Cheapest Choices For New York Car Insurance 2020 – Motor1.com

5January 2020


 

Are you looking for the best New York car insurance for both your car and your wallet?

Luckily for you, we did all the research on the best insurance providers so you don’t have to. We’ll be answering questions like: what insurance coverage do you need to avoid New York’s excessive fines, and how can you save some money on NY’s unusually high insurance rates? 

Whether you live in the Big Apple or anywhere else within the Empire State, you will need New York car insurance if you plan to own a car and drive legally. So to help you find the cheapest option, we recommend comparing quotes from multiple providers so you can get the best coverage and rates. In addition to the insurance company you choose, factors such as your age, vehicle make and model, and driving history can affect your car insurance premium, so what’s best for your neighbor might not be best for you.

Use our tool below or call (855) 518-0148 to start comparing personalized car insurance quotes.

 

In this article:

5 Best New York Car Insurance Companies

With over 50 choices for your New York car insurance, it’s hard to know which company will provide you with the best coverage and cheapest car insurance rates. However, we recently researched many of the best car insurance companies across the nation. Based on our findings, we recommend the following choices for the cheapest car insurance in New York.

 

*You may notice that some car insurance companies are listed above those with higher star ratings. This is because our ratings take into account nationwide factors, while our ranking for this article looks specifically at what insurance providers are best for car insurance in New York.


Geico Insurance logo

#1 Geico Car Insurance

Geico’s well-known slogan – “15 minutes could save you 15 percent or more on car insurance” – can prove true for New York drivers. In our research, we found that Geico car insurance rates are some of the lowest in the state for nearly all drivers regardless of credit score and other factors.

In addition to saving drivers money, Geico provides 24/7 customer service through its smartphone app and website. This can be great for drivers in the Empire State who find themselves needing to file a claim or access their coverage on late nights or weekends.

In terms of coverage, Geico offers standard types of car insurance such as:

Geico insurance policies come with benefits including emergency road services and rental car reimbursement. The company is also the leading insurance provider for mechanical breakdown insurance (MBI). This type of coverage is not an insurance policy. It’s closer to a basic car warranty that protects vital car parts in the event of a mechanical breakdown.

Geico also has a variety of discounts that could help the following drivers save money on the cost of Geico car insurance:

  • Federal employees and members of select professional and alumni organizations
  • Active-duty military and veterans
  • Safe drivers and drivers of safe vehicles
  • Homeowners with Geico home insurance
  • And more

Geico has high ratings across the board from professional agencies. It maintains an A+ rating from the Better Business Bureau (BBB) and an A++ rating in financial strength from AM Best.

Pros Cons

Affordability

Average quote experience

Second largest insurance company in the nation

Good for students

Good for military

 

To learn more about the car insurance provider, check out our review of Geico car insurance.


 Allstate Insurance logo

#2 Allstate Insurance

Allstate provides the second-best car insurance for New York drivers according to our car insurance research. We named Allstate the best local service provider since customer satisfaction varies depending on the region. With a strong industry standing, Allstate offers one of the cheapest New York car insurance policies.

Allstate has earned an A+ rating from the Better Business Bureau and an A+ from AM Best. These ratings bode well for Allstate’s financial reliability and business ethics. Allstate offers standard car insurance coverage as well as a few unique add-on policies:

  • Rideshare insurance: For drivers of Uber or Lyft
  • Classic car insurance: Best for drivers of classic, antique, exotic, and custom vehicles
  • Mexico travel insurance: Best for drivers road-tripping to Mexico in their covered vehicle

Allstate also offers customers impressive discounts like the Drivewise® app that monitors your safe driving habits to qualify you for discounted car insurance rates. The data tracked by this app can never be used against you to increase your rates, it can only qualify you for savings.

More discounts from Allstate include:

  • Good student
  • Multi-car and multi-policy
  • Anti-theft and anti-lock brake discount
  • Allstate eSmart® discount for policyholders that sign up for paperless billing

To learn more about Allstate, read our Allstate auto insurance review to learn more.


Progressive Insurance logo

#3 Progressive Car Insurance

Progressive is the third-best New York car insurance provider and best overall car insurance provider for high-risk drivers. A Progressive car insurance policy could help you save money on New York car insurance with accident forgiveness and impressive discounts. Progressive car insurance policy could be worth considering if you:

  • Want large or small accident forgiveness
  • Want access to insurance tools that could help you save money
  • Have a history of high-risk driving behavior

Here are some of the coverage perks available with Progressive:

  • Small accident forgiveness: Forgives claims that cost less than $500 for customers who’ve been with the company for over five years and claim-free for at least three.
  • Large accident forgiveness: Forgives accidents without a maximum cost limit. This plan is available in most states.
  • Name Your Price Tool®Get a quote from Progressive and use the Name Your Price Tool to tell the online quote tool how much you want to pay. Then the tool will match you with Progressive policies that fit the budget.
  • Snapshot® Program: Operates through an app on your phone to monitor your safe driving habits.
  • Deductible Savings Bank: Optional add-on to your car insurance policy that subtracts $50 from the cost of your collision and comprehensive deductible for every claim-free period.

