Teenage Drivers And Auto Insurance In New York: Balancing Cost And Coverage – Do you feel like your car insurance bill keeps rising? In New York, yes. The average New Yorker’s spending on auto insurance has risen by $570 a year since 1989, according to the Consumer Federation of America.

To help you save money, we analyzed New York car insurance rates from 10 major insurers to find the cheapest insurance companies.

Teenage Drivers And Auto Insurance In New York: Balancing Cost And Coverage

Teenage Drivers And Auto Insurance In New York: Balancing Cost And Coverage

Geico, USAA and Hanover offer the cheapest rates for good drivers in New York of the companies we reviewed. (USAA is only open to people with military affiliations, such as active duty military members, veterans and their families.)

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USAA and Hanover offer the best rates for New York City drivers with speeding tickets among the companies we analyzed.

In New York, a speeding citation adds 3 to 11 points to your driving record. For example, going 1 to 10 mph over the speed limit adds 3 points. Exceeding the limit by more than 40 mph adds 11 points. If you get 6 or more points in 18 months, you will have to pay New York’s Driver Responsibility Assessment fee of at least $100. And your insurance rates will likely increase once your insurer sees the ticket.

A speeding ticket will remain on your record after three years until the end of the calendar year.

Hanover and USAA again come out as the cheapest bets for New York drivers, this time for the drivers who caused the accident.

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An accident will remain on your record in New York after three years until the end of the calendar year. And if you don’t have accident waiver insurance, your rates will probably go back up when you recover after an accident.

If you are booked for an offense related to the accident, you can get points on your driving record. For example, running a red light results in 3 points.

Bad credit will increase your car insurance rate more than a speeding ticket or an accident. With the sky-high rates New York has for drivers with bad credit, it’s especially important to compare rates between multiple companies.

Teenage Drivers And Auto Insurance In New York: Balancing Cost And Coverage

If you have to add a juvenile driver to your policy, expect an increase of more than $1,000 per year. Allstate and New York Central Mutual have the lowest increases in New York in our analysis.

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The minimum required auto insurance in New York can be under $1,000 per year, but be aware of the trade-off: if you cause an accident, you may be sued for what your insurance doesn’t cover.

New York is a no-fault insurance state. This means that you make most of your personal injury claims on your own insurance. To do this, New York car owners must purchase Basic Personal Injury Protection (PIP) with $50,000 in coverage.

PIP pays for your “economic” damages after a car accident, regardless of who caused it. This includes medical bills, 80% of lost wages due to the accident, and up to $25 per day for other necessary injury-related expenses, such as transportation. In addition to the $50,000 in basic PIP, there is also a $2,000 death benefit.

When you buy PIP for your car in New York, it covers injuries to the driver and all passengers in your vehicle. Your PIP also covers pedestrians who are injured by your vehicle.

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New York also requires liability insurance for personal injury and property damage. So if you are sued by someone who has “serious” injuries as defined by New York law, your liability insurance will pay for your legal defense and judgment (up to your policy limits). Liability insurance also pays for property damage you cause to others, such as mowing someone’s fence.

New York also requires uninsured motorist (UM) coverage. UM in New York only pays for injuries, not car damage. You can use UM coverage if you are hit by an uninsured motorist or injured in a hit-and-run.

The minimum required UM is the amount that corresponds to your liability limits, such as 25/50 or $25,000 per person and $50,000 per accident.

Teenage Drivers And Auto Insurance In New York: Balancing Cost And Coverage

It only covers New York accidents, but you can add an endorsement to extend your UM coverage to out-of-state accidents.

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An unusual twist in New York is the availability of “supplemental spousal liability” insurance. This gives you liability coverage under your own auto insurance if you cause serious injury or death to your spouse in a car accident.

Basically, this coverage applies if your own spouse sues you for economic loss (such as medical bills) and pain and suffering if you were negligent and caused them serious injury in a car accident.

Normally, you cannot sue a spouse who has the same policy because you cannot be liable to yourself.

Buying only the types of New York auto insurance you want will leave you with a big gap: your own vehicle. What if you lean against the railing or back into the post? What if you drive through a large puddle and realize it’s actually 2 feet deep after your car stops? What if your car gets stolen and you never see it again?

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For these and other issues, you want collision and comprehensive coverage. They also cover damage caused by fire, vandalism, falling objects and collisions with animals such as deer.

Comprehensive car insurance can come in handy more than you might think. Animal accidents have been on the rise in New York over the past five years, according to a recent analysis by AAA Northeast. The analysis found 36,445 animal crashes in New York State since 2019, a 10% increase from 2018. That’s one crash every 15 minutes.

But comprehensive insurance may not be the only coverage that comes into consideration if you run over a doe or other animal on the road. Your PIP insurance can be just as important. That’s because 1,778 animal crashes in New York State resulted in passenger injuries, including 12 deaths.

Teenage Drivers And Auto Insurance In New York: Balancing Cost And Coverage

October through December are the worst months for collisions with animals, and deer can cause the most injuries and damage due to their size and weight.

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If you have high income and assets, you should consider adding at least $1 million in umbrella insurance. It provides an additional layer of liability coverage beyond auto and home insurance.

If you’re facing an expensive lawsuit against you because of a car accident or incident covered by your homeowners insurance, umbrella insurance protects your finances by paying court judgments and settlements after you’ve maxed out your base policy up to your umbrella policy limit.

New York allows you to submit proof of car insurance from a cell phone. If you can’t access your insurance card on your phone through your insurer’s app, keep a paper copy on you or in your vehicle.

New York City drivers pay an average of $1,302 a year for car insurance, which includes people who choose only required coverage and those who buy high limits. Here are the average premiums for common types of coverage.

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Insurance companies use many factors to calculate rates. It is important to shop around as rates can vary widely between insurers for the same cover. Your past insurance claims, driving records, vehicle model and more are used to calculate the price. In New York, companies can also take advantage of these factors.

According to the Insurance Research Council, about 6.1% of New York drivers have no auto insurance. It’s the second lowest uninsured rate in the nation, after Maine.

If you are caught driving without mandatory car insurance in New York, you can be fined between $150 and $1,500 and/or jailed for up to 15 days. You may also pay a civil penalty.

Teenage Drivers And Auto Insurance In New York: Balancing Cost And Coverage

Geico is by far the largest insurance company in New York, holding nearly a third of the private car insurance market in New York. By comparison, nationally, Geico has about 14% market share.

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The New York Department of Financial Services is responsible for overseeing insurance companies in the state. If you have a problem with your insurance company that you cannot resolve, the insurance department can help you or you can file a complaint.

To find the cheapest auto insurance companies in New York, we used average rates from Quadrant Information Services, a provider of insurance data and analytics. Adirondack, Allstate, Erie, Geico, Hanover, New York Central Mutual, Progressive, State Farm, Travelers and USAA were rated for New York.

The views and opinions expressed herein are those of the author and do not necessarily reflect the views and opinions of , Inc.

Forbes Advisor is the trusted destination for unbiased personal finance advice, news and reviews dedicated to making smart financial decisions easier.

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Teenage Drivers And Auto Insurance In New York: Balancing Cost And Coverage

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