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Owning a car in NYC can be expensive, but Bankrate can help you find the cheapest rates and best car insurance in New York City. The average cost of car insurance in the Big Apple is $3,424 per year for full coverage, which works out to $285 a month. Minimum coverage insurance costs, on average, $1,418 per year, or $118 a month. Bankrate’s insurance editorial team reviewed rates and other important factors for dozens of carriers to find our selections for the best cheap car insurance companies in New York City. Our top picks include Progressive, Geico and State Farm.
Best cheap car insurance companies in New York City
The cheapest car insurance companies in New York City are Progressive, Geico and State Farm, according to Bankrate’s study of average premiums sourced from Quadrant Information Services. Affordability is only one metric that our editorial team used to grade these companies. To find the cheapest and best car insurance companies in New York City, we also looked at other important factors, like policy offerings, discounts and third-party ratings, including J.D. Power’s 2022 U.S. Auto Insurance Study for customer satisfaction and AM Best’s ratings for financial strength. Each company was then awarded a Bankrate Score based on these factors, ranging from one to five points, with a five indicating strong performance in these key categories.
|Insurance company||Bankrate Score||J.D. Power score (New York)||Average annual premium for full coverage||Average annual premium for minimum coverage|
Drivers who want low average rates and accessibility features may want to consider Progressive. This insurance company’s online Name Your Price tool allows prospective customers to build their car insurance policy around cost, which can be useful for drivers on a strict budget. The company’s strong web and mobile app accessibility also make it easy to manage your car insurance policy online. Customer service ratings seem mixed, however, as Progressive did rank below average in J.D. Power’s 2022 Auto Insurance Study for the New York area, and it has more than the average number of complaints in the National Association of Insurance Commissioners Complaint Index ranking.
Learn more: Progressive Insurance review
Geico has become known as one of the cheaper car insurance companies in NYC and beyond. While the company did not have the cheapest average rates on our list for full coverage car insurance in New York City, it was the lowest for minimum coverage and offers an array of unique discounts to help you save even more, including savings opportunities for members of specialized occupations, professional associations and employee organizations. If you like to customize your policy, however, you will want to note that Geico has fewer than average endorsements, or add-ons, available for policyholders.
Learn more: Geico Insurance review
State Farm’s average rate for NYC was well below the city’s average. The largest auto insurer in the U.S. by market share, State Farm boasts an extensive presence in the city, with 19 offices in Manhattan alone. It has an above-average ranking with J.D. Power, indicating that the company places a high value on good customer service. If you would rather do your insurance business digitally, the company’s robust website and highly-ranked mobile apps make it possible to pay your bill, file a claim and handle other tasks with ease. State Farm received a 2023 Bankrate Award for Best Insurance Company for High-Risk Drivers, so if you have some dings on your license, the company might be worth considering. There is no live chat feature on the website, however, and customer service is not available 24/7.
Learn more: State Farm Insurance review
A regional carrier, Erie offers coverage in New York City with an average price that’s affordable compared to many competitors. Erie also offers some unique add-on options, which include coverage for pets and personal items in the vehicle, as well as locksmith services to help you get back into your car if you’re locked out. Although Erie doesn’t rank in J.D. Power’s study of New York car insurance companies, it does rank third in the organization’s national 2022 U.S. Auto Claims Satisfaction Study, indicating that customers are generally pleased with its handling of claims. One drawback, however, is its limited availability. If you move to another state outside of where Erie operates, you will need to look for a new car insurance carrier.
Learn more: Erie Insurance review
Although Allstate’s average rates are slightly above the average cost of car insurance in New York City, it still earns a place on our list of cheapest car insurance companies due to an extensive list of discounts that offer numerous opportunities to save money on your policy. If you are a careful driver, consider signing up for the company’s telematics program Drivewise, which monitors your driving skills in real time and offers a significant discount for safe driving habits. Allstate has numerous agents in the New York City area, with 16 offices in Manhattan, but the company’s robust digital tools and website also make it easy to manage your account online if you prefer. Although Allstate’s higher average rates may put you off the company, it may be worth getting a quote to see what they can do for you.