If this insurance coverage is catching your eye, read more in our in-depth Progressive auto insurance review.


Travelers Insurance logo

#4 Travelers Car Insurance

Travelers car insurance may not be as well known as the other names on this list, but the company is a big player in the car insurance industry. Like it’s competition, it has an A+ rating with the BBB and an A++ rating from AM Best. J.D. Power reports low overall customer satisfaction with Travelers in regions like the Mid-Atlantic and Florida, but New York customers in the same study gave the provider a rating of 4.0 out of 5.0 – so it would seem that location is an important factor when going with this company.

Along with basic coverage, you can receive the following through Travelers:

  • Roadside assistance
  • Rental car reimbursement
  • GAP insurance
  • New car replacement
  • Accident forgiveness

Quotes are available online and by phone, but Travelers primarily works through independent agents. That can be a perk for drivers who want to form a personal connection with one agent.

Pros Cons

Can file claim with local agent or online, based on preference

Can be more expensive than competitors
Strong financials  
Long-standing reputation  
Comprehensive coverage options  
Good choice for teens and students  

To learn more about the car insurance provider, check out our review of Travelers car insurance.


State Farm Insurance logo

#5 State Farm Car Insurance

State Farm car insurance has been around since 1922. Today, the provider is a national leader for auto and other insurance needs, and its reputation speaks for itself.

For car insurance coverage, State Farm offers all basic types of coverage, plus rideshare insurance in most states. Although State Farm’s rates might not be as low as Geico’s, the company has a wide variety of discounts available to customers and great perks. Insurance quotes are available online, and a well-designed mobile app provides 24/7 access to your policy.

State Farm has an A+ BBB rating and an A+ rating in financial strength from AM Best.

Pros Cons

Affordability

Does not offer accident forgiveness

Customers report strong claims and service experience

Good for students and teens

 

Discounts for bundling several types of insurance 

 
Largest insurance company in the nation  

To learn more about the car insurance provider, check out our review of State Farm car insurance.


Car Insurance Basics And Why Insurance Varies By State

Each state has its own auto insurance state laws and regulates auto insurance rates differently. A specific department within each state sets the minimum coverage level required to drive legally. It also decides how auto insurance companies can assess risk and determine pricing for state residents. This allows the state to set regulations and coverage requirements that fit the general population.

Overall, though, each state requires some combination of these five basic types of car insurance:

Insurance Type What It Does Range Of State Minimums
Bodily Injury Liability (BI) Covers another person’s injuries when you’re at fault

$15,000–$50,000/person

$30,000–$100,000/accident

Property Damage Liability (PD) Covers others’ property when you’re at fault $5,000–$25,000/accident
Uninsured Motorist BI Covers your injuries if an at-fault driver is not insured

$20,000–$50,000/person 

$40,000–$100,000/accident

Uninsured Motorist PD Covers your car if an at-fault driver is not insured $5,000–$25,000/accident
Personal Injury Protection (PIP) and Medical Payments Covers your injuries and your passengers’ injuries $1,000–$50,000

Numerous factors determine why each state sets specific minimum requirements for insurance coverage. General geography and road conditions play a role, as well as accident rates and other driver demographics within the state. Also, just because your state requires specific minimum coverage, that doesn’t mean you can’t obtain more coverage. In fact, you may need additional coverage if you’re driving a lease or if your car is still under loan.


About New York’s No-Fault Laws

New York and 11 other states follow a no-fault system for car accidents. Essentially, this means that your insurance company covers your damages in the case of an auto accident, regardless of who is at fault. There are some exceptions in cases of serious injury, but for the most part, each driver’s insurance pays for their injuries and damages.

The no-fault system in New York was put in place to avoid personal injury lawsuits. It reduces litigation and claims and even makes car insurance less expensive for everyone. Therefore, all drivers in New York are required to carry a minimum of $50,000 in personal injury protection to cover their own medical expenses in the case of an accident.


What Are New York’s Car Insurance Requirements?

Because of the no-fault system and other state laws in New York, drivers must carry the following car insurance:

Insurance Type Required Coverage Amount
Bodily Injury Liability $25,000/person and $50,000/accident
Wrongful Death Coverage $50,000/person and $100,000/accident
Property Damage Liability $10,000/accident
Personal Injury Protection $50,000/accident
Uninsured Motorist Bodily Injury $25,000/person and $50,000/accident
Uninsured Motorist Property Damage Optional
Collision and Comprehensive Optional

New York Car Insurance Information And Enforcement System

As we previously mentioned, New York requires that all drivers maintain car insurance coverage on a continuous basis. New York’s Department of Motor Vehicles (DMV) has a system in place called the Insurance Information and Enforcement System (IIES). Essentially, IIES detects uninsured vehicles.

