Why Is Car Insurance So Expensive in New York?


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Key Takeaways

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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.

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

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

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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.

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    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.

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    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.

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    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.

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    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.

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    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.

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    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:
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City:Accord
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Zip Code:06390

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.

Car Insurance Calculator

MoneyGeek's car insurance calculator will give you a customized estimate of your auto insurance cost. It's free to use, requires no personal information and we won't send you any spam.

$226
High
$121
Average
$67
Low

Rates updated:

Jul 05, 2025

Insurance Carrier
MoneyGeek Score
Average Monthly
Payment
1
80
/of 100
$67
2
91
/of 100
$80
3
92
/of 100
$101
4
GEICO

GEICO

82
/of 100
$116
5
75
/of 100
$135
6
78
/of 100
$226
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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. 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. 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. 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. 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. 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. 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?

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

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

New York Car Insurance Costs: Related Articles

About Mark Fitzpatrick


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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.


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