Why are NYS auto insurance rates so high?

Why are NYS auto insurance rates so high?

I live in NYC, and have taken over my late Dad'-s auto insurance. I was looking up quotes from other insurance companies (currently have Geico), and all the quotes are the same as I pay now, or more. My own license is clean, no accidents, violations, tickets, etc. I just want to know why NYS auto insurance rates are so high?


First, it is not all of NYS, it is NYC specifically. Insurance rates are much lower upstate.Second, the reason is because NYC has many more car thieves that other cities, many more accidents than other cities, and more fraud than most places.


New York State is divided into approximately 70 rating territories to reflect differences in claim costs in those territories. Traffic patterns, population demographics, and the cost of goods and services contribute to insurance cost variations. You are allowed one free guess as to where the highest rated territory is.Source(s):...


rates are high because people have lots of accidents there - everyone's rates in the same area are affected by that fact - your personal driving record is only one factor in the calculationnew cars cost more to insure than old cars - if you r car has a loan on it, you will be required to have collision, which increases the cost, plus newer cars are more expensive, so it costs more to fix them and insure them it's not difficult to understand


There are a bunch of reasons, including but not limited to the regulations the insurance department makes the insurance companies follow. NYS has an insolvency fund which requires heavy payments from any carriers who write policies in NY. They also have a "full tort" system and more lawyers per capita than most states (higher claim payouts). Lastly, NY has the second highest rate of fraud, per capita - more than double California, which has the third highest rate of fraud.Oh, I forgot to add this. NY uses credit scores as a rating factor. If your dad's credit score was significantly better than yours, that would also be reflected in the rates. It's not unexpected, either - most likley dad has his house paid for, and you have a massive mortgage.



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