Cheap Car Insurance Companies In New York

The average semiannual cost of car insurance in the state of New York is $1015.58. An insured premiums are influenced by more variables than purely their place of residence. Car insurance underwriters calculate auto insurance rates after assessing a range of criteria such as the policyholder’s age, driving record, marital status, and credit rating. We examined typical car insurance costs in New York across each of the predominant rating factors. We aim to provide consumers insight to identify a car insurance policy that meets their needs and budget.

*Data Methodology – Updated 3/3/2024

The New York car insurance rates are based on a 35-year-old male with the most popular car (Honda Accord) living in NY. The Quote is for full coverage with comprehensive at $500 deductible and collision at $500 deductible.

New York Minimum Liability Coverage

New York State requires all drivers to carry minimum liability insurance coverage to legally drive a vehicle. This financial responsibility helps protect you and others in the event of an accident. Here are the minimum liability coverage amounts required in New York:

Bodily Injury Liability:
$25,000 per person
$50,000 per accident

Property Damage Liability:
$10,000

These amounts refer to the maximum payouts your insurance provider will pay if you are found legally responsible for bodily injury or property damage in an accident. The bodily injury coverage protects others if they are physically injured in an accident you cause. The per person amount covers injuries to one individual, while the per accident amount covers the total for all injured parties in a single accident, up to that maximum. The property damage liability covers damage you cause to other people’s vehicles or property.

Penalties for Driving Without Insurance in New York

There are serious penalties if you are caught driving without insurance in New York. Not having insurance is illegal, and the penalties are meant to encourage drivers to purchase and maintain insurance coverage.

If you are stopped by the police and found to not have insurance, you will receive a traffic ticket with a fine between $150 and $1,500. In addition, six points will be added to your driving record. If you accumulate 11 points or more within an 18-month period, your license may be suspended.

Your vehicle registration will also be suspended, which means your car cannot legally be driven on New York roads. To reinstate your registration, you must provide proof of insurance and pay a $100 registration reinstatement fee. If you continue to drive with a suspended registration, you could face additional fines up to $1,000, license suspension, and even jail time for a second or subsequent offense.

Your insurance premiums will also likely increase significantly if you do eventually purchase insurance. Insurance companies check the DMV records, and a suspension on your driving record indicates you are a higher risk. This can translate to premium hikes of 20% to 50% or more for several years.

Auto Insurance Rates in New York

Auto insurance rates in New York can vary significantly between different drivers and insurance companies. Here are some factors that can affect your rates:

Your driving record. Your history of traffic violations, accidents, and claims will impact your rates the most. Drivers with a clean record typically pay the lowest rates.

Your credit score. Insurers often use your credit-based insurance score as a factor in determining your rates. Higher credit scores tend to correlate with lower rates.

Your age and gender. Younger drivers under 25 and male drivers typically pay higher rates due to higher risk of accidents and claims.

Where you live. Rates vary based on your ZIP code due to factors like crime rates, road conditions, and number of claims in your area. Urban areas tend to have higher rates.

Your vehicle. The make, model, year, safety features, and value of your vehicle all impact your rates. Newer vehicles with better safety ratings lead to lower rates.

Your coverage level. The more coverage you buy, like higher liability limits or comprehensive coverage, the higher your rates will be.

The insurer you choose. Different insurers assess risk differently, so shopping around and comparing multiple quotes can help you find the best rate.

Low Cost Car Insurance Programs and Discounts in New York

There are several ways you can save on car insurance in New York. Some insurance companies offer low-cost plans specifically designed for lower-income drivers. Others provide various discounts for factors like your age, driving record, and vehicle type. Here are some options to explore:

Low-income auto insurance programs. Many insurers participate in programs that provide lower rates for lower-income drivers. To qualify, you typically need to meet certain income thresholds. Rates can be as much as 20% to 40% cheaper through these plans.

Good student discounts. If you’re a full-time college or graduate student under age 25, you may qualify for savings of up to 25% for maintaining good grades. You’ll need to provide report cards or transcripts to verify your GPA.

Multi-car discounts. Bundling your auto insurance with other policies for your home or other vehicles can save you 10% or more. Some insurers also offer multi-vehicle discounts if you insure two or more cars under the same policy.

Anti-theft devices. Having an anti-theft device like an immobilizer, alarm system or tracking device can earn you a discount of 5% to 10% with many insurers. You’ll need to verify the device with your provider.

New York Car Insurance Statistics

New York has some of the highest car insurance rates in the nation, largely due to the high costs of medical care, traffic congestion, and the state’s no-fault insurance system. Here are some important statistics to know about car insurance in New York State:

• The average annual car insurance premium in New York is $1,674, which is 79% higher than the national average of $936. New York has the second highest average premiums in the U.S., behind only Michigan.
• New York City has the highest car insurance rates in the state, with the average annual premium reaching as high as $2,500. This is due to high accident rates, traffic congestion, and high costs of repairs.
• New York has a no-fault insurance system, meaning that your own insurance company covers injuries to yourself and your passengers, regardless of who caused the accident. This drives up costs for insurers and policyholders.
• The cost of medical care in New York is much higher than the national average, and this factor is built into insurance rates. Insurers have to pay higher costs for medical claims after accidents.
• Teen drivers, ages 16 to 19, pay some of the steepest car insurance rates in New York, with average annual premiums reaching as high as $5,000. This is due to high accident rates among young and inexperienced drivers.

The 10 Largest New York Car Insurance Companies

New York state has over 1,000 car insurance companies operating within its borders. However, some companies have built up significantly larger customer bases than others. Here are the 10 largest car insurance companies in New York based on the number of insured vehicles:

1. State Farm – State Farm insures more vehicles in New York than any other company, covering over 1.2 million cars and trucks. The company has been in business for over 90 years and is known for affordable rates and a strong financial standing.
2. Allstate – Allstate insures over 800,000 vehicles in New York, focusing on providing comprehensive coverage options. The company is known for bundling auto and home insurance to offer multi-policy discounts.
3. GEICO – GEICO insures over 500,000 vehicles in New York with a reputation for low rates. The company focuses on direct-to-consumer sales through their website and by phone rather than through agents.
4. Liberty Mutual – Liberty Mutual insures over 400,000 vehicles in New York, offering coverage for both standard and specialty automobiles. The company has been in business since 1912 and is known for offering many discounts.
5. Progressive – Progressive insures over 350,000 vehicles in New York, focusing on customizable coverage options and a simple online quoting and buying process. The company is known for its innovative policies and usage-based insurance programs.
6. MetLife Auto & Home – MetLife insures over 300,000 vehicles in New York, bundling coverage for cars, homes, renters, and condos. The company has been in business since 1868 and is known for comprehensive coverage options.
7. Travelers – Travelers insures over 250,000 vehicles in New York, offering coverage for both personal and commercial vehicles. The company has been in business since 1853 and is known for a stable AM Best rating.
8. New York Central Mutual – New York Central Mutual is a regional insurer that covers over 200,000 vehicles in New York state. The company focuses exclusively on auto insurance and has been in business since 1894.
9. Nationwide – Nationwide insures over 150,000 vehicles in New York, offering coverage for both standard and customized automobiles. The company has been in business since 1926 and is known for its multi-policy discounts.
10. USAA – Though USAA only serves military members, veterans, and their families, they still