New York – Factors that Affect Auto Insurance Rates


Even though most people in New York City rely on taxis and subways for much of their transportation needs, there are many people in the city and suburbs that own a vehicle and have to deal with the rising costs to insure their car or cars. There are many factors that come into play when determining car insurance rates in New York. Some of them you may already be aware of but others you may be surprised to find out about.

Where you live in New York has as much to do with the cost of your car insurance as the amount of time you are on the road. You may pay less if you live in the suburbs and yet drive more than someone who lives in the city. The amount of people in a small area, the amount of traffic and the addition of a higher crime level are all factors in the cost of car insurance.

Newer vehicles may surprisingly cost less to insure than older vehicles. Older cars may cost less to repair, but newer models are equipped with more preventative extras that will be factored in to your car insurance rates. The addition of anti-lock breaks, anti-theft alarms systems and driver as well as passenger air bags have all gone a long way in bringing rates down through the years.

Find out upfront how your insurance company figures out the cost of replacing your car in the event that it becomes totaled. Using one of three ways to determine its value – quotes from vendors, the standard Blue Book or market research – an insurance company first tries to locate a replacement from within your area. If it has to go outside that area, it will affect your rates.

And when replacing the totaled vehicle, New York requires insurance companies to pay for the sales tax that is based on the value of your car before the accident. If you are replacing your totaled vehicle with a more expensive car, the insurance company is only required to cover the pre-accident taxable value.

If you are looking for a new car, check out the insurance rates before you sign on the dotted line. You may be surprised at the difference in insurance rates. Car insurance companies go by a standard rating system that the public does not have access to. This system gives cars a rating form 3 to 27 based on a comprehensive list of factors. If your car is higher on the list, you are going to pay more to insure the vehicle.

It’s also not a bad idea to get on the internet and find out what the current top cars are that thieves like to break in to. If you are deciding between two different cars, this could be the deal breaker.

Adding a teenage driver to your insurance policy may be something you can’t avoid, but making sure they don’t take your car for a joy ride before they are added will cut down on a possible long road of higher insurance premiums for you and for them.