The Complete Guide to New York Car Insurance
Lemonade is on the way to the Empire State and we’ll let you know as soon as we arrive! In the meantime, we’ll help you navigate all things NY car insurance like rates, requirements, and throw in smart shopping tips.
How much does car insurance cost in New York?
Car insurance in New York averages $226/month for full coverage, but your actual rate depends on where you live, what you drive, and your driving record.
Here’s what drivers pay in major cities:
| City | Average cost of car insurance |
|---|---|
| Manhattan | $347 |
| Hempstead | $429 |
| Brookhaven | $298 |
| Islip | $335 |
| Oyster Bay | $326 |
Source: ValuePenguin
Why is car insurance so high in New York?
New York drivers face unique risks that drive insurance costs
Uninsured drivers
While only 4.1% of drivers in New York are uninsured (vs. 13% nationally), other factors like repair costs and claim frequency drive premiums higher.
Car theft
FBI data shows there were 29,942 reported motor vehicle thefts in 2024 in NY, down 21% from the previous year.
Natural disasters
NY has a relatively moderate FEMA disaster rating of 89, with the highest risks of inland flooding and hurricane, driving up comprehensive coverage costs.
What car insurance do I need in New York?
All New York drivers must carry minimum insurance coverage to legally drive.
Here’s what the state requires:
| Required minimum coverages for New York drivers | Minimum amount required | What’s covered | What’s not covered |
|---|---|---|---|
| Bodily injury liability | $25,000 (per person) $50,000 (per accident) | Medical bills, lost wages, and other costs when you hurt someone else in an accident | Your own injuries, damage to your car, amounts above your policy limits |
| Property damage liability | $10,000 | Damage you cause to other people’s cars, fences, buildings, and property | Damage to your own car, your own property, amounts above your policy limits |
| Personal injury protection (PIP) | $50,000 | Your medical bills and often lost wages after any car accident, regardless of who’s at fault | Car damage, pain and suffering, may have limits on who’s covered |
| Underinsured Motorist Bodily Injury | $25,000 (per person) $50,000 (per accident) | Your injuries when the at-fault driver doesn’t have enough insurance to cover your costs | Car damage, amounts above your limits, cases where other driver is uninsured |
| Liability for death | $50,000 (per person) $100,000 (per accident) | Death of others caused by your accident, including funeral costs and wrongful-death damages | Your own death, non-fatal injuries, vehicle damage, amounts above policy limits |
What additional car insurance coverages are offered in New York?
Beyond state minimums, these optional coverages provide
extra protection for New York drivers
Collision coverage
Pays to repair or replace your car if it's damaged in an accident with another vehicle or object like a fence or guardrail.
Read moreComprehensive coverage
Covers damage to your car from non-collision events like theft, vandalism, hail storms, flooding, or hitting an animal.
Read moreRental car reimbursement
Pays to cover alternative transportation while your car's being repaird. Specific coverage varies by insurer
Read moreWhat does (and doesn’t) car insurance cover in New York?
Car insurance protects you financially in many situations, but it does not cover everything.
- Vandalism
- Fire damage
- Weather damage
- Theft
- Injuries to other people
- Damage to property
- Damage from a collision
- Fender benders
- Rental car reimbursement
- Towing
- Roadside assistance
- Windshield damage
Your insurance won’t cover oil changes, engine problems, stolen personal items like your purse, or damage from mudding upstate
How much car insurance do I need in New York?
You need enough coverage to protect yourself financially when accidents happen. If your car needed major repairs, could you afford these local New York labor rates? Keep in mind, parts and materials cost extra.
| City | Body repair | Frame repair | Mechanical repair | Paint repair |
|---|---|---|---|---|
| Ridgewood | $82 | $95 | $125 | $82 |
| Brooklyn | $82 | $95 | $125 | $82 |
| Ithaca | $71 | $84 | $131 | $71 |
| Buffalo | $72 | $88 | $128 | $72 |
| Hempstead | $82 | $95 | $125 | $82 |
Source: Caliber
What happens if I drive without insurance in New York?
New York takes uninsured driving seriously, and the penalties add up fast.
Fines
$150-$1,500 for violations, up to $900 for insurance lapses, plus $750 additional if license revoked.
Suspension
License and registration revoked up to three years, immediately revoked 1-3 years for accidents.
Jail time
Up to 15 days in jail for traffic stops or collision violations.
What do you need to get a car insurance quote in New York?
You’ll need some basic information like your driver’s license number and your car’s VIN, but with the right details handy, getting quotes is quicker than your morning coffee run. Here’s your checklist:
Your Details
- Driver's license number
- Social Security number (for credit check)
Your Car
- VIN number (found on your dashboard or door frame)
- Current registration or title
Your History
- Any accidents or tickets from the past 5 years
- Current insurance company and policy number (if you have coverage)
Your Preferences
- How much coverage you want
- Deductible amount you're comfortable with
- Monthly budget range
How does car insurance work in New York?
Think of car insurance as a financial safety net for when things go wrong on the road.
Pick your protection
Shop around and choose coverage that fits your budget.
Make payments
Keep up with monthly payments and you’re covered.
When S%!t happens
File a claim, pay your deductible, and your insurer covers the rest up to your limits.
New York car insurance FAQs
Is New York a no-fault state?
Yes, New York is a no-fault state. You must carry Personal Injury Protection (PIP) insurance to cover medical expenses and lost wages regardless of who’s at fault. The no-fault system limits lawsuits for minor injuries, legal action is only allowed for serious injuries as defined by state law.
Do I need insurance to register a car in New York?
Yes, New York requires insurance before registering a vehicle. You must carry minimum liability coverage and no-fault Personal Injury Protection (PIP). Proof of insurance is submitted electronically by the insurer — registration is denied without coverage.
What are the top risks for driving in New York?
New York experiences heavy traffic, distracted driving, and aggressive behaviors throughout the state. Urban congestion leads to frequent accidents, while winter weather creates slippery, dangerous road conditions. Cities also see significant pedestrian and cyclist safety concerns.
How long do I have to report an accident in New York?
New York requires accidents involving injury, death, or property damage over $1,000 to be reported to police immediately. You must also file a report with the DMV within 10 days. This requirement applies even if police respond. Missing the deadline can result in license suspension.
What are the top safety tips for driving in New York?
In New York, stay sharp in crazy urban traffic and watch for pedestrians and cyclists everywhere. Slow down in winter weather. Don’t get distracted in stop-and-go traffic. Be extra careful on highways during busy travel times.
All coverage is subject to individual policy limits, terms, and conditions. Any hypothetical examples used in Lemonade editorial content are purely expositional.
*Uninusured driver rate sourced from ValuePenguin: https://www.valuepenguin.com/auto-insurance/uninsured-motorist-statistics sourced February, 2026
**Theft rate sourced from the FBI’s crime data explorer: https://cde.ucr.cjis.gov/LATEST/webapp/#/pages/explorer/crime/query sourced February, 2026
***Disaster risk rating sourced from FEMA’s Disaster Resilience Hub: https://resilience-fema.hub.arcgis.com/datasets/national-risk-index-states-expected-annual-loss/explore sourced February, 2026
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