Various factors affect car insurance rates in New York. In addition to state-specific factors, individual factors significantly impact premiums. Below is an overview of how these personal factors affect insurance costs.
Auto Insurance
Why Is Car Insurance So Expensive in New York?
Updated: March 21, 2025
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Key Takeaways
New York drivers pay about 134% more for minimum coverage and 94% more for full coverage. The national average annual rates are $595 for minimum coverage and $1,296 for full coverage.
Compared to other states, New York has more insurance requirements, such as personal injury protection and uninsured motorist coverage.
Other state-specific factors like expensive health care costs, high traffic fatalities and severe weather risks also contribute to high car insurance rates.
Reasons Why Car Insurance Is Expensive for New York Drivers
In recent years, the average car insurance cost has steadily increased across the U.S., and New York is no exception. Several factors contribute to this trend, including highway density, driver demographics and effects of extreme weather. MoneyGeek details these factors below to help you understand why car insurance is so expensive in New York.
- $10,000 for property damage per accident
- $25,000 for bodily injury and $50,000 for death per person
- $50,000 for bodily injury and $100,000 for death for all people in an accident
Extra insurance requirements
Most states require auto insurance to register and operate a car. In New York, the minimum insurance requirements are:
As a no-fault state, New York requires drivers to file claims with their insurance provider after an accident, regardless of fault. No-fault states often mandate additional coverages, like personal injury protection (PIP) and uninsured motorist insurance, which increase overall insurance costs.
Traffic accidents
Insurance companies factor accident risks into car insurance rates. A 2024 report by the New York State Comptroller highlights a 25.8% rise in traffic fatalities, marking the highest level in a decade.
Expensive health care costs
High health care costs drive up insurance premiums as companies pay more in claims for injury treatments. In New York, per capita personal health care spending exceeds $14,000, 37% above the national average.
Higher risk of theft or vandalism
Neighborhood crime rates influence car insurance costs in New York. Areas with higher theft or vandalism rates often have higher premiums due to increased claim likelihood. For example, New York City is safer than just 3% of U.S. cities, while Buffalo and Rochester are safer than only 2% and 1%, respectively.
Severe weather risks
New York, part of the Mid-Atlantic region alongside New Jersey, Pennsylvania, Maryland, Delaware and Washington D.C., faces high risks of hurricanes and winter storms.
Winter storms, from late October to April, create hazardous road conditions, while hurricanes increase flooding risks that can lead to total losses. These costly events drive insurers to charge higher premiums to offset financial risks.
Factors That Affect New York Car Insurance Rates
Specific New York Locations and ZIP Codes
Car insurance rates in New York vary significantly based on your location. Use the table below to see average premiums for different cities and compare costs in your area.
| Buffalo | $953 | $1,617 |
| New York | $1,761 | $3,060 |
| Rochester | $723 | $1,257 |
| Syracuse | $764 | $1,356 |
| Yonkers | $1,284 | $2,296 |
Car Insurance Companies in New York
Auto insurance premiums vary by provider, so comparing quotes and service quality is essential when searching for affordable coverage in New York. Below are the average rates from companies offering car insurance to drivers in the state.
| Kemper | $646 | $1,121 |
| Progressive | $731 | $1,148 |
| American Family | $883 | $1,588 |
| GEICO | $920 | $1,919 |
| Erie | $1,271 | $2,168 |
| Chubb | $1,333 | $2,614 |
| Allstate | $1,366 | $2,420 |
| State Farm | $1,439 | $2,415 |
| Travelers | $1,675 | $2,760 |
| Mercury | $2,250 | $4,152 |
| Hanover | $2,802 | $5,300 |
Driver Age
Age significantly impacts car insurance premiums, with younger drivers typically paying more due to their higher risk profile. Refer to the table below to understand how premiums vary across different age groups.
