Car insurance in New York: Cheapest insurance and average rates

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Car insurance in New York costs $2,600 per year for full coverage – $217 per month. In 2024, NYCM Insurance offers the cheapest car insurance policy at $196 per month.

New York City is an iconic destination, well-loved by its many residents. The city’s population of more than 8.5 million people makes it not only the most populous city in the country but also one of the most densely populated cities. Commuters in New York spend 70 minutes a day trekking back and forth between their homes and offices, one of the country’s lengthiest commutes. 

If you live in New York City and own a vehicle, car insurance is one of the many costs you’ll face. Explore the cheapest car insurance companies in the Big Apple and the coverage you need. 

How to find the best car insurance in New York

Shopping around is the key to finding the best car insurance in New York. As you explore your car insurance options, get quotes from at least three car insurance companies to compare costs. Don’t forget to ask the insurance companies whether or not you qualify for any discounts, which can lower your costs. 

Cheapest car insurance company in New York

NYCM Insurance offers New York drivers the cheapest car insurance rates. Other relatively cheap options for New York City drivers include Progressive and Geico. 

The table below breaks down average car insurance premiums by insurance companies for various coverage levels. 

How much is car insurance in New York per month?

While car insurance costs can vary significantly based on your unique situation, New York City drivers pay an average of $93 per month for a minimum coverage car insurance policy. A full coverage policy averages $217 per month. 

The table below breaks down New York drivers’ average monthly car insurance costs by policy type. 

How do rates in New York compare to other large cities in the U.S.?

Location is a key factor when determining car insurance premiums. Urban drivers in large cities generally pay more for car insurance than those in smaller cities or rural areas. That’s because big cities tend to have higher rates of vandalism, theft, and accidents, which pushes car insurance costs higher. 

James Brau, professor of finance at Brigham Young University, says that the more risk the insurance company must bear, the higher the premium they must charge to stay in business and make a profit. 

“Large cities tend to present more risk to the insurance companies than rural areas. Large cities have more people, more cars and higher chances of getting in wrecks or having other damage done to vehicles,” Brau says. “As such, insurance firms must charge higher premiums in cities. Cities that are relatively more dangerous, in turn, must charge higher premiums than cities that are not as risky. Insurance companies study damage losses per metropolitan area and assign premiums depending on the number of wrecks in an area.”

See how much you can expect to pay for car insurance in several major U.S. cities in the table below.

Here’s what you need to know when driving in New York

Driving in New York isn’t a walk in the park. With so many drivers packed into tight roads, it’s not surprising that the New York Police Department reported 8,518 motor vehicle collisions in October 2023 alone. 

Before you hit the road in New York City, here are a few tips:

• If you drive into the city, be prepared to pay for parking. 
• Most parking spots are small, so you must be comfortable making a tight squeeze. 
• Drivers have to pay tolls to cross bridges and tunnels. Purchasing an E-ZPass can streamline your toll payments while on the road. 
• Even if you know where you are going, use a map app to account for traffic. 
• Weekday rush hour traffic tends to run from 7:30-9:30 a.m. and 5-7 p.m. Avoid driving during these times if you can. 

As you move through the city, keep the following driving restrictions in mind:

• Don’t leave a vehicle unattended without first stopping the engine, locking the ignition, removing the key from the vehicle and setting the brake.
• Don’t park a vehicle other than per authorized signs, pavement markings or other traffic control devices unless necessary to avoid conflict with other traffic.
• Operators must yield to pedestrians in a crosswalk. 

How much car insurance do I need in New York?

Drivers in New York City must carry a minimum amount of car insurance. Below is a breakdown of the state’s minimum auto insurance requirements:

• $25,000 in 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
• $10,000 in property damage coverage per accident

You’ll need an auto insurance policy with these minimum coverage requirements. But depending on your situation, you may need more insurance coverage. For example, drivers who want help repairing or replacing their own vehicle after an incident might want collision and comprehensive coverage. 

Average cost of car insurance in New York

New York drivers pay an average of $1,115 per year for a state minimum coverage policy. Drivers looking for more protection pay an average of $2,600 per year for a full coverage policy. 

In contrast to the national average cost of $1,895 for a full coverage policy, New York City drivers pay significantly more. The average cost of a full coverage policy in the state of New York is $1,870 per year, which means drivers in New York City also pay more than drivers around the state – but not by much.

The table below shows the average annual rates for car insurance in New York City. 

How much does car insurance in New York cost with violations?

If you receive a traffic violation, like a speeding ticket, at-fault accident or DUI, you’ll face higher insurance premiums. Insurance companies associate these situations with higher risk, compensated for with higher insurance premiums. 

In New York City, drivers face an average of a 22% rate increase after a speeding ticket, an average rate increase of 29% after an at-fault accident and an average rate increase of 174% for poor credit. With these numbers in mind, safe driving habits can positively impact your car insurance costs. 

See rate increases in New York in the table below, by violation.

Cheapest car insurance in New York by age

Car insurance companies often take your age into consideration when determining rates. In general, young drivers with less experience pay more for car insurance than mature drivers with more time behind the wheel. 

The table below illustrates how this general trend holds true in New York City, with younger drivers facing significantly higher costs. 

Compare auto insurance rates in New York by ZIP code 

Your ZIP code, even within a city, can have an impact on your car insurance costs. In general, drivers who live in ZIP codes with shorter commutes and lower crime rates enjoy lower premiums. 

We explore both ends of the spectrum below. The tables below highlight the ZIP codes in New York City with the cheapest and most expensive average car insurance rates. 

Our recommendations: Car insurance for drivers in New York

On average, drivers get the cheapest coverage by purchasing a policy with NYCM Insurance.

However, purchasing coverage based on pricing alone can be a mistake. A cheap policy isn’t worth much if it does not include the coverage you want and need. 

So, shop around and gather quotes from several insurance companies. This is the best way to get the coverage you need at the best price. 

A full coverage insurance policy with liability limits of 100/300/100 is the best option for most drivers. Consider increasing your liability limits as you accumulate wealth and your net worth increases. Purchasing as much car insurance as you can afford will give you peace of mind as you navigate the roads of New York.

What our expert says

Q: Why do insurance rates vary from city to city?

Dr. James BrauJoel C. Peterson Professor of Finance Brigham Young University

“Large cities tend to present more risk to the insurance companies than rural areas. Large cities have more people, more cars and higher chances of getting in wrecks or having other damage done to vehicles. As such, insurance firms must charge higher premiums in cities. Cities that are relatively more dangerous, in turn, must charge higher premiums than cities that are not as risky. Insurance companies study damage losses per metropolitan area and assign premiums depending on the number of wrecks in an area.”

Resources & Methodology

Methodology

In 2024, Insure.com commissioned Quadrant Information Services to pull rates for a 40-year-old who has a 12-mile commute and drives a 2023 Honda Accord LX 10k miles annually. The hypothetical driver has full coverage, carrying policy limits of 100/300/100 with $500 deductibles for comprehensive and collision coverages. We analyzed 51,088,003 insurance quotes from 167 companies across 34,588 ZIP codes in every state and Washington, D.C.

Sarah Sharkey

Contributing Researcher

 

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Sarah Sharkey is a personal finance writer with a master’s degree in management from the Hough School of Business at the University of Florida. She enjoys helping readers find money solutions that work. She has written for numerous personal-finance publications including Money Under 30 and The College Investor.