After analyzing average yearly premiums from Quadrant Information Services, as well as financial strength scores from AM Best and customer satisfaction scores from the 2022 J.D. Power U.S. Auto Insurance Study, we have identified USAA, Geico, and State Farm as some of the top car insurance companies in New York. These companies offer a range of benefits, such as unique coverage options and various discounts, while also providing premiums that are typically lower than the New York average of Full coverage costs $3,139 annually, while minimum coverage costs $1,371 per year.
If you are looking for car insurance in NY, these insurers might be a good starting point:
- Rates for full coverage vary by company.
- Rates for the minimum coverage offered by each company.
| Insurance company | J.D. Power Score (New York region) | Average monthly full coverage premium | Average annual full coverage premium |
|---|---|---|---|
| GeicoRating: 4.4 stars out of 54.4Bankrate Score | 829/1,000 | $205 | $2,461 |
| USAARating: 4.3 stars out of 54.3Bankrate Score | 891/1,000 | $289 | $3,472 |
| ProgressiveRating: 4.2 stars out of 54.2Bankrate Score | 811/1,000 | $162 | $1,942 |
| State FarmRating: 4.2 stars out of 54.2Bankrate Score | 831/1,000 | $241 | $2,888 |
| AllstateRating: 3.8 stars out of 53.8Bankrate Score | 810/1,000 | $279 | $3,353 |
Bankrate’s method for selecting the top car insurance providers in New York
Bankrate offers a simplified process to help you find the best car insurance in New York that caters to your requirements, despite the higher-than-average rates in the state. Our assessment comprises three aspects: average car insurance rates, third-party evaluations such as J.D. Power, and ratings from AM Best. Additionally, we evaluated the coverage options, digital tools, and discounts offered by each company.
These factors are collectively computed to determine the Bankrate Score, which ranges from 0.0 to 5.0. The higher the score, the better the company performed in the aforementioned categories. By using the Bankrate Score, you can easily compare different companies, helping you make an informed decision about the carrier that meets your criteria.
What are the average rates for car insurance in New York?
In New York, the average annual cost for full coverage car insurance is $3,139, while minimum coverage costs an average of $1,371 per year. These prices are significantly higher than the national average, which is $2,014 annually for full coverage and $622 annually for minimum coverage. Compared to neighboring states like Pennsylvania, where the average cost for full coverage is $2,040 per year and minimum coverage is $428 per year, or Vermont, where drivers pay an average of $1,061 per year for full coverage and $238 per year for minimum coverage, New York’s rates are considerably higher.
The higher cost of living and population density in New York might be contributing factors to these high insurance rates. The greater the number of vehicles on the road, the greater the likelihood of accidents, which can increase the risk for insurers and, in turn, drive up premiums. However, individual driving histories can also impact the rates, causing them to be either higher or lower than the state averages.
What is the average cost of car insurance in New York?
This refers to the yearly cost of a car insurance policy that provides full coverage for a 40-year-old driver who has a spotless driving history and excellent credit.
What are some ways to discover the top car insurance options in New York?
Choosing the most suitable car insurance in New York will largely rely on your specific requirements and the location-based factors in your vicinity. Nevertheless, there are measures you can take to simplify the process of shopping for car insurance in New York.
Take into account the minimum car insurance requirements in New York.
To register your vehicle at the New York Department of Motor Vehicles (DMV), you must have auto insurance, as it is mandatory in the state. The minimum limits required by the state include bodily injury liability and property damage liability, both of which have “liability per person” and “liability per accident” limits. Additionally, New York drivers are required to purchase personal injury protection (PIP) and uninsured motorist coverage at least at the minimum limits.
While you don’t need to commit New York’s car insurance laws to memory, being aware of the minimum coverage levels can help you decide whether you need higher limits or more coverage options.
You should take into account the requirements of your lender.
In case you have a lease or a loan for your vehicle, it is likely that your lender will mandate you to purchase full coverage. Minimal coverage limits do not include collision or comprehensive coverage, which provide coverage for damage to your vehicle.
Thus, you will need to obtain a full coverage policy for such coverage. In addition, if you lease your vehicle, you might be subject to higher requirements for bodily injury and property damage liability, which have limits for liability per person and per accident. To protect yourself further, you may also want to consider buying gap insurance, which can cover the difference between the amount of the claim payout and the remaining balance on your loan if your car is declared a total loss.
You should take your personal needs into consideration.
To assess your car insurance requirements, there are several factors that you should take into consideration. These include whether you have a teenage driver, the type of vehicle you drive, your credit history, and your driving record.
Each of these factors may have an impact on your car insurance premium in New York, so it is essential to evaluate them closely. For instance, if you recently bought a new electric car, some auto insurance companies in New York may provide a discount for new vehicles or electric cars. Being aware of which insurers offer these discounts could potentially help you save money.
New York drivers could see some of the highest premium increases in the country.
Based on a study by Bankrate, drivers in New York may be experiencing the impact of inflation on their car insurance premiums more than drivers in other states. To determine the extent of the impact of inflation on car insurance rates across all states, we examined the rate filing data provided by S&P Global Market Intelligence.
Our analysis focused on the average increase in auto insurance rates that was requested by insurance companies in all 50 states and Washington, D.C. from January 1, 2022, to May 18, 2022. During this period, New York insurers requested an average rate increase of 4 percent. This increase may be reflected in the average cost of full coverage policies in New York, which increased from $2,996 in 2022 to $3,139 in 2023, representing a rise of nearly five percent.
What is the cheapest car insurance company in New York?
When looking for cheap car insurance in New York, Bankrate found that the lowest-cost options included American Family, Preferred Mutual, Progressive and Geico. The cheapest car insurance won’t be the same for every driver, though. Your premium will depend on your unique rating factors, and likely won’t be the same as the average premiums of these carriers, although average figures can serve as a guideline.
How do I find the best car insurance in New York?
Finding the best car insurance company in New York is a personalized process since there is no single option that suits every driver’s unique set of needs. You’ll need to conduct research to find the right one for you. Factors like customer satisfaction ratings, coverage types, pricing, or access to digital apps are all important to consider. By comparing quotes from multiple companies that meet your requirements, you can find the right carrier to meet your specific needs.
Can bad credit affect the cost of my car insurance?
In contrast to some states, auto insurance companies in New York have the ability to take credit scores into account when determining rates. This is because drivers with poor credit scores tend to file more claims than those with better credit scores. To compensate for this higher risk, insurers often charge higher rates to drivers with lower credit scores. Therefore, if you work to improve your credit history, it could potentially result in a lower premium for your car insurance policy.
Why is car insurance expensive in New York?
When calculating car insurance rates, insurers consider several factors, including the cost of living in a particular area. This is because the cost of labor and car parts for repairs after an accident can be influenced by the cost of living. As a result, car insurance rates are generally higher in more urbanized regions, such as New York City, although it is still possible to find affordable car insurance there. Furthermore, the rate and severity of car accidents, theft, and vandalism in specific areas can also contribute to higher car insurance rates in those areas when compared to others.
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