Best cheap car insurance companies in New York
USAA, Geico, State Farm, Progressive and Allstate are among the best car insurance companies in New York, based on our analysis. To kick off our research, we first analyzed average premiums obtained from Quadrant Information Services. While average rates are an important metric, price is not the only thing to consider when shopping for coverage. When shopping for car insurance, New York drivers may also want to think about the coverage options, discounts and policy features they want, as well as review a company’s financial strength rating, customer satisfaction scores and claims satisfaction ratings.
Bankrate’s insurance editorial team compiled rates and trusted third-party company ratings into a Bankrate Score. Each Score is on a scale of 0.0 to 5.0. The higher the Score, the more highly a company ranked in each rating category. If you are looking for the best auto insurance in New York, the following companies could be a good place to start:
|Car insurance company||Bankrate Score||Average annual full coverage premium||J.D. Power customer satisfaction score (New York)|
*Not officially ranked by J.D. Power due to eligibility restrictions.
USAA does not qualify for official ranking from J.D. Power because it only sells insurance to current and former military members and qualifying family members. However, the company consistently receives high scores, meaning its customers are typically very satisfied with its service. Although not all drivers will qualify for USAA, those who do might discover lower-than-average premiums paired with exceptional customer service.
Learn more: USAA insurance review
Geico offers one of the most robust auto insurance discount programs in the industry. You might be able to save money if you are a federal employee, a member of the military, have certain safety features on your vehicle or have been accident-free for five years. Geico also offers an exceptional mobile app, earning the top spot in the 2021 J.D. Power Digital Experience Study in the service category. However, Geico might not be a good fit if you are looking for a policy that can be highly personalized as the company does not offer many add-on coverage types.
Learn more: Geico insurance review
State Farm offers personal auto insurance as well as homeowners, renters, life insurance and banking services. If you like consolidating your policies with one company, State Farm might be a good choice. The company also has a widespread agency network, so if you are looking for a local agent, State Farm may be worth considering. Although the company’s average full coverage premium is slightly higher compared to some other auto insurers, State Farm offers several discounts that might help you save.
Learn more: State Farm insurance review
Progressive has the cheapest full coverage car insurance rate in New York out of the carriers on this list. In addition to the company’s low rates, you may be able to save more with discounts like online quoting, sign online, paperless policy and continuous insurance. Progressive also ranked highly in the 2021 J.D. Power Digital Experience Study, taking second place in the service category and receiving an above-industry-average rank in the shopping category. However, Progressive received the last place in the 2021 J.D. Power U.S. Auto Insurance Study for the New York region, which may indicate that customers tend to be unsatisfied with the service they receive.
Learn more: Progressive insurance review
Allstate offers numerous optional coverage types to help you tailor your policy to your needs. You could add sound system insurance, rental reimbursement coverage or roadside assistance to build a policy that works for you. However, Allstate does have the highest average premium on our list. You might be able to lower your premium by taking advantage of the company’s discounts, including savings for new cars, smart students and safe drivers.
Learn more: Allstate insurance review
Average car insurance cost in New York
The average cost of car insurance in New York is $2,321 annually for full coverage and $1,062 annually for minimum coverage. These averages are significantly higher than the national average prices of $1,674 per year for full coverage and $565 per year for minimum coverage. New York’s average rates also far outstrip the average rates of surrounding states.
The high population density in the state may be partly to blame for the high premiums. More vehicles on the road means a greater chance of getting into an accident. To compensate for higher risk, auto insurers often charge a higher premium. However, your rates may be more or less than the state average based on factors like your driving history.
|Average annual premium for minimum coverage in New York||Average annual premium for full coverage in New York|
How to find the best car insurance in New York
Finding the best auto insurance company in New York will depend heavily on your individual needs and the location-specific factors in your area. However, there are things you can do to make the process of shopping for New York car insurance easier.
