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2 Things You Need To Know About NY Car Insurance

Woman and dog driving in a car.
Want to know where to go to get the best rate on your car insurance? Want to know the major factors insurance companies look at when pricing your policy, and really, the Big Two Factors? Read on to determine if you might be in line to get a lower rate on your auto insurance.

Some helpful tips about NY car insurance that you may not know about.

Getting The Best Price

Most people are familiar with the big brand national insurance companies that advertise on TV, radio, print and online relentlessly. They are all captive insurance companies that have one car insurance product and sell through captive insurance agencies. A captive insurance agency is one which is contracted to work for a single insurance company and is obligated to sell only that insurance company’s policies.

So, are they the best option for you when it comes to your insurance policy’s price? Maybe, but probably not.

Independent agencies on the other hand represent multiple national and regional companies that provide insurance in New York will most likely give you more bang for your buck. Insurance in some ways is like shopping for a car. Would you rather shop at a car dealer that has only one make and model of car, or one with multiple models and multiple features?  An independent agency gives you access to multiple insurers and will do the cost comparison for you while also ensuring the coverage options you need are included with your new policy.

Premium Rating Factors

Driving Record.  Typically plays a biggest role in premium rating for things such as  at-fault accidents and traffic violations like speeding tickets

Your Credit Rating.  Insurance companies use your credit-based insurance score as a major factor in determining your premiums. A credit-based insurance score is a rating based in whole or in part on a consumer’s credit information and plays a huge role in car insurance rating.

Age.  Accident statistics reveal that mature drivers have fewer accidents than less experienced drivers, particularly teenage drivers and drivers under 25 years old.  Rates for young drivers are significantly higher than that of a mature driver. In general, the optimal rating age is between 30 and 65 years of age.

Vehicle Use.  Vehicles used for lengthy commutes to and from work can add to the premium.

Vehicle Mileage.  Overall high yearly mileage can add to the cost for certain insurers, yet many companies now forgo overall mileage as a rating factor unless it’s related to a work commute.

Location.  For those that live in areas where there are higher rates of accidents, theft, and vandalism, rates will be higher.

Gender. Statistically, women tend to get into fewer accidents, have fewer driver-under-the-influence accidents (DUIs) and most importantly have less serious accidents than men. So all other things being equal, women often pay less for auto insurance than their male counterparts.

The Car You Insure. The cost of your car is a major factor in the cost to insure it. Other variables include the likelihood of theft, the cost of repairs, its engine size and the overall safety record of the car. Automobiles with high quality safety equipment often qualify for premium discounts.

Auto Insurance Limits and Coverage. Pertains to the limits  you carry on your liability coverages, personal injury protection, comprehensive and collision coverage and the amount of your deductibles, and the types and amounts of policy options selected such as roadside assistance, rental car reimbursement, glass coverage, and new car replacement.

If your rates have gone up recently and you’re in the market for some NY car insurance quotes for comparison, of all the rating factors, “driving record” and “credit rating” are by far the biggest things that determine if you get a good, great or poor quote back from your agent.

If you have any questions regarding auto, home and business insurance options, please contact us, we’re always glad to help.  The NY Insurance Hub serves Albany, Schenectady, Troy, Latham, Cohoes, Watervliet, Clifton Park, Saratoga Springs, surrounding Capital Region areas and all of New York State from NYC to Buffalo.

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