
• Take a defensive driving course: Some insurance companies offer discounts for drivers who complete a defensive driving course. This can help improve your driving skills and potentially lead to fewer violations and claims.
• Review your coverage: Consider reducing your coverage to the minimum required amount. Remove any optional coverages, such as comprehensive and collision, if you don't need them.
• Seek out discounts: Ask your insurance provider about available discounts, such as those for safe driving, being a good student, or having certain vehicle features like anti-theft devices.
• Bundle your insurance policies: Combining your home and auto insurance policies with the same provider can often lead to significant discounts.
• Improve your driving record: Maintaining a good driving record is crucial. Avoid speeding, accidents, and other driving incidents to prove that you're a less risky driver.

The pros and cons of high-risk driver insurance in New York

High-risk drivers in New York have several options for obtaining car insurance, but it's important to understand the pros and cons of these choices. Here is an analysis of the advantages and disadvantages of high-risk driver insurance in the state of New York.

Pros:

• The New York Automobile Insurance Plan (NYAIP): This plan is specifically designed for high-risk drivers who struggle to find coverage in the voluntary market. NYAIP facilitates insurance for over 90,000 high-risk drivers annually by assigning them to an auto insurance carrier. It ensures that high-risk drivers can obtain the minimum required coverages.
• Alternative Insurance Options: If you don't qualify for NYAIP or prefer other options, there are insurance companies that specialize in insuring high-risk drivers. These companies use "multi-tier" rating programs, where drivers are placed in different rating tiers based on their characteristics and experience. This allows for some flexibility in pricing and coverage.
• Improving Your Record: High-risk driver insurance provides an opportunity to improve your driving record. By focusing on safe driving and taking corrective actions, such as enrolling in a defensive driving course, you can reduce your risk profile over time and eventually transition to the regular insurance market.

Cons:

• Higher Premiums: High-risk driver insurance in New York typically comes with significantly higher premiums than standard policies. This is because insurers consider these drivers more likely to file claims, and the overall loss experience for this group has been consistently worse. The exact increase in premiums will depend on the severity and frequency of violations.
• Limited Choices: High-risk drivers may have limited options when it comes to choosing an insurance provider. Some insurance companies may not be willing to offer coverage to high-risk drivers at all, and those that do may charge substantially higher rates.
• Challenges in Switching: Once enrolled in a high-risk insurance plan, it can be challenging to switch to a different provider or return to the regular market. High-risk drivers may need to stay with their assigned insurer for at least three years before exploring other options.

In conclusion, while high-risk driver insurance in New York can be more expensive and offer fewer choices, it is still possible to find suitable coverage. The NYAIP ensures that high-risk drivers can obtain the minimum required insurance, and there are insurance companies that specialize in this market. By improving their driving records, high-risk drivers can also work towards transitioning to more affordable and flexible insurance options in the future.

The best insurance companies for high-risk drivers in New York

High-risk drivers in New York can find themselves facing higher insurance premiums due to their increased likelihood of filing insurance claims. However, there are still several options for affordable insurance coverage. Here are some of the best insurance companies for high-risk drivers in New York:

Erie

Erie is one of the best options for high-risk drivers in New York, offering affordable rates and a good balance of coverage options. Their average annual policy cost is around $2,210, and they provide coverage for a range of high-risk profiles. They also offer discounts for young drivers who have completed a driver's education course and vehicles with anti-lock brakes.

State Farm

State Farm is the second-best insurance provider for high-risk drivers in New York, scoring 93 out of 100. They offer insurance at an average annual rate of $2,356 for high-risk drivers, which is only 12% more than their rate for drivers with clean records. State Farm provides a range of coverage options, including rideshare insurance, rental and travel reimbursement, and roadside assistance. They also offer discounts for completing a defensive driving course and for students.

New York Automobile Insurance Plan (NYAIP)

If you're unable to find an insurance company that will sell you the coverage you need, the NYAIP is a special insurance facility established under New York State law. It's designed to ensure that high-risk drivers can still obtain the necessary insurance coverage. Premiums for NYAIP coverage are generally higher, but drivers who maintain a clean record for at least one year may be eligible for a "careful driver" discount.

Travelers

While Travelers is not specifically mentioned as an option for high-risk drivers in New York, they are ranked as the best overall car insurance company in 2024 by NerdWallet. They offer a broad range of coverage options and discounts, and they have received fewer customer complaints than expected for auto insurance. Travelers is a large insurance provider and is available nationwide.

Geico

Geico is known for its affordability, with average rates for full coverage insurance being the lowest out of the top insurance companies. They offer a wide variety of discounts and have a robust website and mobile app for customers to manage their policies. Geico also offers two ways to obtain accident forgiveness, which can be beneficial for high-risk drivers.

High-risk drivers in New York have a range of insurance options available to them, and it's important to shop around and compare quotes to find the best rate and coverage for their needs. It's also worth noting that rates can vary based on individual factors such as age, vehicle, and driving record, so be sure to get personalized quotes to find the most accurate information.

Frequently asked questions