Best cheap car insurance in New York City
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Owning a car in New York City can be expensive, but finding cheap car insurance in New York City is easier than it may seem. The average cost of car insurance in the Big Apple is $1,769 per year for full coverage, according to Bankrate’s analysis of average rate data. That’s lower than the average cost of car insurance in New York state, which is $4,959 per year for full coverage car insurance. Minimum coverage insurance in New York City costs, on average, $547 per year. However, many insurance agents do not recommend minimum coverage policies, as they may not offer adequate financial protection in the event of an accident.
Luckily, minimum coverage isn’t the only option for affordable car insurance in the Big Apple. New York City insurance carriers are competitive, and Bankrate reviewed rates and other important factors for dozens of carriers to find the best and cheapest car insurance companies in the city. The cheapest car insurance company in New York City is Main Street America, according to Bankrate’s 2021 study of quoted average premiums. Read on to find out if Main Street America, and the other best cheap car insurance companies we’ve identified, are the right fit for you.
Best cheap car insurance companies in New York City
The cheapest car insurance companies in New York City are Main Street America and Progressive, according to Bankrate’s study of average premiums from Quadrant Information Services. Close contenders are Geico, Erie and USAA, although the latter has strict eligibility requirements.
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 Auto Insurance Study for customer satisfaction and AM Best’s ratings for ongoing financial strength. Each company was then awarded a Bankrate Score based on these factors, ranging from one to five points, with a 5 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|
|Main Street America||3.5||Not rated||$1,077||$494|
*Not officially ranked by J.D. Power due to eligibility restrictions
Main Street America
As a regional carrier, Main Street America is one of the smaller car insurance companies on this list, but it offers cheapest average rates for both full and minimum coverage car insurance in New York City. It also offers additional opportunities to save money, including the options of a diminishing deductible and accident forgiveness. However, it’s worth noting that the company did not rank in the 2021 J.D. Power Auto Insurance Study and received the lowest Bankrate score at 3.5 out of 5 points.
Drivers who want low 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 to help stay within budget for your car insurance policy. Web and mobile app accessibility also make it easy to manage a car insurance policy online. Customer service ratings seem mixed, however, as Progressive did rank in J.D. Power’s 2021 Auto Insurance Study for the New York area, but was far below the average for the region.
Learn more: Progressive Insurance review
Geico has become known for affordable car insurance rates in New York City and beyond. While the company did not have the cheapest average rates on our list for car insurance in New York City, it does offer an array of unique discounts, including savings opportunities for members of specialized occupations, professionals associations and employee organizations. The carrier also offers a long list of unique discounts based on occupation, as well as membership in professional and employee organizations.
Learn more: Geico Insurance review
Another regional carrier, Erie offers coverage in New York City with an average price that’s affordable compared to many competitors. Erie also offers 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. 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
USAA offers some of the cheapest average car insurance rates in New York City, which makes it an option worth considering for its members. However, USAA membership is only available to active military, veterans and qualifying family members, which means that it’s not available to all drivers in this city.
That said, military members may appreciate its specialized coverage options and unique discounts, which include a 15% discount if your car is in a garage on a military base. If you are deployed and need to place your car in storage, the discount could be up to 60% with this insurer.
Learn more: USAA 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 the lists of the most expensive cities in the United States. 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. Or, if you have access to another vehicle or have towing and roadside through another service, you may also be able to skip these additional types of coverage on your policy.
- Practice safe driving. Maintaining clean driving records is one of the easiest ways to save money on car insurance, but the traffic of New York City can make this difficult. Still, insurance providers want to insure safe drivers and may reward them with incentives and discounts for safe driving. If you do have a mark on your driving record, it can help to shop around with different carriers to find a cheaper policy.
Frequently asked questions
What is the best car insurance company in New York City?
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, 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. This also allows you to compare the options to find the cheapest rates.
How much does car insurance in New York City cost?
The average cost of car insurance in New York City is $1,769 per year for full coverage insurance and $547 per year for minimum coverage insurance. On average, New York drivers pay slightly more for car insurance than the national average, 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.
How much car insurance do I need in New York City?
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. 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.
How can I get car insurance online?
Many companies now offer the option of obtaining a quote online or even purchasing a policy through their websites or apps. To do so, you will likely need to provide your full name and address, as well as the make and model of your vehicle. Your vehicle identification number (VIN) and driver’s license number may also be required to finalize the policy. Providing this earlier in the process can often result in a more accurate quote for your premium.
Bankrate utilizes Quadrant Information Services to analyze 2022 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 coverage that meets each state’s requirements. Our base profile drivers own a 2020 Toyota Camry, commute five days a week and drive 12,000 miles annually.
Individual city rates represent 2021 data and a 2019 Toyota Camry.
These are sample rates and should only be used for comparative purposes.
Bankrate Scores primarily reflect a weighted rank of industry-standard ratings for financial strength and customer experience in addition to analysis of quoted annual premiums from Quadrant Information Services, spanning all 50 states and Washington, D.C. We know it is important for drivers to be confident their financial protection covers the likeliest risks, is priced competitively and is provided by a financially-sound company with a history of positive customer support.
To determine how well the best car insurance companies satisfy these priorities, third-party agency ratings from J.D. Power, AM Best, S&P, NAIC, and Moodys had the most impact on the companies’ Bankrate Scores. As price is a common consideration for drivers, we analyzed quoted premiums based on 40-year-old male and female drivers with a 2019 Toyota Camry. This profile, assessed across more than 35,000 ZIP codes in the U.S., provided a basis on which drivers may compare each provider.
While coverage options, insurer availability, affordability and customer experience are often the top priorities, Bankrate also analyzed each insurer’s online and mobile resources for policy management and claims handling. Insurance is rapidly evolving to keep pace with our digital world, so these aspects also carried weight in determining Bankrate Scores.