Why Is Car Insurance So Expensive in New York?

New York car insurance costs $1,666 for state minimum and $2,924 for full coverage annually, driven by high health care costs and extra coverage requirements.

Find out if you're overpaying for car insurance below.

By Mark Fitzpatrick

Edited by Lukas Velunta

Updated: July 7, 2025

Advertising & Editorial Disclosure

Key Takeaways

New York drivers pay about 165% more for minimum coverage and 115% more for full coverage. The national average annual rates are $628 for minimum coverage and $1,358 for full coverage.

Compared with other states, New York has more insurance requirements, such as personal injury protection and uninsured motorist coverage.

Other state-specific factors like expensive health care costs, high traffic fatalities and severe weather risks also contribute to high car insurance rates.

Reasons Why Car Insurance Is Expensive for New York Drivers

If you're a New York driver staring at your insurance bill, you're probably wondering why you're paying so much more than friends in other states. Five major factors make New York one of the most expensive states for car insurance.

Car insurance in New York costs 165% more than the national average due to no-fault insurance laws requiring Personal Injury Protection (PIP), healthcare costs 37% above the national average ($14,000+ per capita), severe winter weather increasing accidents by 40%, high vehicle theft rates (seventh nationally), and insurance fraud including garage fraud.

We analyzed these factors so you understand exactly why your premiums are so high.

No-Fault Insurance Laws (Biggest Factor)

New York's no-fault insurance system is the primary reason your premiums are so expensive. As one of only 12 states with no-fault laws, New York requires all drivers to carry Personal Injury Protection (PIP) coverage.

Here's what this means for your wallet: your insurance pays medical bills regardless of who caused the accident. Even if you're the safest driver on the road, you're paying higher premiums to cover medical costs for everyone else's accidents.

Most states require auto insurance to register and operate a car. In New York, the minimum insurance requirements include liability coverage and additional state-specific protections:

$10,000 for property damage per accident
$25,000 for bodily injury and $50,000 for death per person
$50,000 for bodily injury and $100,000 for death for all people in an accident

How No-Fault Increases Costs:

Your insurance pays medical bills regardless of who caused the accident
PIP coverage is mandatory at $50,000 per person minimum
Safe drivers subsidize costly medical claims from at-fault drivers

When a reckless driver with multiple violations causes an accident, victims' insurance companies still pay the medical bills. At renewal, even innocent drivers may see rate increases because their insurers paid out claims.

Expensive health care costs

Your insurance premiums directly reflect New York's expensive healthcare costs since PIP coverage pays medical expenses after accidents.

Per capita health spending in New York exceeds $14,000 compared to the $10,200 national average. When someone gets injured in an accident, your insurance company pays New York's inflated medical costs and passes those expenses on to you through higher premiums.

Healthcare Cost Factors:

Per capita health spending exceeds $14,000 vs $10,200 national average
Healthcare costs increase 5.4% annually in New York
PIP benefits tied to expensive NY medical treatment costs
Emergency room visits and specialist care costs much higher than most states

Rising healthcare costs automatically increase insurance premiums, even for drivers who never file claims.

Severe weather and winter conditions

New York's harsh winters increase your car insurance costs. Winter weather increases accidents by 40% and adds hundreds of dollars in vehicle damage costs over your car's lifetime.

Winter Weather Impact:

Seasonal accident increase: 40% more accidents occur October through April
Road salt damage: Causes $800 to $1,200 in additional vehicle repair costs over a car's lifetime
Accelerated wear: Salt corrosion weakens axles, suspension components, and body panels
Extended hazard period: 6+ months of dangerous driving conditions annually

Beyond accidents, winter conditions make vehicles more expensive to repair. A 14-year-old car driven through New York winters may have weakened components that can't handle normal road impacts that wouldn't affect vehicles from warmer climates.

New York faces high risks of hurricanes and winter storms. Winter storms create hazardous road conditions from late October to April, while hurricanes increase flooding risks that can lead to total losses. These costly events drive insurers to charge higher premiums to offset financial risks.