Learn more: Allstate Insurance review
How to get and keep the cheapest car insurance in New York City
New York City is typically at or near the top of many lists of the most expensive cities in the United States when it comes to cost of living. For drivers in NYC, finding affordable rates on car insurance is just the first step. Keeping the low rates is another crucial step. If you want to find and keep the cheapest car insurance in New York City, keep these tips in mind:
- Know your coverage limits. Understanding what you want in your car insurance policy will help direct the final cost. For example, if you are comfortable paying a larger deductible out-of-pocket, raising the deductible on your collision and comprehensive coverage could help lower the amount of your premium. Additionally, if you keep a car for road trips but don’t typically use it to get around the city, you may want to look at pay-per-mile insurance to avoid paying higher rates for insurance on a vehicle you don’t use often.
- Practice safe driving. Maintaining clean driving records is one of the easiest ways to save money on car insurance in any city, but the traffic congestion in New York City could make this difficult. Still, insurance providers prefer to insure safe drivers and may reward you with incentives and discounts for safe driving. If you do have a mark on your driving record, it might help to get quotes from different carriers to find a cheaper policy.
Frequently asked questions
The best car insurance company in New York City is the company that will offer you the coverage options you need at the right price for your budget. All insurance companies in New York City offer different coverage options and rates that are personalized to each driver, so the best way to determine the best car insurance company for you is to request quotes from multiple insurance companies for the type of coverage you need at the rates you want.
The average cost of car insurance in New York City is $3,424 per year for full coverage insurance and $1,418 per year for minimum coverage insurance. On average, New York drivers pay more for car insurance than the national averages, which are $2,014 per year for full coverage and $622 for minimum coverage. But that doesn’t mean affordable rates are impossible to find in this city. Shopping around can help you get the best rates for your personal situation, and some companies might offer discounts that could make your car insurance even cheaper, bringing it more in line with the averages paid in other states.
New York City requires drivers to carry at least the statewide minimum amount of car insurance coverage, which is $25,000 for bodily injury or $50,000 for any injury resulting in death sustained by any one person in any one accident; $50,000 for bodily injury not resulting in death sustained by two or more persons in any one accident; or $100,000 for any injuries resulting in death sustained by two or more persons in any one accident.New York drivers must also have $10,000 in property damage liability, uninsured motorist coverage and personal injury protections (PIP). It’s important to note, though, that the minimum coverage amount may not provide enough financial protection for every driver. Many insurance agents will suggest that, if possible, drivers should consider purchasing additional coverage to avoid being left in a financially vulnerable position if they cause an accident.
Bankrate utilizes Quadrant Information Services to analyze 2023 rates for ZIP codes and carriers in all 50 states and Washington, D.C. Rates are weighted based on the population density in each geographic region. 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 coverage that meets each state’s requirements. Our base profile drivers own a 2021 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.
Our 2023 Bankrate Score considers variables our insurance editorial team determined impacts policyholders’ experiences with an insurance company. These rating factors include a robust assessment of each company’s product availability, financial strength ratings, online capabilities and customer and claims support accessibility. Each factor was added to a category, and these categories were weighted in a tiered approach to analyze how companies perform in key customer-impacting categories.Like our previous Bankrate Scores, each category was assigned a metric to determine performance, and the weighted sum adds up to a company’s total Bankrate Score — out of 5 points. This year, our 2023 scoring model provides a more comprehensive view, indicating when companies excel across several key areas and better highlighting where they fall short.
- Tier 1 (Cost & ratings): To determine how well auto and home insurance companies satisfy these priorities, 2023 quoted premiums from Quadrant Information Services (if available), as well as any of the latest third-party agency ratings from J.D. Power, AM Best and the NAIC, were analyzed.
- Tier 2 (Coverage & savings): We assessed companies’ coverage options and availability to help policyholders find a provider that balances cost with coverage. Additionally, we evaluated each company’s discount options listed on its website.
- Tier 3 (Support): To encompass the many ways an auto insurance company can support policyholders, we analyzed avenues of customer accessibility along with community support. This analysis incorporated additional financial strength ratings from S&P and Moody’s and factored a company’s corporate sustainability efforts.