The Best Cheap Car Insurance in New York for 2021

bestauto insuranceNew York2021

The Cheapest and Best Car Insurance in New York

Cheapest for minimum liability - USAA

Cheapest for full coverage - USAA

Best company overall - USAA

Cheapest for drivers with a DUI - USAA

Cheapest for drivers with a ticket - USAA

Cheapest for drivers with bad credit - GEICO

Cheapest for senior drivers - USAA

Cheapest for student drivers - GEICO

The cheapest car insurance in New York is a minimum coverage policy that only meets the state’s car insurance requirements. If you cause an accident, this liability-only package only covers the other party’s medical and vehicle repair costs but not your own expenses.

The cheapest car insurance companies in New York for minimum coverage are:

• USAA: $902 per year (only available to veterans and current military members)
• GEICO: $1,092 per year

The General is the costliest insurer for minimum coverage, with average yearly prices of $5,352.

Average Cost for Liability Coverage

Please note that these rates are only averages and should be used as a reference to compare costs between insurers.

MONEYGEEK EXPERT TIP

A minimum coverage policy in New York only covers bodily injury and property damage liability insurance, personal injury protection and uninsured/underinsured motorist coverage. Consumers should buy a full coverage plan if they wish to protect against the cost of damages to their own car or increase the amount of liability coverage.

A full coverage package costs more than minimum coverage, but it includes higher liability limits and comprehensive and collision insurance. These features will ensure you’re protected against most road accidents and off-road incidents in New York. This policy also shields against the cost of damages to your car, not just others. You should ideally compare car insurance quotes to save money.

The least expensive car insurance providers in New York for full coverage are:

• USAA: $1,622 per year
• GEICO: $1,867 per year

The most expensive car insurance for full coverage in New York is The General, costing an average of $7,026 per year.

Average Comprehensive and Collision Rates in New York

Please keep in mind that your individual premiums will be different than these examples. Costs are for a policy with comprehensive and collision insurance, $100,000 in bodily injury liability coverage per person, $300,000 in bodily injury liability coverage per accident and $100,000 in property damage coverage per accident.

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Based on MoneyGeek’s data, the best car insurance companies in New York are:

• Best Overall: USAA
• Runner-up: Travelers

How do you choose the best car insurance company in New York for your needs? Are you looking for a trusted name in insurance, or are you just after the most affordable rate?

MoneyGeek ranked insurance companies with overall scores out of 100. The ranking includes unique pricing information and data from reputable agencies, including customer satisfaction info from J.D. Power and financial stability ratings from AM Best.

Expand All Rankings +

1

USAA

Score:100

+

get quote

5/5

Affordability

5/5

Claims Ratings

5/5

User Satisfaction

A++

Financial Stability

Geek Quick Take

USAA is the top pick in many states as it balances excellent service, financial stability and affordability. But it’s only available to New York residents who are current or former military members and their families.

More About USAA

USAA ranks consistently as one of the best and least expensive insurance companies in most states, and this is true in New York as well. If your parents are also USAA policyholders, you may qualify for discounts, as this carrier rewards drivers if their families stay loyal.

Read MoneyGeek's USAA auto Insurance Review

2

Travelers

Score:90

+

get quote

4/5

Affordability

3/5

Claims Ratings

4/5

User Satisfaction

A++

Financial Stability

Geek Quick Take

Travelers lands the second spot in MoneyGeek’s ranking of the best insurers in New York. This provider scores high marks for customer satisfaction and affordability.

More About Travelers

Besides standard auto insurance coverage, Travelers offers excellent optional features such as the Responsible Driver Plan, which includes accident forgiveness or minor violation forgiveness. You can also opt to pay extra for the Premier New Car Replacement feature, under which Travelers will replace your vehicle with a brand new one of the same make and model if it's totaled in the first five years you own it.

