Top 4 Car Insurance Companies in New York (2022)
New York requires drivers to carry certain levels of property damage liability and bodily injury liability insurance.
New York is an "error-free" state, which means insured drivers file claims with their insurance company after an accident, no matter who was at fault.
New York drivers spent an average of $1,349.72 on car insurance premiums in 2017, which was above the national average of $1,049.78.
Drivers in the Empire State may pay more than the national average for premiums, but that doesn't mean it's impossible to find low-cost auto insurance in New York. In this article, we recommend the best service providers in the state based on price, customer service, and local reputation. We'll also review state insurance minimums, state penalties for driving without insurance, and other facts about driving in New York.
Our review team took a close look at several of the best auto insurance companies in the country. While there are differences in average premiums between states, there can be larger cost differences between individual drivers. If you're looking for the cheapest car insurance in New York, start by comparing free, non-binding rates using the tool below.
Best car insurance companies in New York
To determine the best auto insurance providers in New York, we took a closer look at the best insurance providers nationwide and evaluated local offerings in the Empire State. While many major insurers maintain their quality regardless of state, regional reputation and customer service can vary.
In addition to cost, coverage, reliability, and customer service, our review team also considered results from the J.D. Power 2020 US Auto Insurance Satisfaction Study for New York. The study ranked companies out of 1,000 points, and each of the recommended providers performed better than the regional average of 836.
Best New York Car Insurance Overall Rating Affordability Coverage
1. Geico 96% 95% 95%
2. State farm 95% 95% 90%
3. USAA 96% 95% 95%
4. New York Central Mutual 83% 90% 85%
* The overall ratings represent our team's assessment of auto insurance companies nationwide, while the provider's ranking in the table reflects recommendations in New York specifically. For this reason, you may see some providers listed above others with higher overall ratings.
#1 Geico: Best overall
Geico offers standard auto insurance coverage options in addition to mechanical failure (MBI) insurance. The insurance company is an industry leader and has a good reputation nationwide, including in New York. Geico is currently rated an impressive A+ by the Better Business Bureau (BBB) and has been rated A++ for financial strength by AM Best. This means that it works well with clients and has a superior ability to repay claims.
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Geico scored 851 out of 1,000 in the J.D. Power Satisfaction Study, ranking it second in the state. This ranking is in line with Geico's high customer satisfaction ratings in other parts of the country.
Geico is often one of the cheapest car insurance options for many drivers. The insurance company sets low premiums to start with, and customers can save even more on New York auto insurance by taking advantage of discounts such as:
airbag discount
military discount
Multi-policy discount
New car discount
good driver discount
Multi-vehicle discount
Good student discount
Discount on anti-lock brakes
Federal employee discount
Emergency Publication Discount
The Geico Claims App makes submitting claims simple, and finding a repair shop is easy with the company's Auto Repair Xpress ® program. You can learn more about this insurance company by reading our full Geico review.
#2 State Farm: Best for Student Drivers
We named State Farm Best for Student Drivers because of the company's many discounts for teens and college students.
State Farm is rated A++ by AM Best, which means it has the financial strength to handle and pay customer claims. In addition to standard insurance policies, State Farm customers can purchase specialized coverage such as classic auto insurance and sports car insurance. Local customer satisfaction results indicate that State Farm is a particularly good choice for auto insurance in New York. In the J.D. Power New York Satisfaction Study, State Farm ranked first with a total of 851 out of 1,000 points.
The cost of State Farm can be a little higher than competitors, but there are many discount opportunities such as:
good driver discount
Accident free discount
Good student discount
Vehicle safety discount
Driver Training Discount
Multiple discount policies
Discount on multiple vehicles
Anti-theft system discount
Student away from school discount
Defensive Driving Course Discount
Learn more about the provider by reading the full State Farm insurance review
#3 USAA: Best for Military Families
USAA scored the highest in the J.D. Power Satisfaction Study for New York State with 884 out of 1,000 points. The insurance company typically holds the highest scores for most areas in this study, but it does not qualify for the ranking because it is not available to all drivers.
