What you need to know about buying car insurance in New York

Despite being one of the most populous states in the country – with lots of drivers and plenty of car insurance claims – New York actually has relatively affordable premiums. You’ll pay an average of $1,870 per year for full coverage, slightly less than the national average of $1,897. However, if you have only state-mandated minimum liability coverage in place, you can expect to pay an average of $731 per year, which exceeds the national average of $503.

“In New York, the dense population and high traffic congestion contribute to a higher likelihood of accidents, which may drive up insurance premiums,” says Dennis Shirshikov, a professor of finance at City University of New York/Queens College. “Additionally, New York is a no-fault insurance state, which means that each driver’s insurance covers their own injuries regardless of who is at fault. This can lead to increased fraud and, subsequently, higher costs for many drivers.”

This guide is designed to simplify the auto insurance process by offering clear data and pricing information, helping you choose the best provider for your needs.

Key highlights

• Full coverage car insurance averages $1,870 per year or $156 per month. That’s slightly less than the U.S. average of $1,897 annually or $158 monthly.
• A bare-bones liability insurance policy that meets state requirements costs $731 annually, much higher than the national average of $503.
• New York drivers must also carry at least $50,000 in personal injury protection (PIP) insurance.
• Drivers in Rochester pay the least on average, $1,683 per year for full coverage, while those in Mount Vernon pay the most, $2,623 annually.

Understanding car insurance requirements in New York

New York has minimum auto insurance requirements that are similar to those of many other states, obligating drivers to have the following liability coverage:

• $25,000 for bodily injury, $50,000 per death for one person in an accident
• $50,000 for bodily injury or $100,000 for death for two or more people in an accident
• $10,000 for property damage in an accident

In addition, New York drivers are also required to carry the following coverages:

• $50,000 in personal injury protection (PIP)
• $25,000 for bodily injury per person, $50,000 per accident in uninsured motorist insurance

You must show proof of valid auto insurance when registering a vehicle in New York. Not providing acceptable insurance documentation can result in the suspension of your vehicle registration and extra penalties when you attempt to reinstate it.

Average cost of car insurance in New York

A full-coverage policy costs $1,870, just a shade lower than the U.S. annual auto insurance premium average of $1,897. On the other hand, a state-mandated minimum liability car insurance, with coverage limits of 25/50/10, costs $731, which is $228 more per year than the national average. The price gap doesn’t improve much if you choose higher liability coverage limits of 50/100/50. With this kind of coverage, expect to pay an average of $827 annually

The following rates are based on data from CarInsurance.com. They reflect the cost of a full-coverage policy with liability limits of 100/300/100 and a $500 deductible for both comprehensive and collision coverage. These rates are for a single, 40-year-old driver of a 2023 Honda Accord LX with a good insurance score and a clean driving record.

How to find cheap auto insurance in New York

You can find cheap car insurance coverage by doing your due diligence.

“Start by comparing quotes from multiple insurance providers, as rates can vary significantly depending on the company’s underwriting criteria and the specific risks they prioritize,” Shirshikov says. “Another effective strategy is to bundle your insurance policies. For instance, many insurers offer discounts if you combine your auto and home insurance with the same provider.”

In addition, consider raising your deductible, which can lower your premium, although it means paying more out-of-pocket in case of a claim.

“It’s also crucial to maintain a good credit score because insurers often use credit information as a factor in determining rates,” he says. “Regularly review your policy, as well, to ensure you’re not paying for unnecessary coverage or services. For example, if your car is older, reconsider whether comprehensive and collision coverage is still worth the cost relative to the vehicle’s value.”

Car insurance rates, by company, in New York

Our research reveals that New Yorkers can score a relative bargain on car insurance by choosing a policy with Progressive, which has the cheapest average annual rate at $1,020 or $85 monthly. NYCM Insurance, which only operates in New York state, is another low-cost option, with a sample yearly rate of $1,300 or $108 per month. Conversely, Chubb is the most expensive car insurance company in New York, with an average annual rate of $2,942 or $245 monthly.

Below, we provide the average monthly and annual costs for leading insurance providers in New York. Remember that insurance companies use sophisticated algorithms to evaluate risk and determine rates. Your risk profile, which includes factors like your age, credit history, location and driving behavior, will help determine what you are charged.

Comparing car insurance quotes in New York

To give you a clearer idea of how your situation might affect your insurance quotes, consider the following average auto insurance rates in New York:

New York car insurance cost by city

Where you live will also dictate how much you’ll pay for auto coverage in New York. Average annual rates are lowest in Rochester ($1,683), Schenectady ($1,736) and Albany ($1,751) for full coverage. In contrast, rates are highest on average in New York City ($2,600) and two nearby suburbs, Mount Vernon ($2,623) and Yonkers ($2,469). For comparison, the national average insurance premium is $1,897.

Frequently asked questions

How can I save on car insurance in New York?

The first step is ensuring you’re getting the best rate possible on your auto insurance policy. That means getting quotes from at least three other carriers and carefully comparing policies, terms and rates to see if you could save money by switching insurers. 

And don’t forget about the discounts that insurers offer, such as bundling your auto insurance with a home or renters policy, paying your bill in full, choosing paperless billing, covering multiple vehicles under a single policy, maintaining a clean driving record for at least three years, being a long-term customer, serving in the military or being a veteran, or having a student on your policy who excels academically. Last, you can raise your deductible, resulting in a lower premium. Make sure you can afford that out-of-pocket payment before opting for a higher deductible.

Is New York a no-fault state?

Yes, New York operates as a “no-fault” state for auto insurance. In New York, drivers must carry personal injury protection (PIP) insurance with a minimum of $50,000 in coverage per person. PIP covers medical expenses resulting from an accident for yourself, your passengers, and any pedestrians, regardless of who is at fault. However, PIP does not cover property damage. Instead, the driver at fault for the accident is responsible for compensating for any damage to the other driver’s vehicle or property, typically through their damage liability coverage.