New York car insurance

New York is one of the nation's most expensive states for car insurance. A full coverage policy averages $250 a month ($3,005 a year), while state-minimum coverage averages $115 a month ($1,382 a year).

Here’s everything you need to know to save money on New York auto insurance and still get the protection you need.

New York averages $115 per month ($1,382 annually) for state-minimum coverage and $250 per month ($3,005 annually) for full coverage.

The term “full coverage” means liability plus comprehensive and collision.

New York has some of the country’s highest car repair costs and accident frequencies.¹ Medical costs are high in New York, as well. The average injury claim in New York is about $46,726, compared with $28,045 nationally.⁴

This inflates medical claims costs, which are passed on to you as higher premiums.¹

Insurance fraud also drives premiums higher. Industry sources estimate that staged crashes and related fraud push average New York premiums up by as much as $300 a year.¹

Luva's Research shows that New York ranks among the 10 safest driving states.⁵ This is another sign that prices are driven up by expensive medical claims and lawsuits, rather than bad driving habits.

New York’s minimum required liability coverage is $25,000 per person and $50,000 per accident, plus $10,000 in property damage liability (“25/50/10” in industry shorthand).

For fatal accidents, liability coverage increases to $50,000 per person and $100,000 per accident.²

Additionally, New York requires insurance companies to offer at least $50,000 in no-fault personal injury protection (PIP), and uninsured-motorist coverage of at least $25,000 per person and $50,000 per accident.²

Note: Assembly Bill A5053 would raise the minimums to 50/100/25 and increase the death and uninsured-motorist limits. As of August 2026, it is still in committee and has not passed.⁶ If it becomes law, drivers buying minimum-limit policies would get more liability protection and could pay more.

How does uninsured/underinsured motorist coverage work in New York? 

Uninsured/Underinsured motorist insurance UM/UIM, also called supplemental underinsured motorist coverage (SUM), is optional for New York drivers. But you need to specifically opt out of it.

In New York, SUM coverage is automatically included in your policy with limits equal to your own injury liability limits unless you sign a waiver specifically declining it, or you choose lower limits.⁷

Is New York a no-fault or at-fault state?

New York is a no-fault state for injury claims. Your own no-fault coverage pays your qualifying medical bills and lost earnings regardless of who caused the crash.²

However, courts still assign fault to determine who pays for vehicle and property damage. Additionally, to recover “pain and suffering” damages from another driver, your injury must meet New York’s “serious injury” threshold under New York Insurance Law §5102(d).

How does PIP coverage work?

No-fault personal injury protection (PIP) pays up to $50,000 per person for medical care, 80 percent of lost earnings up to a cap of $2,000 a month, and other necessary costs. It pays out no matter who caused the crash. This means victims often avoid lengthy court processes to receive medical payments.²

This amount isn’t usually enough to cover the cost of serious injuries by itself. But it can help with your health insurance deductibles, copays, ambulance charges, and other out-of-pocket costs your insurance policy may not cover.

You can add additional PIP above the $50,000 limit, and New York also offers a $25,000 Optional Basic Economic Loss (OBEL) benefit.⁷

New York City drivers typically pay more than double the rates of upstate drivers for similar coverage.

That’s because traffic, theft, and litigation risk are all clustered downstate. Repair and injury costs are also higher for city drivers, leading to higher premiums.¹

It’s best to compare rates specific to your own ZIP code, not a statewide average. Your location can drive premiums much higher or much lower than statewide averages indicate. 

Progressive has the lowest average full-coverage premium, at about $79 a month, followed by USAA and GEICO.

Your New York car insurance premiums are determined by many factors:

Location

Location matters more in New York than in many other states because accidents are much more common in New York City than in rural and upstate areas. 

Your driving record

A speeding ticket, an at-fault accident, or a DUI/DWI can each raise your premium compared to what a driver with a clean record pays. However, you may qualify for a discount if you enroll in a telematics program. 

Coverage and deductibles

Higher limits and lower deductibles cost more. Choosing higher deductibles is one of the most cost-effective ways to save money on premiums. 

Credit

New York permits credit-based insurance scores, so better credit can lower a new-policy rate. However, an insurer cannot raise your renewal premium just because your credit worsened.⁸

Age, vehicle, and mileage

Rates fall through your 30s, and the car you drive and how far you drive both matter.

Every company prices risk differently. Your quotes from different companies can differ greatly, so it pays to shop around. Use Luva to compare quotes from multiple reputable insurance companies side by side. 

If you rely on rentals, car shares, or a borrowed car, you can get coverage via a non-owner car insurance policy. These are liability-only policies that follow you as a driver, not a specific car. They will not pay for damage to the car you are driving.

A non-owner policy may be a good fit if you meet these criteria:

• You rent or borrow cars often and want continuous liability coverage.

• Use car-sharing services, where the built-in coverage may be thin.

• You are between cars, and you want to avoid a coverage gap that may increase your car insurance rate later.

Coverage can vary widely from carrier to carrier, so confirm which liability, no-fault, and uninsured-motorist protections the policy includes before you buy.

Car insurance in New York is expensive, no matter how you slice it. Especially in and near New York City. But there are some things you can do to find a better deal. Here are some of our best tips: 

• Compare multiple carriers. Luva lets you compare quotes from leading New York insurance companies in minutes, using the same limits, deductibles, and coverage types.

• Check available discounts. Depending on the insurer, you may qualify for defensive driving, low mileage, telematics, paid-in-full, good student, military, or bundling discounts, among others. 

• Choose a higher deductible. Higher deductibles mean lower premiums, but don’t take on more risk than you can afford. 

• Don’t lapse. Nearly all carriers will charge more if you have a coverage lapse on your record. 

New York imposes significant penalties for failure to maintain auto insurance coverage. For a lapse of 90 days or less, you may be able to pay a civil penalty, but this option is not available if you used it in the past 36 months. Otherwise, the DMV will suspend your registration, and a longer lapse can also lead to a license suspension.³