Why Is Car Insurance So Expensive In New York State?
If you’ve moved around at all in your lifetime, you probably know that car insurance prices vary quite a bit depending on your location. One of the most expensive places to get car insurance in the US is New York state. You might expect this, as the cost of living in New York is generally higher than in other parts of the country. However, you might not know exactly what causes your car insurance prices to go up when you’re living and driving in New York. In this article, we’ll dive into what affects car insurance prices in New York, as well as some tips for lowering your premiums.
Why Premiums Are So High In New York
There are a key few reasons why car insurance is so expensive in New York state. New York is home to New York City, as well as several other high-density cities, and that presents certain risks. When companies are determining insurance prices, the main thing they consider is how high their chances are of having to pay out a claim. These are all risk factors that are higher in New York than other places.
- Increased risk of traffic accidents: Because New York is so dense and the traffic is so congested, there’s a much higher risk of you being involved in an accident. Even if you’re a perfect driver, when you are in close proximity to so many cars, your chances of being the accidental target of a distracted driver are much higher. Add on top of that the fact that New Yorkers have a reputation for driving aggressively, and you increase your chances of getting in an accident.
- Higher risk of vandalism and theft: Another reason car insurance companies charge high premiums in New York is because there is a much higher risk of your car getting vandalized, or worse, stolen completely. Since the population density is so high, there’s a much larger chance that you could be the target of a criminal purely by proximity, whereas in rural areas, criminal activity is much more spread out. Additionally, there aren’t many great options for parking in New York City, so you may find that you have to park on the street frequently. This increases the chances of your car being a target. There’s also a higher chance that your car could get damaged by accident – for example, someone scraping the back of your car or accidentally breaking the windows with impact. Higher insurance premiums cover the risk of this happening.
It’s important to keep in mind that New York state not only requires drivers to have basic liability insurance, but also requires that they carry uninsured motorist coverage, personal injury coverage, and property damage coverage. This alone would drive up the price of insurance no matter where you live, but in New York, it makes premiums particularly steep.
Because of the limiting prices of car insurance in New York, many people in the city opt not to have a car and to take public transportation. Even cities upstate like Buffalo have their own public transit systems, and you can take regional trains between cities. Many people find this to be a more viable option than buying car insurance, particularly when the cost of parking your car in New York City is so expensive. Many people have raised the important question of why insurance rates have stayed so high even after crime in the city has dropped drastically, and while insurance companies have not provided a clear answer on this, it is interesting to note.
Keeping Your Insurance Costs Down In New York
If you move to New York, it’s important to be prepared for the fact that your insurance prices will go up, no matter what you do. However, there are certain things you can keep in mind that will help you get a better deal. Here are some key factors.
- If you have a choice of exactly where you live in New York state, look for areas that aren’t as dense. The areas that are packed full with people are much more likely to be subject to high rates. You can even compare insurance prices by zip code online before you decide where to live. Of course, you may be sacrificing some of the conveniences of living in a highly urban area, but you’ll save a lot of money that can go to other things.
- Shop around at different insurance companies, and really take your time when making a decision. Always stay on the hunt for companies that are offering any sort of deal, and make it clear to them that you are shopping around. They’ll definitely want your business as a New York state resident because of the high cost of the base premiums, so they may be willing to help you cut your prices down a bit.
- Keep your driving record as clean as possible. This will help you avoid any further charges that can come as a result of accidents or other infractions on your driving record. It may even help to take a driver’s safety course if you do have a history of accidents.
- Take steps to keep your car safe. One of the best things you can do to keep your premiums down is install anti-theft trackers on your car. This will help reduce your chances of having to file a claim, so it can entice insurers to lower your premiums. Parking in a very safe area, like a covered garage with security, can also help.