Car Insurance in New York City: Costs, Coverage, and Saving Tips

Amani TurnageUpdated February 19th, 2025

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New York City is America's most congested city, even after government measures to reduce commuter traffic. While many New Yorkers don't own a car, those who do need reliable car insurance. Not only is it imperative to meet New York auto insurance requirements, but it's in your best interest to have solid coverages to protect your wallet in the event of a fender bender or more serious accident. Unfortunately, car insurance in New York City tends to be very expensive due to the high traffic density and risk of accidents.

This in-depth guide breaks down everything you need to know about New York City car insurance, from average costs and minimum coverage requirements to ways you can reduce your insurance premiums.

Overview of Car Insurance in New York City

New York City is subject to New York State's insurance liability minimums but tends to have higher insurance rates for several reasons, including population density, accident rates, and theft. Fortunately, as with most places, there are ways to reduce your insurance costs.

Average Car Insurance Costs in New York City

According to Bankrate, the average car insurance in New York City costs $4,442 per year or $370 per month for full coverage. This is more than 10% higher than the state's $3,916 average cost.

Factors Influencing New York City Car Insurance Rates

You don't necessarily have to pay more than the average rate, and auto insurance companies won't automatically offer rates below the average. There are many factors influencing actual insurance costs. New York City tends to have higher rates due to factors outside of your control, like population density, high accident rates, and high theft rates. However, there are several factors that you can control:

• Driving record: One of the most important factors in determining rates is your driving record. If you avoid accidents and traffic tickets, you can expect better insurance premiums.
• Credit score: Insurance companies offer better rates to those with stronger credit scores. Pay your debts on time and you can save money.
• Insurance coverages: You can save money by choosing not to get additional coverages like collision coverage or comprehensive coverage on your auto policy. (That said, it's usually not advisable.)

New York City drivers often pay higher average car insurance rates, but that doesn't mean you can't find affordable policies for your budget.

Minimum Coverage Requirements

Like almost every other state, New York requires all drivers to have minimum liability insurance coverage. In order to register a vehicle, you must provide proof of insurance that shows:

• $25,000 per person for bodily injury liability that doesn't result in death
• $50,000 per person for bodily injury liability that does result in death
• $50,000 per accident for bodily injury liability for two or more people that doesn't result in death
• $100,000 per accident for bodily injury liability for two or more people that does result in death
• $10,000 per accident for property damage liability
• Uninsured motorist coverage with the same limits as bodily injury liability
• $50,000 in personal injury protection (PIP) to cover medical expenses, lost wages, and other costs for those injured in an accident

New York has some of the strictest minimum requirements in the nation due in part to how common accidents are on the state's many busy highways. New York DWI laws and other regulations are also among the country's strictest.

Tips for Reducing New York City Car Insurance Premiums

Despite high average costs, there are several ways to reduce your insurance premiums. Many auto insurance companies in New York are willing to work with customers to provide discounts. Some of the best ways to save include:

• Safe driving: Insurance companies often offer safe driving discounts on top of the already lower premiums due to keeping a clean driving record.
• Bundling: Bundling your homeowners' or renter's insurance policies with your car insurance policy is a common way to get two policies for a reduced price.
• Defensive driving courses: Many insurance companies offer discounts to drivers who complete defensive driving or safe driving courses.
• Student discounts: Young drivers may be able to get discounts if they're using a car to get to and from school.
• Low mileage plans: If you don't drive very often, some insurance companies offer per-mile insurance policies that can save you money.

Different insurance companies offer different discounts, so be sure to check with your provider for updates and ask what discounts may be available to you from time to time. You never know when there might be a discount that you're not taking advantage of.

Explore Custom Options & Drive Insured Through New York

You need car insurance to operate a car in New York. Not only is it legally required, but having car insurance is crucially important in a city where accidents and theft are so common. That's why it's crucial to find car insurance that gives you adequate coverage without stretching your budget. Use EverQuote's comparison tools to find real offers from car insurance companies and choose the best policy for you.

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