Finding Cheap Car Insurance in New York
Who isn’t looking for ways to save money these days? We evaluated the average rates for eight large auto insurance companies to find the most competitive rates for a variety of drivers in New York state.
Related: Cheap Car Insurance
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Cheap New York car insurance for good drivers
Being a good driver doesn’t automatically mean that every auto insurance company offers you great rates in New York. Progressive, American Family and Geico offer the cheapest car insurance in New York for good drivers, among the insurers we evaluated.
| Cheapest companies | Average annual rates |
|---|---|
| Progressive | $1,047 |
| American Family | $1,180 |
| Geico | $1,395 |
| Allstate | $1,610 |
| State Average | $1,780 |
| Average annual rates are based on coverage of 100/300/100 and collision and comprehensive coverage |
Related: Best Car Insurance Companies
Cheap New York Car insurance for drivers with a speeding ticket
If you’ve been ticketed for driving with a heavy foot, your New York car insurance rates will likely increase. American Family and Progressive have the lowest average rates for New York drivers with a speeding ticket on their record, based on our analysis.
| Cheapest companies | Average annual rates |
|---|---|
| American Family | $1,230 |
| Progressive | $1,236 |
| USAA | $1,902 |
| Allstate | $1,934 |
| State Average | $2,126 |
Cheap New York Car insurance for drivers who caused an accident with injury
If you caused a car accident that resulted in an injury in New York, it’s usually a sure bet your rates will increase. But that doesn’t mean you can’t find good rates. American Family and Progressive have the best rates for drivers with an accident on their records, among the insurance companies analyzed by Forbes Advisor.
| Cheapest companies | Average annual rates |
|---|---|
| American Family | $1,513 |
| Progressive | $1,623 |
| Allstate | $2,118 |
| USAA | $2,135 |
| State Average | $2,499 |
Cheap New York car insurance for drivers with a DUI
A DUI in New York can cause your car insurance rates to skyrocket. Car insurance premiums in New York for drivers with a DUI conviction are an average of about $1,200 higher annually compared to drivers without a DUI. But that doesn’t mean you can’t look for cheaper auto insurance. Try companies such as Progressive and American Family in New York if you have a DUI.
| Cheapest companies | Average annual rates |
|---|---|
| Progressive | $1,094 |
| American Family | $1,463 |
| Allstate | $2,182 |
| State Farm | $2,323 |
| State Average | $2,969 |
Cheap New York Car insurance for drivers with poor credit
Drivers with poor credit usually pay higher rates than drivers with good credit. That’s because car insurance companies believe those with poor credit are more likely to file claims, which makes them riskier to insure.
But not all auto insurance companies raise rates by the same amount for New York drivers with poor credit. Geico may be your best bet for cheap car insurance in New York if you have a poor credit score.
| Cheapest companies | Average annual rates |
|---|---|
| Geico | $1,785 |
| Chubb | $3,745 |
| State Farm | $4,470 |
| Erie | $4,873 |
| State Average | $3,718 |
Cheap New York Car insurance for adding a teen driver
Putting a teen driver on your car insurance policy increases rates by an average of 97% in New York. Some insurers more than double car insurance premiums after you add a teen driver.
Chubb and Geico have the best average rates after adding a teen driver in New York. If you add a teen, make sure to ask about any related discounts like a good student discount to help shave off some of the rate increase.
Related: Best Cheap Car Insurance For Teens
| Cheapest companies | Parents only | Parents plus teen driver | Average % increase for adding teen |
|---|---|---|---|
| Chubb | $2,024 | $2,566 | 27% |
| Geico | $1,956 | $3,403 | 74% |
| USAA | $1,741 | $4,086 | 135% |
| Allstate | $2,246 | $5,005 | 123% |
| State Average | $2,453 | $4,780 | 97% |
Cheap New York Car insurance for young drivers ages 18 to 25
Getting your first car insurance policy comes with sticker shock for many young drivers. Auto insurance companies typically charge young drivers more for car insurance because they’re inexperienced and drivers their age may be prone to take more risks behind the wheel.
