The Cheapest Car Insurance in New York (November 2023)
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By, Content Director
By, Director, Corporate Communications, Insurance Information Institute
Kemper is the overall cheapest option for car insurance policies in New York. Progressive is also a great option and has the cheapest rates in New York for certain types of drivers.
MoneyGeek also has recommendations for the best car insurance in New York if you’re looking for options that balance cost and quality service.
Table of Contents
Cheapest Minimum Liability Car Insurance in New York (November 2023)
MoneyGeek found that the cheapest car insurance for a minimum coverage policy are:
- Kemper: $545 per year
- Progressive: $688 per year
Hanover is the most expensive car insurance company for minimum coverage, at an average annual cost of $2,105, based on the companies MoneyGeek collected quotes for in New York.
The state law’s minimum insurance requirements only cover bodily injury liability, property damage liability, liability for death, uninsured/underinsured motorist coverage and personal injury protection.
A minimum coverage policy only covers the cost of injuries or damages that you cause to others, not damages to your vehicle. A full coverage policy that has comprehensive and collision insurance can give you more protection that takes care of any damages to your vehicle.
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Cheapest Full Coverage Car Insurance in New York (November 2023)
Based on MoneyGeek’s study, the cheapest full coverage car insurance providers are:
- Kemper: $943 per year
- Progressive: $1,079 per year
Hanover charges the most expensive rate for full coverage in the Empire State, at roughly $3,826 per year.
Adding comprehensive and collision coverage to your policy increases the cost of your annual premium. For instance, Kemper’s full coverage policy is more expensive by $398 a year than its minimum coverage policy.
Full coverage car insurance is more expensive, but it also offers better financial protection. It covers damages due to on-road accidents (hitting an object or another vehicle) and off-road incidents (storm damage, flooding, fire, theft or vandalism).
How much car insurance you need has a significant impact on your rates.
MoneyGeek’s sample full coverage policy includes the following liability limits:
- $100,000 bodily injury per person
- $300,000 bodily injury per accident
- $100,000 property damage per accident
If you’re looking to save on your policy, lowering your liability limits, dropping your comprehensive and collision coverage or raising your deductible may help you get cheaper rates. However, you’ll also face higher out-of-pocket costs if you get into an accident.
How to Compare Cheap New York Car Insurance Quotes Online
Most auto insurance companies provide quotes online, but it can take up to 15 minutes to input the personal details that are required. If you’re comparing multiple companies, this can add up over time.
MoneyGeek’s car insurance calculator makes comparing rates a breeze. You can get a quick estimate that is customized to your personal driver profile without having to provide specific personal information. Use the estimates that are generated by our free online tool to find the cheapest car insurance based on your age, gender and driving record.
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Cheapest Car Insurance in New York by Age (November 2023)
Age is one of the biggest factors affecting car insurance rates in New York. MoneyGeek found that Kemper or Progressive offer the cheapest options, depending on what age group you and your family belong to.
Cheapest Car Insurance in New York for Teens and Their Families (November 2023)
Teen drivers on their parent’s policy will find the cheapest car insurance rates from:
- Kemper: $1,516 per year for male teens and $1,461 per year for female teens
- Progressive: $2,981 per year for male teens GEICO: $2,625 per year for female teens
Travelers is the most expensive insurer for teens, with average rates of $8,283 and $6,977 for male and female drivers, respectively.
A teen can enjoy declining car insurance rates, specifically during the teenage years, with 19-year-olds getting the cheapest premiums. New York's most affordable car insurer for 19-year-old males is Kemper ($1,311 per year).
Insurers typically charge lower premiums if a teen driver is added to a parent’s policy than if they buy a separate policy, and in most cases, it is illegal for a teen to purchase a policy on their own without a parent or guardian to co-sign. For instance, the average 16-year-old male driver in New York might have to pay roughly $7,621 per year if they buy their own policy. This rate is reduced to around $4,262 if they’re added to a parent’s policy. That’s $3,359 in savings.
