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New York drivers are currently paying the highest car insurance premiums

Written by Katie Dee

Edited by Alyssa DiCrasto

Published on 2023-10-14
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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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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.

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