Progessive and American Family are two options for young drivers looking for cheap car insurance in New York. Both have average rates under $2,000 for drivers ages 18 to 25.
| Cheapest companies | Average annual rates |
|---|---|
| Progressive | $1,778 |
| American Family | $1,896 |
| Geico | $2,166 |
| Allstate | $2,345 |
| State Average | $2,893 |
Cheap New York Car insurance for senior drivers age 65+
Car insurance rates generally start to increase when drivers reach age 65 or 70. Insurers raise premiums because senior drivers are considered a bigger risk for accidents. The good news is the rate increases are usually gradual. Progressive, American Family and Geico are among your best bets if you’re looking for the cheapest car insurance for senior drivers in New York.
Related: Best Car Insurance For Seniors
| Cheapest companies | Average annual rates |
|---|---|
| Progressive | $1,108 |
| American Family | $1,717 |
| Geico | $1,724 |
| Allstate | $1,762 |
| State Average | $1,985 |
Required Car Insurance Discounts in New York
New York car insurance companies must offer at least these discounts and must disclose available discounts to policyholders.
Anti-lock brakes discount
New York requires that insurers offer a discount for vehicles with factory-installed anti-lock brakes.
Anti-theft device discount
New York car insurance must provide a discount for vehicles with anti-theft and recovery devices.
Previous damage discount
New York mandates a lower rate for vehicles with previous damage that would lead to a lower payment for a car insurance physical damage claim.
Window glass etching discount
Insurers must offer a discount for vehicles that have the VIN or identifying symbol etched in window glass.
Daytime running lamps discount
Insurance companies are required to offer lower rates to vehicles with daytime running lamps.
Defensive driving course discount
Drivers who take a defensive driving course are eligible for a discount, which lasts three years. The Department of Motor Vehicles offers a list of approved classroom course providers. The course is 320 minutes over one or more sessions and explores topics like driver attitude and behavior, traffic laws and defensive driving techniques.
Vehicles with the Least Expensive Insurance in New York
You can potentially save on car insurance depending on your vehicle. In New York, the Jeep Wrangler JL Sport, Subaru Crosstrek and Forester 2.5i are among the cheapest vehicles for insurance, based on average rates for 50 top-selling 2021 models. The 20 cheapest cars to insure are below.
The most expensive cars for insurance in New York among popular models are the Tesla Model S Performance ($4,110 per year) and Lexus ES 300H ($2,765 per year).
| Vehicle | Average annual premium in New York |
|---|---|
| Jeep Wrangler JL Sport | $1,793 |
| Subaru Crosstrek | $1,804 |
| Subaru Forester 2.5i | $1,808 |
| Honda CR-V LX | $1,814 |
| Volkswagen Tiguan SE | $1,893 |
| Ford Escape S | $1,905 |
| Hyundai Tucson SE | $1,913 |
| Chevrolet Equinox L | $1,916 |
| Ford F-150 XL | $1,924 |
| Toyota Tacoma SR | $1,926 |
| Jeep Compass Latitude | $1,937 |
| Chevrolet Trax LS | $1,938 |
| Toyota RAV4 LE | $1,950 |
| Chevrolet Traverse LS | $1,967 |
| Ford Edge SE | $1,967 |
| Mazda CX-5 Grand Touring | $1,971 |
| Subaru Outback 2.4I Limited XT | $1,972 |
| Kia Sportage EX | $1,993 |
| Toyota Highlander LE | $1,996 |
| Chevrolet Colorado | $1,998 |
Required Auto Insurance in New York
Personal Injury Protection (PIP)
New York is a no-fault insurance state. That means you make most claims for injuries on your own insurance. For this purpose, New York car owners must buy basic personal injury protection (PIP) with coverage of $50,000.
