Scroll down for a brief summary of data, facts and recent rate information on car insurance in the state of New York. Driving around without liability insurance is clearly not an option, but you can utilize these helpful hints to get the lowest possible premiums on New York state auto insurance.
New York Minimum Liability Coverage
Laws governing the state of New York impose a minimum required auto insurance coverage of $25,000 in Personal Injury Protection (PIP), $50,000 of per-accident insurance for injuries to other people, and $10,000 in coverage against property damage. In other words, the state of New York mandates a total of $85,000 in liability coverage for each vehicle owned. Insurance carriers call New York’s minimum coverage requirement “25/50/10.”
Penalties for Driving Without Insurance in New York
If you are caught driving without proof of insurance, it is presumed that you are driving an uninsured vehicle. The penalty for driving an uninsured vehicle in the state of New York is a fine of up to $1,500 and/or as long as fifteen days in jail, plus a civil penalty of $750. These are stiff penalties as compared to other states, which helps explain New York’s very low rate of uninsured vehicles on the road.
Auto Insurance Rates in New York
In 2016, the average annual auto insurance premium for drivers in the state of New York was approximately $1,050, quite a bit lower than the national average for the same year, which was $1,347. But this is a statewide average, and so it doesn’t tell us very much. For instance, the average annual premium for New York City car insurance in 2016 was about $2,918. You might as well just hail a cab.
Low Cost Car Insurance Programs in New York
There are a number of different ways for vehicle owners in New York to keep car insurance costs as low as possible. One way is to pay off your annual premium all at once, rather than month by month. This saves money in administrative fees. Another way is to get an address (at least temporarily) in another city or another state that offers cheaper rates.
Some drivers save on premiums by increasing their deductibles. Some people obtain a drivers license and don’t use it for three years, as public transportation is readily available, especially for city dwellers. In this way they create for themselves a picture-perfect “driving” record and are entitled to Good-Driver discounts. These are just a few of many viable options for lowering your car insurance premiums.
Probably the best way to save on car insurance is to qualify for every possible discount. Driving safely (or not at all) can earn a Good Driver discount. Getting good grades can earn a Good Student discount. Being fifty-five or older may make you eligible for a senior citizen discount. Most insurance carriers offer low cost discount programs.
Obtaining Auto Insurance Quotes in New York
New York’s favorite car insurance companies are Economy Premiere, Old Dominion, Chubb, 21stCentury and American Automobile Insurance. Also popular are smaller carriers like Erie Car Insurance and Mercer Insurance Group. Call around and compare quotes. Ask about discounts. Check the carriers’ complaint ratios online. Then simply grab the lowest priced package from the carrier with the fewest complaints against it. It really is that easy.
New York Car Insurance
Here are some things you should know about New York car insurance. This page will help drivers in the state of New York score insurance premiums at the lowest possible rates available in their zip codes.
The population of the state of New York was estimated at 19,745,289 in 2016. New York is the 4th most populous state in the country, and it’s mostly because of New York City, the largest city in America with a population of well over 8.5 million.
Approximately 15.4 percent of New York residents live at or below the poverty level. Compare this to the average poverty rate across the whole United States of 13.5 percent. Yet, the unemployment rate in New York as of 2017 remained somewhere around the national average of 4.7 percent. The percentage of uninsured drivers in New York is low at 5 percent. The resident median age of the people who live in the state of New York is about 38 years.
Drivers in New York sometimes wonder about the statewide average annual premium for New York car insurance, but these statewide averages are not particularly useful to the average American driver. The reason is that statewide averages are normally based on the demographics of an “average” driver.
So, a “statewide average” will only help if you are, let’s say, a 35-year-old married male with a clean driving record, a full time job, and a 2015 Chevy Malibu with automatic seat belts and a car alarm, which you drive maybe 20,000 miles a year. In other words, a hypothetical driver does not fit the descriptions of most drivers, in terms of the demographic info needed to produce a quote. Overall, statewide averages are not too useful in determining your lowest premium rate on a car insurance policy in your zip code.
Rather, drivers in New York can obtain online quotes for cheap New York car insurance by comparing zip codes within the state of New York. Get a lot of free online quotes for different zip codes in your region, such as your home zip code, your school zip code, and your work zip code. Doing this should provide a more detailed measure of the auto insurance options available to you.
Just so you know, the statewide “average” premium on a car insurance policy in the state of New York was around $1,542 last year, according to statistical data posted on insure.com. This figure clearly exceeds the national “average” annual quote for car insurance at the time, which was about $1,325. Still, New York is not the most expensive state in America to buy car insurance.
Read this page for a detailed overview of New York car insurance. Pertinent info includes a breakdown of both the cheapest and the priciest zip codes in New York to buy car insurance, a list of the most popular auto insurance carriers in New York, a list of the largest auto insurance carriers in New York, the types of car insurance and coverage amounts that New York drivers need, some interesting New York state laws, and other helpful info about New York car insurance.
Best Car Insurance Companies in New York
Recently, a research study concluded that the top ten car insurance companies in the whole USA are Allstate Insurance, State Farm Insurance, Geico, Progressive Insurance, Nationwide Group, AAA, Liberty Mutual Insurance, 21st Century Insurance, GMAC, and AIG, in that order. In this study, insurance companies were ranked by their total revenue, which indicates their market value.
Last year, We conducted another research study where insured drivers from every state, including New York, were asked to rank auto insurance carriers. The criteria was customer service, premium rates, and payouts. The results of this study revealed that the New York’s best liked car insurance carriers for customer service are USAA, State Farm Insurance, Allstate Insurance, Travelers Insurance, and Nationwide Group, in that order. For claims service, the favorites among New Yorkers are USAA, Travelers Insurance, Liberty Mutual Insurance, Geico, and Progressive Insurance, in that order. In terms of best value for the dollar, New York drivers prefer USAA, Travelers Insurance, Progressive Insurance, State Farm Insurance, and Nationwide Insurance, in that order.
