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New York City is notorious for traffic and a high cost of living, but how does that translate to auto insurance costs? Minimum-coverage car insurance in New York City averages $402 per month, which is $167 less per month than the state average of $569. New York City has the highest average insurance cost in the entire United States.
New York requires all car owners to have valid auto insurance. New York City drivers should also ensure they’re working with a company licensed in the state because New York doesn’t accept out-of-state insurance.
Table of contents
- How much does car insurance cost in New York City?
- Cheapest car insurance in New York City: Kemper
- How much car insurance do you need in New York City?
- Tips for getting cheap insurance in New York City
- How age affects car insurance rates in New York City
- How credit scores affect cheap car insurance in New York City
- The effect of driving habits on car insurance in New York City
- Find local New York City agents
- New York City car insurance rates FAQs
How much does car insurance cost in New York City?
Insurance rates in New York City vary widely based on numerous factors, including the type of vehicle you own, your driving history, and your driving habits. The most helpful way to find the best deal is to compare rates from multiple insurance companies.
Insurify data scientists analyzed the latest insurance rates in New York City to compile this list of the cheapest auto insurance for drivers there. New York drivers should expect to pay between $104 on the low end for liability-only coverage and $913 for more expensive full-coverage policies.
Cheapest company for liability insurance in New York City: Kemper, at $104 per month
Cheapest company for full-coverage insurance in New York City: Kemper, at $178 per month
Cheapest coverage for new drivers in New York City: Kemper, at $129 per month
See More: Cheap Car Insurance in New York
Cheapest car insurance in New York City: Kemper
Kemper provides the cheapest auto insurance for both liability and full-coverage options in New York City, with an average cost of $129 per month. This average factors in both full-coverage and liability-only premium costs.
Insurance companies in New York City consider multiple factors when offering a premium rate, including the number of drivers on the policy, the ages of drivers, type of vehicle, where you live, and your driving history.
|Insurance Company||Insurify Composite Score (ICS)||Liability Only||Full Coverage|
|Midvale Home & Auto||N/A||$251||$326|
The Insurify Composite Score (ICS) is a proprietary rating calculated by a team of data scientists at Insurify, weighing multiple factors that reflect the quality, reliability, and health of an insurance company.
Inputs to the score include financial strength ratings from A.M. Best, Standard & Poor’s, Moody’s, and Fitch; J.D. Power ratings; Consumer Reports customer satisfaction surveys and customer complaints; mobile app reviews; and user-generated company reviews.
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How much car insurance do you need in New York City?
New York City drivers pay more than most in the U.S., but the minimum requirements are less than in many other states. Drivers who opt for the minimum requirements are at a higher risk for financial vulnerability if they’re involved in a serious accident. Drivers in New York are required to have:
$25,000 for injury/$50,000 for death per person in bodily injury liability
$50,000 for injury/$100,000 for death per accident in bodily injury liability
$10,000 per accident in property damage liability
Drivers in New York City should be prepared to show proof of insurance when registering their vehicle, if they’re involved in an accident, and if they’re pulled over for a traffic infraction. New York is a no-fault state, so no matter who’s at fault, insurance companies will pay out for bodily injuries on behalf of their clients.
New York DMV information
New York residents can utilize the New York Department of Motor Vehicles (DMV) to access various services, including registering a vehicle, renewing a driver’s license, applying for a new driver’s license, purchasing license plates, and paying tickets. Many New York DMVs offer online services to expedite processes so you can save time by not waiting at a physical location.
Services available online include:
Replace a lost license or ID
Replace list registration
Apply for driver’s license
Renew driver’s license
Check your driving privilege status
Schedule road tests
Pay fines and fees
Order personalized plates
Request an accident report
Tips for getting cheap insurance in New York City
While car insurance can be expensive, you have many ways to save money on your policy. Here are a few tips to consider when it comes time to purchase your next policy:
Bundle your home and auto policy.
Look for discounts with your employer.
Look for discounts through AARP or other public organizations.
Ask your insurance provider if it offers discounts for safe driving.
Purchase a vehicle with high safety standards.
Practice safe driving.
Improve your credit score.
The best tip for saving money on your auto insurance is to compare rates from multiple lenders. Comparing rates makes it easier to find the most coverage for your dollar.
