Cheap Car Insurance In New York For 2022


WRITTEN BY: Julia Matseikovich

UPDATED: NOVEMBER 17, 2022 | 1 MIN READ

Home to New York City and millions of residents, New York State is the fourth-largest state in the country. It’s also known as one of the most expensive states for car insurance. We’re here to explain the ins and outs of New York car insurance, how to get it, and how to save. 

Best New York Car Insurance Companies

It would be best to look only for New York insurers who rank high in reliability, affordability, and customer service. We saved you time by looking through all the companies to determine the best companies for car insurance in New York.

Cheapest New York Car Insurance Company

Car insurance in New York State is expensive, with residents paying the third-highest rates in the country. Shopping around can help you find the most affordable vehicle insurance rates New York offers. Progressive is the cheapest, with average monthly rates of $61 for minimum liability insurance. 

Company With the Best Customer Service

JD Power, a leading market research firm, rates car insurance companies and recognizes the leaders in the industry. For the second year in a row, State Farm ranks number one among insurers in New York State. The agency scores 859 out of 1000, the highest of any New York car insurance company. 

Company With the Best Premium-Reducing Programs

New York State residents who want to save on their car insurance rates should consider Progressive. Progressive offers multiple discounts on top of their existing affordable rates. For instance, Progressive helps you save with a driving-based discount when you install their Snapshot tool, and you can save up to 10% just for being a homeowner. 

Company With the Best Discounts

Progressive is the best choice again for residents of New York. Bundling your home and auto insurance from Progressive offers savings of up to 20%. You may save even more when you bundle your New York auto insurance policy with your home, boat, or RV insurance. 

New York Insurance Demographics

New York is densely-populated, and with a high average income, many expensive vehicles are on the road. The risk of theft or vandalism is high, especially in New York City and Buffalo. These factors contribute to the higher car insurance rates New York residents pay.

  • Crime Rates: New York is fifth in property crime, but the state’s overall crime rate is low.
  • Average Household Income: The average household income for New York is $96,333. 
  • Median Age Range: The median age for residents of New York is 39 and 63% of New York residents are 18-64.
  • Education: New York State’s population features 20.92% with a Bachelor’s degree. 

Common Risk Factors In New York

New York car insurance rates depend on several risk factors. New York is susceptible to flooding, hurricanes, and severe winter weather, all of which cause havoc on roads and damage vehicles. The probability of vehicle theft or vandalism is also high throughout New York.

Auto Insurance Laws In New York

New York features different car insurance requirements than other states. In addition to minimum car insurance, New York also requires Personal Injury Protection Insurance (PIP) and Uninsured Motorist coverage. The New York car insurance mandates are higher than in other areas.

What are the minimum car insurance requirements in New York?

Drivers who want to operate a vehicle in New York must meet the minimum car insurance requirements of $10,000 for property damage per accident, $25,000 for bodily injury, and $50,000 for death per person in an accident. In addition, they must have $50,000 for bodily injury and $100,000 for all people in an accident. 

Am I required to carry uninsured motorist coverage in New York?

Yes. New York vehicle insurance must include $25,000 of Uninsured Motorist coverage. 

New York SR-22 policies

The state of New York doesn’t require an SR-22 if you’re a NY resident. If you move from a state that requires an SR-22 with a driving violation, New York will need an SR-22 before you’re allowed on the road. An SR-22 certificate stating you have the minimum car insurance New York requires

Is New York a no-fault state?

Yes. New York is a no-fault state, meaning if you’re in an accident, you use your insurance company to cover damages, and the other driver uses theirs. 

What happens if my vehicle isn’t properly insured in New York?

New York Department of Motor Vehicles (DMV) may fine you, suspend your registration, and temporarily suspend your license if your vehicle lacks proper insurance. 

Does New York accept digital insurance cards?

Yes, as of 2015, New York State residents can show a digital insurance card as proof of insurance.

How Much Does Car Insurance In New York Cost?

The average annual cost for minimum car insurance in New York is $1,085, and $2,996 for full coverage. Healthcare, driving population, and the probability of damage due to weather, high prices, and weather, especially hurricanes and winter storms. Areas outside New York City offer some of the highest and lowest rates. Even just venturing 100 miles can give you a much higher car insurance rate for New York drivers. 