Higher crime and vehicle theft rates

If you live in or near New York City, Buffalo, or Rochester, vehicle theft risk affects your premiums. Insurance companies know which cars get stolen most often and where, and they price accordingly.

Vehicle Theft Statistics:

Most targeted vehicles in NY: 2021 Honda CR-V, 2021 Honda Accord, 2019 Honda Civic, 2016 Toyota Camry
City crime rates: NYC safer than only 3% of US cities, Buffalo 2%, Rochester 1%
Premium impact: Comprehensive coverage costs $200 to $400 more annually in high-theft urban areas

Theft rates vary dramatically across the state, but even rural areas see increased premiums due to New York's group rating system that spreads urban theft costs across all state drivers.

Insurance fraud (Unique to NY)

Insurance fraud drives up your premiums because it's entirely preventable, yet it adds an estimated 10% to 15% to your annual costs.

Garage Fraud (Registration Fraud):

New York faces a unique problem called "garage fraud" where drivers register vehicles in lower-cost states while actually living in NY. State law requires vehicle registration within 30 days of establishing residency, but violations are common with minimal enforcement. This forces legitimate NY residents to subsidize fraud through higher premiums.

No-Fault Medical Fraud:

Staged accidents targeting PIP benefits
Inflated medical claims and unnecessary treatments
False witness testimonies in accident reports
Fake injury claims lasting months beyond actual recovery time

Every fraudulent claim gets factored into everyone's premiums, meaning honest drivers pay the price for criminal behavior.

Traffic accidents

Insurance companies factor accident risks into car insurance rates. A 2024 report by the New York State Comptroller highlights a 25.8% rise in traffic fatalities, marking the highest level in a decade.

How NYC Costs Affect Upstate Drivers: The Group Rating System

If you live upstate, why do your rates seem too high for your quiet, low-crime area? New York's group rating system spreads risk across the entire state.

Group Rating Mechanics:

Insurance companies treat the entire state as one risk pool
NYC's high theft rates and accident frequency affect all NY drivers
Upstate drivers pay more than their local risk factors would suggest
System designed to keep NYC rates from being prohibitively expensive

A driver in rural New York pays much more than they would if rates were based purely on local risk factors. While upstate areas have lower theft and fewer accidents, their premiums include a portion of NYC's elevated claim costs.

This differs from states without major metropolitan areas like New York City, where risks remain more consistent across regions.

Factors That Affect New York Car Insurance Rates

Car insurance in New York is expensive, and several factors explain why. Your personal profile plays a major role in determining your rates along with state-specific issues. Knowing what affects your premiums can help you make choices that may reduce your costs.

Specific New York Locations and ZIP Codes

Car insurance rates in New York vary significantly based on your location. The table below shows average premiums for different cities so you can compare costs in your area.

Data filtered by:Results filtered by:

