No, car insurance in New York is not cheaper than the national average cost of car insurance. The average cost of car insurance in New York is $152 per month, or $1,828 per year, which is more expensive than the national average of $60 per month.
However, you can still find cheap coverage by comparing quotes and taking advantage of discounts. To help you get started, here are some of the cheapest car insurance companies in New York.
Car insurance in New York is expensive because it's a no-fault state with a high rate of insurance fraud. In New York, you can expect to pay approximately $4,451 per year for full coverage car insurance or $1,828 per year for minimum coverage. Car insurance in New York is more expensive than the national average, which is around $2,000 annually for … read full answerfull coverage and about $700 per year for minimum coverage.
The cost of car insurance is steadily increasing, too, both in New York and nationwide. As the cost of providing insurance goes up, the premiums insurers charge also rise. All insured drivers share the increasing cost of insurance. That is why your rates tend to go up every time your policy is renewed, regardless of whether any individual factors—like your driving record or location—have changed.
There are several unique reasons why car insurance goes up every year in New York, too, even if your details remain the same.
Top Reasons Car Insurance Is Expensive in New York
People in New York are driving more. As a result, the number of accidents, claims, and payouts is rising, too. For example, there were approximately 981 fatal crashes in 2016 in New York, versus 980 fatal crashes in 2014.
Auto repairs are getting more expensive. Vehicles today cost more to repair due to the added technology and features. For example, a National Association of Insurance Commissioners study found that the average cost of vehicle repairs was around 8% higher in 2018 than it was in 2014.
People in New York drive uninsured. As the cost of car insurance continues to rise, more drivers take the risk of driving without car insurance. In 2019, 4% of drivers lacked even minimum liability insurance in New York. The cost of uninsured drivers is passed on to consumers through higher premiums.
Healthcare in New York is getting more expensive. Car insurance companies are hit hardest when paying out claims involving medical bills, and it’s not getting any cheaper. Healthcare spending increases by an average of 4% every year in New York.
New York is experiencing more severe weather. In New York, weather events like severe storms, serious winter weather, and tropical cyclones are becoming increasingly common. These weather events cause insurers to pay out a higher number of claims, which tend to be more expensive and less predictable. As a result, they have to raise rates to keep pace.
However, there could be other issues elevating your rates.
If your driving record is clean and your rates are still high, your car insurance might be expensive because of your:
Age. Drivers under 25 and older than 65 pay more for auto coverage because they are statistically more likely to be involved in serious and fatal accidents. In New York, 16-year-old drivers pay an average of $7,305, 25-year-old drivers pay an average of $2,181, and people over 65 pay an average of $1,909.
Location and driving patterns. Population-dense cities have higher premiums than rural areas because city living usually means more accidents, more property crime, and more frequent claims. In New York, the most expensive locations for insurance are Brooklyn, Queens Village, and Bronx. You can also expect rates to change based on your driving patterns—long commutes or regular driving in high-risk areas can cost you.
Financial responsibility. In New York, drivers with no credit pay 116% more on their premiums than drivers with excellent credit. You can also demonstrate financial responsibility by maintaining minimum car insurance with no gaps in coverage. Letting your coverage lapse could result in a higher rate when you get your next policy.
Claims history. Numerous recent claims can drive up your premiums. That's one reason why it sometimes makes sense to pay out of pocket rather than file a claim, especially if a claim won’t get you much more than your deductible.
How to Get Cheaper Car Insurance in New York
Multiple factors affect the cost of car insurance. Some things you can’t control, but you do have a say in most of the contributing factors. Driving safely, obeying traffic laws, and keeping a clean driving record are the best ways to keep your insurance costs down.
Other than that, the best way to lower your car insurance costs is to compare rates from at least three insurance companies. Ideally, you should check your rates every 6-12 months, when you renew your policy. But at a minimum, be sure to check your record and shop for rates every three to five years, since you may be able to get a lower rate if a traffic violation falls off your record.
In New York, the most expensive policies cost roughly $4,329, and the least expensive coverage costs around $502, when all driver profile information is the same. That means you could save as much as $3,827 simply by shopping around. Be sure to confirm you’re getting all the discounts you’re eligible for, too.
Car insurance in New York costs $152 monthly ($1,828 per year) for minimum coverage, on average, and around $371 per month ($4,451 annually) for a full-coverage policy. The cheapest insurance companies in New York are Main Street America, Progressive, and Sterling Insurance, but insurers calculate premiums differently, so it’s a good idea to get quotes from more companies to find the best deal.… read full answer
Average Cost of Car Insurance in New York by Category
Clean driving record: $155 per month
After an at-fault accident: $242 per month
Driver with poor credit: $343 per month
Teen driver: $517 per month
After a DUI: $293 per month
The average cost of car insurance in New York is 154% higher than the national average auto insurance premium, and New York ranks 49 out of 50 for the most affordable car insurance rates in the U.S.. There are several factors that affect how much you’ll pay for car insurance in New York, including your driving record, age, location, the amount of coverage that you purchase, and the insurance company you buy it from.
Finally, it’s worth noting that car insurance premiums in New York are high, compared to the cost of coverage in neighboring states like New Jersey and Connecticut. You can find more details in the table below.
Cost of Car Insurance in New York vs. Neighboring States
The cheapest car to insure in New York is a coupe because minimum coverage only costs $1,701 per year, on average. The cost to insure a coupe is less than the average cost of minimum coverage in New York ($1,828 per year).
It is important to note that while some cars will be cheaper to insure based on their reliability and brand, your specific premiums will vary depending on your age, location, and driving history. We recommend comparing multiple quotes before buying insurance so you can get the best deal.
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