Consider minimum insurance requirements in New York
Auto insurance is required in New York. You cannot register your vehicle at the New York Department of Motor Vehicles (DMV) until you purchase a policy. The state minimum limits include bodily injury liability and property damage liability, both of which have a “liability per person” and “liability per accident” limit. New York drivers must also purchase at least minimum limits of personal injury protection (PIP) and uninsured motorist coverage. Rest assured that you do not need to memorize New York’s car insurance laws — you will not be able to buy a policy that does not comply with the minimum limits. But knowing the state minimum level of coverage could help you understand if you need higher limits or additional coverage options.
Consider lender requirements
If you have a loan or lease, your lender probably requires you to have full coverage. Minimum coverage limits do not include optional comprehensive coverage or collision coverage, which provide coverage for damage to your vehicle. To get those, you will need to buy a full coverage policy. Lease owners may also have higher requirements for bodily injury liability and property damage liability, both the liability per person and liability per accident limits. You may also want to consider purchasing gap insurance. If your new vehicle is totaled and the claim payout is less than the balance on your loan, gap insurance is designed to pay for the difference.
Consider your individual needs
To evaluate your car insurance needs, consider a few factors such as whether you have a teen who is about to start driving, your vehicle make and model, credit history and driving record. Each of these factors could affect your New York car insurance premium, so it is important to consider each carefully. For example, if you just purchased a brand new electric vehicle, many New York auto insurers offer a new vehicle discount or an electrical vehicle discount. Knowing which insurance companies offer these discounts could help you save.
Car insurance discounts in New York
One great way to save money on your auto insurance premiums is by taking advantage of available discounts. Everything from safety incentives to good student discounts to safe driving options exists for you to explore. Some common auto insurance discounts in New York include:
- Young driver discounts: If you have a teen driver on your policy, you should know that full-time students often qualify for several discounts. You may be able to save money with good student discounts, driver training discounts or distant student discounts.
- Safe driver discounts: If you have not filed any claims, had any tickets or been convicted of any violations like DUIs in several years, you may qualify for a discount. New York drivers who take eligible defensive driving courses may also be able to save on auto insurance with some insurers. Just be sure to talk to your agent before you sign up for a course to make sure it is eligible.
- Other discounts: Getting your auto insurance and home, renters or condo insurance from the same insurance company can save you quite a bit of money on both policies. This is often one of the biggest discounts that companies offer. You might also save if you pay your bill in full or sign up for automatic withdrawals.
Insurance companies often list their auto discounts online. Still, because discounts vary by state, it may be better to call and talk to an insurance professional to identify ways you can save and learn the details of the discounts available in New York.
Frequently asked questions
What is the best car insurance in New York?
There is no single best car insurance company in New York. Each driver brings a unique set of circumstances, wants and needs to their search for car insurance, so the best company for you is the one that best fits your situation. Understanding what factors are important to you — like a digital app, customer satisfaction ratings, certain coverage types or the lowest price — and comparing car insurance quotes from several companies that fit your needs could help you find the right carrier for you.
What is the cheapest car insurance company in New York?
Bankrate found that the cheapest car insurance companies in New York include Main Street America, Preferred Mutual and Progressive. But just like the best car insurance, the cheapest car insurance won’t be the same for every driver. Your premium will depend on your unique rating factors and likely won’t be the same as the average premiums of these carriers.
Can bad credit affect the cost of my car insurance?
Unlike several other states, New York does allow the use of a credit-based insurance score when setting auto insurance rates. Statistically, drivers with a poor credit history tend to file more claims than drivers with better credit, according to the Insurance Information Institute (Triple-I). To make up for this increased risk, car insurance companies typically charge more for drivers with lower credit ratings. Working to improve your credit history could lower your premium.
Why do car insurance rates vary by company and driver?
Each car insurance company submits rates to the New York Department of Insurance each year, and those rates vary based on how heavily the company weights different rating factors. For example, one company may place more emphasis on a driver’s age while another company weighs driving records more heavily. Additionally, the coverage types and levels you choose will affect your rate. If you choose to purchase higher levels of liability and uninsured motorist coverage, for example, you’ll likely pay a higher rate than if you bought lower levels of coverage. That’s why shopping around can be helpful; it allows you to compare the rates from several different companies.
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 coverage that meets 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.
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.