City

Select

City:New York


10001	New York	$92	$179
10002	New York	$97	$187
10003	New York	$91	$177
10004	New York	$144	$262
10005	New York	$90	$174
10006	New York	$95	$184
10007	New York	$95	$184
10009	New York	$94	$181
10010	New York	$87	$168
10011	New York	$90	$175
10012	New York	$91	$177
10013	New York	$90	$174
10014	New York	$91	$176
10016	New York	$87	$169
10017	New York	$136	$249
10018	New York	$145	$263
10019	New York	$87	$169
10020	New York	$87	$169
10021	New York	$86	$168
10022	New York	$87	$168
10023	New York	$87	$168
10024	New York	$86	$167
10025	New York	$97	$187
10026	New York	$106	$204
10027	New York	$172	$311
10028	New York	$87	$168
10029	New York	$102	$197
10030	New York	$109	$210
10031	New York	$109	$211
10032	New York	$109	$211
10033	New York	$110	$213
10034	New York	$111	$215
10035	New York	$171	$308
10036	New York	$87	$169
10037	New York	$112	$216
10038	New York	$93	$180
10039	New York	$108	$209
10040	New York	$112	$217
10041	New York	$102	$198
10044	New York	$90	$175
10045	New York	$92	$178
10055	New York	$88	$171
10060	New York	$104	$199
10065	New York	$87	$170
10069	New York	$89	$173
10075	New York	$87	$170
10090	New York	$104	$199
10095	New York	$104	$199
10103	New York	$88	$171
10104	New York	$88	$171
10105	New York	$88	$171
10106	New York	$88	$171
10107	New York	$88	$171
10110	New York	$91	$177
10111	New York	$88	$170
10112	New York	$88	$171
10115	New York	$89	$172
10118	New York	$86	$166
10119	New York	$91	$177
10120	New York	$96	$187
10121	New York	$91	$176
10122	New York	$97	$187
10123	New York	$96	$186
10128	New York	$89	$172
10151	New York	$89	$172
10152	New York	$89	$173
10153	New York	$90	$173
10154	New York	$89	$173
10155	New York	$89	$172
10158	New York	$89	$172
10161	New York	$90	$175
10162	New York	$88	$171
10165	New York	$89	$172
10166	New York	$89	$172
10167	New York	$89	$172
10168	New York	$87	$169
10169	New York	$87	$168
10170	New York	$88	$171
10171	New York	$87	$169
10172	New York	$90	$175
10173	New York	$87	$169
10174	New York	$87	$168
10175	New York	$87	$169
10176	New York	$87	$169
10177	New York	$87	$169
10178	New York	$87	$169
10199	New York	$90	$174
10260	New York	$98	$191
10265	New York	$98	$189
10270	New York	$93	$179
10271	New York	$93	$179
10278	New York	$91	$176
10279	New York	$95	$184
10280	New York	$93	$180
10281	New York	$95	$184
10282	New York	$92	$179
10301	New York	$94	$182
10302	New York	$94	$182
10303	New York	$97	$188
10304	New York	$98	$189
10305	New York	$97	$188
10306	New York	$95	$184
10307	New York	$94	$181
10308	New York	$94	$183
10309	New York	$91	$176
10310	New York	$94	$183
10312	New York	$92	$177
10314	New York	$92	$178
10451	New York	$127	$247
10452	New York	$127	$247
10453	New York	$128	$249
10454	New York	$126	$245
10455	New York	$127	$247
10456	New York	$128	$248
10457	New York	$127	$246
10458	New York	$117	$228
10459	New York	$127	$246
10460	New York	$125	$243
10461	New York	$108	$210
10462	New York	$119	$230
10463	New York	$116	$225
10464	New York	$101	$198
10465	New York	$109	$211
10466	New York	$120	$233
10467	New York	$117	$227
10468	New York	$121	$236
10469	New York	$116	$226
10470	New York	$106	$206
10471	New York	$105	$205
10472	New York	$121	$234
10473	New York	$119	$230
10474	New York	$126	$245
10475	New York	$110	$213
11005	New York	$94	$181
11201	New York	$122	$238
11204	New York	$138	$268
11205	New York	$131	$255
11206	New York	$145	$283
11207	New York	$154	$300
11208	New York	$149	$291
11209	New York	$126	$245
11210	New York	$144	$280
11211	New York	$128	$250
11212	New York	$152	$294
11213	New York	$154	$299
11214	New York	$138	$270
11215	New York	$124	$242
11216	New York	$146	$284
11217	New York	$124	$241
11218	New York	$133	$259
11219	New York	$135	$263
11220	New York	$129	$251
11221	New York	$151	$294
11222	New York	$126	$246
11223	New York	$139	$269
11224	New York	$141	$274
11225	New York	$147	$285
11226	New York	$141	$275
11228	New York	$129	$252
11229	New York	$140	$273
11230	New York	$140	$271
11231	New York	$123	$240
11232	New York	$128	$250
11233	New York	$152	$295
11234	New York	$147	$287
11235	New York	$144	$281
11236	New York	$149	$290
11237	New York	$141	$275
11238	New York	$135	$262
11239	New York	$148	$288
11426	New York	$96	$185

Car Insurance Companies in New York

Auto insurance premiums vary by provider, so compare quotes and service quality when searching for affordable coverage in New York. Below are the average rates from companies offering car insurance to drivers in the state.


