What Factors Determine My Car Insurance Rate in New York?

You’re a safe driver and you know it. You’ve made it through years of traffic, rush hour and even the occasional pothole without an accident. 

However, as a New York driver, you’re likely paying more for auto insurance than many others in the country.

When it comes to car insurance New York is generally an expensive state for car insurance. As a driver, it is important to know what goes into your auto insurance rate so you can make informed decisions about coverage levels and coverage providers.

Some of the factors that contribute to this include the high cost of living and the higher-than-average accident rates in the state, but that’s not all. Let’s break them down.

1. Driver’s Record

Your driving history plays a major role in the cost of your car insurance policy. Do you get speeding tickets? Have accidents on your record? The more violations on your driving record, the higher your premiums will be. 

Similarly, if you have been convicted of DUI (driving under the influence) or DWI (driving while intoxicated), you could see an increase in your car insurance rates. 

2. Age and Gender

Young drivers are more prone to accidents than older drivers are. So if you’re under 25, expect to pay more for coverage. There’s not much you can do about this other than wait until your birthday comes around again.

For example, a 20-year-old male driver living in New York City will probably pay more than a 60-year-old female driver living in the suburbs. The younger male is more likely to be involved in an accident than his older counterpart (statistically speaking), so he will be charged more for coverage.

3. Credit History

Your credit history and financial situation can also play a role in determining your rate. Some companies view people with bad credit as high risk drivers, while others use this information only to determine whether you need to make a deposit on your premiums before you can begin coverage.

4. Type of Car

The type of car you drive also plays an important role in determining your car insurance rate. If you drive an expensive sports car, it will probably cost more to insure than a family four-door sedan. 

And if your vehicle is equipped with fancy gadgets and high-tech features, it might cost even more to repair or replace than an ordinary automobile without such features. So your insurer may charge you more for insurance coverage as well.

Insurance companies prefer cars that have anti-lock brakes, air bags and other safety features. New cars are generally considered less risky than older ones because they have more safety features and better parts availability, so newer cars usually cost less to insure than older ones.

5. The Amount of Your Deductible

The amount you choose to pay as an accident deductible will impact your car insurance premiums. If you’re looking for the cheapest insurance rate, picking a high deductible is the way to go. But keep in mind that if you get into an accident, you’ll need to pay that amount up front before your insurance chips in.

The Bottom Line

As highlighted earlier, New York is regularly ranked among the most expensive states for car insurance. However, there are ways to lower your costs — and it all starts with understanding what goes into your premium

Whether you’re an individual consumer or a business buyer, a basic understanding of the factors that influence your auto insurance rate can help you get more for your money and have more control over your insurance contract.