NYC Car Insurance Rates Are Some of the Highest in the Nation. Which Borough is Lowest?

by | Jun 26, 2018 | Downtown Living

New York is an amazing place, but with more than 8.5 million people living in it, it’s also incredibly expensive. The high cost of living is due to several factors, and one of those is auto insurance.

New York City has some of the most expensive auto insurance in the nation, and the reasoning behind this is very simple. In addition to its very high population density, New York City has higher crime rates than a majority of the country, including automobile-related crime. The city also has high levels of traffic and congestion – factors which can increase insurance rates. Additionally, New York City has very strict minimum liability requirements when it comes to auto insurance. While these stringent requirements can protect consumers in the event of an accident, they can also drive up rates. A quick look at the minimum requirements for liability:

  • $10,000 coverage for property damage.
  • $25,000 uninsured motorist bodily injury (UMBI) coverage per person.
  • $25,000 coverage for bodily injuries to one individual.
  • $50,000 coverage for bodily injuries per wreck and bodily injuries per collision.
  • $50,000 coverage per accident for uninsured motorist bodily injury.

Of course, New York isn’t just a city, it’s a city of five boroughs: Manhattan, Queens, Brooklyn, Staten Island and the Bronx. New York auto insurance rates can vary based on which Borough you live in.

So, here’s a ranking of which Borough has the highest and lowest auto insurance rates.

1. Brooklyn

This might be a bit of a surprise – you may have expected Manhattan (after all, EVERYTHING is more expensive there), but no, it’s actually Brooklyn. The average auto insurance policy in Brooklyn is more than twice as expensive as it is anywhere else in New York. According to numerous studies, auto insurance in Brooklyn can cost you more than $3,500 annually.

2. Queens

Queens is next on the list, with the average auto insurance policy costing drivers roughly $3,000 every year. Queens has a large percentage of driving commuters – roughly half of their residents – and, as we know, more drivers means more accidents, and this means higher auto insurance rates.

3. The Bronx

The average auto insurance policy in the Bronx is about $2,900. As expensive as this is, the good news is that this is still lower than the New York City average of roughly $3,000, making this the first Borough in which the average rates drop below the city-wide average.

4. Manhattan

This one is a bit of a surprise, as Manhattan is usually regarded as the most expensive Borough. However, it came in fourth on the list of most expensive auto insurance rates, with the average policy costing consumers $2,600.

5. Staten Island

Staten Island easily has the lowest auto insurance rates of any of the five Boroughs, with the average driver paying roughly $2,500 per year. This rate is nearly $500 lower than the citywide average, but still significantly higher than the statewide average of about $1,500. A large contributing factor is almost certainly Staten Island’s comparatively low population: It not only has the smallest population of the five Boroughs, but it has the lowest population density.

Where to find the cheapest car insurance carriers

If you are shopping for car insurance rates, don’t go with the first company you see. Shop around and get as many different quotes from as many different companies as possible. Every company will give different rates for different people, and this is particularly dependent on your individual driving record.

The website PennyGeeks examined which car insurance companies had the cheapest rates for New York drivers. Here’s what they found:

  • Liberty Mutual has the best rates for safe drivers.
  • On the other end, High-Risk Drivers could find the cheapest insurance with Allstate.
  • State Farm Insurance had the best rates for teen drivers.
  • Drivers who are willing and able to pay their insurance premiums upfront could find the best rates with Esurance.
  • USAA (United States Automobile Association) had the best rates for Military Drivers.

The same survey examined overall reviews and complaints. Looking at the same five companies, it gave out the following grades:

  • USAA: A
  • Liberty Mutual: A
  • Allstate: B+
  • ESurance: B
  • Nationwide:: B-

In conclusion, auto insurance rates can vary by a variety of factors, but one of those factors is absolutely where you live and keep your car. When purchasing auto insurance, make sure you take the time to determine how you can save the most money, and make sure you shop around for the lowest rates. Doing so help ensures that you will save as much money as possible!

Featured photo by Chase Fraser

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