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Best Cheap Car Insurance In New York (2023)

Find the best coverage for your needs in the Empire State.

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09/18/2023 10:01 PM

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Whether you live in New York City or Upstate New York, it can be challenging to find affordable coverage in the fourth-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.

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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 YorkEstimated Annual Cost
State Farm$3,636

How Much Is Auto Insurance In New York?

The average cost of full-coverage auto insurance in New York is $2,783 per year. This is roughly 61% higher than the national average, which is $1,730 per year for a full-coverage auto insurance policy. 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 on driver’s license: 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 costs. Those with clean driving histories 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 YorkEstimated Annual Cost
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 YorkEstimated Annual Cost
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 YorkEstimated Annual Cost
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 YorkEstimated Annual Cost
State Farm$7,724

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.

Best New York Car Insurance Overall Rating Cost Rating Coverage Rating
1. Progressive Car Insurance 4.3 4.4 4.4
2. Geico Car Insurance 4.6 4.7 4.2
3. USAA Car Insurance 4.6 4.9 4.6
4. State Farm Car Insurance 4.7 4.6 4.6
5. Allstate Car Insurance 4.1 3.3 4.4

*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: Best Usage-Based Insurance

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+ financial strength rating from AM Best. The company is also known for its thorough coverage options, which include add-on insurance products 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.

Read moreProgressive insurance review

#2 Geico: Best For Discounts

Geico is 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. With 16 car insurance discounts to choose from, our reviews team gave Geico the “Best Discounts” award.

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.

Read more: Geico insurance review

#3 USAA: Best For Military Members

USAA received a high 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 2022 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. This includes rideshare insurance, which provides coverage for drivers for rideshare companies, such as Uber or Lyft. USAA also offers classic car insurance, which provides specialized coverage for your classic, collector, or antique vehicle.

Read moreUSAA insurance review

#4 State Farm: Best Overall Provider

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 second in New York for customer satisfaction in the J.D. Power Auto Insurance Study with a score of 831 out of 1,000 possible points.

State Farm is an excellent choice for student drivers and teen 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.

Read moreState Farm insurance review

#5 Allstate: Best Local Agents

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.

Read moreAllstate 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
  • Underinsured/uninsured motorist coverage: same requirements for bodily injury liability

While comprehensive insurance and collision insurance are not required by state law, our reviews recommends adding them to your policy along with liability car insurance.

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.

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Best Cheap Car Insurance In New York: FAQ

How much is car insurance in New York monthly?

The average cost of full-coverage car insurance in New York is $232 monthly, according to our estimates. For minimum car insurance, the average is $123 monthly. Drivers with speeding tickets, DUIs, bad credit and other factors will likely see higher rates.

Is car insurance high in New York?

Yes. Car insurance is generally high in New York State. New York is the fourth-most expensive state in the country, according to our estimates. The average cost of full-coverage car insurance in New York is $2,783 per year for a 35-year-old driver with good credit and a clean driving record. This is 61% higher than the national average, which is $1,730.

How can I lower my car insurance in New York?

There are several ways to lower your car insurance in New York.

  1. Compare quotes between companies to find the best prices
  2. Look into car insurance discounts
  3. Try usage-based insurance programs
  4. Opt for minimum coverage
  5. Choose a higher car insurance deductible

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 New York City?

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 car insurance 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.