Car Insurance will endow an individual and associated member's safety, with regards to an automobile accident. is reflecting progressive results in terms of occurrence of accidents. The city boasts to have registered, a declining trend in terms of, motor vehicle accidents in the last few years. Despite this realization, statistics show that insurance rates are still higher. On the contrary, the rate has to be lowered, to encourage people for buying car insurance. Hence, the Car Insurance in creates a paradoxical situation.

Reason for Increasing Auto Insurance Rates :

The reasons cited for a rise in auto insurance rates, can be attributed to the increase in lawsuits. Estimated 35 percent money is spent on lawyers, while claiming the insurance cover, hence increasing the total rate of auto insurance in , New York. Infact, a new law was introduced for increasing the amount of insurance coverage received in fatality, which has given rise to more lawsuits, thereby adding burden on everybody. The number of accidents has reduced, but the rate of insurance has gone up by leaps and bounds. The car insurance cost in New York shows a 36 % increase, within the period of six years counting from 1990 onwards. This sudden increase in rates, has contributed a lot to the Litigation industry and the trial lawyers, who survive on them.

The filings of personal injury accidents law suits, has doubled in New York indicating, that one out of every five car accidents involves lawsuits. The scenario of the automobile industry in , New York portrays that the beneficiaries of the insurance claims are not the policy holders, but the lawyers themselves. Research carried out, while studying the car insurance industry in New York, exhibits that more amount of money is spent on legalities, for getting the insurance claim fulfilled, than on the medical expense incurred during the accident.

Car Insurance Premiums:

Car insurance premium is the amount that a car owner has to pay on his insured automobiles.People have to pay different premiums, depending upon property value and the frequency of the possible risk associated with it. Car insurance companies always ask, for an individual's car driving record and the security features of the vehicle. It depends on the various factors such as number of cars owned, make of car, usual driving distance, and locations frequently visited. Numerous factors are considered, before accounting for the premium amount to be laid on the car owner, by the car insurance company. Various other factors deciding the premium amounts are as stated. The first factor is multiple cars and associated policies, which deal with the immense discounts and offers, reposed depending on the number of cars owned. Model and craft of the car is also considered to fix the premium amount, considering the usage flexibility and proneness to the theft. Cars which are usually high on their safety factor, cost less insurance premium than the vehicles that are readily theft prone. Amount of driving and the relative distance traveled, also plays a significant role in deciding the premium, as frequent driving and long distance travel increases the chances of recurrent accidents. Finally, relative location of the car decides the premium amount, by taking into consideration, the fact of regular accident prone areas and localities. People residing in locality, having higher theft rates and accident cases have to pay huge premium rates.

How can we limit Car Insurance Premiums:

Correct choice of cover: The various insurance covers available are comprehensive insurance, fire or theft insurance and road traffic act insurance. The expenses in repair of cars, partially affect the value of the premium rates. Hence, comprehensive insurance cover is costlier than other two, as it covers each and everything from repairs to self caused damages. An individual needs to be smart enough, to make a proper choice of cover to get effective premium charges.

Make correct choice of car: Car premiums are decided by the rating present on vehicles, concerning their make and type. They are usually rated on a scale of 1 to 20 and having lower rated car, may lead to payment of huge premiums.
Put the limit on drivers: Car driven by limited number of people, cut shorts the risk of probable damage due to careless driving. People, who ascertain themselves as single driver, have to pay less premium rates.

Protect no claim discounts: No claim discounts has a considerable effect on premium amount, as loosing this will cause a definite hazard to an individual. This feature, allows an individual to make two claims in three insurance periods, without loss of NCD. Its initial cost is high, but later it is much beneficial in lowering the premium rates.

Overview:

Number of people meeting the above stated criteria and conditions are few in number. If an individual, formerly knows what all considerations do the car insurance company makes, then the car owner can relatively work in the direction, to lower the cost of premiums laid on their vehicles. People, who are responsible drivers, take proper care of their car and relative safety measures can considerably save on their premium amounts.