The Cheapest Auto Insurance in New York City in 2024

New York City drivers pay an average of $440 per month for car insurance — significantly more than the statewide average of $170, according to Compare.com data. We found that the average NYC driver pays $383 per month for liability coverage and $496 for full coverage.

Drivers in New York City pay some of the highest rates in the U.S., partly because the city is one of the most densely populated places in the country. All that traffic plays a part in the city’s expensive car insurance rates.

This guide will explore the best and cheapest car insurance companies in New York City for various different types of drivers, as well as New York’s statewide requirements and tips on how to save.

Key Takeaways:

• AAA is the cheapest car insurance company in NYC, with average rates of $211 per month.
• New York drivers must have liability insurance to legally drive in the state.
• Safeco has the cheapest car insurance policies for NYC drivers in their 70s.

In This Article:

• Average Price for Car Insurance in NYC
• Cheapest NYC Car Insurance Companies
• Best NYC Car Insurance Companies of 2024
• NYC Rate Breakdowns by Driver and Coverage Type
• New York State Auto Insurance Requirements
• Frequently Asked Questions

How Much Is Car Insurance in New York City?

Drivers in the Big Apple pay an average of $440 per month for car insurance, according to our analysis. That breaks down to $383 per month for liability-only policies and $496 per month for full-coverage car insurance.

But remember, these are only average rates. The exact amount you pay can vary drastically based on your specific driver profile and other factors that affect your overall risk. No matter how you plan to use your car, it’s essential to compare auto insurance quotes from multiple insurance companies before you pick a policy, since each insurer weighs these factors differently.

In the next section, we’ll cover the top companies in NYC offering the cheapest car insurance and highlight where each shines.

New York City’s Cheapest Car Insurance Companies

Although New York City’s average car insurance rate is much higher than most of the rest of the U.S., you can still find cheap insurance if you know where to look. One of the best ways to save money on a policy is to shop around and compare quotes from multiple insurance companies before buying.

Start with the table below, which shows the three cheapest car insurance companies in New York City, according to Compare.com data.

AAA has the cheapest average car insurance premium in NYC, with a monthly rate of just $211 — much lower than the citywide average of $440. That said, it still might not be the cheapest car insurance company for you.

The best car insurance company for you depends on your needs — and, more importantly, your budget. Car insurance rates vary a lot from insurer to insurer since companies consider so many factors when calculating your rates, such as your location, age, and driving record.

Keep reading to learn which insurance companies are the best for various types of drivers in NYC.

The 3 Best New York City Insurance Companies of 2024

No single insurance company will be the right choice for every driver. The best insurer for you depends on your coverage needs and budget. And remember, the cheapest company may not always be the best option — the coverage may not be as robust or may not match your individual needs. Fortunately, NYC drivers have several good options to choose from for coverage.

We picked the three insurance companies below based on a combination of their average rates, available coverages and discounts, and customer satisfaction ratings. Each insurer offers the best car insurance policy in New York City for a specific kind of driver. Again, keep in mind that your situation may be different, so it’s still important to compare rates when possible.

Best for New Yorkers on a budget: AAA

• Average premium: $211 per month
• Compare.com Rating: 4.28 out of 5

Pros:

• Some of the cheapest average rates available
• Highly rated roadside assistance program

Cons:

• Must be an AAA member to purchase a policy
• Online quotes not available

AAA has some of the cheapest car insurance rates in the city, according to Compare.com data. That makes it a great choice for drivers looking to save money each month. It also has an A (Excellent) rating from AM Best, indicating good financial strength and an ability to pay out claims.

The only real downside to AAA is that you can’t buy a policy without an existing AAA membership, but these cost just $65 per year and include award-winning roadside assistance.

Best for New York seniors: Safeco

• Average premium: $218 per month
• Compare.com Rating: 4.59 out of 5

Pros:

• Affordable rates for New York City seniors
• Good telematics program

Cons:

• Not many available discounts
• Higher-than-average number of complaints

Safeco is one of the cheapest car insurance companies for senior drivers in NYC. Drivers in their 70s can get policies with an average monthly rate of only $171, according to our analysis. The insurer also has an A (Excellent) rating from AM Best, showcasing its financial strength and capacity to pay claims.

The main drawback of Safeco is that it has a high number of customer service complaints, according to the National Association of Insurance Commissioners (NAIC). But if you’re a NYC senior who needs a car, the Liberty Mutual-owned insurer is worth considering.

Best for discounts: Liberty Mutual

• Average premium: $293 per month
• Compare.com Rating: 4.62 out of 5

Pros:

• Several available discounts and insurance products
• RightTrack program rewards safe driving

Cons:

• More complaints than average
• Not the cheapest insurer in NYC

Liberty Mutual is one of the best insurance companies for NYC drivers looking to qualify for car insurance discounts. The well-known insurance giant offers a wide variety of them — including multi-policy, multi-car, and home and auto insurance bundling discounts, just to name a few.

