INSURANCE - CAR INSURANCE

Average Cost of Car Insurance in New York for 2024

Updated Nov. 29, 2023
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American Family is generally the cheapest car insurance in New York for full coverage policies.

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Whether you live in Manhattan or the Catskills, car insurance in New York can be pricey due to the state’s high cost of living and growing population. In fact, the average cost of car insurance in New York is $2,634, compared to the national average of $1,582.

How much you pay for car insurance in New York depends on several factors, including your age, location, the type of car you drive, and the insurance company underwriting the policy.

In this article

Key takeaways

  • The average cost of car insurance in New York is $2,634 per year.
  • Young drivers pay $6,132 per year on average.
  • State minimum coverage costs an average of $1,615 per year.

How much does car insurance cost in New York?

Nearly 20 million people call New York home, and the state’s cost of living is one of the highest in the nation.

With more people — and more drivers on the road — and higher expenses, it’s no surprise that car insurance costs more in New York than in other states. The average cost of car insurance in New York is $2,634 per year for full coverage, which includes collision, comprehensive, and liability insurance.

In most states, minimum coverage is substantially cheaper, but the savings are smaller in New York. The average cost of state-minimum coverage is still $1,615 per year.

Avg. cost for full coverage Avg. cost for minimum coverage Cheapest insurance provider
$2,634/year $1,615/year American Family
Avg. for young drivers Avg. cost for seniors Avg. for high-risk drivers
$6,132/year $2,336/year $3,280/year

Average cost of car insurance in New York by provider

When it comes to car insurance, shopping around and comparing rates is always a good idea. In New York, the average premiums can vary significantly between companies. For example, we found that the average premiums from Allstate were nearly double the cost of some policies from other companies, such as Progressive.

Provider Full coverage Minimum liability coverage
Allstate $2,405/year $1,422/year
Erie $1,953/year $1,035/year
GEICO $1,615/year $930/year
Progressive $1,198/year $1,051/year
State Farm $1,994/year $1,426/year
Travelers $2,961/year $1,596/year
USAA $1,880/year $939/year

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How does credit score affect car insurance rates in New York?

Some states have laws that prohibit insurers from using credit scores to determine car insurance premiums, but New York hasn’t instituted such rules. Underwriters can use your credit history and credit score to decide your rates, so having good to excellent credit can help you save a substantial amount of money.

On average, the annual premium for drivers with poor credit is $5,375 per year. By contrast, those with excellent credit paid an average of just $3,643 — so spending time boosting your credit can pay off.

Credit health Avg. annual premium
Poor (550-649) $5,375/year
Average (650-699) $5,457/year
Good (700-749) $4,757/year
Excellent (750+) $3,643/year

Average car insurance rates for high-risk drivers in New York

A high-risk driver is someone more likely to submit a claim or be involved in an accident than other drivers. If you have driving violations, speeding tickets, or have been convicted of driving under the influence (DUI), you can expect your premiums to skyrocket. In New York, a DUI conviction can increase your premiums by $745.

Violation Avg. annual premium before violation* Avg. annual premium after violation Avg. cost increase
At-fault accident $2,634/year $2,666/year $32
DUI $2,634/year $3,379/year $745
Speeding ticket $2,634/year $2,932/year $298

*Assumes clean driving record with good credit

How does age affect car insurance rates in New York?

According to Census Reporter, New York’s median age is slightly higher than the national average. There is some good news: coverage gets cheaper as you age in New York. The average rate at age 60 is $2,276.

Age Avg. annual premium
18 $5,904/year
25 $3,138/year
30 $2,709/year
40 $2,704/year
60 $2,276/year

New York car insurance rates by city

Your rates are partially determined by where you live. Generally, urban areas, particularly densely populated areas like New York City, are significantly more expensive than rural or suburban areas like Rochester. 

The difference in rates is because urban areas have higher incidences of accidents and crime, so drivers are more likely to be the victims of car theft or property damage.

City Avg. annual full-coverage premium
New York $3,430/year
Yonkers $3,006/year
Buffalo $2,150/year
Albany $1,838/year
Syracuse $1,734/year
Rochester $1,566/year

NY's minimum car insurance requirements

Like the majority of states, New York requires drivers to have car insurance. However, New York’s limits are higher than some other states. Drivers must meet the following coverage minimums:

  • $10,000 for property damage for a single accident
  • $25,000 for bodily injury and $50,000 for death for a person involved in an accident
  • $50,000 for bodily injury and $100,000 for death for two or more people in an accident

How to save money on car insurance in New York

Although the average cost of car insurance in New York is higher than in other states, there are ways to save money and find affordable coverage:

  • Sign up for Combat Auto Theft (CAT): CAT is a voluntary program where drivers sign up to have an official decal placed on their cars. If police see the car on the road between the hours of 1:00 a.m. and 5:00 a.m. — the time when car thefts are common — law enforcement can stop the vehicle without other cause. Many companies offer discounts to program participants.
  • Consider usage-based insurance (UBI): UBI, also known as pay-per-mile coverage, bases your premiums on your driving habits and mileage. Safe drivers can reduce their premiums by 5% to 47% by opting for UBI coverage.
  • Change your deductible: Your deductible is how much you have to pay for damages or injuries before your insurance will cover those expenses. Raising the deductible — for example, increasing it from $500 to $1,000 — will reduce your monthly premiums.
  • Shop around: As mentioned above, rates can vary a great deal between companies. Requesting quotes and shopping around at least once per year can be an excellent way to save money. You can use our picks for the best car insurance companies as a starting point.

Methodology

Our analysis was conducted using six different auto insurance marketplaces to determine the average cost of auto insurance in each state. The data we analyzed included coverage premiums from up to 10 different insurance providers. We looked at rates by city, driver profile, and credit score, as well as factored in the impact of driving violations. This data is for comparative purposes only. Your actual quote may be different.

FAQs about car insurance costs in NY

Is car insurance expensive in NY?

The average cost of car insurance in New York is $2,634, compared to the national average of $1,582. The higher cost is due to several factors, including the state’s high population, cost of living, and minimum coverage requirements. 

How much is car insurance per year in NY?

On average, full coverage costs $2,634 per year in New York, while state-minimum coverage averages $1,615.

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Author Details

Kat Tretina Kat Tretina is a personal finance expert focusing on practical financial matters, including student loans, debt repayment, side hustles, insurance, and healthcare. Drawing from her personal experience, she aims to simplify complex financial topics and provide individuals with the information they need to make informed decisions.