Best cheap car insurance in New York City

Best cheap car insurance companies in New York City

The cheapest car insurance companies in New York City are Progressive, Geico and State Farm, according to Bankrate’s study of average premiums sourced from Quadrant Information Services. Affordability is only one metric that our editorial team used to grade these companies. To find the cheapest and best car insurance companies in New York City, we also looked at other important factors, like policy offerings, discounts and third-party ratings, including J.D. Power’s 2022 U.S. Auto Insurance Study for customer satisfaction and AM Best’s ratings for financial strength. Each company was then awarded a Bankrate Score based on these factors, ranging from one to five points, with a five indicating strong performance in these key categories.

Progressive

Drivers who want low average rates and accessibility features may want to consider Progressive. This insurance company’s online Name Your Price tool allows prospective customers to build their car insurance policy around cost, which can be useful for drivers on a strict budget. The company’s strong web and mobile app accessibility also make it easy to manage your car insurance policy online. Customer service ratings seem mixed, however, as Progressive did rank below average in J.D. Power’s 2022 Auto Insurance Study for the New York area, and it has more than the average number of complaints in the National Association of Insurance Commissioners Complaint Index ranking.

Learn more: Progressive Insurance review

Geico

Geico has become known as one of the cheaper car insurance companies in NYC and beyond. While the company did not have the cheapest average rates on our list for full coverage car insurance in New York City, it was the lowest for minimum coverage and offers an array of unique discounts to help you save even more, including savings opportunities for members of specialized occupations, professional associations and employee organizations. If you like to customize your policy, however, you will want to note that Geico has fewer than average endorsements, or add-ons, available for policyholders.

Learn more: Geico Insurance review

State Farm

State Farm’s average rate for NYC was well below the city’s average. The largest auto insurer in the U.S. by market share, State Farm boasts an extensive presence in the city, with 19 offices in Manhattan alone. It has an above-average ranking with J.D. Power, indicating that the company places a high value on good customer service. If you would rather do your insurance business digitally, the company’s robust website and highly-ranked mobile apps make it possible to pay your bill, file a claim and handle other tasks with ease. State Farm received a 2023 Bankrate Award for Best Insurance Company for High-Risk Drivers, so if you have some dings on your license, the company might be worth considering. There is no live chat feature on the website, however, and customer service is not available 24/7.

Learn more: State Farm Insurance review

Erie

A regional carrier, Erie offers coverage in New York City with an average price that’s affordable compared to many competitors. Erie also offers some unique add-on options, which include coverage for pets and personal items in the vehicle, as well as locksmith services to help you get back into your car if you’re locked out. Although Erie doesn’t rank in J.D. Power’s study of New York car insurance companies, it does rank third in the organization’s national 2022 U.S. Auto Claims Satisfaction Study, indicating that customers are generally pleased with its handling of claims. One drawback, however, is its limited availability. If you move to another state outside of where Erie operates, you will need to look for a new car insurance carrier.

Learn more: Erie Insurance review

Allstate

Although Allstate’s average rates are slightly above the average cost of car insurance in New York City, it still earns a place on our list of cheapest car insurance companies due to an extensive list of discounts that offer numerous opportunities to save money on your policy. If you are a careful driver, consider signing up for the company’s telematics program Drivewise, which monitors your driving skills in real time and offers a significant discount for safe driving habits. Allstate has numerous agents in the New York City area, with 16 offices in Manhattan, but the company’s robust digital tools and website also make it easy to manage your account online if you prefer. Although Allstate’s higher average rates may put you off the company, it may be worth getting a quote to see what they can do for you.

Learn more: Allstate Insurance review

How to get and keep the cheapest car insurance in New York City

New York City is typically at or near the top of many lists of the most expensive cities in the United States when it comes to cost of living. For drivers in NYC, finding affordable rates on car insurance is just the first step. Keeping the low rates is another crucial step. If you want to find and keep the cheapest car insurance in New York City, keep these tips in mind:

• Know your coverage limits. Understanding what you want in your car insurance policy will help direct the final cost. For example, if you are comfortable paying a larger deductible out-of-pocket, raising the deductible on your collision and comprehensive coverage could help lower the amount of your premium. Additionally, if you keep a car for road trips but don’t typically use it to get around the city, you may want to look at pay-per-mile insurance to avoid paying higher rates for insurance on a vehicle you don’t use often.
• Practice safe driving. Maintaining clean driving records is one of the easiest ways to save money on car insurance in any city, but the traffic congestion in New York City could make this difficult. Still, insurance providers prefer to insure safe drivers and may reward you with incentives and discounts for safe driving. If you do have a mark on your driving record, it might help to get quotes from different carriers to find a cheaper policy.

Frequently asked questions

Methodology

• $100,000 bodily injury liability per person
• $300,000 bodily injury liability per accident
• $50,000 property damage liability per accident
• $100,000 uninsured motorist bodily injury per person
• $300,000 uninsured motorist bodily injury per accident
• $500 collision deductible
• $500 comprehensive deductible

Bankrate Scores

Our 2024 Bankrate Score considers variables our insurance editorial team determined impacts policyholders’ experiences with an insurance company. These rating factors include a robust assessment of each company’s product availability, financial strength ratings, online capabilities and customer and claims support accessibility. Each factor was added to a category, and these categories were weighted in a tiered approach to analyze how companies perform in key customer-impacting categories.

Each category was assigned a metric to determine performance, and the weighted sum adds up to a company’s total Bankrate Score — out of 5 points. Our scoring model provides a comprehensive view, indicating when companies excel across several key areas and highlight where they fall short.