Find the best coverage for your needs in the Empire State.
Whether you live in New York City or Upstate New York, it can be challenging to find affordable coverage in the fifth-most expensive state for auto insurance in the country. With high average rates for car insurance in New York, finding the cheapest rates becomes even more important. Our team has done the research to bring you the best cheap options for auto insurance in the state.
We’ve reviewed the best car insurance providers available nationwide, and we’ve focused our research to determine the top options for New York drivers. We’ll cover the cheapest insurers for a variety of driver profiles to help you find the best option for your situation.
Cheap Car Insurance In New York
According to our rate estimates, Progressive generally offers the cheapest car insurance rates in New York, with an average annual price of $1,310. Progressive offers notably cheaper car insurance coverage in New York than competitors. USAA and Geico are also good choices for affordable coverage in the state.
Car Insurance Providers in New York Estimated Annual Cost Progressive $1,310 USAA $2,219 Geico $2,448 Travelers $3,241 State Farm $3,636 How Much Is Auto Insurance In New York?
The average cost of full coverage auto insurance in New York is $4,047 per year. This is more than twice the national average, which is $1,732 per year for a full coverage policy. New York ranked as the fifth-most expensive state in the country to purchase an auto policy in 2018, according to the National Association of Insurance Commissioners (NAIC).
Though the average cost of auto insurance in New York is high, rates from providers will vary based on a number of factors, including:
Age: Young drivers pay more for car insurance because they are considered high risk.
Gender: Men tend to pay more for car insurance than women.
Marital status: Most married drivers pay less for coverage and have more access to family or bundling discounts.
Driving record: Speeding tickets, recent accidents, and DUIs can drastically increase car insurance rates. Those with clean driving records save the most money on comprehensive coverage.
Credit score: Drivers with poor credit scores usually pay significantly more for auto insurance coverage than those with good credit scores.
Coverage level: Full coverage policies cost more than state minimum liability coverage policies.
Cheapest New York Car Insurance: Young Drivers
Young drivers tend to pay much higher insurance premiums due to their lack of experience on the road. Our team found that a 24-year-old New York driver can pay up to 35 percent more for comprehensive coverage than a 35-year-old.
Car Insurance Providers in New York Estimated Annual Cost Progressive $1,787 Geico $2,988 USAA $3,188 Travelers $3,460 State Farm $4,649 Cheapest New York Car Insurance: Speeding Tickets
A clean driving record will earn you the cheapest auto insurance rates in every state, but especially in New York. In our review team’s research, we found that having a speeding ticket on your driving record can raise your auto insurance rates by over 20 percent.
Car Insurance Providers in New York Estimated Annual Cost Progressive $1,592 USAA $2,497 Travelers $3,671 Geico $3,998 State Farm $4,014 Cheapest New York Car Insurance: Recent Accidents
Having a recent accident on your driving record will lead to much higher insurance rates on average. We found that New York drivers with only one accident may pay up to 37 percent more for coverage than those with a clean record.
Car Insurance Providers in New York Estimated Annual Cost Progressive $2,157 USAA $2,821 Geico $3,998 Travelers $4,060 State Farm $4,392 Cheapest New York Car Insurance: Bad Credit
Your credit score has a significant impact on how much you pay for auto insurance in New York. Those with poor credit scores pay drastically higher rates than those with good credit scores.
Car Insurance Providers in New York Estimated Annual Cost Geico $3,152 USAA $4,246 Travelers $6,540 State Farm $7,724 Nationwide $8,150 Top 5 Auto Insurance Companies In New York
While you have many auto insurance companies to choose from in the state of New York, we’ve identified the top five affordable options to help you in your search. In our review team’s extensive research, Progressive stood out as the best option because it provides some of the lowest average rates in the state. You can also find quality coverage from Geico, USAA, State Farm, and Allstate.
*Our research team scores car insurance companies by taking nationwide factors into account. The order of insurers in this table is specific to auto insurance in New York.
