Are New Yorkers Actually Paying $15,851 for Car Insurance?

When you buy a car, you have to factor in the cost of more than just your monthly auto loan payments. You also have to make sure you can afford gas, parking fees (if applicable to you), and maintenance.

And then there's auto insurance. Depending on your situation, that cost could be a huge budget buster.

In fact, rate data from CarInsurance.com finds that New York is the ninth-most expensive state for auto insurance premiums. And you may be shocked to see how much some drivers in the state are shelling out for coverage.

Will insuring a car in New York cost you almost $16,000 a year?

CarInsurance.com reports that the average cost of auto insurance in New York is $2,020 a year. But the highest reported rate in the state is a whopping $15,851. The lowest rate, by contrast, is $468.

You may be wondering how on earth there could be such a huge discrepancy, and how it could possibly be that some drivers in New York are paying close to $16,000 a year to insure their cars. But the answer boils down to the way insurers establish rates.

The cost of your auto insurance will generally hinge on factors that include:

• Your driving record and experience
• Your car's make and model
• Your ZIP code
• The extent to which you use your vehicle

If you have a history of moving violations (such as speeding tickets or accidents), that could easily drive your auto insurance costs up, because insurers will see you as more of a risk. You might also pay more for car insurance by virtue of being an inexperienced driver.

Furthermore, the more expensive your car is, the more it'll cost to replace. So if you buy a $120,000 vehicle, you might pay thousands more to insure it than someone with a $40,000 car.

Meanwhile, insurers will take your ZIP code into account because if you live in an area where there's a lot of crime, it could translate to more risk on your insurer's part. Similarly, you can expect to pay more to insure a car you drive to work every day, whereas you might get a discount if your car isn't used daily, but rather, only on occasion.

How to save money on auto insurance

Even if you're not paying anywhere close to $15,851 for car insurance, it still pays to take steps to save money on it. And one way to do that is to drive safely.

Avoid moving violations that could add points to your license and drive your insurance costs upward. And if you have moving violations on your driving record already, see if your insurer will allow you to take a defensive driving course to reverse some of that damage.

Furthermore, if you're in the market for a new car, consider buying a minimal-frills vehicle rather than an automobile with all of the bells and whistles. Those features may not only result in higher auto loan payments, but also, higher insurance costs.

Finally, if you work from home or otherwise don't drive often, make sure your insurer knows that. Better yet, see if your insurer (or another insurer) offers a pay-per-mile program you can sign up for. This won't automatically be a cheaper bet, because these programs still have you paying a base price for coverage, and from there, you're charged for every mile you drive. But if you truly don't drive much, it's worth looking into.

The reality is that if you're a New Yorker with an average car, you're probably not looking at a $15,851 bill. But even if your auto insurance premium is considerably lower, it still pays to do what you can to whittle it down.