Average Cost of Car Insurance By City

New York City may be the city that never sleeps, but it features a lower car insurance rate than other parts of the state. Hempstead, near Long Island, has an average annual rate of $3,455 a year, considerably higher than New York City. Tourist destinations Buffalo and Oyster Bay aren’t far behind.

CityAverage New York Car Insurance Cost
Buffalo$2,085
Hempstead$3,455
Islip$2,690
New York$1,590
Oyster Bay$2,690

Average Cost of Car Insurance By Company

Where you shop influences your car insurance rate in New York State. Your rate will vary, but Progressive offers some of the lowest rates, while Allstate is one of the pricier companies. 

Car Insurance CompanyAverage Full-Coverage Premium (Annually)
Allstate$3,125
GEICO$2,275
Progressive$1,775
State Farm$3,070

Average Cost of Car Insurance By Age

New York drivers under 18 will pay much higher rates than their older counterparts. These inexperienced drivers have over $4,500 until they reach age 20 when their New York car insurance rates gradually decrease.

AgeAverage Full-Coverage Premium (Annually)
Age 16$6,280
Age 18$5,585
Age 20$4,440
Age 25$3,510
Age 30$1,440
Age 40$1,395
Age 50$1,350
Age 60$2,765
Age 70$3,050

Average Cost of Car Insurance By Gender

New York residents’ rates vary slightly by gender when shopping for car insurance. 

GenderAverage Full-Coverage Premium (Annually)
Male$1,445
Female$1,470

Average Cost of Car Insurance By Credit Score

A decent credit score influences your chance of a lower premium for car insurance in New York. Insurance agencies consider drivers with low credit scores at a higher risk for claims and charge higher premiums to mitigate costs. 

Credit ScoreAverage Premium (Annually)
Poor$2,875
Fair$2,280
Good$1,835
Very Good$1,515
Great$1,305

Average Cost of Car Insurance By Driving Record

The cleaner your driving record, the better your car insurance rate will be. If you have a driving violation, such as a DUI or speeding ticket, the cost of your car insurance rate in New York increases significantly. 

Driving IncidentAverage Full-Coverage Premium (Annually)% Increase In Average Full-Coverage Premium
Speeding Ticket Conviction$3,24584%
At-Fault Accident$3,24085%
DUI$5,310200%

What Optional Insurance Coverages Should You Consider?

New York’s car insurance requirements are lengthy, but consider these options if you want full coverage.

  • Collision: If you collide with another car or object, this coverage reimburses your expenses paid for damages. 
  • Medical Payments: When you’re in an accident, Medical Payments coverage covers medical bills for you and your passengers or funeral costs in the event of a fatality. 
  • Optional Basic Economic Loss (OBEL):  New York State increased the maximum loss of income to $2,000 monthly from the previous $1,000 from a no-fault accident. OBEL adds at least $25,000 worth of coverage to your limit.
  • Supplementary Uninsured Motorist: New York requires uninsured motorist coverage, and this additional policy helps cover more of your bills if you’re in an accident with an uninsured driver. 

What Auto Insurance Discounts To Look For In New York

New York discounts are plentiful if you want to save on car insurance. Multiple insurers offer savings with discounts for anti-theft devices, safety features, and a good driver discount.

You may save on your policy if you take a defensive driving course. Some insurance companies in New York feature usage-based discounts where you can lower your premium based on your driving habits.

FAQs

Is New York car insurance expensive?

New York car insurance is expensive. The state is one of the most expensive states in the country for auto insurance policies. 

How much is monthly insurance in New York?

Minimum car insurance in NY is $1,085 yearly, while full coverage is $2,996 annually.

Is car insurance required in NY?

Yes. New York requires car insurance to operate or register a car in the state. You must also follow their minimum insurance, PIP, and Uninsured Motorist coverage requirements.

How much is car insurance in NY for a first-time driver?

A teenage driver can expect to pay $4,200 to $5,500 yearly for car insurance.

How much insurance do I need in NY?

New York has lengthy car insurance requirements, including $10,000 for property damage per accident, $25,000 for bodily injury, and $50,000 for a death per person in an accident. In addition, they must have $50,000 for bodily injury and $100,000 for all people in an accident. 

How To Purchase Affordable Car Insurance In New York 

It’s easy to buy car insurance in New York. First, you should look at the carriers available, including Progressive and State Farm. Make sure you have a policy that meets the state requirements and your budget. Don’t forget to look for applicable discounts and use our online quote tool to shop for your best car insurance rates online.