Cheapest Car Insurance in New York

In New York state, the average cost of car insurance is $1,349.72, making it the fifth most expensive state for car insurance in the United States. But like most states, car insurance is legally required in New York, whether you live in the Big Apple or the Adirondacks. The good news is that you can find cheap car insurance in New York if you’re on a budget.



a car driving down a busy street: Congested traffic on the New York freeway.


© Alex Potemkin/Getty Images
Congested traffic on the New York freeway.

The cheapest car insurance companies in New York

As of 2015, there were nearly 11,670,000 licensed drivers in New York. To meet the demand, there are dozens of car insurance providers that operate in New York. However, some companies are more expensive than others. We did some research to find the cheapest car insurance companies in New York. We also included average rates for each provider based on data from U.S. News and World Report.

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Geico

Geico is one of the most popular insurance companies in New York and across the country. It makes sense why-it offers some of the cheapest rates you can find. U.S. News and World Report estimates that the average price of a Geico policy in New York is $1,201.80 per year.

In addition to low prices, Geico offers a ton of great discounts for all types of drivers. For instance, safe drivers, good students, military personnel and federal employees qualify for savings. You can also save money by having certain vehicle safety equipment in your car, like anti-lock brakes, airbags and daytime running lights.

Progressive

When you think about Progressive, you probably think about Flo, the brand’s iconic spokeswoman who stars in their advertisements. But you might not know that Progressive’s car insurance rates are surprisingly affordable. In fact, drivers save an average of over $750 when they switch to Progressive. The average New Yorker will spend $1,416.21 per year on a car insurance policy from Progressive.

In terms of discounts, Progressive is ahead of the game. The company’s signature Snapshot program rewards safe drivers with a lower premium (about $145 savings on average). Drivers can also use the Name Your Price Tool to see the best coverages within their budget. In addition to some basic discounts, Progressive also has a deductible savings bank, where drivers can lower their premium by $50 for each policy period without a claim or traffic violation.

USAA

USAA is a unique insurance company because it offers coverage to military members, veterans and their immediate family members. Not everyone is eligible for USAA insurance, but if you are, it’s hard to find a better (or cheaper) company. The average cost of USAA car insurance in New York is $1,266.36 per year. According to the website, drivers save an average of $707 when they switch to USAA insurance.

USAA customers can also save money with a variety of discounts, like insuring a new vehicle and garaging your vehicle on a military base. You can even save up to 60% on your insurance if you put your car in storage during deployment or a military assignment.

Affordable coverage for New York drivers

Every state requires drivers to carry a minimum amount of car insurance-New York is no different. New York is also considered a no-fault state, which means New York drivers have to carry Personal Injury Protection (PIP).

Here are the minimum car insurance requirements in New York:

  • Bodily injury liability coverage: $25,000 per person/$50,000 per accident
  • Uninsured motorist coverage: $25,000 per person/$50,000 per accident
  • Personal Injury Protection: $50,000 per accident
  • Property damage liability coverage: $10,000 per accident

Purchasing the minimum amount of insurance means you’ll pay the lowest rate. However, you shouldn’t assume that New York’s minimum car insurance requirements are enough to cover the full cost of a claim. If you get involved in an accident, it’s possible that the cost of the claim will exceed your coverage limits. In that case, you would have to pay out-of-pocket to cover the difference.

Because of that, choosing the minimum amount of car insurance is not the best way to keep your rate low. In fact, it could cost you more money in the long run if you have to file a claim that your insurance doesn’t fully cover.

How to get cheap car insurance in New York

If you’re looking to keep your car insurance rate low, you have a few options:

  • Take advantage of discounts: Make sure you’re taking advantage of all the discounts you are eligible for. Most insurance companies offer savings for drivers who take a defensive driving course, pay their premium in full and sign up for paperless billing statements.
  • Improve your credit score: Your credit score is one of the main factors that influences your rate. If you can increase your credit score, even by a few points, there’s a good chance you can lower your premium.
  • Increase your deductible: Your deductible is the amount of money you’re required to pay out-of-pocket towards a loss. The higher your deductible, the lower your monthly payments will be. Just make sure you can afford a higher deductible before you change it.
  • Shop around: Arguably, the best way to get cheap car insurance is to make sure you’re paying the lowest rate to begin with. Shop around and get quotes from a few providers to see what they’ll offer you.

These simple steps can help reduce your premiums.

Frequently asked questions

What is the best car insurance in New York?

The best car insurance company in New York is different for every driver. You should choose a car insurance company that offers what you’re looking for, whether it’s cheap rates, great customer service, customizable coverage, or something else. Before you settle on a provider, it’s important to do some research to find a company that checks all the boxes for you personally.

How much does car insurance in New York cost?

The average cost of car insurance in New York state is $1,349.72 per year. However, the actual rate you’ll pay depends on factors like your age, credit score, zip code, the car you drive, the car’s value, and more.

Is car insurance required in New York?

Yes, car insurance is legally required in New York. If you’re caught driving without insurance, there can be serious consequences. New York drivers must carry a minimum amount of bodily injury liability, uninsured motorist, and property damage coverage. Because New York is a no-fault state, drivers also have to carry Personal Injury Protection (PIP) insurance.

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