The fact of the matter is, there is no one top insurance company for everyone’s NY auto policies. Insurers can vary widely in overall price and coverage based on the underlying rating factors present for any particular person or household. NY insurance companies tend to differ amongst themselves in the amount of emphasis placed on key rating factors such as credit, driving history, age and multi policy discounts.
Credit As a Rating Factor
Insurer research has shown that credit based consumer reports help to predict future accident potential. These reports are not like the credit scores you get from shopping for a mortgage or a new car, they are insurance based scores and do not affect the person’s personal credit score.
One insurer may give someone with excellent credit a great New York car insurance quote, yet offer the worst pricing option for someone with less than perfect or poor credit.
Driving History As a Rating Factor
A Motor Vehicle Record, or MVR, is ordered for anyone getting car insurance in NY, prior to the issuance of the policy. The MVR includes the accidents you’ve had, moving violations and traffic tickets issued within a set amount of time.
Depending on the number of incidents and their severity, insurers can vary widely in price.
Being one of the most critical rating factors as it pertains to bottom line premium, it can pay dividends to check with several insurance companies if you have negative items on your driving record.
Age As a Rating Factor
Car insurance for young drivers in their teens and early twenties is very expensive whether they get their own policy or are added on to their parent’s policy.
The reason for this is fairly simple. Young drivers lack experience which insurance companies account for in rate. Also, studies show that they are more likely to get into accidents and have more accidents than their older counterparts.
Some insurers try to negate this risk by offering substantial discounts to students with a 3.0 grade average and above. The thought behind this discount is that a student who is responsible with their grades will also be a responsible driver.
Multi Policy Discounts
Although technically not an underlying rating factor for car insurance, multi policy discounts can be significant, especially for those bundling their auto and home policies together with the same company.
With all things being equal, it’s sometimes the insurer that provides the greatest bundle discount that ultimately offers the best cheap NY car insurance when comparing against several companies.
Shop Till You Drop
As you can see, based on the major rating factors along with the weight of emphasis any one insurer may place on that factor, it can really pay off to get your New York car insurance quote from many different companies.
You could shop till you drop or take the easier approach and utilize the services of an independent insurance agency that has access to most or all of the carriers in your region. Let them do the grunt work quoting with the insurers while you lay back and wait on the best deal for you in your area.
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.