Auto Insurance in New York – What You Need to Know

When purchasing auto insurance in New York, you should know the limits of the policy. In addition, you should know the premiums and discounts. You should also know your credit score in order to get the best deal. Having an insurance policy is an important way to protect yourself in case of an accident or theft. compare auto insurance quotes online

Car insurance limits in New York

If you’re planning to drive in New York State, be sure to read up on the laws concerning car insurance limits. You’ll need to have liability insurance to cover bodily injury and property damage in an accident. This coverage is the minimum required by law. It does not cover the cost of medical care for victims. Experts recommend carrying more liability insurance than the minimum.

While minimum coverage levels are legally mandated, most insurance agents suggest raising them to higher amounts. The reason for this is that minimum coverage amounts in New York are not enough to pay for the damages sustained in a serious accident. In such a case, plaintiffs will have to seek reimbursement from the driver’s personal assets.

Premiums

Premiums for auto insurance in New York are incredibly expensive. In fact, the cost of car insurance in New York City is 20 percent higher than the national average. Premiums vary by geography, with more expensive insurance being required in high-risk areas. And with car insurance costs set to continue rising in New York, the state is soon to be among the most expensive to drive in the country.

Credit score

The state legislature is debating whether or not to ban insurance companies from using credit scores to determine premiums. Research shows that credit scores have a significant impact on insurance rates, especially for people of color and those with poor credit. Moreover, if insurers can accurately predict accident risk, they can provide lower rates.

Credit scores are also used by lenders and credit card issuers to assess your creditworthiness. They predict your likelihood of missing payments, which can affect your interest rate and ability to get a loan. However, the use of credit scores to determine insurance rates is controversial.

Infractions

Having traffic infractions on your driving record can raise the rate on your auto insurance. Even minor violations can raise your premiums by hundreds of dollars a year. Infractions can also affect other discounts that you may qualify for. For example, you may be able to qualify for a Good Driver Discount if you have no tickets in the last five years.

Traffic infractions are a factor in your auto insurance rates in New York. If you have two or more speeding tickets, your premium will likely be higher than the average driver. The severity of the infractions will also affect your premium. On average, New York drivers with two or more speeding tickets pay 21% more than drivers with only one speeding ticket.