#1 Progressive
Based on our research, Progressive stands out as the clear top choice for affordable car insurance in New York. It overwhelmingly offers the cheapest rates on average for many types of New York drivers, especially high-risk drivers. Additionally, our team awarded Progressive the Best Usage-Based Insurance designation in our nationwide review for its Snapshot® program.
Progressive has a positive reputation within the insurance industry, as it holds an A+ rating from the Better Business Bureau (BBB) and an A+ financial strength rating from AM Best. The company is also known for its comprehensive coverage options, which include add-on coverages such as:
Small accident forgiveness: Customers who have been with Progressive for five or more years and have been claim-free for at least three years can take advantage of accident forgiveness up to $500.
Large accident forgiveness: For policyholders who meet the same requirements as for small accident forgiveness, this perk keeps their rates the same even if an accident costs more than $500.
Deductible savings bank: For every claim-free period, you receive $50 off your collision and comprehensive deductible.
Snapshot program: Drivers who participate in the Snapshot program can save money on their car insurance policies through safe driving habits monitored by a mobile app.
Name Your Price® tool: This tool matches you with Progressive auto policies that fit your budget.
Progressive Pros Progressive Cons Our No. 1 provider in the nation for high-risk drivers Average customer satisfaction ratings Best Usage-Based Insurance in the industry A+ ratings from AM Best and the BBB
For more information about this provider, read our Progressive insurance review.
#2 Geico
Our review team gave Geico a perfect rating of 5.0 out of 5.0 and named it the Best Overall Provider in our nationwide review. It’s an especially solid option for students and military families, and it tends to offer the lowest average rates to drivers with poor credit scores in the state of New York.
Highly rated by industry professionals, Geico holds an A+ rating from the BBB and an A++ financial strength rating from AM Best, highlighting its ability to reliably pay out claims. Many customer reviews praise the company for its easy claims process, broad range of discounts, and affordable auto insurance rates.
Geico Pros Geico Cons Best Overall Provider in the industry Doesn’t offer gap insurance High customer satisfaction ratings Extensive discount options
For in-depth information about this provider, check out our Geico insurance review.
#3 USAA
USAA is the only other provider to receive a perfect 5.0 overall rating from our review team, thanks to its low average rates, exceptional coverage options, and positive customer experience. The provider is exclusive to military members, veterans, and their families, though it’s a smart choice for those who qualify.
Though it’s not ranked in J.D. Power studies due to its eligibility requirements, USAA still received the highest score for customer satisfaction in New York in the J.D. Power 2021 U.S. Auto Insurance Study℠. The insurer also holds an A++ financial strength rating from AM Best as well as an A+ BBB rating. New York drivers can also take advantage of the provider’s additional coverage options, which include:
Rideshare insurance: This provides coverage for drivers for rideshare companies, such as Uber or Lyft.
Classic car insurance: This provides specialized coverage for your classic, collector, or antique vehicle.
Guaranteed asset protection (GAP) insurance: This covers the difference between your loan and your car’s value in the event of your vehicle being declared a total loss.
USAA Pros USAA Cons Offers rideshare insurance Exclusive to military members, veterans, and their families Our No. 1 provider in the nation for military Highly rated by AM Best and the BBB
Read our USAA insurance review for more information about the provider.
#4 State Farm
As the largest auto insurer in the U.S., State Farm is known for its positive industry reputation. The insurer holds an A+ rating from the BBB and scored above the industry average in several J.D. Power studies. It ranked first in New York for customer satisfaction in the 2021 J.D. Power Auto Insurance Study with a score of 859 out of 1,000 possible points.
State Farm is an excellent choice for student drivers in New York. The company offers an insurance discount of up to 25 percent for students under 25 who make good grades and a discount for college students away at school who only drive during the summer and holidays.
State Farm Pros State Farm Cons Our No. 1 provider in the nation for student drivers Few additional coverage options Our No. 3 provider in the nation for teen drivers Highly rated by the BBB
For more information about this provider, check out our State Farm insurance review.
