When shopping for a car in New York, most consumers consider interior comfort, safety features and the sticker price. However, drivers should also consider a vehicle’s insurability before deciding to purchase a specific make and model.
The New York Department of Financial Services (DFS) published a list of difficult-to-insure vehicles, which includes certain sports cars, luxury sedans, electric vehicles and even standard SUVs. You might struggle to get auto insurance if you own one of these vehicles.
What makes a vehicle difficult to insure in New York?
The New York DFS created the difficult-to-insure list based on insurance companies’ willingness to insure specific car makes and models. For the vehicles that appear on the list, insurance carriers have indicated their unwillingness to insure them or will only underwrite coverage under certain circumstances.
New York insurance companies refuse or limit coverage on these vehicles because of their high costs, limited availability of replacement parts, high theft rates and unfavorable loss experiences.
Although the New York difficult-to-insure list does not include data from every insurance company or for every vehicle make and model, it contains underwriting data from many of the biggest car insurance providers in the state.
In addition, some New York insurance companies are unwilling to underwrite car insurance policies for vehicles with specific characteristics.
Some of the most common restrictions include:
- Passenger vans that carry more than 12 people
- Camper vans
- High-value customized cars
- Cars with a high rollover potential
- Cars used for racing
- Limited production makes and models
Find out if your car is on the difficult-to-insure list
Before you lease or purchase a new or used vehicle in New York, you should find out if it appears on the difficult-to-insure list. Otherwise, you could have trouble getting approved for auto insurance, which is required to register your vehicle and legally drive.
The New York DFS difficult-to-insure database is available online. You can use the search feature to find the vehicle brand you’re considering. Then, scan the list of models to see if the one you want is deemed difficult to insure.
Keep in mind that the difficult-to-insure list only includes vehicle makes and models that have been manufactured over the last 10 years. If you want to insure an antique car or a vehicle that’s no longer in production, it’s unlikely that the specific model will show up.
TipThe cars on the difficult-to-insure list are common vehicles. You won’t see exotic or limited edition vehicles, like a Rolls Royce or Lamborghini, listed in the database. The New York DFS explains that very few insurance companies will insure these types of cars due to the high replacement cost value and repair costs, so they should still be considered difficult to insure.
Alternative insurance options for owners of difficult-to-insure vehicles
If you purchase a vehicle that’s difficult to insure, it doesn’t mean you can’t get car insurance in New York. However, you can expect to have a more difficult time finding an insurance company to sell you a policy on the voluntary market. You might need to contact several insurance carriers to find one that will insure your vehicle.
“New York does have an assigned risk option if someone’s driving record or vehicle type prohibits them from securing coverage on the voluntary marketplace,” says Michael Silverman, founder and president of New York-based Silver Lining Insurance Agency.
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What is the New York Automobile Insurance Plan?
The New York Automobile Insurance Plan (NYAIP), also called the Auto Plan, is a good alternative if you’re having trouble getting car insurance for a difficult-to-insure vehicle. This program is intended for drivers who can only qualify for non-standard coverage because of factors like their vehicle make and model, driving record or age.
Through the Auto Plan, you can get all the standard car insurance coverages, including state minimum coverage and full coverage policies, as well as rental car coverage. However, the Auto Plan provides limited physical damage coverage, which is based on the actual cash value (ACV) of your car, up to $50,000.
Auto Plan policies typically cost more than voluntary market policies. You can take advantage of a careful driver discount if you’ve been accident-free and conviction-free for at least one year, and have been a licensed driver for at least four years.
Every car insurance company in New York is required to participate in the NYAIP. You can find a list of certified insurance companies on the New York DFS website. If you need help finding an insurance agency that sells Auto Plan policies, you can contact the NYAIP at 212-943-5100.
If you’re struggling to find auto insurance in New York, it can also be helpful to speak to an agent or broker to learn more about your options.
“New Yorkers who are looking for auto insurance should discuss their coverage needs with a professional insurance representative. For example, certain carriers might not offer coverage on a very expensive car, but some companies will write policies for high-valued vehicles, as well as exotic or classic vehicles,” Silverman says.
Reducing car insurance costs for difficult-to-insure vehicles
For car insurance companies, certain vehicle makes and models are risky to insure due to theft rates, repair costs and other factors. Because of that, insurance companies tend to charge higher rates for difficult-to-insure cars.
Here are some tips for lowering your insurance premium if your vehicle is difficult to insure:
- Bundle your policies: Most insurance companies provide a discount if you bundle multiple insurance policies, like car insurance with home insurance, renters insurance or life insurance.
- Take a defensive driving course: You can often reduce your auto insurance premium by completing an approved defensive driving course.
- Choose higher deductibles: Selecting higher deductibles for policies like collision insurance and comprehensive insurance will lower your monthly premium.
- Maintain a clean driving record: Many insurers give discounts to safe drivers. Maintain a clean driving record by avoiding traffic violations, accidents and insurance claims.
- Shop around: The first car insurance quote you get might not be the cheapest. Compare personalized auto insurance quotes from a few different companies to find the best coverage at the most affordable price.
Final thoughts
The New York DFS has taken a stance against specific vehicles that are difficult to insure based on theft rates, repair costs and other factors.
If you drive a difficult-to-insure vehicle, it can present challenges when purchasing car insurance. The New York Auto Plan is a good alternative for New Yorkers who can’t insure their vehicles through the voluntary marketplace. However, keep in mind that Auto Plan premiums are more expensive and there are limited coverage options.
Additional resources and references
- New York DFS Difficult-to-Insure Vehicle List
- New York Automobile Insurance Plan (NYAIP)
- List of New York auto insurance companies
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