The law in the State of New York maintains that you must either purchase an automobile liability insurance policy from an insurer licensed by the New York State Insurance Dept or provide sufficient proof of financial responsibility in least minimum amounts required by the law in order to register your car and obtain license plates.

Mandatory & optional New York auto insurance coverages

Following are the mandatory auto insurance coverages and amount of insurance that must be purchased to satisfy the financial responsibility requirements needed to register your car and obtain license plates

Personal Injury Protection (PIP) - No fault coverage is designed to cover expenses up to $50,000 per person, per accident regardless of who might have been at fault. When you purchase PIP coverage, you will need to select a deductible. You are responsible for paying the deductible amount in the event of an auto insurance claim. The purpose of PIP is to restore individuals hurt in auto accidents to health and productivity as soon as possible. Compensation for medical expenses, loss of wages, loss of services, and a death benefit are PIP benefits.

Liability Insurance - protects you or anyone driving your car, if any other person or third party files a lawsuit alleging that you were negligent or otherwise at fault. This coverage will make payments on your behalf to that injured third-party, in the event your car is involved in an accident that results in serious injury or death to others or damage to their property. The minimum limit of coverage is 25/50/10 where $25,000 per person for injuries caused, up to $50,000 for all, and $10,000 for damage you cause to other's property. The bodily injury minimums are raised to 50/100 should death result from an accident.

Uninsured/Underinsured Motorist Bodily Injury - The limits for this coverage cannot exceed the limits selected for your bodily injury coverage. This mandatory coverage applies only in regard to bodily injury due to accidents occurring in New York State, and does not cover auto body damage to your car or damage to other property. Uninsured/Underinsured Motorist Bodily Injury provides coverage to the policyholder, other drivers covered by the policy, and any passengers. If you're injured in an accident caused by a driver who has no insurance or insufficient coverage, the coverage covers expenses related medical, lost wages, other general damages and injuries sustained in hit-and-run accidents.

Staying safe on the roads of New York

- One of the most important safety devices in your car is a seat belt. Because of this, car owners are given discounts when auto insurance is purchased. So there’s no excuse not to buckle up for safety.

- Talking on a cell phone and driving down the New York roads is against the law, though it's ok to use a hands free device while driving. If you're pulled for driving and dialing, a fine of $100 could be slapped on you. Also any violations of this kind could significantly increase your New York car insurance premiums.

- No matter which state you drive in, make sure you always avoid driving while you're mentally or physically unfit. By doing this you and others around will stay safe.

How to save money on auto insurance?

When shopping for car insurance, check with your insurance company / agent / broker about possible discounts that you could avail of.

Discounts for senior citizens, car pools, low annual mileage and the "good student discount" are offered if drivers meet certain academic requirements. You can also save money with a "multi-car discount" by insuring all your cars with the same insurance company. Driver training discounts are for young drivers who have taken driver's education classes.

Various situations where discounts are generally available are:

- If you take DMV approved accident prevention course, a decrease in premiums can be availed off.

- If your car is equipped with automatic seat belts, air bags, anti-lock braking system or several anti-theft devices you qualify for a discount on your premiums.

- You may reduce your auto insurance costs by raising the deductibles on physical damage coverages or eliminating auto insurance coverages on older vehicles.

Rating Territories

Because of its size and diversity, most insurers divide New York State into over 70 rating territories. So the place where you park and how much you drive your car affects the cost of your insurance. In highly congested urban areas, where there is a greater likelihood of auto insurance losses, rates tend to be higher than for suburban and rural areas. Increasing costs of payments made under auto insurance claims as well as the incidence of fraud, also contribute to premium costs.

Differences in automobile insurance ratings among Insurers

Active competition among auto insurers in the state of New York leads to considerable variation in auto insurance rates. The differences in automobile insurance ratings are based, among other factors, on the specific experience of the particular group of insured a company insures.

Therefore it is always good to obtain quotes from several insurers. Consumers who shop get better value for money than those who lap up the first policy that comes there way.