Will New York Car Insurance Ever Be Cheap Again?

When you open your latest car insurance bill to find another rate increase, you might feel frustrated and confused—especially if you've maintained a clean driving record. For Central New York drivers who haven't filed claims or received tickets, these continuous price hikes can seem arbitrary and concerning.

At the Horan insurance agency, we work with multiple carriers across Central New York. Through our carrier relationships, we can share information about insurance rate trends and discuss available coverage options in today's market.

In this article, we'll explore why car insurance rates continue to climb in New York, what this means for your future premiums, and what to consider when making coverage decisions in the current insurance era.

How Insurance Carrier Losses and State Regulations Drive Premium Increases

The reality of car insurance costs in New York mirrors what happened with gas prices years ago. Just as drivers had to accept that gas would never start with a "1" again, New York drivers now face a similar shift with car insurance premiums.

These increases persist regardless of political changes or leadership in Albany, as they're driven by fundamental insurance industry dynamics rather than policy decisions.

Insurance carriers consistently pay out more in claims than they collect in premiums, creating a gap that drives the need for regular rate increases.

The New York State Department of Financial Services limits how much carriers can raise rates each year. When carriers request an 8% increase, they might only receive approval for 4%.

This creates a cycle where carriers continue to seek increases to cover their costs. Unable to get their full requested increases, carriers must return year after year for additional rate hikes to meet their claims obligations.

Also be sure to read: Do Insurance Losses from Disasters in Other States Affect My New York Policy?

What Local Premium Changes Mean for Central New York Drivers

Consider this local example: A typical Central New York policy that cost just over $1,000 annually in 2013 now runs about $2,400—an increase of roughly 125%. This dramatic change shows how the market has shifted in just a decade.

These increases affect drivers across our region:

• Annual premiums of $475 no longer exist in New York
• Current rates that seem high may look attractive in coming years
• Limited coverage now costs what extensive coverage did a decade ago

How Market Changes Force Insurance Carriers to Adapt Their Coverage

The changing market has forced some carriers to make difficult decisions:

• Adirondack Insurance has left the market
• Main Street America Insurance is pulling out
• Carriers who didn't raise rates fast enough couldn't sustain their business

Insurance companies now invest significantly in premium verification to maintain profitability. Many carriers either employ internal teams or hire outside firms to investigate their current policyholders through DMV records. These investigations aim to identify unlisted drivers and capture additional premiums.

Carriers pursue these measures because:

• The risk of losses has increased
• The likelihood of finding lower rates elsewhere has decreased
• The cost of investigations is outweighed by recovered premium
• They view uncaptured premium as revenue leakage they must address

Ways to Consider Managing Your Insurance Costs in Today's Market

While rates continue to rise, various options exist that may affect costs. The New York defensive driver course discount remains unchanged, offering up to 10% savings on certain portions of your policy. While the course takes six hours to complete and costs about $25, the savings may be more significant now that base premiums are higher.

Other considerations for reviewing costs include:

• Evaluating different deductible options
• Reviewing coverage limits
• Asking about available discounts
• Discussing policy updates as market conditions change

How to Approach Car Insurance Decisions Today

Rising insurance costs create uncertainty about future premium increases. You might wonder about maintaining coverage while managing costs in this changing market.

At Horan, we aim to provide information about current market conditions and available insurance options. As an independent agency serving Central New York, we can share information about coverage from multiple carriers to discuss options for your insurance considerations.

Click the Get a Quote button below to learn about current insurance options from our local Central New York insurance agency.