Cheapest New York Car Insurance for Low Income Drivers In 2024

After expanded research and analysis, I have found that State Farm Insurance has the cheapest car insurance for low income drivers in New York.

min read
Updated: 18 March 2024
Written by
Bob Phillips
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Being a New Yorker myself, I know that finding auto insurance with the coverage you need, while being affordable, can be difficult. The sector of New York residents who are likely to find it hard to get affordable car insurance are the people that fall into the low income category. Low income, in this scenario, refers to a family with an income of around 50% or less than the median income of a region.

Unlike quite a few states, New York hasn’t experienced car insurance companies pulling up and leaving the state. However, rates are going up as new laws have been put in place to protect consumers. Still, most New Yorkers, even the low income, will still be able to shop around and find affordably priced car insurance. This is needed to keep drivers on the road legally, plus be in compliance with state laws that cover vehicles driven on New York’s public roads.

Each of these auto insurance carriers have great ratings and reputations within the industry, and each has its own strengths in providing dependable protection for New Yorkers who need auto insurance.

 

Cheapest Car Insurance for Low-Income Drivers in New York 2024

Cheapest Low-Income Car Insurance, New York 2024

Comparison of the Cheapest Car Insurance for Low Income Drivers in New York

Overall Rating (Best 5.0) Best Suited For A.M. Best Rating J.D. Power Rating (Best 1000) Average Monthly Cost* Get A Quotee
State Farm
4.9

Cheapest Overall

A++

838

$85

Instant Quote
GEICO
4.7

Poor Credit

A++

801

$87

Instant Quote
Nationwide
4.6

Seniors

A+

NR

$148

Instant Quote
Scroll to see comparisons

Our methodology

As we went about putting together data and information for this review, we used our research, which encompassed multiple factors such as: product options, pricing, customer service ratings, user experience, and an evaluation of online review sites. This review is an unbiased, exhaustively researched, in depth view of the provider landscape in New York as it applies to car insurance. The information contained herein was built on informed perspectives, honed and crafted by more than fifteen years of experience in the auto insurance industry as a licensed agent, numerous interactions with representatives from various companies, and insights from our hands-on user experience of buying auto insurance in New York.

46

Quotes Analyzed

22

Brands Reviewed

15+

Years Of Experience

25+

Research Hours

The Cheapest Low Income Car Insurance Companies in New York


Cheapest Overall

Overall Rating
4.9

Key Statistics

10/10 Coverage level
9/10 Claim payouts
10/10 Affordability
9/10 Customer reviews

Why We Like Them

The state of New York has a keenly competitive auto insurance market. That being said, the insurer that is the stand-out for coverage, along with being the most affordable, is State Farm.

After many hours spent researching and reviewing car insurance rates in New York, we determined that State Farm offers some of the most economical full coverage car insurance rates with premiums as low as $85 monthly.

Any driver on a tight budget looking for insurance protection that won’t cost an arm and a leg would be well advised to check out State Farm.

State Farm doesn’t just provide budget friendly coverage, it’s also rated at the top along with the best car insurance companies in the business. State Farm is a good choice for car insurance. This company has long been known for its various discounts and coverage that caters to a lot of needs.

Affordability, flexibility in plans to suit everyone’s needs plus comprehensive coverage, gives State Farm the competitive edge in New York’s car insurance market. It’s the first choice for drivers who want low cost protection without sacrificing quality.

Benefits & Drawbacks

Benefits
  • Cheapest rates for most drivers in New York
  • Numerous coverage options and discounts available
  • Superior AM Best financial strength rating
Drawbacks
  • Must buy from a State Farm Agent

If you want to drive worry-free about the financial burden you could take on with liability and possible damages in case of an accident; it’s imperative to have adequate auto insurance. Besides that, New York has a high number of accidents due in part to its busy roads, which makes cost-effective car insurance even more important.

Low-cost car insurance doesn’t equal low quality coverage. If you do some research and make comparisons between car insurers, you’ll be equipped to make an informed decision as to which carrier is best for you. You can get adequate car insurance that suits both your budget and your coverage needs.