Read MoneyGeek's Travelers auto Insurance Review

3

State Farm

Score:88

+

get quote

3/5

Affordability

5/5

Claims Ratings

4/5

User Satisfaction

A

Financial Stability

4

MetLife

Score:88

+

get quote

4/5

Affordability

3/5

Claims Ratings

4/5

User Satisfaction

A+

Financial Stability

5

GEICO

Score:85

+

get quote

3/5

Affordability

3/5

Claims Ratings

3/5

User Satisfaction

A++

Financial Stability

6

Allstate

Score:83

+

get quote

3/5

Affordability

3/5

Claims Ratings

3/5

User Satisfaction

A+

Financial Stability

7

Nationwide

Score:80

+

get quote

2/5

Affordability

3/5

Claims Ratings

3/5

User Satisfaction

A+

Financial Stability

8

Liberty Mutual

Score:80

+

get quote

3/5

Affordability

3/5

Claims Ratings

3/5

User Satisfaction

A

Financial Stability

9

Progressive

Score:78

+

get quote

3/5

Affordability

2/5

Claims Ratings

2/5

User Satisfaction

A+

Financial Stability

While USAA scores highly in many areas, this provider is only available to military members, veterans and their families.

List of the Largest Insurance Companies in New York

Going by market share, GEICO (32.6%), Allstate (13.6%) and State Farm (12.6%) are the three largest insurance companies in New York. Market share is calculated as the number of premiums written by an insurance company divided by the total number of premiums written in the state.

It’s often advisable to buy your policy from a large, established insurance company, as it offers more security. A large provider will be able to reimburse your claim without hassle because it is more likely to be financially stable.

You can easily get accurate online car insurance quotes on most companies’ websites. While comparing quotes, be sure to get the rates for consistent limits. For example, if you get a quote with one insurer for $50,000 in bodily liability insurance per accident, you should make sure to use the same number when obtaining rates from another carrier.

The three cheapest car insurance firms in New York are USAA, GEICO and Erie, and you can start your policy search with these providers.

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To give you a better idea of the average cost of car insurance in New York, MoneyGeek defined the average New York driver as a 40-year-old male who drives a Toyota Camry, with a clean driving record. Then, MoneyGeek calculated typical rates for comprehensive and collision coverage from each insurer.

Insurers base their premiums on many factors. Rates may fluctuate considerably depending on your risk profile. Take a look at the average annual cost of car insurance for the typical driver and drivers with various risk factors.

• Average Driver: $3,433
• DUI: $5,982
• Speeding Ticket: $4,287
• Poor Credit Score: $7,334
• Seniors: $3,960
• Students: $5,954

It’s smart to drive safely, as a traffic violation like a DUI on your record will increase your car insurance costs. In New York, a driver with a DUI needs to pay $5,982 per year on average for their auto insurance, compared to $3,433 for the average driver with a clean record.

The cheapest car insurance companies in New York for a driver with a DUI and full coverage are:

• USAA: $2,642 per year
• Progressive: $2,736 per year

Although GEICO is the second-cheapest insurer for New York drivers with a clean record, Progressive has lower rates for those with a DUI.

Average Car Insurance Rates With a DUI

Part of your insurance rate is determined by your driving history, including moving violations and DUI (Driving Under the Influence) convictions, though New York refers to it as DWI (Driving While Intoxicated). It is important to understand that a DWI in New York isn’t always limited to alcohol use; Drug use while driving can also earn you a DWI. In New York, a DWI doesn’t automatically earn you any jail time, but it does earn you a fine of up to $1,000 and a six-month suspension of your license.

3,233 people in New York were killed in alcohol-related car accidents between 2009 and 2018. 1.3% of New York drivers report driving after drinking too much in the past 30 days.

The above table reflects estimates of what drivers in New York can expect to pay for auto insurance if they receive a DWI.

In New York, you could serve jail time for being convicted with a DWI. In fact, if you are convicted of a 3rd DWI, you could spend up to seven years in jail. Typically speaking, a DWI has a significant impact on your car insurance rates, more than doubling them in some cases. It is possible to find cheap car insurance for people with a DWI in New York. If you have a DWI on your record, you will need to get quotes from multiple companies to make sure you are getting the lowest possible rates.

