New York is not the most expensive state for car insurance

It’s no secret that the cost of living in New York can be overwhelming. While arguably necessary, cars can get expensive very quickly, and that’s not counting the sticker price.

According to a recent report from Bankrate, a consumer financial service company, the cost of car insurance is on the rise. The national average for a full year of coverage tops out at $2,543, up over $500 from the previous year, the research shows.

New York’s average rate comes in well over the national average, according to the report. The state ranks in the top five most expensive states, according to “true cost,” a measurement that Bankrate said shows how much of someone’s income is set aside for car insurance.

The average annual premium in New York is $3,840, almost $1,300 above the national average for 2024. Bankrate estimated that New Yorkers are spending 4.8% of their income on car insurance this year.

THE TOP 5 MOST EXPENSIVE STATES

Below are the five most expensive states for car insurance, according to Bankrate.

1. Florida — When ranked by average annual cost, Florida ranks as the most expensive at $3,945. This represents 5.69% of the average income in the state.

2. New York — While New York’s average cost of $3,840 is nothing to sneeze at, it does edge out Florida, representing 4.83% of incomes.

3. Louisiana — The Bayou State has the highest percent of income spent on car insurance at 6.53%, with an average premium of $3,618 a year.

4. Nevada — Whether you rank by cost or precent of income, Nevada is still the fourth most expensive state for car insurance. The $3,549 average premium eats up 4.91% of income in the state.

5. Michigan — Rounding out the top 5, when ranked by average annual cost, Michigan clocks in with an average premium of $3,356. This represents 5.01% of the average yearly income in the state.

In the tristate area: Pennsylvania, ranking 8 in the study, has an average premium of $2,790, representing 3.89% of average yearly incomes.

New Jersey, ranking 15, has an average premium of $2,555, representing 2.65% of average yearly incomes. Connecticut, ranking 26, has an average premium of $2,155, representing 2.44% of average yearly incomes

WHY IT’S GOING UP

According to Bankrate, some of the deciding factors in insurance costs are beyond our control. These include how the people in your city drive, inflation and the risk of extreme weather.

Factors you can control are the kind of car you drive and how you drive it. Something as simple as repeated speeding tickets could push you up to a high-risk category and drive up your premium. Rates are expected to increase over 2024, according to Bankrate. Insurance companies are still pushing for rate increases from state governments.