Published: March 2, 2022Updated: May 12, 2022

Cheap Car Insurance in New York State

How to save money on car insurance in the Empire State

Insuring your vehicle in New York is expensive, among other costs in the Empire State. The average New Yorker spends $1,445.30 a year on auto insurance, which is more than a quarter higher than the national average, according to the latest national data. You’ve come to the right place to find more affordable options.

Cheap Car Insurance in New York

Different insurance companies will give you the lowest rates in New York based on your marriage status, sex, and military service. Companies also take into account your zip code, credit scores, age, and driving record.

Male or Female Drivers

Men are charged more for car insurance than women in New York — whether they’re teenagers or adults. However, Progressive is the best option for males and females.

Gender/age group Lowest annual rate from Progressive
Male $829
Female $775
Male teens $2,717
Female teens $2,424

Married or Single

Married couples living in New York can save money with Progressive as their auto insurance provider, with rates as low as $1,053 annually for a pair. The New York Central Mutual Fire Insurance Co. (NYCM) offers singles rates as low as $1,128 per year.

Military

Current military members — or veterans — can save money on car insurance with USAA, with rates starting at $902 annually.

Full or Minimum Coverage

Utilizing the state’s minimum required coverage can get you rates as low as $304 per year with Main Street America. The firm also offers a low-cost, full-coverage option at $761 annually.

Good or Bad Credit

Car insurance companies can legally base premiums on New Yorkers’ credit scores. GEICO is a good option whether you have good or bad credit — expect to pay $1,057 or $2,941 a year, respectively. However, if you have excellent credit, USAA offers rates as low as $1,016.

Age

Car insurance rates in the Empire State are typically high for teen drivers, leveling out when they reach their 30s. Consequently, prices increase again for older adults, although not quite as high as inexperienced drivers. Here are the companies with the best rates based on the insured’s age:

Age Company Lowest annual rates
16 Main Street America $3,029
17 Allstate $5,274
18 Main Street America $2,370
19 GEICO $4,111
20s Main Street America $904
30s Main Street America $618
40s Main Street America $572
50s Preferred Mutual $539
60s Preferred Mutual $539
70s Progressive $1,049

Driving Record

Motorists with a good driving record should consider Main Street America, which offers premiums for as little as $504 annually. However, drivers with a poor history — such as a DUI or speeding ticket — will have difficulty finding coverage.

The Best Car Insurance in New York

The cost of car insurance isn’t the only criteria you should consider when choosing a provider, keep in mind deductibles and coverage amounts. Consider these companies while obtaining quotes, as they are the best in terms of general pricing and customer satisfaction.

  • Allstate
  • American Family
  • Erie
  • GEICO
  • NYCM
  • Progressive
  • State Farm
  • USAA

How to Lower Costs

Follow these recommendations to obtain the cheapest coverage:

  1. Purchase the minimum. The absolute lowest price for car insurance is the state’s minimum coverage. Just remember that the lower your limits, the more you could end up owing if you cause an accident.
  2. Receive discounts. Ask your agent for the discounts that apply to you — whether it’s teen driver insurance discounts or paperless billing from your checking account. A few minutes could save you a significant amount on your premium.
  3. Bundle home and car insurance. If you have another type of insurance, such as renter’s or homeowner’s coverage, bundle it with your car insurance to save money.
  4. Increase your deductible. For those with collision and/or comprehensive coverage, increasing the size of your deductible could lower your premiums.
  5. Use the New York Automobile Insurance Plan. If all else fails and you are unable to find insurance you can afford, look into the NYAIP (further details are provided below).

Is Minimum Coverage Sufficient?

New York’s minimum coverage requirements are much more robust than many states’ minimums, comprising $85,000 worth of liability coverage, $75,000 of combined uninsured motorist coverage, $50,000 of personal injury protection (PIP), and up to $150,000 for death coverage. However, there are still some coverage gaps to understand.

More Liability Coverage

The minimum bodily injury coverage for accidents involving two or more people may not be enough to cover the medical costs. Similarly, you may cause more than $10,000 worth of property damage to another person. To avoid paying the balance out of pocket, purchase as much liability coverage as possible — up to $500,000 if you have a high net worth.

More PIP

Like liability coverage, buy as much PIP as you can afford to pay in premiums, even if you already have health insurance. The required amount of $50,000 may seem like a lot, but when the average cost of a three-day stay in a hospital is around $30,000,1 it may not be sufficient to pay for your injuries, let alone your lost wages and childcare costs.

FYI:

After a car accident, PIP is your primary coverage. If you have reached your PIP limit, you can use your health insurance to cover your medical expenses.2

Uninsured Motorist Property Damage Coverage

While New York requires uninsured motorist coverage, it only applies to your bodily injuries when someone driving without insurance hits your vehicle. However, if someone without insurance hits your car and causes property damage, uninsured motorist coverage would not apply. We recommend purchasing uninsured motorist property damage coverage to avoid this issue, with limits matching your liability coverage.