Read also the best classic car insurance for 2021
To qualify for USAA insurance, clients must be members of the military or have a spouse or parent with USAA membership. If you qualify for USAA insurance, it is one of the best auto insurance options in any state, including New York.
USAA offers some of the lowest premium rates in the country and sells every standard type of auto insurance and even coverage for shared trip drivers. USAA has received an A++ Financial Strength from AM Best and is one of the best funded insurance companies nationwide. Learn more by reading the full USAA Insurance review.
#4 New York Central Mutual: Best Local Agents
As its name suggests, New York Central Mutual (NYCM) is an insurance company specifically in the state of New York. As such, they specialize in the needs of New York drivers, connecting people to the best local policies available.
New York City ranked third in the J.D. Power Satisfaction Study, with a score of 837 out of 1,000. It has an A rating from AM Best and an A+ approved rating from BBB. As with many major auto insurance providers, NYCM offers a range of discounts such as:
big sale
New car discount
No Claims Discount
Multi-policy discount
homeowner discount
Good student discount
Discount on anti-lock brakes
Defensive driving discount
Student away from school discount
Injury prevention discount program
If you are looking for a small scale provider that offers personalized customer service, New York Central Mutual is a good bet.
New York auto insurance coverage requirements
New York drivers are required to maintain liability insurance coverage at the following minimum coverage limits in order to apply for vehicle registration:
$10,000 for each property damage liability accident
$25,000 per person for bodily injury liability ($50,000 in the event of death)
$50,000 per accident for bodily injury liability ($100,000 in the event of death)
Penalties for driving without car insurance in New York can be heavy. They include:
Pay a fine of up to $1,500 to traffic court
Suspension of license and registration for at least one year
Pay a DMV civil penalty fee of $750 to get your license back
While the above limits are the legal minimum, it is recommended that drivers purchase full coverage auto insurance to ensure they are fully protected on the road. This means getting Personal Injury Protection (PIP) policies, comprehensive coverage, collision coverage, and uninsured/uninsured drivers coverage in addition to liability coverage.
Also Read Average Car Insurance Rates by Age (2021)
New York is an error-free insurance state. This means that after an accident, New York drivers usually file claims with their insurance providers, no matter who is at fault.
The cost of car insurance in New York
Car insurance in New York costs a little more than coverage in most other states. According to a report recently published by the National Association of Insurance Commissioners (NAIC), New York drivers paid the following average costs for auto insurance premiums in 2017:
Liability: $869.13
Collision: $437.13
Inclusive: $179.31
Average Total Expenditure: $1349.72
The national average for liability premiums in 2017 was just $611.12, far less than what New York drivers paid. One of the reasons New York auto insurance is so expensive is that New York is an error-free state. Error-free states usually have higher auto insurance rates. Another explanation could be the high rate of insurance fraud in New York. Fraud increases costs for auto insurance companies, which then flow to customers in the form of higher insurance premiums.
Driving habits in New York
According to data from the Federal Highway Administration, New York drivers traveled a total of 123,510,000,000 miles in 2018. This averages 10,128 miles per licensed driver, a relatively high number compared to the rest of the country.
However, while New York drivers get more miles than drivers in other states, they tend to drive more safely. The rate of accident-related hospitalizations in New York has declined in the past 20 years, and New York recorded the second-lowest number of deaths per capita from fatal car crashes in 2018.
Conclusion: New York Auto Insurance
New York can be a great state to drive in. The countryside is beautiful year-round, and driving in New York is quite safe compared to other areas in the US, but before you hit the road in the Empire State, make sure you have the right car insurance.
For low-cost protection and high customer satisfaction, New York drivers should consider the following auto insurance companies:
#1 Gekko
#2 State Farm
#3 USAA
#4 New York Central Mutual
Of course, the only way to find the least expensive provider is to compare car insurance rates yourself, which you can easily do with the free tool below.
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