Purchasing cheap car insurance in New York State (or New York City for that matter) isn’t hard, but before you start looking at the various companies and their rates, there are a few things about NY insurance laws you need to be aware of. Knowing what the law requires will help you understand what kind of coverage you absolutely need, and what constitutes “extras”.

First of all, New York law requires that all registered vehicles carry minimum liability insurance; a per accident minimum of $25,000/50,000 for injury, $50,000/100,000 for death, and $10,000 for property damage. The law also requires the liability coverage to remain in force as long as the vehicle is registered. Unlike many states, license plates issued at the time of registration are not permanent. If insurance coverage lapses, the plates must be returned immediately to the state Dept. of Motor Vehicles.

Another requirement of NY is that liability insurance must be in the same name as the registration. This presents a problem for parents of teen drivers who might be given their first car or purchase one on their own. Children living at home can be carried on a parent’s policy until age twenty-one, but insurance ID cards still must be issued in the child’s name if his name is used on the registration. This may or may not affect premiums, depending on the terms of the individual insurance company.

The last thing to know is that NY car insurance must be provided by an in-state company or an out-of-state company licensed to provide insurance in NY. Insurance carried by out-of-state and unlicensed companies is invalid in NY and will result in a suspended license and registration. This is true even if a resident moves out of state but continues to keep his vehicle registered in NY. Improper insurance coverage could hamper a person’s ability to acquire a driver’s license or registration in his new state.

There are several well-known national companies providing good insurance to NY drivers at a reasonable price. Geico, Progressive, and 21st Century (previously AIG) are the most prominent, offering standard insurance services to most drivers. For the younger driver, and those who have issues (speeding, accidents, DUI, etc.), there are regional and state-wide companies that offer products specifically designed for those issues. Premiums may be higher, but monthly installments are often available to lessen the burden. Just make sure to do your homework before you buy; call, ask questions, visit web sites. The more you know, the better you’ll be at making a good choice.