Of course, we’re talking about the city and not the state. While other areas of the state of New York have quite level car insurance rates, the same can’t be said for the city. As the most populous city in the United States, you can bet that there will be several drivers on the road. In fact, there are so many drivers that traffic doesn’t even move at times. Despite this, car insurance in New York isn’t the most expensive in the country, but it is in the top five. The good news is that as one of the world’s leading commercial locations, residents have a diverse choice of the top cheap car insurance providers that all offer different rates. It’s all a matter of finding the best fit, like clothes shopping.
Car Insurance Requirements in New York
New York is one of several states which require a certain amount of car insurance to illegally drive. The practice of covering damage that you cause to another driver is a legal responsibility. New York is also notable for having a little bit more specialized car insurance requirements as opposed to just the standard liability coverage.

The easiest way to remember this is that there are three areas of required car insurance in New York:
- General liability coverage – Sometimes called basic car insurance, liability coverage is the backbone of car insurance and the main reason why we have it. This coverage exists to insure the damages you cause to another’s car and injuries you cause to the drivers. New York operates by the 25/50/10 rule, wherein they require at least $25,000 in coverage per injured person, $50,000 for total injuries in an accident, and $10,000 in property damage. This is not how much you are paying for car insurance but how much it will cover you if you need it. Coverage amounts are customizable but will affect how much you pay for car insurance.
- Uninsured motorist coverage – With a population as big as New York’s, there are bound to be drivers breaking the law and driving around with little or no car insurance. The state wants you to be prepared with uninsured motorist coverage which provides protection for just that event. This coverage won’t cover damage done to your car, but it will cover injuries and medical treatment following the accident. These coverage limits must be at least $25,000 per person injured and $50,000 for total injuries in an accident.
- Personal protection (PIP) coverage – Here is what would cover injuries that you sustain yourself. New York doesn’t operate with a driver-fault system in place, so this is also required. The coverage minimum for this one would be around $50,000 per injured person. Keep in mind that all these listed minimums wouldn’t be enough to cover yourself in a real scenario, so it always helps to carry well above it.
Other Car Insurance in New York
New York car insurance is more vast than the average state, but there are still more instances of coverage that can strengthen your policy. These coverages are:
- Comprehensive coverage – This is one of two coverages that make up full car insurance. Comprehensive coverage insures you against any damages that occur while your car is parked and not in use. As a full-time parker in New York, this insurance can be really valuable. This includes damages from falling objects caused by weather or vandalism and theft.
- Collision coverage – The other part of full car insurance is collision coverage. While your personal injury protection coverage covers your injuries, collision coverage covers damage done to your car.
- Loan/lease coverage – There are specialized coverages that are for cars that are being leased or on a payment plan. If the car were to be totaled, this coverage would pay off the remaining balance so you aren’t stuck paying for a car you can’t use anymore.
- Rental car coverage – Like with leased cars, you can be reimbursed for a damaged rental car that is no longer usable and pay back the rental company. This can come in handy if you are a frequent renter.
- Roadside assistance – If you drive in and out of the suburbs on the expressways and your car breaks down, you’ll want to have coverage for any services like a tow truck you use since they are deceptively expensive. Roadside assistance coverage can be there for you during these events.

Cost of Car Insurance in New York
The average cost for full coverage in New York (with comprehensive and collision coverage) goes for about $2,020 annually. For basic coverage, it would be about $941 a year. Of course, this assumes that the driver is in good standing with a nice driving record, middle-aged, and doesn’t file claims. However, there are reports of some drivers finding annual rates as low as $569. This shows the importance of shopping around with different providers for car insurance –especially when living in a city such as New York.