Many insurance companies offer discounts for young drivers. Based on our study of the cheapest insurers, Allstate, Progressive and Travelers provide discounts to students who live away from home and those who earn a high academic standing. GEICO, Kemper and State Farm only provide discounts to students with good grades.
On average, car insurance rates for male teens tend to be significantly more expensive than for female teens because teen boys have a higher incidence of at-fault accidents and moving violations than teen girls. This rate difference is not as notable when drivers reach their 20s and beyond. — Mark Friedlander, Director, Corporate Communications, Insurance Information Institute
Cheapest Car Insurance in New York for Young Adults (November 2023)
The cheapest car insurance providers for drivers in their 20s are:
- Kemper: $1,199 per year
- Progressive: $1,201 per year
Hanover is the most expensive insurer for young adults, with a full coverage policy priced at $4,937 per year, on average.
Generally, drivers in their 20s are charged higher rates compared with middle-aged drivers because of their higher incidence of at-fault accidents and moving violations. For example, a full coverage policy from Kemper costs $256 more for a 25-year-old driver than for a 40-year-old driver.
Cheapest Car Insurance in New York for Seniors (November 2023)
In New York, the cheapest car insurance providers for senior drivers (age 60+) are:
- Kemper: $923 per year
- Progressive: $1,092 per year
Hanover is the most expensive insurance provider for seniors, with a full coverage policy costing approximately $4,281 per year.
Seniors pay slightly less than middle-aged drivers. A 65-year-old driver in New York pays around $923 per year for a full coverage policy from Kemper, whereas a 40-year-old pays $943 per year for the same policy.
Insurance rates tend to increase as drivers reach their 70s and 80s. Age-related physical limitations, particularly poorer eyesight and slower reflexes, can make senior drivers more prone to road accidents, so insurers charge them more.
Kemper, GEICO, Allstate and Mercury provide discounts for drivers who are 65 and older. To save the most money, you should compare multiple insurers to find out which companies offer the best rates, since age is just one of several factors that are used to calculate your premium cost.
Cheapest Car Insurance for Higher Risk Drivers (November 2023)
The most affordable insurer in New York for drivers with tickets, at-fault accidents, and DWI cases (New York does not use DUI) is Progressive. Kemper is cheapest for sports car drivers and people with poor credit.
Following a traffic violation, you might notice a significant increase in the cost of your annual premium due to higher risk. Insurers do this to compensate for the possible costs of bodily injury, property damage and death while you’re on the road.
Cheapest Car Insurance in New York After a Ticket
In New York, drivers with a speeding ticket will get the cheapest premium for a full coverage policy from the following providers:
- Progressive: $1,120 per year
- Kemper: $1,209 per year
Mercury is the most expensive option at $3,902 per year.
After getting a ticket, you might pay around $298 more for your car insurance.
Cheapest Car Insurance in New York After an Accident
Drivers with at-fault accidents in New York will get the most affordable full coverage car insurance policies from the following providers:
- Progressive: $1,079 per year
- Kemper: $1,365 per year
Hanover has the highest rates at approximately $3,826 per year.
Based on our calculations, being at fault in a car accident could increase your annual premium by $220.
Cheapest Car Insurance in New York After a DUI
The following companies have the cheapest rates for full coverage car insurance if you have a DWI on your driving record:
- Progressive: $1,132 per year
- Kemper: $1,408 per year
With an average annual premium of $6,450, Chubb is the most expensive option for New Yorkers with a DWI. Remember, New York does not have DUIs, but we found that a DWI could raise your annual premium by an average of $1,160 in the state.
Cheapest Car Insurance in New York for Drivers With Poor Credit (November 2023)
New Yorkers with poor credit will find the cheapest car insurance rates from the following insurers:
- Kemper: $2,571 per year
- GEICO: $2,677 per year
Hanover is the most expensive option, charging an average annual premium of $390,881 for a full coverage policy.
Drivers with bad credit pay an average of $38,271 per year with Hanover. A good credit score, ideally above 750, can get you the lowest rates because insurers consider you a low-risk driver. A credit score below 580 can increase your full coverage car insurance rates by $38,289, on average, per year.
