Cheapest Car Insurance for Low-Income Drivers in New York (2025)
Liberty Mutual has the cheapest liability car insurance in New York State, with average rates of $90 per month.
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Liability insurance is the bare-minimum amount of coverage you need to drive legally in New York. It’s the most budget-friendly insurance available. It covers damage you might cause to others, but it doesn’t cover your vehicle.
Don’t give up on finding affordable car insurance in the Empire State if the first few insurers you’ve contacted for quotes have had prices exceeding your budget. Many New Yorkers face the same struggle, and you still have plenty of paths to explore.
Here’s what you should know about finding cheap car insurance in New York.
Cheapest car insurance in New York
New Yorkers pay an average of $178 per month for basic liability coverage. But liability quotes in New York start as low as $90 per month.
Car insurance prices in New York vary widely based on your location. It helps to compare quotes from multiple companies to find the best coverage for you at the most affordable price. Compare average liability quotes below to start your search.
Best car insurance for drivers with a low income in New York
Liability insurance can be a great option if you have a lower budget. It takes care of damage you might cause to other people and their property.
Liability coverage meets New York State’s minimum-coverage requirements without the extra coverage that increases your premium. Note that with liability-only coverage, you may face expensive out-of-pocket costs in the event of an accident.
Below are three of the cheapest car insurance companies for liability coverage in New York, based on Insurify data.
State Farm: Best for personal service
GEICO: Best for New York drivers on a budget
Liberty Mutual: Best for flexible coverage options
Our editorial team analyzed regional and national auto insurance companies that sell policies in New York to assess which offer the best rates, coverage options, customer service, and savings to drivers. We prioritized competitive rates, 24/7 customer service, low-mileage discounts or programs, safe driving discounts, homeownership discounts or bundling options, and specialty or supplemental coverages.
Cheapest car insurance for drivers with poor credit in New York
Your credit history doesn’t just affect loans and credit cards. It can also increase your car insurance rates.2 Insurers consider your credit to predict how likely you are to file claims, looking at everything from late payments to how many credit accounts you have open. If your credit has taken some hits, your rates could be higher — even if you’re just getting basic liability coverage.
While New York allows insurance companies to consider credit history, state law prohibits insurers from canceling your coverage or increasing rates at renewal time based on your credit information.
The table below shows how liability quotes from top New York insurance companies may vary by credit tier.
State-sponsored car insurance in New York
New York doesn’t offer breaks on car insurance rates for folks with tight budgets. Unlike the neighboring state of New Jersey, which has a specialized program for low-income drivers, New York State doesn’t offer state-sponsored or government-subsidized insurance options.
This means drivers must buy insurance from private companies at market rates. The state doesn’t step in with discounts, subsidies, or special policies based on what you earn — even when those premiums eat up a big chunk of your monthly income.
To find cheap coverage, your best bet is to compare quotes from multiple insurance companies (prices can vary by hundreds of dollars for the same coverage) and to max out every possible discount. You can also increase your deductible, but that leaves you paying more out of pocket if you’re in an accident. Only go this route if you have some savings to fall back on.
Car insurance discounts for low-income drivers in New York
Insurance companies may not advertise all their discounts. To get the most savings possible, you must ask about specific discounts to lower your car insurance quote.
Here are some discounts most likely to help you save in New York:
Defensive driving course discount: Take a state-approved defensive driving class to lower insurance premiums by 10% for three years.3
Multi-car discount: If you have more than one car, putting them on the same policy usually costs less than having separate policies for each vehicle.
Automatic payment discount: Most insurance companies will provide a small discount just for automatically withdrawing your payment each month.
Paperless billing discount: Many companies will lower your rate if you skip the paper bills and switch to email notices.
Group discounts: Check if your job, union, college alumni association, or professional organization gets special rates with certain insurance companies.
Minimum car insurance requirements in New York
You must have a car insurance policy that meets state-minimum requirements before hitting the road. New York drivers need a 25/50/10 policy.
Learn more about each required coverage below:
A policy with just the minimums keeps your monthly bill lower, but it might not be enough to protect you financially. If you cause a serious accident and someone’s injuries are severe enough to exceed the policy limit, your policy might not cover everything.
Low-income car insurance FAQs
Finding affordable car insurance in New York requires some digging, especially when you want quality coverage at a lower price. The following information can help answer your remaining questions about keeping insurance affordable in the Empire State.
Which company has the cheapest car insurance in New York?
Liberty Mutual is the cheapest New York car insurance company, with liability-only policies that average $90 per month. But your rates will depend on your driving history, location, age, vehicle, and other factors.
How much is full-coverage car insurance in New York?
New York drivers pay an average price of $187 per month for full coverage, which includes liability, collision, and comprehensive insurance. This coverage protects you from damage to your car, theft, and weather-related incidents, on top of the minimum coverage required by state law.
How do I get low-income car insurance in New York?
New York doesn’t offer any state-sponsored insurance programs for low-income drivers. Your best bet is comparing quotes from multiple companies, maximizing discounts, and increasing your deductible.
What is the lowest form of car insurance required in New York?
New York requires all drivers to carry bodily injury liability insurance ($25,000 per person and $50,000 per accident), property damage liability insurance ($10,000 per accident), personal injury protection coverage ($50,000), and uninsured motorist coverage ($25,000 per person and $50,000 per accident). Anything less than this isn’t legal on New York roads.
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