 Rates for the cheapest car insurance in New York

Insurance company Monthly Rate
State Farm $84
GEICO $87
Farm Bureau   $136
Progressive   $160
Nationwide  $164

Cheapest for Seniors

Overall Rating
4.6

Key Statistics

9/10 Coverage level
8/10 Claim payouts
9/10 Affordability
8/10 Customer reviews

Why We Like Them

If you’re a senior looking around for the best, most affordable car insurance in New York, you should check out Nationwide. This advice isn’t based solely on my personal opinion, it’s grounded in hard facts as well as stats from comprehensive research of the auto insurance industry, and customer reviews, too.

Nationwide’s premiums are competitive with other, similar carriers in New York. Policyholders with New York Farm Bureau see a yearly rate of about $1345.00, those with Home State Insurance pay about $1,873.00 per year.

Besides being cheaper, Nationwide offers rates devised exclusively for older drivers. Nationwide is the go-to car insurance for seniors who want economical coverage with the features they need.

Benefits & Drawbacks

Benefits
  • Auto, homeowners, life, and other insurance products available
  • High financial strength ratings
  • Comprehensive mobile app for digital policy management
Drawbacks
  • Not rated by J.D. Power for customer service
  • Can only buy from Nationwide agents

As drivers get older, they might notice their car insurance premiums getting higher. The reason for this is that most vehicle insurers have a perception of senior drivers as high risk, much as teenage drivers.

This perceived high risk is based on factors like: age related health issues that might affect the ability to drive safely, slower reaction times, and the statistical likelihood that injuries sustained from a car accident are more serious in senior drivers. All of these elements combined are responsible for the conception that older drivers are more high risk than society at large.

Research conducted by the Insurance Institute for Highway Safety (IIHS) found that rates of fatalities from an auto accident begin to rise dramatically beginning at age 70. Among drivers eighty-five years and older, fatalities sustained in a car crash are the highest of any age group.

With this in mind, it’s easy to see why senior drivers may see their premiums increase. Insurers make an effort to offset the potential for more and higher claims.

This doesn’t mean that seniors can’t save money on car insurance. Many car insurers offer discounts for older drivers that help lessen high rates whilst providing affordable coverage.

Rates for the cheapest car insurance in New York for seniors

Insurance company Monthly Rate
Nationwide  $104
GEICO   $116
State Farm  $145
USAA  $148
AAA  $151

Best for Poor Credit

Overall Rating
4.7

Key Statistics

8/10 Coverage level
9/10 Claim payouts
9/10 Affordability
8/10 Customer reviews

Why We Like Them

Anyone with poor credit who is shopping for car insurance should check out GEICO. This insurer is a very good choice, as it’s the least expensive and overall best in the state of New York. Numerous reports as well as studies have shown repeatedly that GEICO is the most affordable selection for drivers with a poor credit score.

Don’t equate GEICO’s low rates with low quality, though. GEICO is a reputable and well established  ensurer with a history of superior comprehensive coverage and excellent customer service. So, all New York drivers, no matter their credit rating, can get insurance for protection on the road. Cost conscious auto insurance coverage is a big reason that GEICO makes a great choice for drivers with poor credit.

GEICO realizes that a low credit rating doesn’t always add up to a high-risk driver. Although some car insurance carriers might increase the rates of customers with poor credit, GEICO takes a more well rounded approach and considers other factors such as vehicle type and driving record.

Guided by this sort of metrics, GEICO can offer reasonable premiums to poor credit drivers, making this company the first choice for a lot of New Yorkers.

Benefits & Drawbacks

Benefits
  • Cheapest rates for most drivers in New York with poor credit
  • Superior AM Best financial strength rating
  • Numerous coverage options and discounts are available
Drawbacks
  • Digital tools are available but aren’t as robust as some competitors
  • Not as many GEICO agents in New York compared to many large competitors

It’s unfortunate that with many car insurance companies, the link often found between a low credit rating and a low income makes premiums double that of drivers with good credit.

If you are a New York driver with poor credit, finding an insurer with discounts available—and also being extra cautious about avoiding moving violations–can go far in keeping your auto insurance rates reasonable.