Analytical data indicates that drivers with lower credit scores are more likely to file claims, so insurers charge them higher rates. Using credit-based insurance scores as a basis for calculating premiums is legal in New York.
If you’re looking to reduce your rates, consider improving your credit score. You should also compare rates from multiple insurers and take advantage of common discounts, like those for bundling policies or installing safety features.
Cheapest Car Insurance in New York for Sports Cars (November 2023)
These auto insurance companies provide the cheapest full coverage rates for drivers with sports cars:
- Kemper: $1,010 per year
- Progressive: $1,223 per year
Chubb, at an average cost of $3,095 per year, is the most expensive car insurer for sports car drivers.
Sports cars are typically more expensive to insure because these have higher repair and replacement costs compared with standard vehicles. However, this isn’t the case in New York. For instance, drivers with a Ford Mustang are charged $201 less than those with a Toyota Camry LE.
MoneyGeek used a Ford Mustang as its sample sports car. Depending on your car’s model, your actual rate may differ from the average rates in our study.
Typically, luxury cars, electric cars and sports cars are more costly to insure compared with other model types. But this may not be necessarily true in New York, as you’ve seen in our comparison of rates for the Toyota Camry LE and the Ford Mustang. Always compare quotes from multiple providers to find the best rates.
Cheapest Car Insurance in New York for Military Drivers (November 2023)
Kemper is the most affordable car insurance provider for active-duty military members and veterans at an average rate of $943 per year.
Although it is ranked as the fourth-cheapest insurer in New York in our study, USAA is another great option. It has services that are tailored to the needs of the military. A USAA full coverage policy costs $1,476 per year on average in New York.
- $943 per year
Kemper offers discounts to military personnel on active duty and members of the National Guard. On top of these military discounts, Kemper also offers common discounts that could further reduce the cost of your auto insurance. You could save on your premium by insuring multiple cars, taking an approved defensive driving course or paying your annual premium in full upfront.
Cheapest Car Insurance in New York by City
MoneyGeek also rounded the best and cheapest car insurance companies in Manhattan. The city, and even the ZIP code, where you live impacts the cost of your car insurance. Insurers tend to charge drivers who live in crime-prone neighborhoods more for insurance, since there’s a higher likelihood that they’ll file a claim.
Although insurance rates differ by city, the cheapest insurer was Kemper in all the New York cities that MoneyGeek evaluated. Kemper charges around $539 per year for a full coverage policy in Rochester, whereas the insurer charges roughly $1,360 per year for drivers who live in New York City.
Use our table below to compare the average car insurance rates per city.
Car Insurance in New York: What You Need to Know
Most states, including New York, require bodily injury liability (BIL) and property damage liability (PDL). But on top of these, New York also requires personal injury protection and uninsured/underinsured motorist coverage.
New York Car Insurance Requirements
A minimum coverage policy in New York must include bodily injury liability, liability for death, property damage liability, uninsured/underinsured motorist coverage and personal injury protection.
Though a minimum coverage policy might cost less, you may pay more money out of pocket if you get in an accident. If your budget allows, we strongly recommend purchasing as much liability coverage as you can reasonably afford. For only a few extra dollars per year, you’ll have added security should you get into an accident.
Bodily Injury Liability
According to New York’s Vehicle and Traffic Law, drivers must carry a policy that meets the state minimum requirement of $25,000 in bodily injury liability per person and $50,000 in bodily injury liability per accident. This covers the cost of medical bills in an accident where you’re found at fault. You’ll be required to pay any amount that exceeds these limits.
Liability for Death
All car insurance policies must include $50,000 liability per person for any injury resulting in death and $100,000 liability per accident for any injuries resulting in the death of two or more persons.
Property Damage Liability
Drivers must have $10,000 coverage in property damage liability per accident. Paying just this minimum limit means that you'll have to pay for any costs above $10,000 if you're at fault in an accident that damages another person's property.