Even a minor driving offense like a ticket can hike your car insurance prices. New York drivers with a speeding ticket pay $4,287 per year on average for their auto insurance coverage, roughly $854 less than the typical driver pays.

The least expensive insurers in New York for a driver with a speeding ticket and full coverage are:

• USAA: $1,759 per year
• Erie: $2,166 per year

Erie has lower rates for those with a speeding ticket on their record than GEICO, even though GEICO has cheaper packages for drivers with a clean record.

Average Car Insurance Rates With a Ticket

The CDC says that using a cell phone behind the wheel is the worst type of distracted driving, but distracted driving also includes people who are eating, fiddling with their GPS, changing radio stations or doing anything other than focusing on the road while they drive. If you receive a ticket for distracted driving or speeding, that will increase your insurance rates, as you can see in the chart below.

There are some insurance companies that will allow you to avoid a rate increase by taking a safe driving course, but this isn’t a guarantee, so check with your insurance company if you receive a ticket while driving. A ticket will stay on your record in New York for three years. If you earn 11 or more points on your driving record in an 18 month period, your license will be suspended, so drive carefully.

One significant advantage of a good credit score is lower car insurance rates. In New York, drivers with poor credit need to pay an average annual cost of $7,334 for their auto insurance policy, more than double what a driver with good credit pays.

The most affordable auto insurance carriers in New York for a driver with poor credit and full coverage are:

• GEICO: $2,941 per year
• USAA: $2,989 per year

These two insurers also offer the cheapest full coverage packages for drivers with good credit.

Average Car Insurance Rates for Drivers With Bad Credit

While it may seem unrelated, your credit score can have a significant impact on your insurance rate. According to Experian, the average credit score in New York is 712, which is higher than many other states in the country. A poor credit score can result in higher insurance premiums because insurance companies view a low score as a higher risk to insure. The above estimates reflect what a person in New York with a poor credit score may pay for auto insurance.

Your credit score is important to your insurance rate because insurance companies see a higher credit rate as a sign you are more responsible and, therefore, less likely to be in an accident and more likely to pay your premiums on time. While this may seem unfair, it does mean that improving your credit score can lower your insurance premium.

Car insurance companies charge senior drivers higher rates compared to middle-aged and young adult drivers. A senior driver in New York typically needs to pay an average of $3,960 per year for their car insurance, compared to $3,433 for the average non-senior adult driver.

The cheapest car insurance companies in New York for senior drivers with full coverage are:

• USAA: $1,908 per year
• Erie: $2,081 per year

GEICO offers cheaper full coverage rates for the average non-senior driver, while Erie’s premiums are lower for senior drivers in New York.

Average Car Insurance Rates for Seniors

Generally speaking, your insurance rates typically go down with age. Senior citizens, however, may see their rates increase as their vision gets worse and their reaction time slows. As upsetting as this may be, drivers 65 and older made up 16.4% of all fatal traffic accidents in 2017, which is a factor insurance companies take into account when determining your rate.

The chart above shows that insurance rates vary from company to company for senior citizens. Understanding that money is tight for many senior citizens, insurance companies offer discounts for seniors who take safe driving courses, reduce their annual mileage or drive vehicles with certain safety features.

Auto insurance providers consider young student drivers riskier to insure because they are inexperienced. Therefore, students pay higher rates than the average adult driver. In New York, a student driver needs to pay an average cost of $5,954 per year for their car insurance coverage, which is much higher than the $3,433 charged for the average driver.

The most affordable car insurance providers in New York for student drivers with full coverage are:

• GEICO: $5,260 per year
• Allstate: $5,280 per year

USAA is the cheapest provider of full coverage insurance for the average adult driver, while Allstate’s rates are lower for student drivers.