PIP pays for your “economic” damages after a car accident, no matter who caused it. This includes medical bills, 80% of lost wages because of the accident, and up to $25 a day for other necessary expenses related to injuries, such as transportation. There’s also a $2,000 death benefit in addition to the $50,000 in basic PIP.
When you buy PIP on your car in New York it will cover the injuries of the driver and all passengers in your vehicle. Your PIP also covers pedestrians who are injured by your vehicle.
PIP insurance doesn’t cover any vehicle damage.
No-fault insurance doesn’t mean “no-lawsuit insurance” though. You can still sue someone who causes a car accident if:
- Your economic damages (medical bills, lost job income) are more than the $50,000 maximum paid by PIP.
- Or you can sue for pain and suffering if you have “serious” injuries, which New York defines as: dismemberment; significant disfigurement; a fracture; loss of a fetus; death; permanent loss of use of a body organ, member, function or system; permanent consequential limitation of use of a body organ or member; significant limitation of use of a body function or system; or an injury or impairment of a non-permanent nature, which prevents you from performing substantially all of the material acts that constitute your usual and customary daily activities for not less than 90 days during the 180 days immediately following the injury or impairment.
If you’re really into PIP, you can buy more than $50,000 of coverage.
New York PIP Choices
| New York PIP choices | ||
|---|---|---|
| Option | Coverage limit | What you get for it |
| Basic PIP | $50,000 | Medical bills, 80% of lost wages, replacement services, death benefits |
| Optional Basic Economic Loss Benefits (OBEL) | $25,000 extra | This brings your PIP coverage to $75,000 total. You can choose where you want the extra $25,000 to go, such as lost wages instead of medical bills. |
| Additional PIP benefits | Provides extra coverage and an expanded definition of who can claim PIP benefits. Insurers are not required to offer additional PIP benefits. | Extra coverage choices can vary by insurer. Eligible passengers will include people who are not New York residents and injured outside New York state. |
Liability Insurance in New York
New York also requires liability car insurance for both injuries and property damage. So if you’re sued by someone who has “serious” injuries, as defined by New York law, your liability insurance would pay for your legal defense and the lawsuit judgment (up to your policy’s limits). Liability insurance also pays for property damage you cause to others, such as mowing down someone’s fence.
New York requires minimum liability coverage of:
- $25,000 for bodily injury per person (not resulting in death), or $50,000 for any injury resulting in death for one person in any one accident.
- $50,000 for bodily injury (not resulting in death) sustained by two or more people in any one accident, or $100,000 for any injuries resulting in death sustained by two or more people in any one accident.
- $10,000 for property damage in one accident.
This is commonly written as 25/50/10.
Uninsured Motorist Coverage
New York also requires uninsured motorist (UM) coverage. UM in New York pays only for injuries, not car damage. You can use your UM coverage if you’re hit by an uninsured motorist or injured in a hit-and-run.
The minimum UM required is an amount that matches your liability limits, such as 25/50, or $25,000 per person and $50,000 per accident.
It covers only accidents in New York, but you can add an endorsement that will extend your UM coverage to out-of-state accidents.
Supplemental Spousal Liability Insurance
An unusual twist in New York is the availability of “supplemental spousal liability” insurance. This gives you liability coverage under your own auto insurance policy if you cause serious injury or death to your spouse in a car accident.
Essentially, this coverage kicks in if your own spouse sues you for economic loss (such as medical bills) and pain and suffering if you were negligent and caused them serious injury in a car accident.
Normally you can’t sue a spouse who’s on the same insurance policy because you can’t be liable to yourself.
Your insurance company must offer this coverage if you request it in writing.
What Else Should I Have?
Buying only the required auto insurance types in New York leaves you with a big gap: Your own vehicle. What if you sideswipe a guardrail or back into a pole? What if you drive through a big puddle and realize it’s actually 2 feet deep after your car stalls out? What if your car is stolen and never seen again?
For these and other problems, you want collision and comprehensive coverage. They also cover damage from fire, vandalism, falling objects, and collisions with animals such as deer.