Learn More: Compare Home and Auto Insurance Bundles
How age affects car insurance rates in New York City
When auto insurance companies decide on their rates, one factor they consider is age. Younger, less experienced drivers are likely to pay higher rates than other age groups. Teens between the ages of 16 and 19 are more likely to be involved in a vehicle accident than any other age group, according to the Centers for Disease Control and Prevention (CDC).
Newly licensed teens with friends in their cars are at even higher risk. Insurance companies factor this risk into their rate decisions. The table below outlines what New York City drivers might pay each month on average based on their age group.
|Age Group||Average Monthly Rate|
Cheapest car insurance for young drivers in New York City
Young drivers in New York City pay higher rates than any other age group. You can save money on your policy by looking for discounts for good grades, choosing a vehicle with high safety standards, and practicing safe driving habits. The rates in the table below are averages for full-coverage policies.
|Insurance Company||Average Monthly Rate|
|Midvale Home & Auto||$547|
Cheapest car insurance for middle-aged drivers in New York City
Middle-aged drivers can take advantage of lower rates thanks to their age and driving experience. In addition, you can save money on your policy by combining your home and auto policies. The rates in the table below are averages for full-coverage policies.
|Insurance Company||Average Monthly Rate|
Cheapest car insurance for senior drivers in New York City
Senior drivers can find affordable rates by enrolling in defensive driving courses, looking for discounts through AARP, and purchasing vehicles with high safety ratings and extra safety features (like lane sensors). The rates in the table below are averages for full-coverage policies.
|Insurance Company||Average Monthly Rate|
|Midvale Home & Auto||$251|
How credit scores affect cheap car insurance in New York City
Many insurance companies use credit reports to calculate your insurance score. While a credit score and an insurance score aren’t the same, your credit score does affect your insurance score. Credit scores are three-digit numbers created from financial information on your credit report. While multiple different scoring agencies exist, they all have similar ranges. FICO is one of the most popular credit-scoring models. FICO breaks down credit scores into the following ranges:
579 and below: Poor
740–799: Very Good
800 and above: Excellent
Insurance companies use the information on your credit report to determine your risk of filing a claim. Your insurance company may look at bankruptcies, late payments, and payment history to help determine your insurance score.
While some states have restrictions against insurance companies using your credit score to determine your insurance rates, New York doesn’t. Insurance companies may use your credit report and credit score when deciding your insurance rate.
The table below outlines what New York City drivers can expect to pay for car insurance each month depending on what range their credit score falls into.
|Credit Tier||Average Monthly Quote|
See More: Car Insurance Rates by Credit Tier
The effect of driving habits on car insurance in New York City
Your driving habits have a direct impact on the cost of your car insurance. For example, you’ll likely pay higher rates if you have a history of speeding or at-fault accidents. Insurance companies base their rates on risk. If you’ve previously filed claims, the insurance company will view you as a higher risk for claims in the future.
The tables below outline how different driving infractions could increase your rates.
It’s important to note that when you see a negative difference in a table, it doesn’t mean that particular insurance company lowers rates for drivers with that infraction on their records. Rather, it may mean that our sample size was small — insurers may choose not to offer policies to drivers with that infraction. Your actual rate can vary based on a number of factors other than your driving record.
Cheapest car insurance with an accident in New York City
If you have an accident on your record, you’ll likely pay more for car insurance than drivers with a clean record. After an accident, it may take some time before your insurance rates go back down.
|Car Insurance Company||Clean Record||With Accident||Difference|
|Midvale Home & Auto||$337||$558||+$221|
Car insurance with a DUI in New York City
Insurance companies view drivers with a DUI on their record as being high risk, and they’ll charge much higher premiums as a result. Some companies may even refuse to cover drivers with a history of DUIs.