That said, it’s not necessarily the cheapest option in the city, and it doesn’t have great customer satisfaction scores. But if you think you can take advantage of its numerous discounts, it’s worth giving the insurer a shot.

Cheapest Basic Liability Coverage: AAA

Your coverage level has a direct correlation with your car insurance rates — the higher your coverage limits and the more coverage you have, the higher your rates. Most states require only liability insurance, so, if you want the cheapest possible coverage, that’s the one to get. Liability insurance coverage at the state-minimum limits is almost always the cheapest auto insurance policy available.

These policies may be cheap, but they often don’t offer very thorough protection. They only cover medical expenses and property damage to other drivers in an accident you cause, not your own. You should only buy this type of coverage if you can afford to pay for damages on your own.

The table below highlights the cheapest insurance companies for liability insurance in New York City, according to Compare.com data.

AAA is the cheapest car insurance company in NYC for liability insurance, with an average monthly rate of only $174. But if you want more thorough coverage, you’ll need a full-coverage policy. Keep reading to learn about full coverage in NYC, including which companies offer the best rates in the city.

Cheapest Full-Coverage Insurance: AAA

Full-coverage car insurance is the most common type of car insurance policy — it offers much more protection than a basic liability policy. Most drivers can’t afford to pay the extreme expenses that can come after an accident, so full coverage is often a necessity. A full-coverage policy has state-required liability insurance but also collision and comprehensive coverages.

These two coverages pay for your vehicle repairs or replacement after an accident or non-collision incident, like weather damage, vandalism, or theft. That said, this extra protection comes with extra costs — full coverage is more expensive than liability coverage. And while state law doesn’t require it, if you took a loan out for your car, your lender most likely will.

The table below shows the cheapest car insurance companies in New York City for full-coverage policies, according to Compare.com data.

AAA is the cheapest car insurance company in NYC for full-coverage car insurance, with an average monthly premium of just $247. That’s much less than the citywide average of $496 per month, but your rates can still change based on your age and driving record, which we’ll cover next.

Compare New York City Auto Insurance Rates by Age

Your age plays a big role in how expensive your rates are. Younger drivers are usually more risky than older drivers, so insurance companies charge them more. If you keep a clean driving record, your rates should go down as you get older, until you hit your 70s, when they start creeping back up again.

Check out the table below to see how much you’ll pay for car insurance in NYC based on your age, according to Compare.com data.

Below, we’ll discuss the average cost of car insurance for two of the most heavily affected age groups in NYC, teens and seniors.

Cheapest for NYC teens: AAA

Car insurance is expensive for teens since they’re a large unknown to insurers. Many teens have little or no experience behind the wheel, so insurers tend to assume the worst and charge high rates to account for the risk. Young drivers have a fatal crash rate almost three times higher than drivers age 20 and older, according to the Centers for Disease Control and Prevention (CDC).

NYC teens pay a staggering $689 per month for car insurance coverage, on average. But fortunately, AAA has reasonable average rates, at $339 per month, according to Compare.com data.

Cheapest for NYC seniors: Safeco

Provided you’re a safe driver and don’t build up a history of incidents, you’ll likely see your rates go down as you get older. Insurance companies see senior drivers’ decades of experience as a sign that they’re not likely to file a claim, so they tend to give them cheaper rates. This can change, though, as you approach age 70, when age-related physical impairments can affect your driving skills.

Safeco has the cheapest car insurance rates for senior drivers in New York City, with an average monthly rate of $171 for drivers in their 70s — much less than this age group’s average of $330 per month.

Compare New York City Auto Insurance Rates by Driving Record

Your driving record has the most significant effect on your auto insurance rates because it tells insurers exactly what kind of driver you are. If you have multiple speeding tickets, they’ll see that you’re a risky driver, and if you have multiple at-fault accidents, they’ll assume you’ll have more in the future. If you have these blemishes on your driving record, you’ll pay higher rates.

Drivers with clean records typically pay the lowest rates of any driver, since insurers have little reason to believe they’ll file a claim, outside of the normal risks of the road. Maintaining a clean record is the best way to keep your rates down.

Check out the table below to see how much your rates can go up in NYC with different driving infractions. You’ll also see who the cheapest insurer is for drivers with different types of records, according to Compare.com data.

Let’s take a closer look at how your driving record affects your rates in NYC.

Cheapest insurer in NYC after a ticket: AAA

Tickets happen all the time, and, while they may seem minor, they tell insurance companies you’re not a very safe driver and are more likely to file a claim than someone with no tickets. To make up for this perceived risk increase, they charge you higher rates. Even a single speeding ticket increases average rates by 27% nationally, according to Compare.com data.

We found that AAA is the cheapest company for drivers in NYC with a speeding ticket, at $236 per month — much cheaper than the NYC average of $431.

