Average Car Insurance Cost in New York

Insurers use several factors when determining a policyholder’s premiums, both related and unrelated to one’s driving record. Let’s check out the main factors insurers in the Empire State look at when calculating rates, why a New York auto insurance policy is more expensive than the national average, and investigate what contributes to the average cost of a policy in the state.

Car insurance in New York costs, on average, about $2,340 annually for a full coverage policy. Most insurers generally offer rates in the range of this average, but some drivers may pay more or less than the state average for their policies depending on a few factors.

The premiums on a car insurance policy are subjective based on the driver, policy, and insurer, so while your friend may pay far below the average rate for their premium, you may not be eligible for such a rate. Insurers use several factors when calculating a policyholder’s premiums, including one’s age, gender, ZIP code, insurance history, and driving record, among several other factors. Such factors may contribute to your rates or quotes being higher or lower than the state average.

Insurers use each of these factors to help them determine the likelihood of a driver filing a claim. If any of these factors point to a driver having a higher-than-average risk of filing a claim, insurers may compensate for such risk by charging them higher premiums. 

For example, drivers who live in densely populated cities like New York City are statistically more likely to get into accidents and file claims than the average driver. So, drivers with such ZIP codes may pay higher premiums even if they have clean driving records and are generally good drivers. 

Those who have driven without insurance in the state or who have ever had an SR-22 form filed on their behalf, otherwise known as high-risk drivers, may see premiums much higher than the average rate. Some high-risk drivers see rates as much as double or triple the state average. However, premiums tend to ebb and flow throughout the years, so anyone with higher-than-average premiums should see a decrease in their rates sooner or later as long as they make good choices behind the wheel.

While a full coverage policy can be costly, especially for high-risk drivers, it’s essential to remember that the investment is worth the price. A full coverage policy will cost more in premiums but will offer more expansive protection for drivers in any accident scenario. The short-term savings one might see with a minimum coverage policy or by forgoing coverage may be intriguing. Still, such choices have a much more significant risk of financial ruin than a full coverage policy. 

The average auto insurance in New York is a full coverage policy with additional coverage from those mandated by law from an insurer that offers the cheapest rates in the state and several opportunities for stackable discounts. Drivers who maintain the minimum required coverage are legally insured but may not be sufficiently protected in every accident scenario.

New York auto insurance laws require all drivers to have at least $25,000 in bodily injury liability per person, $50,000 in bodily injury liability per accident, $10,000 in property damage liability per accident (25/50/10), $25,000 in uninsured and underinsured motorist bodily injury coverage (UMBI/UIMBI) per person, $50,000 in UMBI/UIMBI per accident (25/50 UMBI/UIMBI), and $50,000 in personal injury protection (PIP) per person. Those who finance or lease their vehicles may legally require comprehensive and collision coverages on their policies as part of their financing or leasing agreements. 

New Yorkers typically bind full coverage policies because they offer a much more expansive range of protection that each driver can tailor to their unique needs. For example, New York is a no-fault state and requires all drivers to have a first-party medical benefit (FPMB) called PIP. The minimum limit for PIP is $50,000, but that limit doesn’t offer much protection, so many drivers opt to carry more than is legally necessary. 

On average, car insurance in New York with full coverage will have all the legally required coverages with higher limits than the law mandates and optional coverages like collision coverage, comprehensive coverage, or gap coverage, among other optional coverage types. 

The cost of auto insurance in New York varies based on the driver, policy, and insurer, but the average full coverage policy costs about $2,340 annually. However, it’s important to remember that a premium isn’t the only drivers are on the hook for when it comes to auto insurance. Upon filing a claim, a driver must pay their deductible before receiving their coverage benefits.

Drivers can select a higher or lower deductible, but such a selection will generally dictate the cost of one’s premium. Typically, a policy with a low deductible has higher premiums and a policy with a high deductible will have lower premiums. Neither option is better; it’s up to the driver’s preference. 

The average cost of car insurance in New York for a new driver will generally be higher than the state average of $2,340 annually. New drivers tend to pay more in premiums than those who have been driving for a few years because insurers don’t have a driving record to indicate if a driver is at risk of filing a claim. Thus, insurers assume new drivers may make a few mistakes behind the wheel before they get the hang of it and charge new drivers higher-than-average premiums. 

Car insurance rates in New York are about 30% higher than the national average, but every driver gets quoted at a different rate, so some may pay more or less than average. On top of the unique characteristics insurers use to determine a policyholder’s premiums, insurers also use state statistics to determine their rates.

Generally, insurers look at two key statistics when calculating rates: population and the population of uninsured drivers. States with high populations and high populations of uninsured drivers generally have premiums higher than the national average and may even be no-fault states, as is the case for New York.

When a state has a high population or a few densely populated cities, the statistical likelihood of drivers getting into accidents and filing claims is higher than average. Thus, the average premium in the state is higher than average because drivers are at an increased risk of filing claims. Along that same line of thinking, when a state has a high population of uninsured drivers, policyholders have higher chances of getting into accidents with uninsured drivers, thus driving up the average cost of insurance in the state.

While New York has a low population of uninsured drivers compared to the national average, New York City is the most densely populated city in the United States. Thus, the whole state feels the impact of the high-risk drivers in the Big Apple, as New York is one of the most expensive states for auto insurance. 

If you’re searching for a full coverage policy from one of the top insurers in the Empire State that offers base rates lower than the state average, the best way to see all your options in one place is to get and compare quotes online. By getting and comparing quotes from several insurers, you can easily find a policy that best suits your needs and budget.

Lucky for you, we’re quoting experts here at Clovered. We even have a free quoting tool you can use to access your unique quotes in minutes. If you’d rather chat with a professional about your quote, one of our licensed agents will be happy to help you at 833-255-4117 or [email protected].