If you own and drive a vehicle, paying for car insurance is an inevitable fact of life, but if you haven’t taken the time to look for the cheapest car insurance in NY, you’re probably overpaying.
With so many options in the state, you could end up saving hundreds of dollars on car insurance in New York.
Most insurance companies evaluate the same criteria when determining your insurability, but the pricing impact of each factor may vary between brokers, as every company does their actuarial math a bit differently.
Your age, gender, the type of vehicle you own, your driving history and the area that you live in are all factors that insurance companies factor in their calculations.
Learning the process behind your rate determination gives you leverage when discussing your policy with your insurance broker–and gathering comparable quotes beforehand is the key to increase your negotiating power.
Cheap Car Insurance in New York
Here are the top 4 companies that offer cheap car insurance in NY:
Progressive Car Insurance
Progressive is one of the largest insurance corporations in the United States, and it has been in operation since 1937.
The company serves over 18,000,000 customers, and it has received high ratings on financial stability from third-party review organizations.
Progressive’s innovative Snapshot® program offers discounts for safe driving habits and the company also provides traditional multi-driver, multi-vehicle, and bundle rates.
Allstate Car Insurance
Allstate is the second largest insurance giant in the country, and it boasts more than 18,000,000 covered drivers.
According to the National Association of Insurance Commissioners, Allstate’s private passenger auto insurance complaints are lower than the industry average.
Esurance, Encompass Insurance, and SquareTrade are all subsidiaries of Allstate.
American Family Car Insurance
American Family has been in operation since 1927, and it remains committed to offering customizable policies that meet the unique personal and geographical needs of customers.
Although the company’s third-party ratings are average, customer service interactions get high ratings from consumers.
Affordability is a selling point for American Family Insurance, and the company offers competitive premiums and a range of discounts to ease the financial burden of car insurance.
MetLife Car Insurance
MetLife was founded in 1868, and the company has grown to be one of the largest insurance providers worldwide.
With operations in over 50 countries, the provider offers a range of insurance options that aren’t confined to vehicles.
Discounts are limited, but MetLife has many coverage options to suit individual priorities, such as new car replacement, lease/loan gap coverage, and roadside assistance.
The company boasts solid financial ratings but receives average ratings for coverage and discounts.
How Much is Car Insurance in New York?
The average cost of car insurance in New York is higher than the national average.
- Average Cost of Car Insurance in NY: $2,409
- National Average Cost of Car Insurance: $889.01
Since 2011, New York car insurance premiums have risen steadily at a rate comparable to the rest of the country.
What Factors Affect Car Insurance in NY?
When New York car insurance companies calculate premiums, there are several area-specific factors they consider, including traffic conditions, crime rates related to vehicles, population density, and disposable income.
The National Association of Insurance Commissioners determines traffic conditions by measuring traffic density and fatal accident rates.
When determining New York’s traffic density, we found that the number of vehicle miles per registered vehicle (12,244) is just slightly higher than the national average (12,010).
However, the number of vehicle miles per highway mile (1,125,916) is significantly higher than the countrywide average of 724,348, which may contribute to higher insurance premiums.
The rate of fatal accidents is also considered and measured per 100 million vehicle miles and 1,000 registered vehicles.
In New York, both measurements are lower than the national average by more than 20 percent.
Generally, higher accident rates equal higher insurance premiums, so there are likely other factors that have a more substantial impact on New York prices.
Vehicle Theft Rates
The rate of vehicle theft in the state is also a contributing factor that helps determine car insurance rates in New York.
According to the FBI’s Crime in the US report, the number of reported vehicle thefts averages just under 73 per 100,000 inhabitants.
This number is quite low when compared with the averages of other states, with only three states reporting lower numbers.
Often, a lower average results in reduced car insurance rates statewide.
The type of vehicle you drive can also affect your rates.
The National Insurance Crime Bureau has broken down the most commonly stolen cars by state.
If your goal is to find the cheapest car insurance in New York, bear in mind that driving one of these vehicles may increase your rate:
- Honda Accord
- Honda Civic
- Toyota Camry
- Nissan Altima
- Ford Econoline E350
- Toyota Corolla
- Honda CR-V
- Nissan Maxima
- Dodge Caravan
- Jeep Cherokee/Grand Cherokee
Although population density doesn’t directly impact the rate of car insurance, companies often use this data when calculating premiums for the area.
A denser population generally leads to a higher number of vehicles contributing to local traffic conditions in the area and increasing the chances for vehicular accidents or thefts.
