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How Much Is Car Insurance in New York in 2022?

filling up car insurance form

Whether you’re contemplating a move to New York or are getting a license for the first time, one cost that you need to keep in mind is car insurance. You’re legally required to have car insurance every time you drive in the state, and it’s not worth the risk of driving without it.

We developed this guide to break down everything that you need to know about the different car insurance plans in New York. We also give you a rough idea of how much you can expect to spend and a few ways that you can help keep your rate down!

car and road divider

The Importance of Car Insurance

You need car insurance in New York. Not only is it a smart financial choice because it protects you financially if you get into an accident, but in New York, you’re also legally required to have car insurance if you’re driving.

Without insurance, if you get into an accident, you could be held personally liable for any damages to the other vehicle, property, or person. So, instead of paying out a $500 or $1,000 deductible with insurance, you could be on the hook for hundreds of thousands of dollars in damages.

Without car insurance, one accident can wipe out your entire life savings. Don’t take the risk — when you get on the road, ensure that you have car insurance!

car insurance concept
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How Much Does Car Insurance Cost?

Many factors go into determining your car insurance rate. Car insurance companies consider your location, age, sex, marital status, driving history, the type of vehicle that you’re driving, and much more.

Therefore, it’s hard to say exactly how much you’re going to spend. So, to provide an example, we got a few quotes for a 28-year-old single male living in Rochester, New York. We used an annual mileage of 12,000 and insured a 2018 Ford Explorer. The insurance companies were All State, Geico, and Progressive.

We ran three quotes with each of the three companies. The first we ran with a clean driving record with no incidents. The second we included one at-fault accident in the last 12 months. Next, we ran it with two at-fault accidents in the last 3 years and one speeding ticket.

The results speak for themselves and highlight the importance of getting multiple quotes, since one company might not offer the best rates for every situation.

Insurance Company Clean Driving Record Single Incident Driving Record Multiple Incidents Driving Record
All State $171.00 $171.00 $171.00
Geico $118.78 $175.42 $305.63
Progressive $116.33 $161.33 $229.67

divider 4Pay Per Mile Plans

One interesting way to help keep your car insurance payments down, especially if you live in an area like New York City and don’t drive that much, is a pay-per-mile insurance plan.

Many different companies offer these plans, and if you don’t drive often, they can be far more affordable than typical insurance. It starts with a daily or monthly rate and then has a per-mile rate.

For instance, your daily rate might be $2.00, and then you might have a per-mile rate of 8 cents. That means if you drive a total of 100 miles over 30 days, you’re only paying $68. These plans typically have a daily maximum too, so you won’t spend a fortune just because you had to make a cross-country trip.

However, if you’re driving frequently, these plans can add up. Consider the same previous rates but imagine that you drive 50 miles a day. Instead of $68 for the month, you’re spending $180. The exact mileage rate and daily rate that you’ll pay depend on your specific driving factors and the insurance company that you go with.

Car Insurance
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Additional Costs to Anticipate

Car insurance is often an overlooked expense when you’re considering purchasing another vehicle. Just because you can afford the car payment doesn’t mean you can afford to drive the car.

Even if you already have car insurance, adding another vehicle will up your rate, so you need to ensure that you can afford everything before purchasing a new vehicle.

Even after you get your car insurance, you need to keep in mind that your premium is only one part of the coverage. The other part is your deductible. This is the amount that you will need to pay out before your insurance covers anything.

So, while the lower monthly premium might be nice, it might not be the best financial decision if you can afford the higher deductible.

How Often Should I Get Car Insurance Quotes?

Many insurance companies will up your rate each year and hope that you won’t notice. That’s why we recommend getting new insurance quotes every year. You might just find that your current insurance company is no longer the best deal.

Furthermore, when you reach out to your insurance company to switch, they might offer to lower your rate to keep you as a customer. Either way, you’re spending less on your car insurance, so getting a new quote before renewing your policy is a win!

woman signing insurance documents
Image Credit: Opat Suvi, Shutterstock

Does Car Insurance Cover Rental Cars?

It depends on the policy that you go with. Most cut-rate insurance policies will not cover a rental car. However, many insurance companies will at least offer rental car coverage with your plan.

All of the highlighted quotes included some sort of rental car coverage. For instance, Progressive covered $40 a day for a rental car. Anything over that rate you would be on the hook for, but it will cover anything under that amount.

How to Keep Your Insurance Rates Down

One of the best things that you can do to help lower your insurance rates is to bundle different policies. For example, All State offers a 25% discount on its policy if you bundle it with a homeowner’s policy.

Even if you don’t own a home, you likely need renter’s insurance or something similar. Keeping your coverage all with one company is a great way to lower your overall rates and payments.

You can choose to up your deductible to lower your monthly payment, but if you do end up in an accident, this can end up costing you more in the long run.

But beyond bundling and shopping around, the best thing that you can do to keep your insurance rates down is to avoid accidents and keep a clean driving record. Since a single accident or violation can stay on your record anywhere from 3 to 5 years, one incident can lead to higher rates for quite a while.

car and road divider

Conclusion

Now that you know more about what to expect with car insurance prices in New York, it’s up to you to go out and get a few different quotes for yourself. The good news is that it’s quick and easy to do online, and car insurance companies won’t lock you in simply for getting a quote.

So, shop around, and see how much a different car insurance company might be able to lower your monthly payment without affecting your coverage limits!


Featured Image Credit: Chompoo Suriyo, Shutterstock

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