Collision and Comprehensive Coverage

What do you do if an accident is your fault? Property damage coverage only applies to the other person’s property, so you’ll need collision coverage to pay for your own damages. In contrast, comprehensive coverage also applies to your property damages — for everything but collisions — including auto theft, vandalism, and weather-related incidents such as hail.

For both collision and comprehensive coverage, match your car’s actual market value (AMV). That way, if your car is stolen or vandalized, you would receive the amount needed to purchase the same car tomorrow.

Alternatives

Self-Insurance

Like most states, New York has a self-insurance option for residents that meet the financial requirements. The application form, accessed at https://dmv.ny.gov/ii-es/fs-100.pdf, requires detailed financial and accident claims information from the past four years.3

NYAIP

Can’t find affordable car insurance in New York? The New York Automobile Insurance Plan provides insurance to people who can’t find an inexpensive alternative from the voluntary market. Every driver in the state must have automobile insurance to legally drive, so the NYAIP may be the best option for a tight budget.

To apply, you’ll need to certify that you’ve tried and failed to find car insurance below NYAIP rates within the past 60 days. You can apply online through the Producer Application Submission System (PASS) at https://www.nypass.com. Use the below information to contact program personnel directly.

  • Mailing address:
    • New York AIP
    • 22 Cortlandt St., Suite 2101
    • New York, NY 10007-3151
  • Phone number: 212-943-5100, Monday through Friday, 8:30 a.m. to 4:15 p.m. EST
  • Fax: 212-742-2116
  • Email: nyaip@aipso.com for general messages; nyaipinq@aipso.com for confirmation and inquiries

NOTE:

You’ll need car insurance to register a car in New York. Without insurance, you can’t legally drive your car.

DMV Contact Information

  • Online customer assistance:
    https://nysdmv.custhelp.com/app/ask_home?_ga=2.6665330.1352907158.1646677644-930311440.1646677644
  • In-person offices: https://dmv.ny.gov/offices/county-offices
  • Online feedback: ​​
    https://dmv.ny.gov/contact-us/submit-comment-or-suggestion-about-dmv-website
  • Phone numbers: 518-486-9786 or 800-698-29314

Conclusion

It’s no secret the cost of living in New York is high — in fact, it’s the third-highest in the United States following Washington, D.C., and Hawaii.5 With prices 48 percent above the national average, the last thing you want to spend extra money on is car insurance. Although, it’s important to protect yourself financially in case you cause an accident or have claims. Learn more about obtaining comprehensive automobile insurance in New York through our frequently asked questions below.

Frequently Asked Questions

How much does car insurance cost monthly in New York?

Car insurance in New York costs an average of $120.44 per month, which is 26 percent higher than the national average, according to 2019 data from the National Association of Insurance Commissioners.

Is GEICO really the cheapest carrier?

GEICO is certainly one of the most cost efficient car insurance companies in New York. However, it’s not necessarily the cheapest, as we’ve seen lower rates from Progressive, USAA, and Main Street America. Obtain a quote to find out which insurance company is the cheapest for you, as prices depend heavily on your driving history, vehicle type, and other factors.

What parts of New York offer cheaper car insurance?

If you live in a suburban or rural part of the state, prices may be cheaper than cities because of lower accident rates, auto theft rates, and population density.

Why is car insurance so expensive in New York?

Car insurance is so expensive in New York for various reasons.

  • High cost of living: New York has a high cost of living in general, with transportation costing 8 percent more than the national average and healthcare costing 3 percent more, according to the Missouri Economic Research and Information Center’s 2021 Cost of Living Data Series.
  • Minimum coverage: New York’s minimum coverage is substantial, with more coverages and higher limits required than most other states. Since New York is a no-fault state, every driver must carry personal injury protection (PIP), which also raises premiums.
  • High traffic fatality rates: Based on data from the Insurance Institute for Highway Safety, New York’s motor vehicle death rates are 24 percent higher than the rest of the country’s, with 931 deaths per 100 million vehicle miles traveled.

Citations

  1. Protection from high medical costs. HealthCare.gov. (2022).
    https://www.healthcare.gov/why-coverage-is-important/protection-from-high-medical-costs/

  2. Consumer FAQs About No-Fault Insurance. New York State Department of Financial Services. (2022).
    https://dfs.ny.gov/consumers/auto_insurance/nofault_faqs

  3. APPLICATION FOR CERTIFICATE OF SELF-INSURANCE. New York State Department of Motor Vehicles. (2022).
    https://dmv.ny.gov/ii-es/fs-100.pdf

  4. New York Automobile Insurance Plan. AIPSO. (2022).
    https://www.aipso.com/Plan-Sites/New-York

  5. Cost of Living Data Series. Missouri Economic Research and Information Center. (2021).
    https://meric.mo.gov/data/cost-living-data-series