| 25 | $1,618 | $2,965 |
| 40 | $1,392 | $2,510 |
| 65 | $1,464 | $2,586 |
Driving Record and New York Motor Vehicle Law
Driving violations can drastically increase car insurance rates in New York. Offenses like speeding tickets, at-fault accidents or DUIs result in higher premiums than maintaining a clean record. The table below shows how rates vary based on different traffic violations.
| At-Fault Accident | $1,527 | $2,753 |
| DUI | $2,087 | $3,812 |
| Ticket | $1,570 | $2,852 |
Credit Score
New York drivers with good or excellent credit-based insurance scores may get lower car insurance rates. Below are the state's average annual rates based on credit scores.
| Poor | $3,584 | $6,261 |
| Below Fair | $2,182 | $3,944 |
| Fair | $1,498 | $2,814 |
| Good | $1,122 | $2,164 |
| Excellent | $889 | $1,738 |
Vehicle Make and Model
Your vehicle type significantly affects your insurance costs. High-value vehicles usually have higher premiums due to expensive repairs or replacements. Older cars typically cost less to insure because they’ve depreciated.
Calculating New York Car Insurance Estimates
Getting accurate estimates is the best way to compare car insurance offers, as rates vary by company. Use MoneyGeek's calculator below to get personalized quotes from multiple providers based on your profile.
Car Insurance Calculator
MoneyGeek's car insurance calculator will give you a customized estimate of your auto insurance cost. It's free to use, requires no personal information and we won't send you any spam.
$226
High
$121
Average
$67
Low
Rates updated:
Mar 25, 2025
| Insurance Carrier | MoneyGeek Score | Average Monthly Payment | ||
|---|---|---|---|---|
| 1 | 80 /of 100 | $67 | ||
| 2 | 91 /of 100 | $80 | ||
| 3 | 92 /of 100 | $101 | ||
| 4 |  GEICO | 82 /of 100 | $116 | |
| 5 | 75 /of 100 | $135 | ||
| 6 | 78 /of 100 | $226 |
4
GEICO
MoneyGeek Score
82
/of 100
Average Monthly Payment$116/mo
Although MoneyGeek partners with some of the companies we recommend, our content is written and reviewed by an independent team of writers, editors and licensed agents. Learn more about our editorial policies and expert editorial team.
How to Find Inexpensive Car Insurance in New York
Finding affordable car insurance in New York can be challenging, but these strategies may help lower your rates:
- 1
Compare multiple quotes
Comparing rates from different providers can help you find budget-friendly car insurance in New York since premiums vary. Check all state-required coverages, including liability, PIP and uninsured motorist coverage.
- 2
Purchase multiple policies from one provider
Bundling your auto insurance with homeowners or renters insurance with the same provider can save you up to $833 annually.
- 3
Check out discounts
Car insurance providers offer various discounts. If you maintain a clean record, inquire about safe driver discounts. Some insurers also reduce rates for installing safety devices in your car. Since discounts vary by state and provider, ask each company about the ones you qualify for.
- 4
Use a comparison tool
A car insurance comparison tool lets you compare rates from multiple companies side by side, helping you narrow your choices. However, these tools often don’t account for discounts. After selecting your top providers, contact them directly to explore discounts.
- 5
Raise your deductible
Policies with higher deductibles typically have lower premiums. Although raising your deductible requires you to pay more out of pocket each time you file for a claim, you’ll pay less per year for car insurance.
- 6
Consider pay-per-mile insurance
Pay-per-mile coverage is ideal for infrequent drivers. Insurers calculate premiums based on your mileage, so driving less results in lower costs.
Why Auto Insurance in New York Is So Expensive: Bottom Line
Car insurance in New York costs an average of $1,392 annually for minimum coverage, 134% higher than the $595 national average. Full coverage averages $2,510, 94% above the $1,296 national average.
High health care costs and additional requirements, like personal injury protection and uninsured motorist coverage, contribute to New York's high insurance rates. This guide explores these factors and offers strategies to help drivers secure affordable coverage.