Kemper	$839	$1,494
Progressive	$877	$1,392
GEICO	$882	$1,837
American Family	$988	$1,829
Chubb	$1,865	$3,512
Allstate	$1,885	$3,468
State Farm	$2,022	$3,254
Travelers	$2,318	$3,748
Mercury	$3,318	$5,782

Kemper offers some of the most competitive rates at $839 for minimum coverage, while GEICO provides moderate rates at $882 for minimum coverage in New York.

Driver Age

Age significantly impacts car insurance premiums, with younger drivers typically paying more due to their higher risk profile. The table below shows how premiums vary across different age groups.


25	$1,821	$3,342
40	$1,666	$2,924
65	$1,695	$2,971

25-year-old drivers face the highest premiums at $1,821 for minimum coverage, while senior drivers (65+) pay $1,695 for minimum coverage.

Driving Record and New York Motor Vehicle Law

Traffic violations can drastically increase car insurance rates in New York. Offenses like speeding tickets, at-fault accidents or DUIs result in higher premiums than maintaining a clean record. The table below shows how rates vary based on different traffic violations.


At-Fault Accident	$1,881	$3,303
DUI	$2,490	$4,465
Ticket	$1,929	$3,407

Serious violations like DUIs dramatically increase premiums to $2,490 for minimum coverage.

Credit Score

New York drivers with good or excellent credit-based insurance scores may get lower car insurance rates. Below are the state's average annual rates based on credit scores.


Poor	$3,584	$6,261
Below Fair	$2,182	$3,944
Fair	$1,498	$2,814
Good	$1,122	$2,164
Excellent	$889	$1,738

New York drivers with poor credit face premiums exceeding $3,500 annually.

Vehicle Make and Model

Your vehicle type significantly affects your insurance costs. High-value vehicles usually have higher premiums due to expensive repairs or replacements. Older cars typically cost less to insure because they’ve depreciated.

Calculating New York Car Insurance Estimates

Getting accurate estimates is the best way to compare car insurance offers because rates vary by company. Use MoneyGeek's calculator below to get personalized quotes from multiple providers based on your profile.

	Insurance Carrier	MoneyGeek ScoreMG Score	Average Monthly Payment
1	Kemper	80 /of 100	$67
2	Progressive	91 /of 100	$80
3	State Farm	92 /of 100	$101
4	GEICO	82 /of 100	$116
5	Allstate	75 /of 100	$135
6	Travelers	78 /of 100	$226

Why You Can Trust MoneyGeek

Although MoneyGeek partners with some of the companies we recommend, our content is written and reviewed by an independent team of writers, editors and licensed agents. Learn more about our editorial policies and expert editorial team.

How to Find Inexpensive Car Insurance in New York

Finding affordable car insurance in New York can be challenging, but these strategies may help lower your rates:

1
Compare multiple quotes
Comparing rates from different providers can help you find budget-friendly car insurance in New York since premiums vary. Check all state-required coverages, including liability, PIP and uninsured motorist coverage.
2
Purchase multiple policies from one provider
Bundling your auto insurance with homeowners or renters insurance with the same provider can save you up to $833 annually.
3
Check out discounts
Car insurance providers offer various discounts. If you maintain a clean record, inquire about safe driver discounts. Some insurers also reduce rates for installing safety devices in your car. Since discounts vary by state and provider, ask each company about the ones you qualify for.
4
Use a comparison tool
A car insurance comparison tool lets you compare rates from multiple companies side by side, helping you narrow your choices. However, these tools often don’t account for discounts. After selecting your top providers, contact them directly to explore discounts.
5
Raise your deductible
Policies with higher deductibles typically have lower premiums. Although raising your deductible requires you to pay more out of pocket each time you file for a claim, you’ll pay less per year for car insurance.
6
Consider pay-per-mile insurance
Pay-per-mile coverage is ideal for infrequent drivers. Insurers calculate premiums based on your mileage, so driving less results in lower costs.

Why Auto Insurance in New York Is So Expensive: Bottom Line

Car insurance in New York costs an average of $1,666 annually for minimum coverage, which is 165% higher than the $628 national average. Full coverage averages $2,924, which is 115% above the $1,358 national average.

The main causes are New York's no-fault insurance laws, healthcare costs 37% above the national average, harsh winter weather, high vehicle theft rates, and insurance fraud. While you can't change these state factors, you can still find savings by comparing quotes, bundling policies, and taking advantage of available discounts.

New York Car Insurance Cost Factors: FAQ

We answer common questions about why car insurance in New York is expensive and how drivers can find more affordable options.

How much is car insurance in New York?

New Yorkers pay an average of $1,666 annually for minimum coverage and $2,924 for full coverage.

Is car insurance expensive in New York?

Yes, car insurance in New York is expensive. Minimum coverage in the state costs 165% more than the national average, while full coverage costs 115% more.

Why is car insurance in New York expensive?

High car insurance costs in New York stem from rising health care expenses and mandatory coverages like wrongful death, personal injury protection and uninsured motorist coverage.

Can you get cheap car insurance in New York?

To find affordable car insurance in New York, compare quotes, explore discounts and adjust coverage levels. Increasing your deductible or opting for usage-based insurance can also help lower your premiums.

Why is NYC car insurance more expensive than upstate NY?

NYC insurance costs 60% to 80% more than upstate due to higher theft rates, more accidents, and increased comprehensive claims. But NY's group rating system means upstate drivers subsidize some NYC costs through shared risk pools, so even upstate drivers pay more than their local risk factors alone would suggest.

How does no-fault insurance increase costs?

No-fault laws require PIP coverage that pays medical bills regardless of who caused the accident. This increases premiums for all drivers because insurance companies must pay claims even when their policyholder wasn't at fault. Safe drivers subsidize medical costs for reckless drivers.

What's garage fraud and how does it affect my rates?

Garage fraud occurs when drivers register vehicles in lower-cost states while actually living in NY. State law requires registration within 30 days of establishing residency, but violations are common with minimal enforcement. This illegal practice forces legitimate NY drivers to subsidize fraud through higher premiums, adding an estimated 10% to 15% to annual costs.

How much more expensive is NY car insurance compared to other states?

NY minimum coverage costs $1,666 vs the $628 national average (165% higher). Full coverage costs $2,924 vs $1,358 nationally (115% higher). New York consistently ranks among the top three most expensive states for car insurance.

How does winter weather affect NY car insurance rates?

Winter weather increases accidents by 40% October through April and causes $800 to $1,200 in additional vehicle damage over a car's lifetime through road salt corrosion and harsh conditions. This drives up both collision claim frequency and comprehensive repair costs throughout the state.

Why do Buffalo and Rochester have different rates than NYC?

Buffalo ($1,617 full coverage) and Rochester ($1,257) have lower rates than NYC ($3,060) but remain expensive due to harsh winter conditions and New York's group rating system. Buffalo and Rochester rank among the most dangerous cities nationally (safer than only 2% and 1% of US cities respectively), contributing to higher theft and vandalism claims.

Car Insurance Rates in New York: Our Review Methodology

MoneyGeek analyzed 53,640 auto insurance quotes sourced from the New York State Department of Financial Services and Quadrant Information Services, covering 12 providers across 95 ZIP codes in New York. The analysis included minimum and full coverage policies, as well as home and auto bundling scenarios.

New York Driver Profile

Our analysis used a standard driver profile to identify the cheapest auto insurance companies in New York:

40-year-old man
2012 Toyota Camry LE
Clean driving record
12,000 miles driven annually

To find the cheapest option for various driver backgrounds, we adjusted this sample profile by age, driving record, credit score, car make and model and military service where specified.

Standard Coverage Levels in New York

Mandatory coverage limits in the state include:

$25,000 in bodily injury liability per person
$50,000 in bodily injury liability per accident
$10,000 in property damage liability per accident
$25,000 uninsured motorist bodily injury per person
$50,000 uninsured motorist bodily injury per accident
$50,000 personal injury protection (PIP) per person
$50,000 death liability per person
$100,000 death liability per accident

For full coverage rates, the study used these limits:

$100,000 in bodily injury liability per person
$300,000 in bodily injury liability per accident
$100,000 in property damage liability
Comprehensive and collision coverage with a $1,000 deductible

Home and Auto Coverage Levels in New York

For bundled policies, the analysis included the following limits:

Auto Coverage:

$100,000 in property damage liability
$100,000 in bodily injury liability per person / $300,000 per accident
Comprehensive and collision coverage with a $1,000 deductible

Homeowners Coverage:

$250,000 dwelling coverage
$25,000 other structures coverage
$100,000 personal property coverage
$25,000 loss of use coverage
$100,000 personal liability coverage
$1,000 medical payments coverage
All-perils coverage with a $1,000 deductible

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About Mark Fitzpatrick

Mark Fitzpatrick, a Licensed Property and Casualty Insurance Producer, is MoneyGeek's resident Personal Finance Expert. With over five years of experience analyzing the insurance market, he conducts original research and creates tailored content for all types of buyers. His insights have been featured in publications like CNBC, NBC News and Mashable.

Fitzpatrick holds a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He's also a five-time Jeopardy champion!

Passionate about economics and insurance, he aims to promote transparency in financial topics and empower others to make confident money decisions.

Read Full Bio »

sources

American Red Cross. "Common Disasters Across the U.S." Accessed June 19, 2025.
Centers for Medicare & Medicaid Services. "NHE Fact Sheet." Accessed June 19, 2025.
Neighborhood Scout. "Buffalo, NY, Crime Rates." Accessed June 19, 2025.
Neighborhood Scout. "New York, NY, Crime Rates." Accessed June 19, 2025.
Neighborhood Scout. "Rochester, NY, Crime Rates." Accessed June 19, 2025.
New York State Comptroller. "Moving in the Wrong Direction: Traffic Fatalities are Growing in New York State." Accessed June 19, 2025.

Why Is Car Insurance So Expensive in New York?

Key Takeaways

Compare Auto Insurance Rates

Reasons Why Car Insurance Is Expensive for New York Drivers

No-Fault Insurance Laws (Biggest Factor)

Expensive health care costs

Severe weather and winter conditions

Higher crime and vehicle theft rates

Insurance fraud (Unique to NY)

Traffic accidents

How NYC Costs Affect Upstate Drivers: The Group Rating System

Factors That Affect New York Car Insurance Rates

Specific New York Locations and ZIP Codes

Car Insurance Companies in New York

Driver Age

Driving Record and New York Motor Vehicle Law

Credit Score

Vehicle Make and Model

Calculating New York Car Insurance Estimates

Car Insurance Calculator

Kemper

Progressive

State Farm

GEICO

Allstate

Travelers

Your Next Step:

How to Find Inexpensive Car Insurance in New York

Compare multiple quotes

Purchase multiple policies from one provider

Check out discounts

Use a comparison tool

Raise your deductible

Consider pay-per-mile insurance

Why Auto Insurance in New York Is So Expensive: Bottom Line

New York Car Insurance Cost Factors: FAQ

How much is car insurance in New York?

Is car insurance expensive in New York?

Why is car insurance in New York expensive?

Can you get cheap car insurance in New York?

Why is NYC car insurance more expensive than upstate NY?

How does no-fault insurance increase costs?

What's garage fraud and how does it affect my rates?

How much more expensive is NY car insurance compared to other states?

How does winter weather affect NY car insurance rates?

Why do Buffalo and Rochester have different rates than NYC?

Car Insurance Rates in New York: Our Review Methodology

New York Car Insurance Costs: Related Articles

sources