New York drivers are currently paying the highest car insurance premiums

Written by Katie Dee

Published on 2023-10-14

With an average annual premium of $3,061, New Yorkers are currently paying around 68% more for car insurance than the national average. That is about $1,240 more per year.

The state you live in plays a large part in the price you’ll pay for car insurance, but why are premiums so much more expensive in New York?

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Is your state expensive for car insurance?

What is contributing to costly New York car insurance rates?

There are several answers to this question. Of course, car insurance rates in New York state vary significantly depending on the region you live in. According to Rate Retriever’s quarterly insurance rates report, the NY zip code with the highest rates is 11233 with an average annual premium of about $5,510.

Since this is a Brooklyn zip code, this spike in cost could be attributed to several different factors, including the high volume of traffic, the large number of pedestrians, and poor road conditions such as potholes.

However, not all areas of New York state face these issues. The cheapest region for car insurance in New York is 13748, a zip code in Conklin, New York. The average premium for this zip code is around $1,160 per year, about $660 less than the national average of $1,824.

Beyond your region, the gender specified on your license also impacts your car insurance rates in New York. While several states have prohibited the use of gender in determining rates, New York continues to use it as a factor.

Because of this, female drivers may end up paying around $100 more per year compared to their male counterparts, despite the fact that men are responsible for more accidents per year than women.

Another aspect that has an impact on your rates comes from a new bill that was passed in late summer. On August 1, a new law went into effect that automatically adds Supplemental Spousal coverage to your policy, even if you are not married.

Supplemental Spousal coverage allows one spouse to sue another in order to access liability coverage if they are involved in an at-fault accident. This new coverage offers no benefit to unmarried drivers and it can lead to a price increase of anywhere from $20 to $85 annually unless you know to decline it.

Furthermore, the amount of coverage you elect to have will influence your premiums. The minimum car insurance requirements for New York include No-Fault or Personal Injury Protection, Liability Coverage, and Uninsured Motorist Coverage. New York drivers with only minimum coverage can expect to pay around $1,220 per year, a 60% decrease from those with premium coverage (100k/300k/100k, $500 deductible) who pay about $3,060 per year.

Unexpectedly, New Yorkers who choose standard coverage (50k/100k/50k, $500 deductible) pay around $3,170 per year which is around $110 more expensive than those who opt for higher limits.

How can I save on car insurance costs in New York state?

One way to save on car insurance in New York is to improve your credit score. Like gender, there are a few states that prohibit the use of credit scores in determining rates, but insurance companies can take your credit score into consideration in New York.

In New York, those with good credit scores may pay up to $4,000 less per year compared to drivers with a poor credit rating, and those with an excellent score will pay even less. Evaluating your credit score and trying to make improvements wherever possible is a great way to be sure you are getting the cheapest rate for car insurance in New York.

You can also work to lower your insurance rates by choosing to have a higher deductible. According to an article by the New York Times, changing your deductible from $500 to $1,000 can save you around 10% on your premium.

Of course, it is important to keep in mind that a higher deductible means you are assuming more financial responsibility if you are involved in a covered accident. Consider setting aside some of the extra cash you save on your premium to be sure you are covered if an accident does happen.

Saving on New York car insurance premiums may also be easier for married couples. According to our data, spouses who combine their policies spend 19% less on average compared to married couples without a joint policy.

Lastly—and most importantly – the car insurance company you choose will have a significant impact on the price you pay for car insurance in New York state. It is always a good idea to compare personalized rates at several companies near you to be sure you never overpay.

Frequently asked

How does the insurance company determine my rate?

Car insurance companies determine how much they charge you based on your driver profile. Factors that can impact your rates include:

Demographics – your age, home ownership, credit score, and more
Your driving history – how long you’ve been driving, traffic violations, and more
Your car – make, model, and year
Where you live – state and zip code
How much coverage you want

How do I switch my car insurance?

Switching your car insurance is easy, even if you are in the middle of your current policy.

Here are some helpful tips to consider to switch your car insurance:

Decide what coverage you want with your next policy
Check if your current provider charges cancellation penalties or fees
Compare prices from at least 3-5 insurance companies (Rate Retriever makes this easy, giving you personalized rates from the top companies near you)
Get a final quote from at least one of your choices
Cancel your current policy once your new one begins

How much car insurance do I need?

The answer to this question depends on where you live and what you would like to cover.

Each state has its own minimum requirements on the type and amount of insurance needed. When you’re trying to determine what and how much car insurance you need, you can start by reviewing your state’s requirements.

Find out what’s required in your state

Once you review your state’s minimum requirements, you may find that you want additional coverage. For example, sometimes owners of new cars want comprehensive coverage to insure their car from natural disasters and vandalism, even though comprehensive coverage isn’t required by their state. To figure out what insurance you want, you can review the different types of insurance to decide what makes the most sense for your situation.

Learn about the different types of car insurance

How is Rate Retriever different than other insurance websites?

The biggest difference between Rate Retriever and other comparison sites is that we are a free and impartial research tool NOT an insurance marketplace. This means you can’t purchase a policy directly through RateRetriever.com, but you can use our tool to independently research your options and seamlessly connect with the provider you choose.

Unlike other insurance comparison sites, we:

Use third-party data to give you more accurate rate estimates instead of inaccurate, suspiciously low quotes to get you in the door
Do not limit your list of results to paid advertisers
Do not collect your email or phone number before we let you see your results
Give you results after just five questions (however, your results will be more accurate if you complete your profile)

We like to think that Rate Retriever is your insurance companion, not just another insurance comparison site. Our values guide everything we do, which is why we strive to offer transparent, trustworthy insurance tools.

How can I get cheaper car insurance?

There are many ways you can try to get cheaper car insurance. The first is simply to get quotes from multiple providers. This will help you determine if you’re currently receiving the cheapest rates based on your needs and driver profile. Rate Retriever makes the comparison process easy.

Sometimes, the reason your car insurance is so expensive is due to your driver profile. For example, drivers under 20 years old usually pay more for insurance than more experienced drivers, and drivers with a recent at-fault accident or traffic violation typically pay more.

There are ways to lower the cost of your insurance such as taking a defensive driving course. Check with your provider to see if there are any discounts you qualify for or can reasonably earn.

How does Rate Retriever make money?

Rate Retriever works with national and local insurance providers to provide our users with a seamless insurance shopping experience. We may earn a commission from our insurance provider partners when you click on a link, call, or purchase a policy from one of the providers listed on our site. That said, we’re committed to providing you with accurate, bias-free information, and we do not allow our partnerships to limit the results or influence the information we share with you.

We do not sell your personal information, charge you for using our tools, or sell you insurance policies. Additionally, should you choose to purchase a policy from one of our partners, the price you pay will not be adversely affected.

Read our full earnings disclosure