New York Car Insurance Cost Factors: FAQ
We answer common questions about why car insurance in New York is expensive and how drivers can find more affordable options.
How much is car insurance in New York?
New Yorkers pay an average of $1,392 annually for minimum coverage and $2,510 for full coverage.
Is car insurance expensive in New York?
Car insurance rate in New York is expensive. Minimum coverage in the state costs 134% more than the national average, while full coverage costs 94% more.
Why is car insurance in New York expensive?
High car insurance costs in New York stem from rising health care expenses and mandatory coverages like wrongful death, personal injury protection and uninsured motorist coverage.
Can you get cheap car insurance in New York?
Find affordable car insurance in New York by comparing quotes, exploring discounts and adjusting coverage levels. Increasing your deductible or opting for usage-based insurance can also help lower your premiums.
Car Insurance Rates in New York: Our Review Methodology
MoneyGeek analyzed 53,640 auto insurance quotes sourced from the New York State Department of Financial Services and Quadrant Information Services, covering 12 providers across 95 ZIP codes in New York. The analysis included minimum and full coverage policies, as well as home and auto bundling scenarios.
New York Driver Profile
Our analysis used a standard driver profile to identify the cheapest auto insurance companies in New York:
- 40-year-old male
- 2012 Toyota Camry LE
- Clean driving record
- 12,000 miles driven annually
To find the cheapest option for various driver backgrounds, we adjusted this sample profile by age, driving record, credit score, car make and model and military service where specified.
Standard Coverage Levels in New York
Mandatory coverage limits in the state include:
- $25,000 in bodily injury liability per person
- $50,000 in bodily injury liability per accident
- $10,000 in property damage liability per accident
- $25,000 uninsured motorist bodily injury per person
- $50,000 uninsured motorist bodily injury per accident
- $50,000 personal injury protection (PIP) per person
- $50,000 death liability per person
- $100,000 death liability per accident
For full coverage rates, the study used these limits:
- $100,000 in bodily injury liability per person
- $300,000 in bodily injury liability per accident
- $100,000 in property damage liability
- Comprehensive and collision coverage with a $1,000 deductible
Home and Auto Coverage Levels in New York
For bundled policies, the analysis included the following limits:
Auto Coverage:
- $100,000 in property damage liability
- $100,000 in bodily injury liability per person / $300,000 per accident
- Comprehensive and collision coverage with a $1,000 deductible
Homeowners Coverage:
- $250,000 dwelling coverage
- $25,000 other structures coverage
- $100,000 personal property coverage
- $25,000 loss of use coverage
- $100,000 personal liability coverage
- $1,000 medical payments coverage
- All-perils coverage with a $1,000 deductible
New York Car Insurance Costs: Related Articles
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About Mark Fitzpatrick
Mark Fitzpatrick, a Licensed Property and Casualty Insurance Producer, is MoneyGeek's resident Personal Finance Expert. With over five years of experience analyzing the insurance market, he conducts original research and creates tailored content for all types of buyers. His insights have been featured in publications like CNBC, NBC News and Mashable.
Fitzpatrick holds a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He's also a five-time Jeopardy champion!
Passionate about economics and insurance, he aims to promote transparency in financial topics and empower others to make confident money decisions.
sources
- American Red Cross. "Common Disasters Across the U.S." Accessed March 21, 2025.
- Centers for Medicare & Medicaid Services. "NHE Fact Sheet." Accessed March 21, 2025.
- Neighborhood Scout. "Buffalo, NY, Crime Rates." Accessed March 21, 2025.
- Neighborhood Scout. "New York, NY, Crime Rates." Accessed March 21, 2025.
- Neighborhood Scout. "Rochester, NY, Crime Rates." Accessed March 21, 2025.
- New York State Comptroller. "Moving in the Wrong Direction: Traffic Fatalities are Growing in New York State." Accessed March 21, 2025.