Cheapest car insurance with a speeding ticket in New York City
While drivers with speeding tickets on their record likely won’t pay as much as drivers with a DUI, insurance companies can still increase car insurance premiums for drivers with speeding tickets.
|Car Insurance Company||Clean Record||With Speeding Ticket||Difference|
|Midvale Home & Auto||$337||$545||+$208|
Car insurance in other New York cities
Car insurance rates vary greatly from city to city — even within the same state. Here’s a look at what New Yorkers in other cities might pay for car insurance:
Find local New York City agents
Bond Insurance Brokerage Inc1270 Avenue of The Americas Fl 8,
New York, NY 10020
Schmutter, Strull, Fleisch Inc.80 Maiden Ln Rm 505,
New York, NY 10038
Benefit Quest, Inc.420 Lexington Ave Suite 2400,
New York, NY 10170
Diversified Risk Solutions154 Grand St,
New York, NY 10013
Kenneth Bieber Inc370 Lexington Ave,
New York, NY 10017
Campbell Solberg Associates, Inc.129 W 27th St,
New York, NY 10001
JMP Insurance Brokers116 West 23rd Street,
New York, NY 10011
DurAmerica Brokerage Inc214 West 39th Street,
New York, NY 10018
Jetty Insurance Agency LLC37 W 20th St Ste 301,
New York, NY 10011-3720
Spectrum Ins. Brokerage Services Inc511 Canal St Rm 201,
New York, NY 10013
New York City car insurance rates FAQs
Here are answers to some commonly asked questions about car insurance in New York City.
The average cost of car insurance in New York City is $408 per month. Many factors influence the average rates of insurance in specific cities and states. New York has a high population with a lot of traffic. In addition, the cost of living is higher in the city. Insurance companies also consider the percentage of uninsured and underinsured drivers when deciding rates. Other factors that could influence the higher insurance costs in New York City include inclement weather and higher crime rates.
The average cost of insurance in New York state is $569 per month, which takes into account both liability-only and full-coverage policies.
New York is the most expensive state for auto insurance and is nearly $100 per month more expensive than the next highest state, Michigan, which has an average insurance price of $487.
Insurance rates are expensive in New York. Fortunately, many residents can get by without owning a car by using New York’s extensive transportation system.
Based on Insurify data, the three cheapest companies in New York City are:
TSC Direct: The average driver pays $174 for full coverage.
Kemper Preferred: The average driver pays $175 for full coverage and $104 for liability.
Travelers: The average driver pays $202 for full coverage and $217 for liability only.
Drivers with a bumpy driving record should consider Travelers, as it offers the best rates for drivers with a history of accidents and speeding.
New York is a no-fault state. In no-fault states, the insurance companies of all drivers involved in an accident pay for bodily injury claims. In New York, the insurance follows the vehicle. That means your policy would cover a friend or family member who has permission to drive your car and is in an accident.
Based on Insurify data, these are the three companies that offer the best rates for teen drivers:
Kemper, with an average of $129 per month
Travelers, with an average of $252 per month
Nationwide, with an average of $345 per month
Teen drivers are likely to pay more per month for insurance, as they’re new drivers and are at the highest risk for traffic accidents. Teen drivers can help lower their rate by choosing a vehicle with high safety standards, checking for discounts for good grades, and practicing safe driving habits to avoid accidents.
Drivers in New York will spend more money on insurance than most other drivers in the U.S., but you can still find ways to save some money on your policy. Talk to your insurer about bundling home and auto policies. Some companies may even allow you to bundle disability insurance. If you’re an older driver, check into discounts through AARP.
Drivers can also save money by improving their credit scores, investing in safe vehicles, and practicing safe driving habits.
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Data scientists at Insurify analyzed more than 40 million real-time auto insurance rates from our partner providers across the United States to compile the car insurance quotes, statistics, and data visualizations displayed on this page. The car insurance data includes coverage analysis and details on drivers' vehicles, driving records, and demographic information. Quotes for Allstate, Farmers, GEICO, State Farm, and USAA are estimates based on Quadrant Information Service's database of auto insurance rates. With these insights, Insurify is able to offer drivers insight into how companies price their car insurance premiums.
- New York Department of Motor Vehicles. "New York State Insurance Requirements." Accessed December 21, 2022
- New York Department of Financial Services. "Minimum Auto Insurance Requirements." Accessed December 21, 2022
- New York Department of Motor Vehicles. "DMV online transactions." Accessed December 21, 2022
- Centers for Disease Control and Prevention. "Teen Drivers and Passengers: Get the Facts." Accessed December 21, 2022
- My FICO. "What is a Credit Score?." Accessed December 21, 2022
- National Association of Insurance Commissioners. "CREDIT-BASED INSURANCE SCORES." Accessed December 21, 2022