What Car Insurance Coverage Do I Need?

Decide how much liability coverage is enough for similar type of drivers.

New York Car Insurance

If you want to drive in New York City, you should have several different types of auto insurance policies. It is very important to understand auto insurance coverage in New York. Of course, you will come across cheap auto insurance New York and full coverage too. Before you finalize on a plan, you must be aware of your area. You should understand how to get discounts and cheap deals. When you look for auto insurance New York, you must compare as many rates as possible. Every neighborhood in New York has a unique premium. And, you can choose premiums from three coverage- and age- groups.

Finding cheap car insurance in NY is an art! That is because there are so many policies to choose from. There are dozens of car insurance types to evaluate and pay for.

New York Car Insurance Rates by ZIP Code & City
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Car Rates in New York

In New York, the average cost of car insurance is 1,759 USD per year. The final quote depends on your neighborhood and driving records. In the State of New York, the following factors play an important role:

  • The frequency and severity of insurance claims in your neighborhood
  • Your overall driving record
  • The type and year of your car
  • Unique variables used by the auto insurance company

A similar coverage can have marked differences between two insurance service providers. This is why you should do ample prep work. Compare as many rates as possible.
If you buy a policy in Manhattan, you will pay 3,146 USD. The same policy can cost 1,160 USD in another city!

According to a recent survey, the difference between six major car insurance providers in New York city is 4,300 USD. The cheapest car insurance provider costs 1,159 USD.

Requirements in New York City

New York City expects drivers to buy minimum car insurance coverage. The state expects drivers to carry a minimum bodily injury liability of 25,000 USD or 50,000 USD. The final amount depends on the car you own. In New York, the minimum property damage liability is 10,000 USD. You must buy an uninsured motorist bodily injury coverage of 25,000 USD or 50,000 USD. Once again, pay close attention to your car’s age, type, and model. New, expensive cars need a coverage of 50,000 USD. You must buy a minimum personal injury protection (PIP) of 50,000 USD.

If you decide to buy the cheapest car insurance in NY, you should have the least amount of support. Here is a simple overview on how simple your coverage can be: all drivers should have the coverage limits of 25-50-10. This coverage takes care of damages and injuries caused by other drivers (and their cars).

PIP is important in NY. Personal injury protection takes care of authorized drivers and passengers. PIP will help you when you hit someone who was driving, walking or biking. In New York, PIP is also known as a no-fault insurance. That is because the coverage doesn’t care about who was at fault. To play safe, you need a PIP coverage of 50,000 USD (at least).

In New York City, you must have an uninsured motorist bodily injury of 25-50 coverage. Here, the insurer should pay at least 25,000 USD and a total of 50,000 USD. Maximum coverage proves to be useful when two or more people are injured during the accident.

It doesn’t cost much to buy full coverage in New York. With a deductible of 500 USD, you should pay 79 USD more a month or 947 USD more a year. With just 70 USD, you can increase your car’s liability limits.

People who buy cheap auto insurance in NY are definitely not safe. if you opt for the state’s cheapest policy, you are signing up for a gamble. To reduce risks and drive safely, you need basic coverage. With basic car insurance NY, you don’t have to worry about minor accidents. Here is a simple example to help you:
You have purchased a new car with bodily injury coverage of 25,000 USD and a property damage coverage of 10,000 USD. Unfortunately, you meet with an accident and the crash is valued at 25,000 USD. And, you have medical expenses worth 45,000 USD. You are not completely covered and are responsible for the accident. In such a situation, you will pay a total of 35,000 USD out-of-pocket.


Experts in New York advise car owners to buy more coverage. You must buy a policy that is more than the legal requirements. If you have assets and savings, you must buy a “good” insurance plan. You need a high liability plan if your worth is:

  • More than 100,000 USD, your insurance plan should cover 250-500-100
  • Less than 50,000 USD, your insurance plan should cover 50-100-50
  • If your car ranges between 50,000 and 100,000 USD, your insurance plan should cover 100-300-100

When you finance or lease a car, the coverage must be at least 100-300-100.

Collision and Comprehensive

Collision and comprehensive coverage are affordable and easy to add to your insurance policy. Collision car insurance in NY pays for damages caused to your car. It covers everything you have caused to your vehicle. On the other hand, comprehensive coverage pays for damages caused by hail, fire, vandalism and animal strikes. If your car is stolen, comprehensive coverage can help you. For collision coverage, you must pay 355 USD a year. And, you must pay 156 USD for comprehensive coverage. Collision and comprehensive coverage are useful in the following cases:

  • If your car is less than 10 years old, you must buy collision and comprehensive coverage.
  • If your car is more than 10 years, choose the collision and comprehensive coverage carefully. Buy these plans only if your car is more than 3000 USD.
  • If you are unable to repair or replace your car after an accident, you must buy collision and comprehensive coverage.
  • Collision and comprehensive coverage will offer more protection! Especially, on top of your policy.

Uninsured and underinsured motorist coverage

The uninsured and underinsured motorist coverage must match with your current liability limits. Both these policies are responsible for paying for damages after an accident. The coverage becomes useful when you are hit by a driver without coverage. The coverage will take care of your medical bills and repairs.

Medical Coverage

As suggested by its name, medical coverage will take care of your medical expenses. If an unfortunate incident happens, the coverage will handle all funeral expenses too. But, you must be covered by MedPay and shouldn’t have caused the accident. The coverage has a maximum limit of 25,000 USD. In New York, medical coverage is optional. That is because PIP would take care of medical expenses.

A major benefit of medical coverage would be the fact that it has no deductibles. Also, it can defray all health care charges.

Laws in New York City

No Fault & PIP

By definition, no-fault means that no one is found guilty after the accident. Anyone insured during the accident will be taken care. The moment your PIP limits are reached, at-fault liability kicks in. No-fault covers the following:

  • Up to 25 USD for replacement
  • Up to 2,000 USD for lost earnings
  • All rehab, medical and other reasonable expenses
  • Death benefit of 2000 USD. You will receive an additional liability death coverage of 50,000 USD.

Points in NY

New York follows a licensed point system to track drivers. When you violate traffic rules and regulations, you will receive points. In 18-months, your license will get suspended if you have 11 points. That is why you should drive safely and maintain a clean record. Though auto insurance companies in NY don’t follow a DMV system, they will review your driving record.

Safety Benefits

Car insurance companies in NY gives amazing discounts to drivers who have safety features in their vehicles. Here are few safety features you must invest on:

  • Factory installed daytime running lamps
  • Anti-lock braking system
  • Passive restraint systems with air bags and automatic seat belts


When you meet or cause an accident, the car insurance company will increase your rates. This is known as a surcharge. Your insurance premiums will increase, especially when you cause property/bodily damage worth 2000 USD.

Speed Limits in New York

Rural Interstates

Cars (MPH) Trucks (MPH)
65 65

Urban Interstates

Except certain designated highways
Cars (MPH) Trucks (MPH)
55 55

Other Limited Access Roads

Cars (MPH) Trucks (MPH)
55 55

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