Reader’s Question:

Why is insurance for SUV expensive?

Lou

New York, NY

The latest data provided by the National Association of Insurance Commissioners (NAIC) reports that resident motorists of New York had to pay a whopping $1,083 for their vehicle insurance in 2006. This means that New Yorkers fall under the fourth rank among those who pay the highest vehicle insurance premiums. And since rates have not lowered since, we need to understand why this is so. Aside from the fact that insurance requirements are quite high in this state because it follows the no-fault law, the density of traffic in this highly urban state is much higher than in other places and because of that, the potential for more accidents is greater. Urbanized areas have a much higher incidence of insurance fraud and vehicle theft. All these, coupled with hefty statutory taxes make insurance in New York a very costly expense. And when the type of vehicle you wish to insure is one of those high-priced, difficult to maintain types, then you will surely have to pay a bundle on your premiums. This is the case with insurance for SUV. However, there are surefire ways to obtain relatively cheaper rates on your insurance for SUV. If the vehicle is fitted with several safety features, then do not forget to mention this to your insurance agent. This way, you get to pocket considerable savings on your Collision and Comprehensive Insurance. And to be guaranteed that you are paying the most reasonable rate on your insurance for SUV, then shop for quotes from different insurance providers.