-
Overview
With so many choices in public transportation in New York City, it's hard to imagine why anyone would have to drive at all. However, driving your own vehicle offers you the convenience of going where you want, when you want. You don't have to worry about catching a bus or taxi cab. However, owning your own vehicle also means that you must carry insurance on that vehicle. Insurance is never cheap, so it's important to make sure you get the best coverage for your dollar.
Cost
Though the average American pays right around $900 in insurance premiums per year, the average New York City resident can expect to pay about $1,300 per year. There are a couple of different reasons that premiums are more expensive in New York than in other parts of the country. Driving records, number of accidents, DWI statistics and number of insurance claims all play a part in insurance premiums for the average resident.
Significance
Most companies offer competitive auto insurance rates. Sometimes if you get a quote from one agency and take it to another agency, they can match the price but offer better coverage. Having your vehicle insured means that you won't have to worry about being sued if you end up in an auto accident.
Types
The laws of New York state require each auto owner to carry Bodily Injury Liability, among other types of insurance. However, there is a limit of $25,000 per person injured on the Bodily Injury Liability. In addition, most insurance policies will pay up to $50,000 per accident for this type of coverage. There is a $10,000 limit on Property Damage Liability; a $50,000 limit on Personal Injury Protection; and a $25,000 or $50,000 limit on Under-insured/Uninsured Motorist Bodily Injury.
Considerations
Though premiums may start out high for New York City residents, there is always the possibility that the premiums can go down. If you maintain a good driving record and do not get into any collisions, it's possible that in time, your insurance rates will decrease. Also, if you are considered a high-risk driver because of too many traffic tickets or because you are under the age of 25, you will most likely pay higher premiums.
Potential
Shop around for the best insurance rate you can get. Even if you are a high-risk driver or you are under the age of 25, there is always the possibility that one agency might offer you a better price than another agency. Sometimes drivers will simply settle on buying insurance from the company that will insure them, but most of the time, they end up getting a raw deal in the form of high premiums.