The latest numbers from the NAIC show New York with a density of 418 people per square mile and 91.9 percent of the population living in metropolitan areas.
New York’s population density is more than four times higher than the national average of 90, which may have influenced car insurance companies to increase rates.
The high percentage of people living in metropolitan areas may also result in higher premiums for people in those cities.
Disposable income is another factor that is considered but doesn’t impact rates directly.
A state displaying a higher average of disposable income suggests that residents have more money available to purchase luxury vehicles, increasing the average car insurance payout in the area.
New York shows an average disposable income of $47,446 according to NAIC data.
This amount is significantly higher than the national average of $40,859 and establishes the state as the having the ninth highest average in the country.
It’s likely that this is a factor in the higher insurance premium costs for New York residents.
What is Mandatory for Car Insurance in New York?
When comparing prices to find the cheapest car insurance in New York, make sure to account for the coverage minimums required by state law.
To obtain and maintain registration in New York, drivers must show proof of liability insurance coverage issued by a company with New York State DMV certification and licensed by the New York State Department of Financial Services.
Liability coverage minimums include:
- $10,000 property damage for a single accident
- $25,000 bodily injury and $50,000 death for a single person involved in an accident
- $50,000 bodily injury and $100,000 death for two or more people involved in an accident
New York monitors compliance with state insurance laws using the Insurance Information and Enforcement System.
It identifies insurance lapses by comparing names and vehicle identification numbers from registrations to those submitted by state-approved insurance companies.
Despite the implementation of this system, drivers of vehicles registered in New York must also carry a hard copy of their insurance card in their cars as secondary proof of coverage.
How to Reduce the Cost of Your Car Insurance in New York
Along with choosing an insurance company with reasonable rates, if you genuinely want the cheapest car insurance in New York, there are additional actions you can take to reduce your premiums even further.
These options include:
- Increase your deductible
- Discuss any discounts that may be available to you, such as safe driver or low mileage
- If your vehicle is paid off, consider reducing your coverage (banks often require full coverage for the life of the loan or lease)
- Ask if any vehicular safety features can lower your rates
- Bundle your car insurance with other types of insurance, such as homeowner’s or life insurance
When you’ve narrowed down your list of possible insurance companies, and you’re ready to request quotes, remember that agents need information about the vehicles you’re seeking coverage for, any drivers you want to include on the policy, and basic household details.
Before you make your first call, gather the following information:
- Vehicle Identification Numbers
- Year, make, model, and trim style
- Estimate of annual mileage
- List of safety features and any anti-theft devices
- Driving record
- Any safety driving courses completed
- Grades (for student drivers)
- Parking accommodations
- The amount of liability coverage you’re seeking
- The deductible you want on your policy
- The number of drivers in your household
What Can Increase the Cost of Your Car Insurance in New York?
Now that you know the steps you can take to make sure you find the cheapest car insurance in New York, it’s also important to be aware of the things that can increase your premiums.
To keep your rates reasonable, consider the following:
Poor driving history
Excessive traffic tickets or recent at-fault accidents result in increased rates.
Most insurance companies only look back three to five years in your driving history.
Younger drivers are often charged more for their inexperience on the road.
Drivers frequently see their premiums drop once they hit the age of 25.
Conversely, seniors also experience a raise in their rates, after the age of 65.
Some car insurance companies run a credit check on the primary insurance holder and what they find may affect your rates.
Younger men often pay higher premiums than their female counterparts.
Some vehicles command higher premiums than others.
Expensive cars cost more to replace so expect to pay more for insurance coverage of luxury vehicles.
Sporty vehicles can sometimes increase rates as well due to the greater likelihood of speeding.
Car insurance is an unavoidable expense.
Shopping For Cheap Car Insurance In New York
Taking the time to research and compare companies is the best way to find the cheapest car insurance in New York.
Individual carriers all use in-house algorithms to determine premiums for their clients, so they each weigh contributing factors differently.
To get the best rate for the coverage you need, it’s a good idea to get quotes from at least three companies.
Pay close attention to customer reviews to gain insight regarding the company’s approach to customers and take time to verify that the company’s coverage offerings meet your needs.
Fortunately, understanding how companies determine their rates, knowing the average premiums in your state, and identifying factors that can bring your insurance costs up or down put you in the best possible position to identify the cheapest car insurance in New York.*While we make every effort to keep our site updated, please be aware that "timely" information on this page, such as quote estimates, or pertinent details about companies, may only be accurate as of its last edit day. Huntley Wealth & Insurance Services and its representatives do not give legal or tax advice. Please consult your own legal or tax adviser.