Is It Possible to Find Cheap Car Insurance in New York City?
Last Updated on October 16, 2021
Nothing about New York City is cheap – including car insurance.
However, it’s still possible to find cheap car insurance in New York City. By shopping around with different providers, you can find the best car insurance to match your unique needs and vehicle.
Today, we’re highlighting some of the tips, tricks, and strategies drivers in New York City can use to find cheap car insurance premiums.
Table of Contents:
- Best Cheap Car Insurance Companies in New York City
- Average Car Insurance Prices in New York
- Why Is Car Insurance Expensive in New York City?
- Minimum Car Insurance Requirements in New York City
- Personal Factors that Raise Car Insurance in New York City
- How to Find the Cheapest Car Insurance in New York City
Best Cheap Car Insurance Companies in New York City
Certain companies are known for offering cheaper car insurance than others in New York City. If you want to find good car insurance at a discount rate, consider requesting a quote from the following insurers:
- USAA: $1,599
- GEICO: $1,602
- State Farm: $1,634
- Erie: $1,619
- MetLife: $1,704
- Hanover: $1,749
- Allstate: $1,802
- Progressive: $1,993
- Travelers: $1,995
As a driver in New York City, you have plenty of options for car insurance. You can buy insurance through a major, nationwide provider. Or, you can buy from a smaller, regional provider.
By comparing quotes from multiple insurers, you can find the best cheap car insurance in New York City to meet your unique needs.
Average Car Insurance Prices in New York
New York City is one of the most expensive cities in the world. Understandably, New York City also has high car insurance premiums.
However, New York State is one of the most affordable states in America for car insurance. Overall, drivers in New York pay some of the cheapest rates in the United States. The average New York state driver pays around $1,193 per year for full coverage car insurance, over $250 less than the nationwide average of $1,450 per year. In fact, New York is one of the top 10 cheapest states in America for car insurance.
However, drivers in New York City pay much more than that. The average New York City driver pays around $1,889 per year for full coverage car insurance, which is over $400 more than the nationwide average.
Why Is Car Insurance Expensive in New York City?
Drivers in the rest of New York pay cheaper-than-average prices for car insurance. Why is New York City more expensive for car insurance?
Here are some of the factors that raise car insurance premiums in New York City:
Population Density: High population density is associated with higher insurance premiums. New York City is the most densely populated city in the United States. With more people inside a smaller area, you tend to get higher accident rates and crime rates. All of this can raise insurance premiums for policyholders.
Rising Medical Costs: New York City has some of the highest medical costs in the world, and medical expenses are rising every year. Insurers need to pay medical bills after an accident, and they pass these higher costs to policyholders in the form of higher premiums.
Rising Auto Repair Costs: Insurers cover the cost of repairing your vehicle to pre-loss condition after an accident. When mechanics and auto body shops in New York City charge higher prices, insurers pass these higher prices onto policyholders.
Winter Driving: New York City has winter driving conditions in some parts of the year. Driving in winter can increase accident rates, making it riskier for insurers to cover drivers.
Minimum Car Insurance Requirements in New York City
New York City has the same car insurance requirements as the rest of New York State. To operate a vehicle on public roads in New York, you must maintain insurance with the following minimum requirements:
- $25,000 of bodily injury coverage per person and $50000 of bodily injury coverage per accident
- $50,000 of death liability coverage per person and $100,000 for death liability coverage per accident
- $10,000 for property damage per accident
Any insurance policy you buy in New York City will meet these minimum requirements. Many drivers buy added liability coverage for added peace of mind.
Personal Factors that Raise Car Insurance in New York City
Insurance companies in New York City charge higher insurance premiums based on your age, gender, credit score, and other factors.
Personal factors that raise car insurance premiums in New York City include:
Driving History: Understandably, your driving record impacts car insurance premiums in New York City. Drivers with speeding tickets, DUIs, at-fault accidents, and other incidents will pay much more for car insurance than drivers with a clean record.
Annual Mileage: Do you drive more or less than the average person? Nationwide, the average driver drives around 13,000 miles per year. As a New York City motorist, however, you might drive much less than that amount. Drivers with lower annual mileage could save on car insurance.
Credit Score: New York allows drivers to use credit scores to calculate premiums. Drivers with a high credit score will pay less for car insurance than drivers with a poor credit score. If you want to get the cheapest possible insurance in New York City, then take steps to raise your credit score.
ZIP Code: Insurers use your ZIP code to calculate traffic patterns, accident rates, and crime rates in your area. Drivers in areas with high vehicle theft or accident rates will pay more for car insurance than drivers in safer ZIP codes.
Vehicle Make and Model: Some vehicles are associated with higher accident rates or deadlier accidents than others. If you drive a big, boxy SUV with a poor rollover rating, for example, then you’ll pay much more for insurance than drivers of other vehicles. Insurers check accident data for your vehicle make and model, then use this data to calculate insurance premiums.
Age and Gender: Insurers in New York use age and gender to calculate insurance premiums. Drivers who are older and more experienced will pay less for car insurance than drivers who are younger and less experienced. Men tend to pay more for car insurance than women under 25, although this trend reverses as drivers get older.
How to Find the Cheapest Car Insurance in New York City
We’ve explained why car insurance is expensive in New York City. Now, it’s time to do something about it.
Here are some of the best tips, tricks, and strategies for finding the cheapest car insurance in New York City:
Shop Around and Compare Quotes: Drivers in New York City have hundreds of options for car insurance, including large companies and smaller insurers. Insurers attract different customers for different reasons. Some insurers specialize in insuring younger drivers, for example, while others prefer older, more experienced drivers. By comparing quotes, you can find the best car insurance company for your unique needs.
Take Advantage of Discounts: Every insurance company offers discounts. By taking advantage of these discounts, you could save hundreds – even thousands – per year on car insurance.
Adjust Coverage: Some drivers in New York City carry full coverage car insurance for maximum peace of mind. Others carry minimum liability insurance to save money. You may be able to drop collision and comprehensive coverage on older vehicles to save thousands per year on car insurance.
Use the NYAIP for High-Risk Drivers: New York created the New York Automobile Insurance Plan to allow high-risk drivers to buy auto insurance coverage even if they have a bad driving history. If you have a bad driving history and are struggling to find cheap car insurance in New York City, then the NYAIP might be your best option.
Final Word on Finding Cheap Insurance in NYC
It’s been said that you don’t need to own a car in New York City. However, if you do own a vehicle, then it can be expensive to insure. New York City has higher insurance premiums than the rest of the state, and drivers in certain parts of the city pay over $3,000 per year for full coverage car insurance.
Fortunately, it is possible to find cheap car insurance in New York City. By shopping around, comparing quotes, and finding the best car insurance for your unique needs, you can find the best cheap car insurance in New York City.