OAI Quantifies Cost of Increasing New York Auto Insurance Coverage

Share Article

Online Auto Insurance looked at more than 700 sample premiums provided by the New York Insurance Department to quantify the cost of going from state-required minimum coverages to more than four times the minimum. The site found that the average increase for doing so was only about 25 percent.

A new OnlineAutoInsurance.com analysis of premium data made available by New York insurance regulators shows that significantly increasing coverage levels in that state could cost less than some consumers might assume.

With unemployment levels high and the economy still in a slump, many people are tempted to buy only the minimum coverages required by law in order to get low cost automobile insurance premiums. But because repair costs and other expenses from even minor accidents can quickly add up, that choice could cost them in the long run.

That’s because motorists who are found liable for damages that are more than the amount covered by their policy can face the prospect of paying the remaining debt out of their own wallet.

Minimum Coverages

New York law requires that all policies include at least enough liability coverage to compensate other parties for up to $25,000 for bodily injury to one person, up to $50,000 per accident and up to $10,000 for property damage. (This is often referred to as 25/50/10 coverage.)

Source: http://www.dmv.ny.gov/insurance.htm

Drivers must also carry a minimum of $50,000 in personal injury protection (PIP) coverage and enough uninsured motorist coverage to pay up to $25,000 for bodily injury to one person and $50,000 per accident.

Cost of Increasing Protection

OnlineAutoInsurance.com looked at sample premiums provided by state regulators for a 35-year-old, married male living in downstate New York to quantify how much it would cost to beef up coverage far beyond the minimum required by law.

The site found the average rates for a policy with minimum protection and then the averages for one with 100/300/50 and $100,000 PIP. That’s more than a 300 percent increase in the total amount of financial protection.

But even though such a move means getting more than four times as much insurance coverage, the average premium increase for 13 geographic locations was only about 25 percent.

The average premium for the downstate region for a bare-bones policy was $1,140, according to the rate comparison guide. With the increase to 100/300/50 and $100,000 PIP, the average gets bumped up to $1,425.

OAI advises motorists to get quoted online or to contact their agent to assess how much it would cost to add more coverage to fully protect them financially against a serious accident.

Comparison shopping will help minimize the cost of the increase. While the average cost of increasing protection was only $285, the cost for individuals may be much higher or lower, depending on their personal details and their insurer.

To learn more about this and other safety and coverage issues, readers can go to http://www.onlineautoinsurance.com/low-cost/ where they will find informative resource pages and a helpful rate-comparison generator.


Share article on social media or email:

View article via:

Pdf Print

Contact Author

Gregor McGavin