Are New Yorkers Overpaying for Auto Insurance?
In 2024, New York households faced an average personal auto insurance cost of approximately $1,935, as reported by the Insurance Information Institute (Triple I). This figure marks a notable increase from the $1,753 average recorded in 2023.
According to Triple I, New Yorkers allocated about 2.23% of the state’s median household income to personal auto insurance in 2024, up from 2.15% in the previous year. In comparison, the national average stood at 1.59%. This places New York as the fourth highest state for auto insurance costs in 2023, trailing only Louisiana, Florida, and Mississippi.
The report titled New York Personal Auto Insurance Premium and Cost Drivers arrives on the heels of Governor Kathy Hochul’s commitment to prioritize affordable auto insurance legislation in 2026. Hochul’s administration aims to address the rising costs that burden New Yorkers.
Triple I has pinpointed several key cost drivers that need attention to enhance the affordability of auto insurance in the state. These include:
- Elevated repair costs
- Severe injury claims
- High claims-handling expenses
- Increased accident frequency
“By tackling these cost drivers, New Yorkers could see meaningful steps toward improving long-term insurance affordability,” stated Michel Leonard, chief economist and data scientist at Triple I.
UBI Heating Up
During her 2026 State of the State address, Governor Hochul pledged to combat fraud, particularly focusing on staged accidents. She also proposed reforms to the serious injury threshold under the state’s no-fault insurance law, aiming to reduce litigation. Additional measures include capping non-economic damages for drivers engaged in criminal behavior at the time of an accident and allowing insurers more time to investigate claims suspected of fraud.
Hochul emphasized that New Yorkers “should not pay more for the same coverage” and asserted that this is the year to take action on this issue.
The Triple I report aligns with findings from an April 2025 report by the Insurance Research Council (IRC), which noted that auto insurance has become more affordable compared to the early 21st century. The IRC, like Triple I, is affiliated with The Institutes and concluded that auto insurance affordability has improved over the past two decades. In 2000, the average expenditure on auto insurance was $690, representing 1.64% of income, while the average expenditure for the 2000s hovered around 1.7%.
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Auto
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In 2024, New York households faced an average personal auto insurance cost of approximately $1,935, as reported by the Insurance Information Institute (Triple I). This figure marks a notable increase from the $1,753 average recorded in 2023.
According to Triple I, New Yorkers allocated about 2.23% of the state’s median household income to personal auto insurance in 2024, up from 2.15% in the previous year. In comparison, the national average stood at 1.59%. This places New York as the fourth highest state for auto insurance costs in 2023, trailing only Louisiana, Florida, and Mississippi.
The report titled New York Personal Auto Insurance Premium and Cost Drivers arrives on the heels of Governor Kathy Hochul’s commitment to prioritize affordable auto insurance legislation in 2026. Hochul’s administration aims to address the rising costs that burden New Yorkers.
Triple I has pinpointed several key cost drivers that need attention to enhance the affordability of auto insurance in the state. These include:
- Elevated repair costs
- Severe injury claims
- High claims-handling expenses
- Increased accident frequency
“By tackling these cost drivers, New Yorkers could see meaningful steps toward improving long-term insurance affordability,” stated Michel Leonard, chief economist and data scientist at Triple I.
UBI Heating Up
During her 2026 State of the State address, Governor Hochul pledged to combat fraud, particularly focusing on staged accidents. She also proposed reforms to the serious injury threshold under the state’s no-fault insurance law, aiming to reduce litigation. Additional measures include capping non-economic damages for drivers engaged in criminal behavior at the time of an accident and allowing insurers more time to investigate claims suspected of fraud.
Hochul emphasized that New Yorkers “should not pay more for the same coverage” and asserted that this is the year to take action on this issue.
The Triple I report aligns with findings from an April 2025 report by the Insurance Research Council (IRC), which noted that auto insurance has become more affordable compared to the early 21st century. The IRC, like Triple I, is affiliated with The Institutes and concluded that auto insurance affordability has improved over the past two decades. In 2000, the average expenditure on auto insurance was $690, representing 1.64% of income, while the average expenditure for the 2000s hovered around 1.7%.
Topics
Auto
Interested in Auto?
Get automatic alerts for this topic.
