Why is car insurance so expensive in New York?

You need your car to get around New York state, but you didn’t realize getting insurance would be so expensive. New York has the second-highest average car insurance cost in the nation. And rates keep getting higher every year. What’s up with that, and why are premiums in New York so high?

Average car insurance costs by age and gender in NY

When you ask an insurance company for a quote, the number you get is unique to you and your vehicle. Insurers base their quote on an estimate of how much you are likely to cost them in claims over the lifetime of your policy. If your driving record is littered with moving violations and your car is in the shop after a crash regularly, you’re more likely to get in an accident and file a claim. Insurers use actuarial information (statistics about insurance-related risks) to make their estimate.

Two categories on the actuarial table are age and gender. Statistics show that women tend to drive more safely and get into fewer accidents than men, so women’s average car insurance costs in New York are lower than men’s. Statistics also show that inexperienced drivers get into more accidents, so the younger you are, the higher your average car insurance premium will be. After you turn 25, your insurance premiums are likely to go down.

Higher risk of theft or vandalism

Insurance costs vary from region to region based on factors like population, local accident rates, and crime rates. Since comprehensive car insurance covers theft and vandalism, insurance companies need to consider crime rates when they set their premiums. The riskier an area is for your car, the higher your premium will be. In 2022, New York state had the ninth-highest rate of car thefts in the country. And theft rates are rising, pushing premiums even higher. New York is in the top third of states for vandalism, too.

How much is car insurance per month in NY?

The average car insurance cost in the U.S., assuming a full coverage policy, is $1,424 a year. For New York State, the average price is $3,433. That’s right, NY car insurance rates are more than twice the national average. And there’s a reason most NYC residents prefer taxis or the subway: according to Quadratant, average car insurance for New York City is an astonishing $7,488 a year.

What city in NY has the cheapest car insurance?

According to WalletHub, Ithaca is the least expensive city in New York to get car insurance. The average car insurance cost there is lower than the national average, at just $1,295 annually. Rochester is the second cheapest, leaving drivers in the city with more money to spend on Garbage Plates.

Here are the top four cities for cheap car insurance in New York:

• Ithaca – $1,295/year
• Rochester – $1,497/year
• Troy –$1,564/year
• Schenectady –$1,577/year

How to save money on car insurance in New York

You’re not Batman – you can’t stop car theft in New York. But you might be able to lower your premiums in other, less cape-centric ways.

Wait

Since insurance costs more for younger, less experienced drivers, growing older will help you pay less. After you turn 26, your premiums will probably go down. (Fun fact: you don’t need to get off your parents’ car insurance when you turn 26.)

Raise your credit score

NY drivers with excellent credit scores pay 69 percent lower premiums than those with no credit. If your score is low, make getting out of debt a priority. A free personal finance class at your local library could help.

Drive responsibly

A poor driving record and lots of recent claims can raise your insurance costs. Drive safely and avoid accidents and speeding tickets – over time, traffic violations will fall off your record, giving you the opportunity to pay lower premiums. Your insurance might also offer a discount for using their safe driver smartphone app.

Comparison shop 

Insurance in New York is some of the most expensive in the country, but comparing quotes from different companies is a smart way to find a better price. You can always reach out to one of Surround’s experts for help comparing and selecting insurance policies.