#5 Allstate
Allstate is known for its trusted local insurance agents, and our review team gave it the title of Best Local Agents. The personalized service offered by the insurers’ network of agents throughout the country contributes to its high customer satisfaction.
New York drivers can take advantage of several perks Allstate offers, including gap insurance coverage and accident forgiveness. The company also provides a usage-based insurance program through its Drivewise® mobile app, which can help drivers save even more on their car insurance premiums.
Allstate holds A+ ratings from both the BBB and AM best, and its exceptional customer service is what sets this company apart from the competition.
Allstate Pros Allstate Cons Best Local Agents in the industry Some customer reviews report slow claims processing Outstanding customer service A+ ratings from AM Best and the BBB
For in-depth information about this provider, read our Allstate insurance review.
New York Insurance Requirements
According to the New York Department of Motor Vehicles (DMV), the minimum amount of liability insurance required by state law is:
Bodily injury liability (not resulting in death): $25,000 per person/$50,000 per accident
Bodily injury liability (resulting in death): $50,000 per person/$100,000 per accident
Property damage liability: $10,000 per single accident
Personal injury protection: $50,000
Uninsured/underinsured bodily injury coverage: $25,000 per person/$50,000 per accident
Is New York A No-Fault State?
New York is a no-fault insurance state. This means blame is not assigned in the case of an accident, and all parties involved in a collision file insurance claims with their own providers. In a no-fault system, regardless of who is at fault, your insurer will compensate you and any injured passengers involved in an accident. The purpose of no-fault insurance is to restore people who were involved in a car accident to full health and productivity as quickly as possible.
How To Get New York Car Insurance Quotes
There is a wide range of automotive insurance companies to choose from in the Empire State, though we think Progressive is the best option overall. Its highly competitive rates within the state are hard to beat. However, we found that Geico, USAA, State Farm, and Allstate are also good choices for car insurance in New York.
To find the best rates for your situation, it’s best to compare auto insurance quotes from providers. We recommend reaching out for online quotes to quickly and easily compare your options. You can also reach out to companies directly by phone or contact an insurance agent or broker for personalized car insurance quotes.
Frequently Asked Questions
How much does car insurance cost in New York?
The average cost of auto insurance in New York is $4,047 per year for a full coverage policy, according to our rate estimates. New York drivers pay significantly higher rates than the national average, which is $1,732 per year.
Why is New York car insurance so expensive?
New York auto insurance costs are high due in part to the fact that it is a no-fault state. In a no-fault system, every driver involved in a collision has to file their own insurance claim regardless of fault. Other factors such as densely populated areas and high traffic density also factor into New York’s high car insurance rates.
What kind of car insurance do I need in NYC?
New York state law requires drivers to purchase bodily injury liability, property damage liability, personal injury protection, and uninsured/underinsured motorist coverage to meet the minimum coverage requirements.
How We Rate Insurers
Our review process aims to deliver consistent and unbiased assessments of car insurance providers. While there are multiple qualities that make a car insurance company successful, our review team focuses on those we believe are the most important for consumers:
Cost: Cost can be difficult to compare between insurers because so many factors impact annual premiums. The cheapest insurer for one driver may not be the cheapest for another. To determine our cost score, we look at insurance rate estimates generated by Quadrant Information Services, discount opportunities, and consumer reports.
Coverage: To determine our coverage score, we look at the number of coverage options available as well as coverage limits and deductible options. Our ratings also take into account additional services and benefits like roadside assistance.
Reliability: It’s important that an auto insurer is able to meet its claims obligations. Companies with a strong financial strength rating from AM Best score best in this category. Established insurers with a long history of reliable service also receive positive marks.
Service: We comb through customer reviews on sites like the BBB to learn about customer experiences. Insurers with a low volume of complaints score well in this area. We also consider the claims process, giving higher ratings to car insurance providers that offer easy-to-use claims apps.
*Data accurate at time of publication.