Cheapest Car Insurance in New York City (2022)
On average, drivers in New York City pay $562 a month for full-coverage car insurance. The minimum-coverage average is $387 a month.
This high rate is largely due to factors such as New York being a no-fault state and population density. If you live in New York City, you could pay 216% more than the national average of $178 a month for full coverage.
This makes finding the cheapest auto insurance quote essential. In order to help with this, we looked at rates, policy offerings and customer satisfaction trends of the seven biggest auto insurance companies in New York City. USAA has the cheapest average rate of $306 a month for full-coverage auto insurance. However, it only provides insurance to currently serving or retired military. If you're a civilian, State Farm has the cheapest average rate of $318 a month.
We'll cover
How much is car insurance in New York City?
New York City drivers pay an average $562 a month for a full-coverage auto insurance policy. That's 36% higher than the New York state average of $412. The table below shows how New York City rates compare to the national and state rates:
| Region | Annual rate | Monthly rate |
|---|---|---|
| New York City | $6,744 | $562 |
| New York | $4,943 | $412 |
| U.S. | $2,133 | $178 |
| Average rates are based on non-binding estimates provided by Quadrant Information Services. Your rates may vary. | ||
New York state already has high premiums due to factors that affect your car insurance rates. New York is prone to extreme weather and is a no-fault insurance state. This means that your insurance covers your injuries regardless of who is responsible for an accident. New York City's rates are higher than the state average largely due to population density and a high auto theft rate.
Best, cheapest car insurance companies in New York City
We looked at the biggest car insurers in New York City and found that USAA has the lowest average rate of $306 a month for full-coverage auto insurance. The second-best rates are from State Farm, at $318 a month. Third is Progressive, with a big jump to $482 a month. At the highest end, Allstate customers pay $884 a month on average.
In New York City, the cost of your car insurance policy will likely be a major deciding factor in which company you go with. There are, however, other considerations. Policy offerings that fit your specific needs and customer satisfaction trends need to be looked at as well. We carefully considered the options available to you and found these to be the best.
USAA: cheapest rates and best for Armed Forces
USAA's average rate for full-coverage car insurance in New York City is $306 a month. That's 26% lower than New York state's average rate of $412 and 46% cheaper than the New York City average
| Average monthly rate | |
|---|---|
| USAA | $306 |
| New York City | $562 |
| New York | $412 |
| U.S. | $178 |
| Average rates are based on non-binding estimates provided by Quadrant Information Services. Your rates may vary. | |
On top of low rates, J.D. Power gives USAA consistently excellent ratings for customer satisfaction. For 2021, J.D. Power rated USAA 868 out of 1,000. The USAA rating is not part of J.D. Power's official ranking. That's because USAA's service is strictly limited to members of the military and their families.
If you are a current or retired member of the Armed Forces living in NYC, USAA is probably your best choice. They have auto insurance policy benefits specifically for members of the military, such as international car insurance coverage if you're stationed overseas and premium discounts if you live on a U.S. base.
State Farm: cheap rates and most popular
State Farm's average full-coverage rate is $318 a month, 43% cheaper than the New York City average and 23% less than the state average. Unless you are in the military or retired from service, this is the cheapest rate available to New York City drivers.
State Farm rates in New York City vs. regional rates
| Average monthly rate | |
|---|---|
| State Farm | $318 |
| NYC | $562 |
| New York | $412 |
| U.S. | $178 |
| Average rates are based on non-binding estimates provided by Quadrant Information Services. Your rates may vary. | |
State Farm also stands as the most popular insurance provider of the seven we looked at. According to S&P Global Market Intelligence, State Farm held 16.73% of the auto insurance market share in 2020. This level of popularity lines up with State Farm's customer service trends. J.D. Power gave State Farm the highest rating of 859 out of 1,000 in 2021 for overall customer satisfaction.
New York minimum auto insurance requirements
New York law requires drivers registered in the state to carry the following minimum limits of auto insurance:
- Bodily injury liability per person: $25,000
- Bodily injury liability per accident: $50,000
- Property damage liability per accident: $10,000
You are also required to carry the following liability death benefits insurance:
- Per person killed per accident: $50,000
- For all deaths in an accident: $100,000
It's important to point out that these minimum liability levels will not likely cover you in the event of a serious accident. If you hit someone and they have a long hospital stay, that $25,000 bodily injury limit may be reached quickly. And $10,000 might not cover the replacement of a totaled car if it's new. Any costs from an accident that surpass your policy limits will come out of your pocket. This can seriously strain your finances.
In order to avoid this scenario, consider raising your car insurance liability limits to the following:
- Bodily injury per person: $100,000
- Bodily injury per accident: $300,000
- Property damage liability per accident: $100,000
Methodology
We used Quadrant Information Services to generate thousands of car insurance quotes from every ZIP code in New York City from the following providers:
- Allstate
- GEICO
- NYCM
- Progressive
- State Farm
- Travelers
- USAA
The sample car used to generate quotes was a 2012 Honda Accord LX with 13,500 annual miles and a 35-year-old driver with a clean driving record.
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