Personal Injury Protection
All policies should have at least $50,000 in personal injury protection. This is also called no-fault insurance coverage. With this coverage, your insurer will pay up to $50,000 to cover medical expenses and lost earnings, regardless of who is at fault for the accident or whether there was negligence. Choosing just the minimum limit might mean that your insurance payout won’t be enough to cover the total costs if you’ve sustained major injuries.
Uninsured/Underinsured Motorist Coverage
Drivers are required to have $25,000 in uninsured/underinsured motorist coverage per person and $50,000 in uninsured/underinsured motorist coverage per accident. This covers the cost of any injuries that you or your passengers might suffer in an accident with an uninsured/underinsured vehicle or in a hit-and-run accident.
MoneyGeek advises you to purchase bodily injury liability insurance of at least $100,000 per person and $300,000 per accident. We also recommend increasing your property damage coverage to at least $100,000 per accident.
If you’re financing or leasing your car, it’s likely that you need to purchase comprehensive and collision insurance. Those with new cars may also consider purchasing comprehensive and collision coverage.
Comprehensive insurance takes care of the cost of repairing your car if it is damaged by off-road incidents, such as vandalism, theft, fire and weather-related events. Collision insurance covers the cost of repairing your vehicle in the event of a crash or collision with an object (tree, guard rail, telephone pole, pothole) or another car.
Car Insurance Alternatives in New York
All vehicles that are operated in New York by residents must meet the liability requirements that are stated in the New York State financial responsibility law. Even vehicles that are in storage and aren’t being driven are not exempt from having liability insurance.
If you’re unable to get auto insurance for any reason, there are other alternatives that will satisfy the required financial responsibility. These are:
Self-insurance: You may apply as a self-insurer if you have more than 25 cars registered under your name. A $5 application fee for each vehicle and proof of financial ability to cover any potential accident claims for each vehicle is required. This means you’ll need lots of extra cash in reserve to cover damages to your car, another person’s car and property and possible lawsuits.
Surety bonds: This is a reduced cost alternative to traditional car insurance that could save you money unless you have to file a claim. A surety bond is a contract that requires a company to pay your financial obligations in the event of an accident. Surety bonds cost only a percentage of the bond total. Those with good credit are typically charged 1% to 2.5% of the bond value as a premium. Given that the minimum auto insurance bond or deposit in New York is $25,000, you’ll only have to pay around $250 to $625 if you have good credit. However, if you file a claim, you’ll have to pay the entire bond.
Security deposit with the Department of Motor Vehicles (DMV): This requires you to deposit $150,000 in cash or security. But you may be asked for additional deposits depending on your driver profile.
FAQs About Car Insurance in New York
Drivers who are looking for car insurance typically have many questions about cost and service quality. Our answers to the frequently asked questions go over the basics of car insurance to help you learn more about the topic.
Expert Advice on Finding Cheap Car Insurance in New York
To help you find credible and accurate insight into car insurance in New York, MoneyGeek received expert advice from trusted professionals. The perspectives and opinions expressed are those of the individual contributor.
- What are the key factors drivers in New York should look for when searching for the best auto insurance coverage?
- What steps can drivers in New York take to find affordable car insurance?
- How do regulations and rules in New York impact insurance pricing and how consumers might shop for coverage?
- What resources does the New York Department of Insurance have for consumers?
Managing Partner & Co-Founder at WizdomOne Group
Assistant Professor of Economics & Finance at Canisius College
COO at Alpha/Omega Coverage Corp
Associate Professor of Business Management at Brooklyn College
Associate Professor of Economics at St. Lawrence University
Instructor at Touro University
Assistant Professor of Economics at Syracuse University
ACFE Endowed Professor of Fraud Examination at York College
About Mark Fitzpatrick
- Insurance Information Institute. "What Is Covered by Collision and Comprehensive Auto Insurance?." Accessed December 13, 2022.
- New York State Department of Financial Services. "Shopping for Auto Insurance." Accessed December 12, 2022.
- New York State Department of Motor Vehicles. "Auto Liability Insurance." Accessed December 15, 2022.
- New York State Department of Motor Vehicles. "Application for Certificate of Self-Insurance." Accessed December 15, 2022.