What goes into purchasing car insurance in the state of New York? There are many components to understand in order to choose the most affordable plan for you. It is mandatory for every car owner in New York to obtain two types of auto insurance, and have it present when driving.

These forms of insurance  are liability coverage and personal injury protection (no-fault) insurance. Additional types of coverage are also available to protect yourself as a driver, such as comprehensive, collision, gap or umbrella coverage.

Different insurance companies offer different services. To get the coverage you need at a price that fits your preference, it is important to research what is available. When you see your options side-by-side, it is easier to decide which policy is right for you. Fill out a quote to see your options for affordability and great coverage from the most reputable companies in the state. It is important to get informed before you commit to a plan.

New York Auto Insurance Plans

Liability Insurance

Liability insurance works to protect the policy-holder from potential legal charges against them when driving. If someone files a claim or lawsuit for damage to property or causing injuries in a car accident, the insurance company defends their client, pays for the damages, and attempts to resolve the claim. It is a requirement that motor vehicle liability insurance coverage in New York State be at least $10,000 for property damage, $25,000/$50,000 for injury, and $50,000/100,000 for death (NYS DMV, 2012).

Personal Injury Protection/ No-Fault Insurance

In the state of New York, it is illegal to not carry personal injury protection (PIP) insurance. This is also referred to as no-fault insurance. Under this policy, you, your passengers, other drivers and their passengers, pedestrians, and other persons are protected from losing money in a car accident, no matter who was at fault.

If you or anyone else in your vehicle were injured during an accident, this coverage can pay for medical treatment or expenses related to the accident. Personal injury protection insurance is designed for New York residents to return to their regular life and activities (driving included) as soon as possible post-accident.

Purchasing Auto Insurance in New York

All drivers and owners of a motor vehicle must have insurance in the state of New York, or otherwise face fines, charges, and other such legal enforcement that no one wants on their record. Being strictly enforced makes having insurance entirely necessary. Working with the New York State Department of Motor Vehicles, the Insurance Information and Enforcement System (IIES) collects data concerning the insurance status of every registered vehicle owner, and reports it to the DMV. This way, the DMV is informed as to who has insurance, when a new policy has been purchased, and when a driver has renewed or cancelled their plan.

With the IIES in action, there is no getting around the need for insurance as a driver. Your registration is subject to suspension, and significant fines are charged for driving without insurance. It will be much more cost effective to buy an auto insurance plan than to meet the high cost of legal repercussions.

How to Spend Less on Auto Insurance

There are several measures you can take to lower your auto insurance rates in the state of New York. Providing proof of the following when applying for auto insurance can significantly reduce your costs.

  • State authorized accident-prevention courses
  • Higher deductibles
  • Airbags and/or anti-lock brakes or anti-theft devices in your vehicle

Also, insurance companies offer discounts for various reasons, such as good grades for high school students and being a senior citizen. Check with each company to see what their specific discount and benefits may be.