Understand the major forces shaping New York’s auto insurance landscape and learn how drivers can secure more favorable policies.
Key Takeaways:
- A rise in accidents and the severity of claims can lead to higher insurance rates.
- Higher medical expenses resulting from auto accidents can drive up insurance premiums.
- Changes in insurance industry practices can also impact auto insurance rates.
When it comes to the number of cars per state, New York is home to far fewer drivers than even places like California, Florida, and Texas.
As such, it would be logical to assume that fewer cars mean fewer accidents and, by association, lower insurance costs.
Unfortunately, the reality, then, doesn’t make logistical sense. New York auto insurance rates are among the highest in the country, with the average premium for full coverage costing $3,916.
There are several factors contributing to this expense. When they’re better understood, New Yorkers can take more informed steps toward studying their individual circumstances and policy arrangements.
Let’s look at some of the driving forces behind New York auto insurance rates and what policyholders can do to make their own premiums a little less expensive.
Increased Accident Claims and Rising Healthcare Costs
Sadly, New York broke records last year for auto accidents. The “best” outcome in such situations is merely a damaged vehicle, but auto repairs are becoming increasingly expensive due to the growing complexity of vehicle construction.
Higher repair bills, then, drive New York auto insurance rates up as a result.
Many of New York’s increasing number of auto accidents are causing serious injuries, leading more drivers and passengers to make claims on auto insurance to help meet medical bills.
At the same time, the cost of healthcare is continuously rising, leading auto insurers to fork out more money for accident settlements.
Those figures are very high here in New York: The median personal injury trial from a car accident settles for $287,628, which is many times higher than the average elsewhere in America.
Then, consider that our state’s healthcare costs are (generally speaking) among the ten highest in the nation, making it more expensive to get medical help.
With all this data, it quickly becomes clear why policies that protect New Yorkers from the financial fallout of auto accidents cost so much.
New York Insurance Industry Changes
A major factor driving evolution in the insurance industry is climate change. New Yorkers are being affected by rising flood-water zones yet can take decisive measures to protect themselves. New York drivers should do the same thing.
Here’s the important thing: Insurers are becoming increasingly reluctant to insure zones threatened by the effects of climate change, and they often put restrictions in place to prevent a rush on coverage if there’s an extreme weather event on the horizon.
Stricter underwriting standards also blend with reduced competition due to climate change, as many insurers pull out of actual or potential disaster zones altogether. With fewer providers, prices climb and are likely to continue doing so.
Comprehensive auto coverage may pay to repair or replace vehicles, minus deductibles, in case of damage by natural causes like water, windborne debris, and hail. However, it’s best not to assume you’re protected as the insurance landscape changes in lockstep with Mother Nature.
Take some time to review your policy and see if your provider has changed how they work due to climate change. You may find your rates increasing due to these developing risks.
Tip to Make New York Auto Insurance More Manageable
Here are some steps New York drivers can take to sharpen their driving skills and keep their insurance premiums as low as possible.
#1: Drive Defensively
Defensive driving means always being aware of the risks you face on the road, including other motorists, bad weather, and road construction. Driving defensively can be more than an attitude; it can also be a qualified skill.
Taking this number 1-voted defensive driving course meets the approval of the NY DMV and is accepted by all insurance carriers. It’s good for three years and can reduce up to four points on your driving record. Type NICRIS5 at checkout to save.
#2: Drive Less
Fewer hours on the road means less chance of accidents. It also means less wear and tear on vehicles, keeping them in better shape and less likely to need repairs.
If you can tolerate fewer hours spent on the road, this could be an effective way to make insurers more confident and lower your premiums.
#3: Ditch the Distractions
Using cell phones or other electronic devices, talking to passengers, working in-car technology, and eating/drinking are all things you shouldn’t be doing while driving.
Not only do they increase your chances of an accident (ultimately making you a worse insurance prospect), but it’s also illegal to use electronic devices while driving in New York.
#4: Explore Available Options and Discounts
Bundling auto insurance with other coverage from your provider, like life insurance and/or home insurance, can ultimately help to make things more affordable.
You might also do the same with multiple cars to save money. Don’t forget to shop around on insurers for the best deals.
Remember that insurers are increasingly making credit score a prime metric in premium costs. A higher credit rating could mean paying less for auto coverage.
Follow best practices for a healthier score and try to avoid low credit pitfalls.
Review Your Auto Insurance Strategy With NICRIS
We’d all love to see New York auto insurance rates go down for a change, but it’s best for drivers to be proactive on their policies in the meantime.
This is much easier with an experienced insurance expert on your side.
The NICRIS team is here for individuals and families looking for insurance or who already have coverage and want to better understand exactly how much protection they’re paying for.
You can get a quote from us for auto or motorcycle coverage by giving us a call, dropping us a note, or visiting our office.