Drivers in New York pay an average of $1,062 annually for minimum coverage car insurance and $2,321 annually for full coverage, making the state the third-most-expensive state for car insurance. New York has over 12 million licensed drivers, making its roads some of the busiest in the country. With this many drivers on the roads, the likelihood of getting into an accident could be higher.
Like most states, New York requires its residents to maintain certain minimum car insurance coverage levels. Just because car insurance is a required expense if you own a vehicle does not mean that there are no ways to save. If you are looking for cheap car insurance in New York, Bankrate’s research may help you find a policy that fits your budget.
The cheapest car insurance in New York
Bankrate’s insurance editorial team conducted extensive research on the largest insurance carriers by market share in The Empire State. We first reviewed average premiums, but also took coverage options, available discounts and third-party ratings into consideration.
If you are searching for the cheapest auto insurance in New York, these companies may be a good place to start:
|Car insurance company||Average annual premium for minimum coverage||Average annual premium for full coverage|
|Main Street America||$304||$761|
Main Street America
Main Street America is part of American Family Insurance and sells products through a network of independent agents. The company has the lowest minimum coverage and full coverage premiums on our list and may be a good choice if your budget is strict.
Main Street America’s auto insurance comes with several options for customization, including new car replacement coverage, accident forgiveness and full safety glass coverage. There are also a number of ways to save, including discounts for being accident or claims free, signing up for automatic billing and being a new customer.
Preferred Mutual is a regional provider, selling insurance in just four states, including New York. Although the company is smaller than some of the others on our list, its local agents may be more likely to understand the unique needs of New York drivers.
Preferred Mutual does not offer many optional coverages, but does have a host of discounts to help you save. You might qualify for savings by being a defensive driver, insuring multiple cars, having certain vehicle safety features or being a AAA member. If you insure a teen driver, you may be able to take advantage of the good student, driver training and student at school discounts.
Progressive’s auto insurance may help you save both time and money. The company lets you compare rates from several insurance carriers on its website, which might help you find a lower-priced policy with less work. The Name Your Price tool lets you enter your monthly budget for insurance and then displays a range of coverage options for you to choose from.
In addition to the standard car insurance coverage offerings, Progressive provides you with several optional coverages, including loan/lease payoff, custom parts coverage and ridesharing coverage. You may also be able to take advantage of the company’s Snapshot telematics program, which tracks your driving habits and updates your premium accordingly.
Learn more: Progressive Insurance review
Geico’s auto insurance is known for being inexpensive and the company offers a long list of discounts to help you save even more. You might save for having certain vehicle safety features, being a military member or federal employee, insuring more than one car and bundling your policies.
Geico’s policies are relatively basic and do not offer many options for customization. However, the company does offer a robust customer portal on its website and a highly functional mobile app. If you like to handle your policy digitally, Geico might be a good choice.
Learn more: Geico Insurance review
USAA only sells insurance to active military members, veterans and their immediate families. If you qualify, you may want to consider getting a quote. The company claims that the average driver saves over $700 when they switch their insurance to USAA.
USAA does not offer many options to tailor your policy to your needs, but does offer numerous discounts that may help you save on your premium. You might save for insuring a new car, being a safe driver, garaging your vehicle on a military base or storing your vehicle while you are deployed.
Learn more: USAA Insurance review
Minimum coverage requirements for Michigan drivers
Most states require drivers to carry a minimum amount of car insurance and New York is no exception. New York is also considered a no-fault state, which means New York drivers have to carry Personal Injury Protection (PIP).
The minimum car insurance requirements in New York are:
- $25,000 bodily injury per person
- $50,000 bodily injury per accident
- $10,000 property damage
- $50,000 personal injury protection (PIP)
Purchasing the minimum amount of insurance might mean you will pay a lower rate. However, most insurance professionals recommend that you purchase higher liability limits if you can afford them. If you cause an accident and the damages and injuries exceed your insurance amount, you will be responsible for the overage out of pocket. Higher limits offer a higher level of financial protection.
If you have a loan or lease on your vehicle, your lender will likely require you to purchase full coverage. This includes comprehensive and collision coverages, which provide coverage for damage to your vehicle.
How to get cheap car insurance in New York
While price is not the only aspect of a policy to consider when it comes to car insurance, it is a significant factor for many. If you need to keep your car insurance rates low, you have a few options:
- Take advantage of discounts: Most insurance companies offer discounts to their policyholders. Every company has a different list of discounts, and taking advantage of the ones you qualify for may help you save money.
- Improve your credit score: Your credit score can influence your auto insurance rate. If you increase your credit score, you may see a reduction in your premium.
- Increase your deductible: If you have full coverage, you have two deductibles on your policy: one for comprehensive and one for collision. If you file a loss for damage to your vehicle, you will have to pay your deductible. Generally, the higher your deductible, the lower your premium will be. Just make sure you can afford a higher deductible before you change it.
- Shop around: Getting quotes from several insurance companies may be one of the best ways to find a cheaper car insurance rate. Every company has its own underwriting guidelines, coverages and discounts, so every company will offer you a different price for car insurance. Comparing quotes might help you find the coverage you are looking for at a lower price.
Although you cannot negotiate your insurance premiums, talking to a licensed agent could be helpful in lowering your premium. An agent may be able to help you decide what coverages, discounts and policy options are right for you.
Frequently asked questions
What is the best car insurance in New York?
The best car insurance company in New York is different for every driver. The company that best fits your needs may not fit the needs of someone else. Understanding what you want from a car insurance company and comparing providers and quotes might help you find a company that suits you.
How much does car insurance in New York cost?
The average cost of car insurance in New York state is $2,321 per year for full coverage and $1,062 per year for minimum coverage. However, the actual rate you will pay depends on factors like your age, credit score, ZIP code, the car you drive, the coverages you choose and the discounts you qualify for. Your premium may be higher or lower than the state average.
Is car insurance required in New York?
Yes, car insurance is legally required in New York. If you are caught driving without insurance, there can be serious consequences. New York drivers must carry a minimum amount of bodily injury liability, property damage liability and PIP coverage. You may want to purchase higher liability limits to provide more financial protection, as well as full coverage to provide coverage for damage to your own car.
What is the NYAIP?
The NYAIP (New York Automobile Insurance Plan) is a way for high-risk drivers in New York to receive auto insurance coverage. You may purchase coverage through a broker, or you can buy directly from the Automobile Insurance Plan online or via phone.
Bankrate utilizes Quadrant Information Services to analyze 2021 rates for all ZIP codes and carriers in all 50 states and Washington, D.C. Quoted rates are based on a 40-year-old male and female driver with a clean driving record, good credit and the following full coverage limits:
- $100,000 bodily injury liability per person
- $300,000 bodily injury liability per accident
- $50,000 property damage liability per accident
- $100,000 uninsured motorist bodily injury per person
- $300,000 uninsured motorist bodily injury per accident
- $500 collision deductible
- $500 comprehensive deductible
To determine minimum coverage limits, Bankrate used minimum coverages that meet each state’s requirements. Our base profile drivers own a 2019 Toyota Camry, commute five days a week and drive 12,000 miles annually.
These are sample rates and should only be used for comparative purposes.