Average Car Insurance Rates for Students

By every measure, teens are more likely to end up in an accident than adults. The New York DMV recommends that you play an active role in the state's Graduated Driver's License program by:

• Verifying that your child has had required hours of practice driving with you
• Signing a parent and teen driving contract
• Enrolling in the TEENS program, which will let you know if your child receives a citation for any kind of traffic violation
• Withdraw your consent if your teenager is not ready to drive

Along with the higher risk of teen drivers come higher premiums. Choosing a vehicle wisely can help make your teen’s premiums more affordable. Insurers may also offer discounts for good students or teens who take a defensive driving class.

If you're coming to New York to study for more than 90 days, you're presumed to be a state resident and need a New York driver's license. What helps is that you can simply exchange your old state or Canadian license as long as your old license:

• Has your photo on it
• Carries the date it was issued and was issued six months prior to your arrival in New York
• Is a valid license or one that expired in the last two years
• Has not been suspended, revoked or stolen

Whether your car is registered in the state or not, your auto insurance must meet (or exceed) the minimum coverage required by New York.

Rates for teenagers can be unique. Not only are they rated based on driving experience, but everything from their GPA to where their custodial parent lives in a divorce situation can impact the cost of their insurance. Since teens in New York must hold a learner’s permit for a minimum of six months before applying for their license, you have some time to review rates with multiple companies, such as the rates listed in the chart above.

Getting a quote for insurance before you need to add your teen is the best way to make sure you are getting cheap car insurance for young drivers in New York.

With many active-duty military personnel and veterans, New York requires auto insurers licensed to operate in the state to offer discounts to military members and veterans. Every plan is different, but they are all required to give active and retired vets a reduced rate. In addition to your military discount, shopping around could save even more money.

Although military members and veterans have to carry auto insurance like everybody else, once they have automobile coverage they can get a price break at the New York DMV.

Service members don't have to pay sales tax on vehicles purchased out-of-state even if they're registered in New York. If your New York vehicle registration or license expires while you're deployed, there's an automatic extension of up to 60 days after you return to New York State. Liability insurance coverage must be maintained on vehicles in use, including the extension period on re-registering.

Average Rates for New York service members

25 years$2,092
50 years$1,584

25 years$1,798
50 years$1,595

Consumers in New York have questions about which car insurance policy to buy and how much it costs. Here are the answers to help drivers make an informed coverage decision.

Expert Advice on Finding Affordable Car Insurance in New York

To help you find credible and accurate insight on car insurance in New York, MoneyGeek gathered expert advice from proven professionals. The perspectives and opinions conveyed are those of the individual contributor.

1. What are the key factors drivers in New York should look for when searching for the best auto insurance coverage?
2. What steps can drivers in New York take to find affordable car insurance?
3. How do regulations and rules in New York impact insurance pricing and how consumers might shop for coverage?

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Mitchell LangbertAssociate Professor of Business Management at Brooklyn CollegeREAD ANSWERS

Aron TobiasAssistant Professor of Economics at Syracuse UniversityREAD ANSWERS

Angelo DeCandiaProfessor of Business at Touro CollegeREAD ANSWERS

Steven GattusoAssistant Professor of Economics & Finance at Canisius CollegeREAD ANSWERS

Mary-Jo KranacherACFE Endowed Professor of Fraud Examination at York College, CUNY READ ANSWERS

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About the Author

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Rachael Brennan is a professional finance writer and licensed insurance agent. She has worked in the insurance industry for more than a decade, earning her P&C license in all 50 states and her life, health and AD&D license in New York and the surrounding states. Rachael has worked for well-known companies such as 21st Century Insurance and BlueCross BlueShield and was the Unitarian Universalist Association (UUA) insurance plans coordinator for three years. She specializes in property, casualty, health, life, accidental death and disability insurance.

Rachael earned her bachelor of science degree in communications from Texas A&M University-Commerce. Rachael combines her writing background with her insurance and personal finance experience to share practical knowledge and help people make informed financial decisions.

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