ROCHESTER, N.Y. — The price you pay to insure your ride is the topic of this Consumer Alert. Car insurance has increased more than 45 percent since December of 2021. And we’re feeling the pain. According to a recent LendingTree study, Three out of four drivers skip the insurance claim process and just pay for repairs out of pocket if the accident was minor.

Here in New York, your insurance premiums will increase on average about 30% after an
accident. And premiums are already high According to LendingTree, the average annual price for full
coverage in the Empire State is $2030. That’s about $170 a month. So, experts say it may actually
be cheaper in the long-run to pay for that repair out of pocket.

Rob Bhatt/LendingTree insurance analyst: “Usually insurance companies will add this charge to
your rate. They call it a surcharge, and they’ll surcharge you for three years. And your rate goes up.
And if the company was giving you a safe driver discount, you’ll lose that discount. So, it kind of
compounds the increase and that can create a little sticker shock”

Deanna Dewberry, News10NBC: “So, basically with that surcharge you’re paying for that repair yourself?”

Bhatt: “The average insurance in New York goes up about $56 after an at fault accident that causes
more than $2,000 in damage. So, over three years that’s about $2,000 that you’ll be paying in higher
insurance rates.”

But this is important. If the accident does less than $2,000 in damage, here in New York, it’s illegal or
your insurer to charge a surcharge after your first accident. So, when deciding whether to file a
claim, weigh the cost of the repair against the likely cost of your three-year surcharge.

It pays to compare rates of different insurers at least once a year. Click here to compare rates
on LendingTree.

US News has great information if you’re comparing policies, including its listing of the best and
cheapest car insurance companies.

And Forbes Advisor also provides useful information.