Why Is NY Car Insurance Higher Than In Many Other States?

Added: 02/02/2006

Living in New York, is a dilemma in itself with the cost of living and the sales tax. What about NY car insurance? How does it compare to other states? What factors affect the cost of auto insurance in general? These are questions to ask yourself before you begin searching for insurance quotes. You must have the facts in front of you in order to ascertain you’re getting the answers you need.

Anyone who has owned a car in the last ten years knows how much the rates have skyrocketed, and NY car insurance is no different. Any one who lives in an urban area pays higher rates than those in the rural or suburban areas. Why is that? Perhaps it is assumed if you live in the city you do not have the availability of off-street parking, and as a result, your car stands a higher risk of being stolen, vandalized, or hit. Is it fair for those who sell New York auto insurance to be empowered to make that assumption? Unfortunately, the only thing on which they can base their assumption is on statistics, and in New York City, at least, that doesn’t fare well. It’s somewhat difficult to not follow statistics when there are so many cases of auto theft in New York City, and this alone justifies the higher NY car insurance rates. That isn’t to say that other big cities don’t have the same problem with theft and vandalism of autos as New York does, but on the East Coast, New York seems to be the major crime center, close only to perhaps Miami and Philadelphia. When you add the high cost of replacing vehicles to a large number that are stolen, vandalized, or wrecked, your insurance is going to take a beating for it.

Other facts that will affect your insurance rates whether it’s NY car insurance or another state is your driving record. The better your driving record, the lower your insurance rates are going to be, so it stands to reason that in a city like New York where public transportation reigns supreme, drive your car as little as possible. After all, it stands to be statistically correct that the less you drive, the less your chances of being in an accident, and if you have a secure place to store your car, you will reduce the possibility of being vandalized or having your car hit while it is parked. NY car insurance like insurance in any of the other forty nine states is going to be higher for high risk and youthful drivers, so you will be doing yourself a favor by keeping your driving record clean. That doesn’t mean you will never have an accident, but if you exercise caution and observe proper rules of the road, you will not CAUSE an accident, in which case your insurance would not be subject to a surcharge as a result.

Another factor that will affect your NY car insurance rates is your credit record. For some ungodly reason, the insurance companies have convinced the states to allow them to rate insurance based on your credit report. This writer totally disagrees with that analogy which is that people with poor credit records are more likely to file claims. What? I’m going to go push my car into a lake because I can’t make the payments? Of course, there are people who might do that, but the majority of people are smart enough to know they can’t get by with insurance fraud. The sad part is that they have convinced the Insurance Commissioner’s office of various states that they have statistical proof to support this theory. Everyone who has NY car insurance needs to join forces with everyone in the other states and fight this travesty of justice! It’s just another way for the New York auto insurance industry to join forces with the other forty-nine states and get more money out of its already drained policyholders. Until we, the policyholders, stand up and fight for our rights, the insurance industry is going to continue charging us exorbitant rates for no justifiable cause whatsoever.

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