Low-income car insurance in New York: What you need to know

Does the government offer any car insurance program for low-income drivers in New York?

There is no government-run car insurance program for low-income drivers in New York. Only a handful of states (California, Hawaii and New Jersey) have such a program.

In New York, low-income drivers must still carry the minimum amount of car insurance. The best way to find it on a budget is to shop around.

TIPUtilize community resources or reach out to nonprofit organizations like the NYLAG (New York Legal Assistance Group) to seek free car insurance advice for low-income drivers.

New York minimum car insurance requirements

The minimum car insurance requirements in New York are as follows:

Minimum liability coverage limits	25/50/10
Average annual premium	$731
Other types of insurance required (if any)	UIMBI, UMBI and PIP

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Remember that if you have a loan on your car, you're required to carry full coverage, which includes collision and comprehensive.

Best low-income car insurance in New York

NYCM Insurance came out on top as the best low-income car insurance company in NY.

People on a tight budget still deserve great service from their car insurance company. We gathered the data on the top car insurance companies in New York and compared them on rates for state-minimum coverage, financial stability and customer satisfaction based on J.D. Power and National Association of Insurance Commissioners (NAIC) scores.

These are the best low-income car insurance companies in New York.

Company	Average annual premium	J.D. Power	AM Best	NAIC	Insurance.com score
NYCM Insurance	$420	842	A	0.22	3.66
Erie Insurance	$575	845	A	0.61	3.25
GEICO	$555	821	A++	0.91	2.93
Progressive	$428	818	A+	0.65	2.9
State Farm	$885	826	A++	0.7	2.75
The Hanover	$1,016	835	A	0.6	2.68
Allstate	$861	819	A+	0.65	2.51
Travelers	$1,362	821	A++	0.49	2.27

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TIPWork with insurance brokers or agents who specialize in low-income or high-risk coverage to help you find the best rates. You can verify their credentials through the New York Department of Financial Services.

Cheapest low-income car insurance in New York

Based on state-minimum coverage, we found that the cheapest car insurance company in New York is NYCM Insurance at an average rate of $420 a year.

When you're working with a tight budget, price is the number one consideration. We gathered rates from car insurance companies in New York to find the cheapest options on average.

Company name	Average annual premium	Average monthly premium
NYCM Insurance	$420	$35
Progressive	$428	$36
GEICO	$555	$46
Erie Insurance	$575	$48
Allstate	$861	$72
Chubb	$872	$73
State Farm	$885	$74
The Hanover	$1,016	$85
Travelers	$1,362	$114
USAA	$594	$50

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PEOPLE ASK:

What can I do if I can't afford car insurance in New York?

If you can't find affordable car insurance in New York, try working with a local agent who knows the market and some of the smaller insurance companies available. Consider a usage-based program to reduce costs, reduce coverage, drive less and ask about additional discounts.

Car insurance discounts for low-income drivers in New York

Discounts are the best way to bring down your car insurance rates. There are a number of discounts low-income drivers in New York can take advantage of for cheaper insurance. Take a look at some common discounts and how much you can save below.

Discount type	% Discount
Years Licensed	20%
Loyalty - Years Renewal With Company	20%
Primary Use	14%
Years Insured	13%
Multi Policy	10%
Payment Type	10%
Homeowner	10%
Profession	9%
Marital Status	9%
Lower Annual Mileage	9%
Telematics	8%
Education	8%
Daily Commute	8%
Days Advanced Purchase	6%
Days Per Week Driven	6%
Electronic Funds Transfer	3%
Paperless/Electornic Documents	3%
Safety Devices	3%
Air Bags	3%
Anti-Theft Device	1%

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Methodology

Insurance.com commissioned car insurance rates from Quadrant Data Services in late 2023 for state minimum car insurance policies across all states. Rates are based on a 40-year-old driver with a clean driving record and good credit, driving a Honda Accord LX. We compared rates from 170 companies across 35,488 ZIP codes.

Low-income car insurance in New York: Frequently asked questions

Is non-owner car insurance a good option for low-income drivers in New York?

Non-owner car insurance is a good option if you don’t own a car but occasionally drive cars owned by others. It doesn’t replace the required car insurance if you own a car.

How does living in New York City versus upstate affect car insurance rates for low-income drivers?

Car insurance rates are usually higher in New York City compared to upstate because of more traffic, higher accident rates, and increased risk of theft. Upstate areas have lower premiums as there’s less congestion and fewer accidents. Low-income drivers in NYC may pay significantly more for the same coverage than those living upstate.

Are there pay-as-you-go insurance options in New York that could help low-income drivers save money?

While some national providers offer usage-based programs, availability in New York may vary. It's important to check with insurers directly to see if they offer pay-as-you-go options in your area. Moreover, many insurers provide low-mileage discounts, so even if a pay-as-you-go program isn't available, you might still benefit from reduced rates by driving less.