Why New York Drivers Face High Car Insurance Rates
New York car insurance rates are the third highest in the nation. The average driver pays nearly $1200 a year, and now that a new law is in effect, drivers will be paying even more. New York drivers receive points against them if they are in an accident, or receive a moving violation. The car insurance companies base the rates on how many points the driver has against them. A new cell phone law will increase New York auto insurance for drivers who enjoy talking on the phone while driving.
The state of New York has increased the penalties for motorists who are caught talking on a handheld cell phone while driving. In addition to the $100 fine, the Department of Motor Vehicles will tack two points on the motorist's driving record. The two-point infraction will mean an increase in auto insurance rates for many drivers. New York car insurance providers determine the rates the driver will pay by looking at their driving record and evaluating how many points they have against them. New York auto insurance companies are still determining how to adjust their rating system in light of the new law. This new law follows a previous two-point penalty for texting while driving.
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New York is not the only state that has banned cell phone use while operating a motor vehicle. Currently there are 28 states that have initiated this law. Motorists caught talking or texting on a hand-held device will certainly receive a ticket and most likely an increase in their car insurance rates.
There are several reasons why New York car insurance is so expensive. First, they have immense traffic density, high crime rate and insurance fraud scams. New York motorists pay around $300 more per year for their insurance mainly because of crime. Our failing economy and high gas prices have led to an increase in auto theft, vehicle arson, and a variety of insurance fraud scams. Individuals buy vehicles that they are unable to afford and would rather pay someone to steal it, burn it or wreck it than have their credit destroyed for an automobile they cannot pay for. The result of this is that it costs the insurance companies billions of dollars, resulting in higher insurance rates for everyone.
If you reside in New York and are having trouble paying your automobile insurance, you can expect for things to get worse. As crime rates increase and lawmakers continue to make new laws to crack down on drivers, auto insurance will continue to rise, not only in New York but all across the nation.
