How to Know You’re Wasting Money for Auto Insurance in New York

How to Know You’re Wasting Money for Auto Insurance in New York

Are you a victim of overpriced auto insurance? Trust us when we tell you you’re not alone. Big companies like State Farm and GEICO continually hit you with catchy ads and it is difficult to see past the corporate glitz and effectively compare rates to find the best deal.

If you have a current auto insurance policy or are shopping for new coverage, you can use this information to find the best rates and possibly find even better coverage. Choosing the best insurance company for you in New York is quite easy. New York vehicle owners just need to know the proper way to compare company rates over the internet.

Discounts are basically free money

Companies that sell car insurance don’t necessarily list every available discount very clearly, so here is a list both well-publicized and the harder-to-find discounts you could be receiving. If you’re not getting every credit you deserve, you are paying more than you should be.

  • Discount for Good Grades – A discount for being a good student can save 20 to 25%. Earning this discount can benefit you well after school through age 25.
  • Low Mileage Discounts – Keeping the miles down could be rewarded with lower rates on the low mileage vehicles.
  • Multi-policy Discount – If you insure your home and vehicles with the same company you could get a discount of 10% to 20% off each policy.
  • Pay Upfront and Save – If you pay your entire premium ahead of time rather than paying monthly you may reduce your total bill.
  • Discount for Life Insurance – Companies who offer life insurance give lower rates if you buy life insurance.
  • Driver’s Ed – Cut your cost by having your teen driver successfully complete driver’s ed class if offered at their school.
  • 55 and Retired – If you’re over the age of 55, you may be able to get a small decrease in premiums.
  • College Student – Kids in college who are attending college without a vehicle on campus may qualify for this discount.
  • Homeowners Discount – Being a homeowner can save you money because maintaining a house requires personal responsibility.
  • Save with a New Car – Buying coverage on a new vehicle is cheaper since new cars are generally safer.

It’s important to understand that most credits do not apply to all coverage premiums. The majority will only reduce the price of certain insurance coverages like comprehensive or collision. So even though they make it sound like adding up those discounts means a free policy, it doesn’t quite work that way.

To choose providers who offer auto insurance discounts in New York, click this money concept

Compare the Market for Auto Insurance in New York

Getting a cheaper price on insurance is not a difficult process. The only requirement is to invest a little time comparing rate quotes from different insurance companies. It is quite easy and can be accomplished in just a few minutes using one of these methods.

  1. The recommended way to compare a lot of rates at once is to use a rate comparison form like this one (opens in new window). This method keeps you from doing separate quotes for each company you want a rate for. One form submission will get you price quotes from multiple companies.
  2. A harder way to find lower rates is to take the time to go to the website for every company you want to comare to complete their respective quote request forms. For sake of this example, let’s assume you want to compare Liberty Mutual, Safeco and Allstate. To get rate quotes you would need to take the time to go to each site to enter your coverage information, and that’s why the first method is more popular.

    For a list of links to companies insuring cars in New York, click here.

It doesn’t matter which method you choose, just compare the exact same coverage limits with each company. If you are comparing different liability limits then you won’t be able to make a fair comparison in New York.

Get Cheaper Rates by Understanding Pricing

Smart consumers have a good feel for the different types of things that come into play when calculating your auto insurance rates. Understanding what controls the rates you pay helps enable you to make changes that could result in much lower annual insurance costs.

  • Proper usage rating affects rates – The more you drive in a year’s time the higher your rates will be. Almost all companies apply a rate determined by how the vehicle is used. Autos used primarily for pleasure use can get a lower rate as compared to vehicles used primarily for driving to work. Double check that your auto insurance policy is rated on the correct driver usage, because it can save money.
  • Don’t get talked into coverage you don’t need – There are many extra bells and whistles that you can get tricked into buying when buying auto insurance. Coverages like rental car reimbursement, accidental death and additional equipment coverage are examples of these. These coverages may sound good initially, but now you might not need them so get rid of them and save.
  • High crash test scores lower rates – Safer cars can get you lower premiums. Safer cars result in less severe injuries and lower injury rates means less money paid by your insurance company and more competitive rates for policyholders.
  • Older drivers pay less – Older insureds are more responsible, statistically cause fewer accidents and are safer drivers. Young drivers have a tendency to be less responsible when behind the wheel and because of this, their auto insurance rates are much higher.
  • Traffic violations increase rates – Your driving record has a huge affect on how much you pay. Even a single speeding ticket may increase your cost by as much as thirty percent. Drivers with clean records tend to pay less for car insurance than their less careful counterparts. Drivers who get dangerous violations such as hit and run, DWI or reckless driving convictions may be required to file a proof of financial responsibility form (SR-22) with the DMV in their state in order to prevent a license revocation.
  • Never go without insurance – Driving your car without having proper coverage is a misdemeanor and your next policy will cost more because you let your coverage have a gap. Not only will you pay more, but being ticketed for driving with no insurance may earn you a hefty fine and possibly a revoked license.
  • More performance means more cost – The performance of the car you own makes a significant difference in determining your rates. Economy passenger vehicles generally have the cheapest insurance rates, but there are many factors that impact the final cost.

A little work can save a LOT of money

Low-cost auto insurance can be bought both online and with local New York insurance agents, so you should compare both to get a complete price analysis. Some insurance providers do not offer you the ability to get quotes online and usually these smaller companies provide coverage only through local independent agents.

Throughout this article, we presented a lot of ways to reduce auto insurance prices online. The key thing to remember is the more quotes you get, the higher the chance of saving money. Consumers could even find that the biggest savings come from an unexpected company. These companies often have lower prices on specific markets than the large multi-state companies such as GEICO and State Farm.

New York insurance comparisons

As you shop your coverage around, it’s not a good idea to skimp on coverage in order to save money. There are a lot of situations where an insured dropped liability coverage limits only to regret at claim time that the few dollars in savings costed them thousands. Your focus should be to buy a smart amount of coverage at the best price.

More New York auto insurance information

Additional detailed information is located at the New York Department of Financial Services website. New York consumers can view a list of available companies, read state legal mandates and laws, and discover disciplinary actions.

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