Whether you’re navigating gridlocked traffic in New York City or driving through the scenic roads around Lake Placid, you need reliable car insurance to stay protected through your journey. But good coverage isn’t always the same as affordable coverage, as New York’s Plymouth Rock customers will soon discover.
What’s Happening?
Plymouth Rock, an insurance provider servicing the East Coast, will be implementing an 8.9% increase in their auto insurance premiums across New York. This adjustment is specifically set to impact renewal business starting on July 20, 2025. For affected consumers, this means that total premiums will increase by $10.4 million, or $212 per policyholder.
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Why Are My Car Insurance Rates Increasing?
It’s natural to wonder why your car insurance rates might go up, especially if your driving record has remained spotless. Here’s a look at some of the common reasons insurers increase premiums:
- Rising Cost of Claims: This is often the biggest driver. The cost to repair vehicles, especially newer models with advanced technology, has been steadily increasing. Supply chain issues can lead to higher prices for parts, and labor costs for skilled mechanics are also on the rise. Additionally, medical costs associated with injuries from accidents continue to climb. When the overall cost of claims paid out by an insurer goes up, they need to adjust premiums to cover these expenses.
- Increased Frequency of Claims: More accidents on the road, whether due to distracted driving, increased traffic, or adverse weather conditions, lead to more claims. A higher volume of claims means more payouts, necessitating rate adjustments.
- Inflation: Like nearly every sector of the economy, the insurance industry is not immune to inflation. The cost of everything, from administrative expenses to the actual dollar amount of settlements, is impacted by inflationary pressures.
- Local and Regional Factors: Your geographic location plays a significant role. If your area experiences a rise in car thefts, vandalism, or even a higher incidence of severe weather events, it can impact the risk profile of drivers in that region, leading to higher rates.
- Changes in Driving Behavior: Broader trends in driving habits, such as increased mileage or riskier behaviors across a population, can influence an insurer’s overall risk assessment and subsequent pricing.
- Fraud: Unfortunately, insurance fraud contributes to higher costs for everyone. Insurers must factor in the potential for fraudulent claims when setting rates.
Taking Control: Strategies to Save on Your Car Insurance
1. Requote Your Current Policy Before Renewal
One of the most immediate actions you can take if you’re a Plymouth Rock policyholder whose renewal falls on or after July 20, 2025, is to contact your agent or the company directly before that date. It’s possible that by requoting your policy even a few days before the new rates are implemented, you might be able to secure your next renewal at the current, lower rate for the upcoming policy term. This is not guaranteed, as policy terms and conditions vary, but it’s a simple step that could lead to significant savings. Don’t delay in making this inquiry.
2. Shop Around, Compare Quotes, and Don’t Be Afraid to Switch
This is perhaps the most powerful tool in your arsenal for finding cheap car insurance in NY. Insurance rates can vary wildly between providers for the exact same coverage. Even if you’ve been with Plymouth Rock for years, it’s always wise to get quotes from multiple carriers.
- Gather Information: Have your current policy details, vehicle information, and driving history readily available.
- Get Multiple Quotes: Use online comparison tools to quickly gather quotes from multiple companies. Aim for at least three to five quotes to get a good sense of the market.
- Compare Apples to Apples: When comparing quotes, ensure you’re looking at identical coverage limits and deductibles. A lower premium might seem appealing, but it could mean less coverage, which isn’t always the best long-term solution.
3. Adjust Your Coverage (Carefully!)
Reviewing your policy’s coverages and deductibles can reveal opportunities for savings, but this requires careful consideration to ensure you remain adequately protected.
- Increase Your Deductible: Your deductible is the amount you pay out-of-pocket before your insurance kicks in for a covered claim. Raising your deductible (e.g., from $500 to $1,000) will almost always lower your premium. However, make sure you have enough in savings to comfortably cover the higher deductible if you need to file a claim.
- Re-evaluate Comprehensive and Collision Coverage: If you have an older vehicle that’s paid off, the cost of comprehensive and collision coverage might outweigh the car’s actual cash value. Consider whether it makes financial sense to continue carrying these coverages.
- Review Liability Limits: While New York has minimum liability requirements, many drivers opt for higher limits for greater protection. Assess your assets and risk tolerance to determine if your current liability limits are still appropriate. Reducing them could lower your premium, but it also means less protection in the event of a serious accident.
4. Explore Discounts You Might Be Missing
Insurance companies offer a wide array of discounts, and you might be eligible for more than you think. Don’t hesitate to ask your current or prospective insurer about these:
- Multi-Policy Discount: Bundling your auto insurance with other policies like homeowners or renters insurance can lead to significant savings.
- Multi-Car Discount: Insuring multiple vehicles on the same policy often results in a discount.
- Good Driver/Accident-Free Discount: Maintaining a clean driving record free of accidents and violations can earn you a discount.
- Defensive Driving Course Discount: In New York, completing a state-approved accident prevention course can qualify you for a discount on certain coverages for three years.
- Good Student Discount: If you have a young driver on your policy who maintains good grades, they might qualify for a discount.
- Vehicle Safety Features: Cars equipped with anti-lock brakes, airbags, anti-theft devices, or daytime running lights often qualify for discounts.
- Low Mileage Discount: If you don’t drive much, you might be eligible for a discount based on your annual mileage.
- Paid-in-Full Discount: Paying your premium annually instead of monthly can often save you money by avoiding installment fees.
- Telematics Programs: Some insurers offer programs that monitor your driving habits (e.g., mileage, braking, acceleration) via an app or device. Safe drivers can often earn discounts through these programs.
Stay Informed, Stay Protected
When it comes to car insurance, rate increases are inevitable. Shopping around every time your policy renews is the best way to ensure you’re always getting the best deal.
Next time, don’t wait until your rates go up. Start tracking your policy for free with Auto Quote Tracker, and we’ll send rate change alerts directly to your inbox.