Cheapest insurer in NYC after an accident: AAA

An at-fault accident almost always results in a rate increase. In f act, the average driver sees a 34% increase after an at-fault accident, according to Compare.com data. That’s because accidents tell insurers that you’re more likely to file another claim than a driver without any at-fault accidents.

AAA offers the cheapest average rate for New York City drivers with an at-fault accident, according to Compare.com data. It’s average rate is just $250 per month for this group — well below the NYC average rate of $430 per month for drivers with at-fault accidents on their records.

Cheapest insurer in NYC after a DUI: AAA

Driving under the influence (DUI) is the most serious traffic violation you can commit. Not only will you face steep fines and likely lose your license, but your insurer may even refuse to insure you altogether. Once you’re finally able to get your license back, you’ll see your car insurance rates increase by an average of 50%, according to Compare.com data.

NYC drivers with a DUI can find the cheapest rates with AAA, at an average monthly premium of $287. This is nearly half of the $507 that the average NYC driver with a DUI pays, according to our analysis.

New York Auto Insurance Requirements

New York requires every driver to have a minimum amount of liability insurance before hitting the road. You’ll need to have the following insurance coverages to legally drive in the state.

• $25,000 in bodily injury liability (BI) insurance per person, or $50,000 for an injury that results in death
• $50,000 in BI insurance per accident, or $100,000 for an injury that results in death
• $10,000 in property damage liability insurance per accident
• $25,000 in uninsured motorist (UM) coverage per person
• $50,000 in UM coverage per accident

If you want to learn more about New York’s car insurance requirements, check out the New York State Department of Financial Services website.

How to Get Cheaper Car Insurance in New York City

You can save money on car insurance in a few different ways. Check out the following tips on how to save money on your New York City auto policy.

• Keep a clean driving record. The best way to save money on your policy is by not giving your insurer any reason to raise your rates. Drive defensively and don’t take any unnecessary risks behind the wheel. Insurance companies will reward you with cheap rates.
• Bundle policies. Try bundling home and auto insurance with the same company. Many insurers encourage this since it gives them more business, so they might offer a large discount for it.
• Apply for discounts. Nearly every single insurance company offers numerous car insurance discounts. Search online or directly ask your insurer (or insurance agent) which discounts you qualify for.
• Raise your deductible. Consider increasing your deductible if you can afford it. This automatically lowers your monthly premiums — but make sure you can afford to pay it out of pocket if you file a claim.
• Compare car insurance quotes. You should always compare rates from at least three car insurance companies before picking a policy. It’s one of the easiest and best ways to save money on your policy.

New York City Auto Insurance FAQs

If you still have questions about NYC car insurance, take a look at the answers to some of the most commonly asked questions below.

How much is car insurance in New York City per month?

Car insurance in New York City is $440 per month on average, according to Compare.com data. Drivers pay an average of $383 per month for liability coverage and $496 for full coverage.

Is car insurance higher in NYC?

Yes. Car insurance is higher in NYC because of numerous factors, but the population density and heavy traffic are some of the biggest contributors.

Which company has the cheapest car insurance in New York City?

AAA has the cheapest car insurance in New York City, with an average monthly rate of $211, according to Compare.com data. Drivers in the Big Apple pay an average of $174 per month for liability coverage and $247 for full coverage when insuring their car with AAA.

Who insures cars in NYC?

Numerous car insurance companies insure cars in NYC, but the best include AAA, Safeco, Liberty Mutual, Progressive, and Erie.

What city in New York has the cheapest insurance?

Long Island City in Queens has the cheapest insurance in the New York metropolitan area, according to our data, with an average monthly rate of $408. Drivers pay an average of $305 per month for liability coverage and $511 per month for full coverage.

Data Methodology:

Data scientists at Compare.com analyzed more than 50 million real-time auto insurance quotes from more than 75 partner insurers in order to compile the rates and statistics seen in this article. Compare.com’s auto insurance data includes coverage analysis and details on drivers’ vehicles, driving records, insurance histories, and demographic information.

All the rates listed in this article have been collected from a combination of real Compare.com quotes and external insurance rate data gathered in collaboration with Quadrant Information Services. Compare.com uses these observations to provide readers with insights into how auto insurance companies determine their premiums.

Sources:

1. US Census Bureau, “US Census Bureau – Highest Density,” accessed August 15, 2024
2. AM Best, “AM Best Rating Services.” accessed August 15, 2024.
3. National Association of Insurance Commissioners, “National Complaint Index Report,” accessed August 15, 2024.
4. New York State Department of Financial Services, “Minimum Auto Insurance Requirements,” accessed August 15, 2024.
5. Insurance Information Institute, “Auto insurance basics—understanding your coverage,” accessed August 15, 2024.
6. Centers for Disease Control and Prevention, “Risk Factors for Teen Drivers,” accessed August 15, 2024.