Insuring your vehicle in The Empire State is costly, to say the least. According to the Insurance Information Institute (I.I.I.), New Yorkers were paying an average of $1,047 for insurance in 2007, the fourth highest in the nation. If you have nicked driving record and want to insure a sports car, your New York auto insurance rates could be well above that average. Take a peek at a few more factors that affect New York auto insurance rates for a better understanding of why driving in the third most populous U.S. state can sometimes come with a hefty price tag.

Contributors to Your Bills
To drive legally in New York, you must purchase personal injury protection, liability insurance and uninsured motorist coverage. It almost sounds ridiculous to have to carry uninsured motorist coverage when it's a state requirement to be insured. But, there were approximately five percent of people driving without insurance the State of New York in 2007 (latest data available) and the New York Insurance Association (NYIA) believes that number could be around 6.7 percent in 2010. Although New York's percentage of uninsured motorists is among the lowest in the nation, driving without New York auto insurance is a huge risk. If you are hit by an uninsured motorist and you are also uninsured, you could be paying hundreds of thousands of dollars for any resulting injuries or property damage out of your own pocket.

Fraud in a No-Fault System
Personal information like your age, sex, marital status, and credit history will affect your New York auto insurance rates, but the state's no-fault system hasn't helped much either. Inflated bills submitted to insurance companies from dishonest medical providers cost consumers and insurers nearly $230 million in 2009, according to Dr. Robert Hartwig, an economist and president of the I.I.I. As a result, policyholders paid more for their premiums because New York auto insurance providers paid out more than they should in no-fault claims. While officials try to work out the flaws in the no-fault system, policyholders can find more affordable coverage by compiling multiple insurance quotes from competing companies.

Personalized Coverage
Every auto insurance policy is customized to suit the needs and wants of an individual. For example, a person who has just purchased a brand new minivan or SUV to accommodate his growing family will probably have a pricier premium than a person who has been driving the same vehicle for the past 10 years. However, the policyholder's age, sex, marital status, credit history, driving record and the type of insurance he requires will influence rates too. In essence, the person with the older vehicle could pay more if he has a poor credit score and a history of auto accidents.

Nick-Of-Time Savings
Whether you're unhappy with your current policy or you just want to see what other insurance companies have to offer, a free service like LocalInsurance can yank quotes from competing companies in your area to get you the best New York auto insurance rates. Take a few minutes to answer some questions online and you can start saving with quality coverage in no time.

To find more information on the auto insurance requirements in New York, visit these useful links: