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.

Written by Mark Fitzpatrick

Updated: October 29, 2025

Advertising & Editorial Disclosure

Key Takeaways

New York drivers pay about 65% more for minimum coverage and 15% 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 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 (which doesn't include a deductible, unlike comprehensive and collision 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 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 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 has weakened components that can't handle normal road impacts that wouldn't affect vehicles from warmer climates.

New York has high risks of hurricanes and winter storms. Winter storms create hazardous road conditions from late October to April, while hurricanes increase flooding risks that 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 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.

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 helps you make choices that may reduce your costs.

1. Specific New York Locations and ZIP Codes

New York's insurance market splits sharply between affordable upstate cities and expensive downstate metros. Binghamton leads in affordability at $460 annually, while Manhattan and Brooklyn neighborhoods often exceed $1,500-$2,000 for minimum coverage.

Rochester and Syracuse maintain sub-$600 rates in most areas, contrasting with Westchester suburbs like Yonkers ($830-$1,464) and Long Island communities approaching $1,200. Full coverage intensifies these geographic disparities substantially.

Data filtered by:


Albany	12202	$46	$88
Albany	12203	$43	$82
Albany	12205	$42	$82
Albany	12206	$46	$89
Albany	12207	$44	$85
Albany	12208	$67	$122
Albany	12209	$43	$84
Albany	12210	$45	$87
Albany	12211	$42	$82
Albany	12222	$55	$108
Albany	12223	$45	$87
Albany	12226	$44	$84
Albany	12260	$45	$86

2. Car Insurance Costs by 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 average rates from companies offering car insurance to drivers in the state.

Data filtered by:


Allstate	$153	$1,833
American Family	$88	$1,051
Chubb	$167	$2,009
Erie Insurance	$123	$1,471
Geico	$90	$1,075
Kemper	$68	$819
Mercury Insurance	$204	$2,454
NYCM Insurance	$58	$700
Progressive	$62	$745
State Farm	$139	$1,665
Travelers	$184	$2,205

Kemper offers some of the most competitive rates at $407 for minimum coverage, while GEICO provides moderate rates at $531 for minimum coverage in New York.

3. Driver Age Cost

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

Data filtered by:


Adult Drivers	$105	$1,256
Senior Drivers	$137	$1,648
Young Drivers	$228	$2,738

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

4. Driving Record and New York Motor Vehicle Law

Traffic violations greatly 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.


Drivers With An Accident	$70	$134
Drivers With A DUI	$92	$177
Drivers With A Speeding Ticket	$70	$134

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

5. Driver's Credit Score

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

Data filtered by:


Below Fair	$128	$1,532
Excellent	$66	$787
Fair	$102	$1,221
Good	$105	$1,256
None	$113	$1,353
Poor	$166	$1,989

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

6. Choice of Vehicle Make and Model

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

7. The Group Rating System Effects on Upstate Drivers

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.

Calculating New York Car Insurance Estimates

Getting accurate estimates is the best way to compare car insurance offers in New York because rates vary by company. Use MoneyGeek's calculator below to get 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 is challenging, but these strategies lower your rates:

1
Compare multiple quotes
Comparing rates from different providers helps 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 saves 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 have lower premiums. Although raising your deductible requires you to pay more out of pocket each time you file 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.

Cheapest Car Insurance in New York by Driver Profile

Car insurance costs in New York depend on factors like age, driving record and credit history. Because rates shift across driver profiles, the most affordable option isn't the same for everyone. We've identified the cheapest insurers in New York for different types of drivers so you can compare and choose the coverage that fits your situation.


Young Drivers	NYCM Insurance	$68	$812
Adult Drivers	NYCM Insurance	$42	$502
Senior Drivers	NYCM Insurance	$59	$707
Drivers With An Accident	NYCM Insurance	$42	$501
Drivers With A DUI	Progressive	$51	$614
Drivers With A Speeding Ticket	Progressive	$50	$605
Drivers With Bad Credit	Erie Insurance	$101	$1,207
Drivers With Low Income	NYCM Insurance	$50	$603
Drivers With Newer Cars	Geico	$46	$551
Drivers With Old Cars	NYCM Insurance	$30	$358

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, 165% higher than the $628 national average. Full coverage averages $2,924, 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 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.

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 lowers 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 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

New York's massive price variation between ZIP codes and driver profiles makes shopping for car insurance confusing. A 25-year-old in Manhattan pays $3,800 annually while a 40-year-old in Binghamton pays $460 for the same minimum coverage, an 826% difference within one state. We analyzed 53,640 auto insurance quotes from the New York State Department of Financial Services and Quadrant Information Services, covering 12 providers across 95 ZIP codes, to identify which companies offer the best rates for different New York driver profiles.

Our baseline New York driver profile: 40-year-old man, 2012 Toyota Camry LE, clean driving record, 12,000 miles driven annually.

Why this profile matters for New York shoppers: A 40-year-old with a clean record and 10+ year old vehicle represents moderate risk, old enough to avoid young driver surcharges but not so old that age-based increases apply. The 2012 Camry is common in New York and not a theft target, isolating the impact of New York's unique cost factors (no-fault laws, PIP requirements, group rating system) without vehicle-specific premium inflation.

Profile variations tested: We adjusted this baseline by age, driving record, credit score, car make and model, and military service to capture how New York's mandatory coverages and group rating system affect different driver types.

Mandatory coverage limits in New York: $25,000/$50,000 bodily injury liability per person/accident, $10,000 property damage liability, $25,000/$50,000 uninsured motorist bodily injury per person/accident, $50,000 personal injury protection (PIP) per person, $50,000/$100,000 death liability per person/accident.

Why these mandatory limits matter: New York requires more coverage types than most states, particularly PIP and death liability. This means your "minimum coverage" already costs more than other states' minimums before factoring in New York's high healthcare costs and fraud rates.

Full coverage limits tested: $100,000/$300,000/$100,000 bodily injury/property damage liability, comprehensive and collision with $1,000 deductible.

Bundled policy testing: For home and auto bundles, we used $100,000/$300,000/$100,000 auto coverage with $1,000 deductible, plus $250,000 dwelling coverage, $100,000 personal liability and $1,000 homeowners deductible to identify bundling savings across New York's varied insurance market.

New York Car Insurance Costs: Related Articles

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!

He writes about economics and insurance, breaking down complex topics so people know what they're buying.

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?

Reasons Why Car Insurance Is Expensive for New York Drivers

Factors That Affect New York Car Insurance Rates

1. Specific New York Locations and ZIP Codes