Rates for the cheapest car insurance for bad credit in New York

Insurance company Monthly Rate
GEICO $262
Farm Bureau   $316
Travelers  $324
USAA  $318
Nationwide  $336

New York law mandates that drivers have liability auto insurance to help cover the cost of auto  accidents. The lawful minimum coverage amounts required in New York drivers are shown below.

Each auto insurance coverage must include a minimum of:

  • $10,000 for property damage resulting from a single accident
  • $25,000 for bodily injury and $50,000 for death for a single person in an accident
  • $50,000 for bodily injury and $100,000 for death if two or more people are involved in an accident

New York’s minimum requirements for auto insurance are in line with the rest of the U.S.

You are required by New York law to maintain car insurance minimums, but it might be a good idea to think about whether or not this minimum amount would be enough to protect you in the event of an accident. You could be held legally responsible to pay the difference between the costs of an auto accident if it is more than your auto insurance coverage. This is why a lot ofNew York drivers opt for increased levels of coverage so that they have enough protection.

Full Coverage Options

“Full coverage,” although a phrase widely in use, isn’t actually an official insurance company term. It’s usually alluding to a combination of types of auto insurance coverage that will be inclusive protection for the policyholder against loss and damage in a car accident. In the majority of cases, it will include liability coverage for both bodily injury and property damage, comprehensive coverage and collision coverage.

Liability coverage is specifically to cover costs as a result of injuries or property damage in an accident caused by the insured driver. Collision coverage will step up to the plate if your car is damaged as the result of  a collision with an object or other vehicle. Comprehensive insurance coverage comes into play for non-collision incidents such as fire, theft, natural disasters, and vandalism. Full coverage car insurance is an inclusive package designed to provide all in one coverage that will deliver peace of mind to drivers both on and off the road.

 

Does New York have a government-sponsored car insurance program for low income families?

No. New York  doesn’t have a government-sponsored car insurance program for low income drivers. However, New York drivers have a legal minimum of liability auto insurance that is mandatory to  drive and register your vehicle legally. Liability insurance is less costly than comprehensive, or full coverage.

Does income affect car insurance rates in New York?

No, it doesn’t. In New York, your income doesn’t factor into the price of your car insurance premiums. Car insurance carriers will look at various other things to calculate your rates. This might include adding teenaged or senior drivers, the vehicle you drive, your age, your driving history, your location, and more, in addition to how much coverage you want.

How to save on car insurance costs in New York

Finding your way through the maze of the New York car insurance landscape can be tricky, but if you go about it the right way and use the right approach, you can reduce your premiums. Below are 3 tips shown to help New Yorkers save money on car insurance:

1. Compare Rates from Different Providers

If you’re serious about wanting to save some money on car insurance, you’ll need to shop around and do rate comparisons between carriers. Car insurers calculate rates based on a variety of factors, including your driving history, age, and location, among other factors.

Rates can vary significantly from one company to another. If you take your time and gather quotes from several companies, you can then choose the one that offers the best rates as well as providing the coverage you need.

2. Leverage Discounts

Many auto insurance carriers offer discounts that could help lower your premiums. A few of these discounts are: safe driving, being a good student, bundling or having multiple policies with the same company or your vehicle’s safety features. Ask the insurance agent about what discounts are available, and which you are eligible for.

3. Adjust Your Coverage and Deductibles

Another technique to saving money on auto insurance is adjusting your coverage as well as your deductible. For instance, if you own an older vehicle, you may want to consider dropping collision and comprehensive coverage, since the price of the premiums might be more than the value of your car.

Additionally, you may raise your deductible—which is the amount you must pay out of pocket if you have a claim— to cut the cost of your premium. Make sure that the amount of your deductible is one you can comfortably pay if you have an accident.

 

FAQs

How can low income families get affordable car insurance in New York?

A New York low-income driver should shop around and do rate comparisons between different insurers, as well as take advantage of available discounts. Those steps can save a  goodly sum on your car insurance.

What is the minimum amount of car insurance you have to carry in New York?

New York law mandates that drivers have a minimum amount of car insurance. These amounts are: $25,000/$50,000 for injury/death of one person in an accident, and $10,000 for property damage in a single incident.

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