Summary: Required New York Auto Insurance
| Coverage | Minimum required in New York |
|---|---|
| Personal injury protection | • $50,000 |
| Liability insurance | • $25,000 bodily injury liability per person• $50,000 bodily injury liability per accident• $10,000 property damage |
| Uninsured motorist coverage | • $25,000 per person• $50,000 per accident |
| Supplemental Spousal Liability | Not required |
| Collision and comprehensive coverage | Not required |
Extra Lawsuit Protection
If you have a high income and assets, you should consider adding at least $1 million in umbrella insurance. It provides an extra layer of liability insurance on top of your auto and homeowners insurance.
If you’re facing an expensive lawsuit against you over a car accident or an incident covered by homeowners insurance, umbrella insurance protects your finances by paying lawsuit judgments and settlements after you’ve maxed out the base policy, up to your umbrella policy limit.
Can I Show My Insurance ID Card from My Phone?
New York allows you to show proof of auto insurance from your mobile phone. If you can’t access your insurance ID card on your phone through an app from your insurer, keep a paper copy with you or in the vehicle.
Factors Allowed in New York Car Insurance Rates
Car insurance companies use many factors to calculate rates. It’s important to shop around because rates can be very different among insurers for the same coverage. Your past insurance claims, driving record, vehicle model and more are used in the price calculation. In New York, companies can also use these factors.
| Factor | Allowed? |
|---|---|
| Age | Yes |
| Credit | Yes |
| Education & occupation | No |
| Gender | Yes |
| Marital status | Yes |
| ZIP code | Yes |
| Source: American Property Casualty Insurance Association. Other factors will be used to calculate your rates, including driving record and the amount of coverage you want. |
How Many Uninsured Drivers are in New York?
About 4% of New York drivers have no auto insurance, according to the Insurance Research Council. It’s the third-lowest uninsured rate in the nation, after New Jersey and Massachusetts.
Penalties for Driving Without Auto Insurance in New York
If you’re caught driving without the required auto insurance in New York you can be fined $150 to $1,500 and/or jailed for up to 15 days. You could also have to pay a civil penalty.
When Can Your Car Insurance Be Canceled?
New York law says car insurance can be cancelled for these reasons:
- You didn’t pay the premium.
- There was fraud or material misrepresentation when you bought the policy or submitted an insurance claim.
- You or a regular driver of your car has had your driver’s license revoked or suspended.
When Can a Vehicle Be Totaled in New York?
Under New York law, a vehicle is totaled when repair costs will exceed 75% of its value.
New York No Longer Requires Photo Inspection for Car Insurance
New York car insurance companies no longer must conduct a photo inspection of a vehicle before granting a car insurance policy with comprehensive and/or collision coverage. The New York legislature approved a bill in June 2022 that lets insurers waive the requirement.
Insurance companies viewed the photo requirement as costly and they are using other avenues to combat insurance fraud. The change also relieves drivers from scheduling time for the review, according to the American Property Casualty Insurance Association.
Solving Insurance Problems
The New York Department of Financial Services is responsible for monitoring insurance companies in the state. If you have an issue with your insurance company that you haven’t been able to resolve, the department of insurance may be able to help, or you can file a complaint.
Methodology
To find the cheapest auto insurance companies in New York, we used average rates from Quadrant Information Services, a provider of insurance data and analytics. Rates are based on a female driver with a clean record insuring a Toyota RAV4 with $100,000 in bodily injury liability coverage per person, $300,000 per accident and $100,000 in property damage liability, uninsured motorist coverage and any other coverage required in the state. The rate also includes collision and comprehensive with a $500 deductible.
The companies we evaluated in New York were Allstate, American Family Chubb, Erie, Geico, New York Central Mutual Fire, Progressive, State Farm, Tower Insurance and USAA.
The companies we evaluated in New York were Allstate, American Family, Chubb, Erie, Geico, Progressive, State Farm and USAA.