Tips to Lower Your New York Auto Insurance Costs

Last Updated on October 27, 2020

On average, New York is one of the more expensive states to insure an automobile thanks to the large population and moderate vehicle theft and crash rates. However, just because auto insurance is expensive doesn’t mean that there aren’t some tricks that can save some money and bring those insurance costs down! Below we’ll take a look at seven tips that can help to reduce insurance premiums, keeping that cash in your wallet for other needs.  Start reading from the top, or choose the tip you want to skip directly to below.

lower your car insurance costs in New York

Learn some tips on how you can save money on your car insurance in the state of New York!

Tip #1: Buy a New or Safer Vehicle

The largest cost that an auto insurance company typically has to deal with is paying out claims in the event of an accident. For this reason, insurers will often charge customers higher rates if their car is older or is deemed as less safe than other cars on the road. Drivers with newer automobiles tend to be involved in less-serious crashes so investing in a newer, safer car may be a good idea – both for savings and for preventing injuries.

Tip #2: Maintain a Safe Driving Record

Another excellent tip to squeeze savings and rate reductions out of your auto insurance company is to maintain as clean a driving record as possible. Insurance companies love to provide discounts to those that cost them very little throughout the year and drivers that aren’t getting in accidents or driving recklessly usually see the highest savings. Note that it usually only takes a single accident or major infraction like a DUI to see these savings wiped out, so driving with as much care as possible every time you get behind the wheel is recommended.

Tip #3: Check Insurance Costs for your City or Borough

Car insurance rates tend to fluctuate based on where a customer lives, right down to the ZIP code and intersection level. If you are moving to New York State or you live in New York City and are thinking about making a change, talk to your auto insurance company to determine where the less-expensive areas are to live in.  We obviously don’t expect you to choose where to live based on how much auto insurance costs are there, but still, it is always nice information to know (and it can give you insight as to which neighborhoods are safest)

Tip #4: Move Closer to Work

It might seem a bit of an odd suggestion, but moving closer to the workplace can lead to significant savings on car insurance. Auto insurance companies generally charge higher premiums to those that commute longer distances as they are more likely to be in an accident than those individuals who drive a short distance to work. By living closer to work, you are a lower-risk customer and your auto insurance costs will be reduced accordingly.

In New York City, especially, the commute to work can be miserable. If you move into the city or into an area that is connected to the New York City public transportation (MTA), you can save a lot of money just by taking the subway or bus into work instead of driving!

Tip #5: Bundle Auto Insurance with Other Policies

For those individuals and families that have home insurance, tenant insurance, life insurance or other policies, it might end up paying to see if one insurance company can bundle everything together into a package. Insurers prefer customers that buy additional policies through them, and will typically offer discounts to auto insurance and other policies to earn all of a person’s business. This can be an especially handy bargaining chip during discussions to switch insurance companies as well since insurers will want to win away all of your business from their competitors.

Tip #6: Install a Theft Deterrent or Alarm

In the state of New York, especially in New York City, vandalism and theft are commonplace.  Because of this, nearly all auto insurance companies will offer some form of discount to New York customers that pay for an anti-theft device to be installed in their cars, such as a car alarm, remote ignition disabler or a “Lojack” GPS tracking device. Note that insurers typically require the device to be installed by a professional and not done at home to qualify for a discount.

Tip #7: Leverage Age, Marital and Academic Discounts

Be sure to leverage any demographic discounts that your car insurance company might offer, including those related to age, marital status, being a student and more. Every insurer has a variety of discounts and rebates that they don’t advertise heavily, which means that the onus falls on the customer to find these discounts and take advantage of them.

Tip #8: Avoid Lapses in Coverage

Be sure to maintain continuous insurance coverage as long as you are driving. Driving without some type of insurance coverage is illegal in New York (and all other 49 states). Therefore, you should always be careful not to forget to pay your bill, run out of money to pay your bill, or forget to renew your coverage. If you get caught driving without insurance in a traffic stop, you will be faced with hefty fines and penalties. If you get into an accident without insurance, the consequences will be even worse. To compound matters, you will henceforth be labeled a “high-risk driver” by your insurance company, pushing your insurance premiums through the roof. To keep your auto insurance rates low, never let your insurance coverage lapse.

Tip #9: Improve your Credit Score

Unfair as it may be, auto insurance companies look at your credit score when determining your rates. The worse your credit is, the higher your car insurance premiums will be. The reason for this is that insurers view a low credit score as a risky individual. Actuarial data has shown that consumers with lower credit scores are more likely to file claims and more likely to miss payments. Studies show that drivers who increased their credit score by just one tier were able to save an extra 17% on their annual car insurance costs.

Tip #10: Pay your Coverage Up Front

Most people pay their auto insurance premiums in monthly installments. What they don’t realize is that if they were to pay their premiums up front for the year or six months, they would be able to save some extra money on their premiums. Ask your insurer how much you can save by paying for your whole policy in advance. Sometimes, the price difference is minimal, but sometimes the difference could be hundreds of extra dollars per year in your pocket.

These are just a few tips that can save you a lot of money on your New York car insurance. Here at NewYorkMotorInsurance.com, we are always on the hunt for additional savings for our visitors. To get the latest deals on New York auto insurance, head up to the top of this page and enter your ZIP code in the quick form. We’ll take care of the rest, and you’ll be surprised at just how good the deals are!