Auto insurance companies are required to formally submit insurance information – including cancellations, renewals, and issuance of new policies – for all New York citizens they insure. The DMV then maintains this information in an electronic database and continuously tracks insurance coverage for each vehicle registered with the state. 

Sometimes the DMV will contact registered vehicle owners to verify insurance coverage. It’s important that drivers respond promptly, even if their vehicle is insured. Failure to maintain the minimally required New York car insurance can result in suspension of driver’s license or vehicle registration, not to mention monetary penalties.

Non-Insured Motorist Penalties In New York

Due to New York’s no-fault laws, it’s illegal for New York residents to drive without insurance or even have somebody else operate their vehicle without insurance. Penalties for driving without New York auto insurance include:

  • Revocation of your driver’s license and vehicle registration for at least one year
  • A $750 civil penalty that must be paid to the DMV
  • Traffic court fines of as much as $1,500

What Are Average New York Car Insurance Rates?

New York car insurance ranks among the most expensive in the country. Experts say this is mostly due to the state’s population and median income. According to the National Association of Insurance Commissioners (NAIC), average insurance rates in New York in 2017 made it the third most expensive state for car insurance.

Here’s a breakdown of average car insurance coverage costs for New York car insurance that year:

Type of Coverage Average Expenditures in 2017
Liability coverage  $869.13
Collision coverage $437.13
Comprehensive coverage $179.31
Total cost $1,349.72
 

*To calculate average expenditures, NAIC assumed that all insured vehicles would carry liability insurance but not necessarily collision or comprehensive. Total cost per year measures what consumers actually spent.

These rates are even higher in New York City, which is the most populated city in the nation. As a result, NYC auto insurance rates are are also some of the highest among cities across the nation. In Brooklyn and boroughs of New York City, drivers can pay as much as $4,000 annually for insurance. To see how your specific location in New York will compare to the state average, use the tool below or call (855) 518-0148.

 

Other Factors That Impact New York Car Insurance Rates

Although population plays a major role in auto insurance rates, here are some other things that impact prices:

  • Time in congested traffic: New York drivers may only average 11,871 miles on the road per year, but they spend an average of 92 hours in traffic per year. In fact, New Yorkers have the fourth longest commute times in the country based on duration in hours.
  • High accident rates: New York City drivers are 20 percent more likely to end up in an auto accident than the national average.
  • Weather conditions: New York’s climate and average weather conditions play a major part in road conditions and, therefore, impact car insurance rates. It rains and snows often in New York, with an average of 121 days of precipitation per year, according to United States Climate Data.
  • Road conditions: According to a study by TRIP, 46 percent of major locally and state-maintained roads in the New York/Newark/Jersey City area are in poor condition, and another 23 percent are in mediocre condition. These roads can cost drivers in extra vehicle operating costs and higher insurance rates.

How To Get The Cheapest Car Insurance In NY

When shopping around for competitive insurance rates, always keep the following in mind:

Don’t Assume Anything

Just because your friend in another state gets a good rate with one insurance company doesn’t mean you will. Rates vary widely by state due to coverage requirements and driving statistics. Therefore, the best company in Texas may not offer the best car insurance in New York.

Also, don’t assume that notable national brands will have the lowest rates either. Always compare rates between multiple providers, including some local or regional insurance companies, to ensure you receive the best rate based on your driving record and specific car.

Find Ways To Cut Costs

Even with the minimum required New York car insurance, you can find creative ways to save money on insurance rates. For example, you can opt for higher deductibles to shave some money off the car insurance premium. You can also drop collision and comprehensive coverage as your vehicle ages and the rates exceed the possible payout. Ask about discount offerings, too, when shopping around for the cheap car insurance. You may find that one company’s quote comes in higher, but the discount offerings lower the rate significantly.

Look Into Mileage-Based Policies

If you’re a relatively safe driver who doesn’t log excessive miles on your car, consider an insurance company that offers pay-per-mile plans. By electing this type of policy, you give your provider permission to track your driving habits. In return you receive discounted rates based on the amount of miles you actually drive and how safely you operate your vehicle when on the road.


Final Thoughts On New York Car Insurance

New York operates under a no-fault system. As a result, the state requires more coverage than other parts of the country. With the Insurance Information and Enforcement System, however, drivers can face steep punishments for driving without insurance.

Although the Empire State has some of the highest insurance rates in the country, save drivers who are willing to shop around can obtain quotes that will help them get cheap car insurance in New York. Consider our tips to maintain the best rates on your New York car insurance policy.

Enter your zip code in our tool below or call (855) 518-0148 to start comparing auto insurance quotes.

 

Read our other insurance articles:

Source: motor1.com

Our Score
Click to rate this post!
[Total: 0 Average: 0]

Upgrade Your Listing

Add images, video, and more details to your listing! More information means more clicks. More clicks means more quotes!

Free listing includes: business name, address, phone, website, google map

Upgraded listing includes: business name, address, phone, website, EMAIL ADDRESS, COMPANY LOGO, VIDEO, IMAGE SLIDE SHOW, FEATURED LISTING PLACEMENT