If you are a driver in New York (or anywhere for that matter), you know how complicated and confusing it can be to file a car accident claim, switch car insurance companies or simply add a person on to your policy. To help make things easier when dealing with your auto insurance company, we have listed some helpful tips for New York car insurance customers below. Understanding these items can not only save you a lot of time and money on your New York auto insurance, but it will also help you be better prepared in the event of a car accident.
1. How your New York car insurance company determines your car's value after it has been declared a "total loss".
When totaling your car, your insurance company's goal is to help you find a new car within the same market. To do this, car insurance companies use three different methods for determining the value of the car declared a total loss, such as:
If the car insurance company is unable to find a car from within your area, they may have to find a replacement car outside your zip code, which can dramatically affect your car's true value. For instance, if you reside in a big city within New York, such as New York City, Buffalo or Syarcuse, then the cost of replacing your car will likely be more expensive then if you lived in a suburb or more rural part of New York.
2. Your car insurance company may be required to pay for sales tax and registration fee for a new car.
New York requires all car insurance companies to pay for sales tax when you replace your totaled car with a new or used car. You must make the request and not assume the car insurance company will pay upfront. The tax will be calculated based on the pre-accident value of your car. If you buy a higher priced car as a replacement, the car insurance company will still go off the original price of the totaled car.
3. Adding a teen to your car insurance policy.
Most insurance companies do not require you to add your teen to your car insurance policy when they are a certain age, only when they receive their license. On the other hand, if you are in a high-risk pool, you may be required to add them when they receive their driver's permit. If you forget to add your licensed teen, and they are involved in a car accident, they will be covered; however, your insurance company may charge you back premiums from the date your teen received a license.
For your New York teen to begin the process of receiving their license, they must complete the following steps:
- Apply for a learner's permit.
- Pass the vision and written based tests.
- Practice driving with a parent or guardian supervisor in the passenger seat.
- Complete a driver education course or a DMV-approved pre-licensing course.
- Pass a road test and receive a junior driver's license.
- Receive their senior driver's license on their 18th birthday.
This process is for first time drivers who are at least 16 years old, but not yet 18. To ensure that the teen driver receives ample time to practice and to offset the number of accidents that involve teen drivers each year, New York has different privileges for each provisional license:
Level One: Learner's Permit
Parent or guardian must sign for the teen's driving permit after proof of residency and social security number has been authenticated. At the time of application, New York teen drivers must also take and pass a vision test and a knowledge test, also known as a written test, in order to receive their Learner's Permit. While driving under their Learner's Permit, teens must be accompanied by a parent, guardian or adult sibling.
Level Two: Limited Junior License
Teens are eligible for the Limited Junior License after they have completed 20 hours of supervised driving with a qualified driver, received their driver education certificate and have passed the DMV's road test. Driving restrictions for junior permits, junior limited licenses, and junior licenses vary depending on which part of New York the teen lives in. To find out the restrictions for your region visit the New York's New Driver Program website.
Level Three: Senior License
If a New York teen driver passes their DMV-approved driver education program before their road test they will be automatically sent their Senior License on their 17th birthday. What if your teen doesn't complete the course before their 17th birthday? No problem. All teens with limited driver's licenses will automatically revert to senior status on their 18th birthday regardless if they completed the education program or not.
To learn more about New York teen driving laws and regulations, please visit the New York DMV.
4. How much does your car model affects your premium.
The auto insurance company premium rating system for cars is on a scale from 3 to 27. The ratings are established by the Insurance Services Office (ISO), and the higher the number of your model, the higher your premium will likely be. These numbers are only available to auto insurance companies - so, no luck trying to find out your car's number before you purchase your car. But you can contact your insurance company for a quote to gain an idea of how much it will cost to cover your new wheels.
5. Paying for someone else's bad driving.
If you loan your car to someone and they end up crashing it, you will have to file a claim with your car insurance company. As a result, you will have to pay your deductible (or any that apply) and your rates could potentially increase your car insurance rate. If your car is taken without permission, you are typically not held liable. If the driver is uninsured and causes damages exceeding your policy limit, the injured party may come after you for medical or property-damage expenses and not your friend.
6. Personal property in your car is not covered by your auto insurance.
Stolen or damaged items from within your car are not covered by your auto insurance policy. Most policies will only cover smaller and less expensive items like CDs, but if you carry more expensive things, you will want to consider adding a rider to your home insurance policy. Keeping photos or video of your items is also a good idea. If something is stolen from your car, you may have to file a claim on your home insurance if you do not have a rider in place.
7. Paying in installments may increase your car insurance.
"Fractional premium" fees are usually charged when you divide your car insurance annual premium into installments. Six month, quarterly or monthly are the typical breakdowns for most insurance companies. Generally, the more you break down your installments, the higher the administrative/fractional premium fees are. Always ask when applying for a new car insurance policy, and see exactly what the fees are for each payment you break down. Make sure to also ask your insurance provider if they offer an alternative way to make payments, such as Automatic Clearing House (ACH) processing, which withdrawals the funds right from your checking account. This may help eliminate processing fees while helping you stick to your budget.
Even though most states typically have similar laws in place for car insurance, they do not typically have similar car insurance rates. That's because New York car insurance rates are influenced by New York's geographic location and its state laws. With that being said, it is always a good idea to shop around and compare the rates of various auto insurance companies. To assist you in the process Insurance.com offers an auto insurance comparison application. Here, you will be able to evaluate multiple rates from best-in-class insurance providers - helping you find the cheapest auto insurance coverage for your budget.