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Car insurance in New York is not cheap! In fact car insurance anywhere is not cheap these days, but if you consider that New York is the second largest populated urban area in the world then it is not surprising that it costs so much to insure your car.
The Big Apple isn’t exactly the second most populated city, it comes around # 13 - #14, but it is certainly #2 for an uninterrupted urban area, without any green-field separation. The auto insurance costs reflect that, although there are things that you can do to reduce your premium prices. What we must keep in mind of course is that we are talking New York State here, and not New York City. Each state has its own auto insurance laws, although there are some federal laws that are common to all states.
Very few people drive around New York by choice. They do so because cabs are too expensive, and so too are the subways if they were your only mode of transport. Public transport is not the safest mode of transport, and given all that then let’s just assume that you are going to need a car, and if you have a car then you need to insure it.
The first thing you do then is to look at your state minimum liability cover, and then any other compulsory auto insurance cover that your state demands of you. So what do New York drivers have to pay for, and what options do they then have after purchasing the minimum?
Every state has three specific types of liability cover that you must have in the event of a collision. They are presented in the form A/B/C, A representing the minimum cover to pay the expenses of one person injured in an accident, B represents the minimum for all persons involved in a single accident, and C the cover needed to pay for any property damage, such as the other driver’s car and any private or municipal property damage.For residents of New York State these figures are $25,000/$50,000/$10,000.
What that means is that you must buy new york cheap car insurance to at least these levels. If you feel that is enough, then that is what you have to purchase. However, you might feel that $10,000 is insufficient coverage for property and want to insure yourself for more. Keep in mind that if your insurance cover is not enough, then you are liable to pay the rest yourself. $10,000 is not a lot for another car, especially if it is totalled. You should also check any exclusions that might apply, because you will be liable for these yourself. Your policy might not cover you for:
Bodily injury to yourself or a member of your family. This is a common exclusion, and you generally have to insure yourself separately. If you cause an accident: for example if you accidentally run a red light and hit another vehicle, your insurance will cover medical expenses for the driver and passengers of the other car, and also damage to the other car up to the minimum for your state unless you have taken out extra cover. If you have not taken out enough to cover the total costs, then you have to pay the balance yourself. You will also have to pay your own medical expenses and those of any family members involved, unless you have taken out additional insurance to cover you and your family.
If you are charging people a fee for you to drive them, than you will likely not be covered. If another insured person is involved, your policy might not cover their costs. 
If you are driving a vehicle other than your own, and have not named that vehicle on your policy even though the owner is named on your policy, you will likely not be covered for damage to that vehicle. In each of these cases you are strongly advised to buy sufficient extra auto insurance cover to ensure that you are not faced with a large personal bill.
Residents of New York State must also take out uninsured/underinsured motorist of $25,000 for one person and $50,000 for everybody involved in an accident caused by an uninsured or underinsured driver. This is to pay for medical treatment and other expenses incurred by you, any family member living with you or anybody in the car at the time of the accident.
So you see, purchasing car insurance in New York is not a simple matter, and you have to be aware of the potential costs to you of an accident, and whether or not you have adequate motorists coverage. The important factors are to know New York State’s minimum coverage, understand the exclusions and be aware of the potential costs of an accident involving your car and any passengers in relation to the state minimum.
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