Insurance companies will raise your rates if they pay out more than $300 on any claim. But if you have an accident and don't file a police report, you can settle the accident just between the two of you (as long as neither of you get the car insurance company involved). If you file a police report (required in some states) the accident is entered into a database system that the insurance companies can access. Then the insurance company will process the claim and raise your rates. If you are in a minor accident (I've been in too many fender benders just on the streets here in Manhattan), try to resolve it without involving the car insurance company. I'm no insurance agent, but I think it will always save you money. However, if it is a bigger accident don't hesitate to get the car insurance carrier involved. In New York you never know what will happen.

How are prices for New York Car Insurance calculated?

Each car insurance carrier you contact (either online or on the phone) will look at your level of education, your income level, your occupation, and the zip code where you garage the vehicle regularly. They will also ask about the daily miles, one way, that you commute, and the annual mileage you put on the vehicle.

The less you drive, the safer neighborhood you live in (or at least garage your car in) and the better record you have the cheaper your insurance will be. That's true everywhere, but especially here in NewYork.

Just a note to let any new readers know that this is a blog about insurance in new york. I was born and raised in NYC and have been driving here for 20 years... Car insurance is expensive (and complicated) anywhere, but especially here so I'm trying to put together as much information as I can about NY car insurance.

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Statefarm is the biggest insurance carrier in the country. Millions of people in New York have statefarm insurance. They offer statefarm car insurance, statefarm health insurance, statefarm home insurance and more. Statefarm insurance is huge! They have over 16,000 agents who've sold more than 70 million policies in the United States and millions of policies here in NewYork. One of five insurance policies in the country is sold by statefarm insurance.

To get a comparative insurance quote to Statefarm insurance - please visit our sponsor InsuranceUSA.com.

Statefarm car insurance isn't great car insurance though. Statefarm insurance doesn't really care about you - frankly, you are not in good hands with them. And in NewYork you need insurance that will stand up for you. There are too many crazy and dangerous drivers. Let me tell you what happened with my cousin when he had statefarm car insurance. So my cousin got in a car accident, he had statefarm insurance and so did the other person who hit him. The other car backed into my cousin (right here in nyc) and even though they both had car insurance State farm will not pay a thing. And then told him that if we go to court they will make him pay all their fees as well as the cost of court. Needless to say, my cousin dropped statefarm car insurance and took them to court (winning payment on the claim, but it took 6 months). Get better car insurance!

Alstate insurance is one of the largest insurance carriers in the country and in new york! They have hundreds (thousands?) of agents representing them around the country. The great thing about Alstate car insurance is that you can bundle your auto with your home insurance. This helps you save money. It's also nice (sometime) to deal with people instead of buying online.

To get a comparative insurance quote to Alstate insurance - please visit our sponsor InsuranceUSA.com.

You have to work with a local agent to purchase allstate car insurance in new york. You can't buy it directly from them. Dealing with agents (even alstate agents) is a pain - you have to call, wait for them to call you back, give them your information, have them call you back with questions, etc, etc to finally get your rate and policy set-up. It takes a lot of time, and you end up with a policy that is more expensive than you like. The other issue I have with Allstate car insurance is their claims handling. Living in new york it's essential to have good car insurance - people get into accidents. I had too claims with them and it took forever for them to get my claim processed. Car insurance is supposed to work faster! Allstate works slowly - the first person who was assigned to handle my claim never picked up his phone and didn't return my calls. Eventually I was transferred over to two other people but never informed of either of these transfers. When I called my agent to get it resolved he was rude. It was frustrating!

Here is my next review of a new york car insurance company. Esurance!

Esurance is one of the fastest growing auto insurance carriers in New York. They are popular... Esurance's animated "spokesperson" - "Erin Esurance" - may be part of that. She is a cool animated spy (and loves car insurance apparently). Esurance was founded in 1998, and by 2006 had become the fastest growing auto insurance company in America. It's owned by a much larger insurance company - White Mountains Insurance Group (NYSE: WTM).

To get an insurance quote from Esurance - visit InsuranceUSA.com who works directly with Esurance Car Insurance.

Esurance.com is probably the easiest car insurance site to use in new york or anywhere. They are a new but highly rated insurance company that sells directly to you over the Internet. You will appreciate their 24/7 customer service both online and by phone. They will give you a quote very quickly (I got mine in 60 seconds - wow!), and the prices were not bad. They also provide you with rate comparisons for a few other insurance companies. They might exaggerate a bit on how much they will save you, but they will save something. Overall, they are a new carrier here in New York but so far I like them.

New York, also known as the Empire State, has about 12 million licensed drivers with almost 11 million registered passenger cars and trucks. In order to own and drive a vehicle in NY, NY you must have auto insurance coverage.
Tips for lowering your New York auto insurance include:

Find out what insurance will cost before you buy a car - some cars (like the Audi A6) are more expensive to repair and thus more expensive to insure.

Set deductibles at the highest possible levels.
Inquire with your New York car insurance company about any discounts available, such as multiple-auto or multiple-policy discounts (more details on discounts in an earlier post).

Drive safely - dangerous drivers are more expensive to insure.
Don't drink and drive - a DUI is a big risk for an auto carrier to bear.
Maintain a good payment record.

Comparison shop through an online insurance marketplace such as InsuranceUSA.com.

New York State requires all drivers to carry a minimum amount of car insurance of $25,000 for the driver, $50,000 for bodily injury to all persons, and $10,000 for property damage in any one accident. Mandatory "no-fault" coverage of $50,000 is also required in New York. Many motorists here in NYC carry higher liability limits. You never know what will happen in an accident, and repairs (and damages) can be expensive so I always have a bit more car insurance than is required.

This is a blog for drivers in new york - I was born and raised in NYC and have been driving here for 20 years... Car insurance is amazingly expensive (and complicated) in our great state... So I'm trying to put together as many tips and as much information as I can find about new york car insurance. I'll publish everything I find and everything useful I think of here at newyorkcarinsurance.com.

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Does it matter where I live in New York? Will my car insurance be more expensive if I live in New York city?

Unfortunately, yes. Insurance rates are based upon the company's underlying costs, which include the number of claims and the severity of those claims. The insurance carriers (Geico, AIG, Esurance, etc) divide New York into approximately 70 rating territories to reflect differences in claim costs in those territories and other considerations. Traffic patterns, population, demographics, and varying costs contribute to differences in the cost of insurance. It's not just about your own driving record! For example, if Town A's loss experience is more severe than that of Town B (there are more costly accidents in Town A), then auto premiums in Town A will be higher than those of Town B. Ugh! No matter where you live, car insurance is expensive in new york so I recommend getting a few quotes to make sure you get the lowest auto insurance price...