Here’s Why New York Car Insurance Is So Expensive

Car insurance is expensive in New York due to high minimum requirements, severe weather risks, dense urban areas, and many major highways throughout the state.
Written by Jessica Barrett
Edited by Kianna Walpole
Reviewed by Brice Regling
New York
tends to have higher-than-average
car insurance
rates due largely to high minimum insurance requirements, severe weather, dense urban areas, and numerous major highways through even rural areas. 

Why car insurance is so expensive in New York

The average cost of car insurance in New York is $2,892 per year for a state minimum insurance policy and $3,153 annually for a
full coverage policy
well above the national averages of $1,526 and $2,265, respectively. 
There are a few key reasons for the high premiums that New Yorkers face:
  • High state minimum requirements: New York is a
    no-fault state
    that requires drivers to purchase
    personal injury protection (PIP)
    , spousal liability coverage1, and
    uninsured motorist coverage
    , which increases the overall cost of policies.
  • Severe weather: Winters in New York include icy road conditions and frequent snowstorms while summers bring the risk of hurricanes and flooding, both of which are costly for insurers to pay out.
  • Dense urban areas: New York City is the most densely populated area in the country and experiences significant traffic congestion, higher accident rates, and increased vehicle thefts—all of which contribute to higher insurance costs.
  • Major highways through rural areas: Roads with high speed limits run through rural areas across the state, posting the risk of high-speed accidents and collisions with wildlife.
  • Healthcare costs: Healthcare spending grew exponentially in 2021 across New York2, meaning car insurance coverages such as PIP are used more often. 

Other factors impact insurance prices in New York, too

While not state-specific, continued supply chain issues and inflation are playing a major role in New York’s high auto insurance rates, as well.3 Vehicle repair and replacement costs and medical expenses are high, which means increasingly high payouts from car insurance companies—and higher premiums across the board.
Individual factors matter, too. Your personal profile, vehicle, driving history, and demographic information will impact your rates, which means you may see quotes well above or below the state average.

5 ways to save on auto insurance in New York

1. Comparison shop for coverage

app screenshot
Comparison shopping is the best way to find cheap car insurance in New York. If you’re shopping with
, you’ll only need to share your details once and you can compare rates from among 55+ insurers in about a minute.
Your coverage will automatically include the
New York state minimums
but you can increase your liability limits, add
full coverage options
, and even adjust your deductibles right in the app—then tap to finalize your rate and schedule your policy start date when you’re ready.

2. Look for discounts

Car insurance discounts
can reduce your premium significantly, and most companies allow you to stack them for more savings. Many of the most common discounts are applied to your policy automatically, but it’s worth asking if there are others that you qualify for. 
Here are some popular discounts available in New York—and the amount they can potentially save you:
Driver-based discounts
  • Safe driver
    : Clean record with no accidents for a certain period (10-30%)
  • Good student: Maintain a high GPA—usually a B or higher (5-20%)
  • Defensive driving course: Complete a state-approved course not mandated by the court (5-10%)
Vehicle-based discounts
  • Anti-theft: Equip your vehicle with an anti-theft device like an alarm or tracking system (5-25%)
  • Low annual mileage
    : Drive fewer miles than the average driver—typically under 7,500 per year
  • Green vehicle: Insure an eligible hybrid or electric vehicle (5-10%)
Policy-based discounts
  • Multi-car: Insure more than one vehicle with the same company (around 25%)
  • Automatic payment or paperless billing: Pay by direct withdrawal and/or sign up for electronic statements (up to 25%)
  • Loyalty: Maintain a policy with the same company for a certain period (up to 10%)
  • Early renewal: Renew your policy at least a week before your existing one expires (up to 15%)

3. Bundle insurance policies

Combining your auto insurance policy
with other types of coverage, such as homeowners insurance or renters insurance, can save you up to about 12% on each premium. Most insurance companies offer a bundling discount but the savings can vary.

4. Consider pay-per-mile insurance

If you don’t drive often, switching to usage-based or pay-per-mile insurance could score you some serious savings. You’ll pay a base rate each month plus a certain rate per mile you drive, so your monthly payment will always vary. To qualify for this type of policy, you’ll typically need to drive fewer than 7,500 miles per year.

5. Maintain a good driving record

For long-term savings and the best rates, one of the best things you can do is keep a clean NY driving record. Speeding tickets and other violations can significantly impact your premium and eliminate any good driving discounts you had. If you’re convicted of a serious offense, like a DUI or reckless driving, your provider might even drop you altogether.


How much is car insurance per month in NY?

The monthly cost of car insurance in New York varies widely depending on factors including the driver's age, driving history, type of vehicle, and specific location. On average, drivers pay $2,892 per year for minimum coverage and $3,153 for full coverage car insurance.

How much is car insurance in NY for a 21 year old?

Car insurance for a 21-year-old driver in New York will almost always be higher than the state average rate. Drivers under 25 pay higher rates due to lack of experience and increased risk. Comparing car insurance quotes is the best way to find the most affordable policy.

Where is car insurance most expensive in the US?

Michigan, Louisiana, and Florida are often cited as some of the most expensive states for car insurance, primarily due to their respective insurance laws and risk factors.

How can I lower my car insurance in NY?

To lower your car insurance in NY, the best thing you can do is shop around for better rates. You can also reduce your premium by inquiring about discounts, increasing your deductibles, bundling insurance policies with the same provider, and maintaining a clean driving record over the long term.

What is the cheapest car to insure in NY?

Generally, smaller, safer, and less expensive cars are cheaper to insure. Models like Honda CR-V, Subaru Outback, and Ford Escape tend to have some of the lowest insurance costs, while luxury vehicles and sports cars tend to be more expensive.

What is the new law for car insurance in NY 2023?

The new car insurance law, which took effect on August 1, requires insurance companies to enroll customers in supplemental spousal liability insurance. It allows your spouse to recover damages from your policy when they are seriously injured as a passenger while their spouse is driving in an at fault accident. In case of an accident, like on an icy road your spouse can now recover damages from your bodily injury liability instead of just PIP (personal injury protection).
You can opt out of the coverage by contacting your insurance company and submitting the coverage refusal in writing.

Is car insurance more expensive in Brooklyn or Queens?

Typically, car insurance in Brooklyn tends to be more expensive than in Queens due to factors like higher traffic density, accident rates, and crime rates.

Do you need car insurance in NY?

Yes, car insurance is legally required in New York. Drivers must carry minimum liability insurance, personal injury protection (PIP), and uninsured motorist coverage. Supplemental spousal liability insurance is required unless you decline the coverage in writing.

When does car insurance go down?

Car insurance premiums generally decrease as you get older and gain more experience. You’ll typically see a noticeable drop after age 25. Maintaining a clean driving record and good credit score can also contribute to lower rates over time.

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