Here is a list of the largest auto insurance companies in the state of New York, based on market share:
|Market Share (%)
|Allstate Insurance Group
|State Farm Group
|Liberty Mutual Insurance
|NYCM Insurance Group
|MetLife Auto & Home Group
How interesting it is that Geico is the number one provider of auto insurance in New York, yet Geico ranks quite poorly among New York’s favorites. By the same measure, State Farm doesn’t make the top five New Yorker favorites in terms of claims service, and Allstate doesn’t make New York’s top five list for claims service or dollar value.
To really get a good idea of customer experience, read at least a few consumer reviews of all major car insurance carriers, and also some of the smaller ones. You can find insurance company reviews on websites such as consumerreviews.com, pissedconsumer.com, and yelp.com, among others. Also visit A.M. Best and the Better Business Bureau (BBB). Keep in Mind that there is no such thing as a The One Best New York Car Insurance Company. Different carriers appeal to different groups of people (such as students, seniors, educators, regional customers, military personnel, or high risk drivers, for instance). Each insurance company targets a particular demographic. All insurance companies receive numerous complaints, which isn’t so hard to believe when you consider that there are so many million policyholders out there.
Drivers in New York must proactively shop around for car insurance quotes if they expect to save money on premium costs.
What Types Of Car Insurance Do New York Drivers Need?
According to New York state law, the minimum liability coverage amounts on auto insurance are $25,000 in personal injury protection, $50,000 in bodily injury liability, and $10,000 in property damage liability.
However, United States insurance experts suggest that car owners in New York (not to mention every other U.S. state) purchase more than the minimum amount of car insurance coverage required by state law. Experts recommend more appropriate coverage amounts of $100,000 for personal injury protection, $300,000 in liability for injury to others, and at least $50,000 insurance against property damage. These amounts are more likely to cover the real-world costs of an accident.
New York drivers might also consider buying comprehensive coverage. This protects drivers in New York from the costs associated with non-accident incidents, such as weather damage, falling objects, and car theft, among others.
Unusual New York Car Insurance Laws
- New York state law requires insurance companies to offer safety discounts for drivers who use factory installed airbags, factory installed anti-lock brakes, or factory installed daytime running lamps.
- The New York state DMV allows only people of ages 16 and older to apply for a title and registration.
- In Sag Harbor, it is illegal to take off your clothes in your car.
Best And Worst Zip Codes For New York Car Insurance
Each car insurance carrier has a particular way of calculating premium rates, based on the vehicle location, the driving history of the vehicle owner, New York state insurance laws, and other considerations. Premium rates are further affected by population density, climate conditions, and the crime statistics in your zip code.
Here is a rundown of some of the most expensive zip codes in New York to buy car insurance.
Brooklyn is the most populous borough in New York City, with a population density of more than 37,000 people per square mile. So it should come as no surprise that Brooklyn zip codes have some of the priciest car insurance premium rates in all of New York state. In some cases, premium rates can reach more than $9,000 a year!
People who park their cars in this urban zip code can pretty much say goodbye to cheap New York car insurance. Unemployment is more than twice the New York state average, and poverty is also above average. What’s more, the population density is positively stifling. It’s a wonder anyone can drive at all in this neighborhood. In fact, 11226 is the 2nd most expensive zip code in America to buy car insurance, behind only 48227 in Detroit, Michigan.
This zip code features another crushing population density, along with more than twice the New York state average poverty and unemployment rates.
Likewise for this zip code, high numbers on all three parameters equal high rates on car insurance premiums. Probably also high rates of uninsured drivers. After all, who can afford car insurance in New York City? This is why most NYC residents do not own cars, and public transportation is everywhere, all the time.
This zip code has a refreshingly low unemployment rate, and the same can be said of the poverty rate, which is down almost to half the state average. Unfortunately, the population density is the killer of cheap car insurance premiums. You might as well take the bus or subway.
The cheapest zip codes for car insurance in the state of New York are listed below. Annual premium rates can be as low as around $600, up to more than $1,600, according to comparisons of New York zip codes. Here is a list of some of the cheapest zip codes to purchase New York car insurance.
|14870 (Gang Mills / Painted Post)
The poverty rate in this zip code is less than half the New York state average of 15.4, and unemployment hovers near the state average. Population density is extremely low. This explains the cheap premium rates on car insurance in this neighborhood.
The population of Corning is about 20,000. Unemployment is just slightly above the state (and national) average, and the poverty rate falls comfortably below the state average. The population density of this zip code is on the low side. Overall, the demographics of this zip code make for cheap premium rates on New York car insurance.
|14814 (Big Flats)
The town of Big Flats has about 1,800 residents. Poverty and unemployment here are far below the New York state average. A light population density completes the look of low cost New York car insurance for this zip code.
Elmira is a town of about 16,000 people in upstate New York, near Big Flats, Corning, and Painted Post. Despite the relatively high unemployment rate, and the poverty rate being more than twice the state average, Elmira is in fact one of the cheapest zip codes to buy New York car insurance. Perhaps this is because household incomes and home values are quite a bit below the state average
In summary, the state of New York is home to 2,149 zip codes in 1,612 cities covering 62 counties, from Albany to Yonkers and everywhere in between. Yearly rates on car insurance swing high and low, varying by as much as $8,000 or more between the cheapest zip code and the priciest zip code in the state of New York.
This information should give drivers in the state of NewYork some idea of the cost of auto insurance in their zip codes. To learn more about your own specific New York car insurance situation, type in your own personal demographics and compare online quotes.