{"id":2774,"date":"2026-01-28T13:26:26","date_gmt":"2026-01-28T13:26:26","guid":{"rendered":"http:\/\/egocene.com\/index.php\/2026\/01\/28\/new-york-amongleast-affordable-states-for-auto-insurance\/"},"modified":"2026-01-28T13:26:26","modified_gmt":"2026-01-28T13:26:26","slug":"new-york-amongleast-affordable-states-for-auto-insurance","status":"publish","type":"post","link":"http:\/\/egocene.com\/index.php\/2026\/01\/28\/new-york-amongleast-affordable-states-for-auto-insurance\/","title":{"rendered":"New York AmongLeast Affordable States for Auto Insurance"},"content":{"rendered":"<figure class=\"wp-block-image size-large\"><a href=\"https:\/\/insuranceindustryblog.iii.org\/wp-content\/uploads\/2026\/01\/New-York-pic.jpg\"><img decoding=\"async\" fetchpriority=\"high\" width=\"1024\" height=\"681\" src=\"data:image\/gif;base64,R0lGODlhAQABAAAAACH5BAEKAAEALAAAAAABAAEAAAICTAEAOw==\" alt=\"\" class=\"wp-image-20808 lazyload\" sizes=\"(max-width: 1024px) 100vw, 1024px\" data-src=\"https:\/\/insuranceindustryblog.iii.org\/wp-content\/uploads\/2026\/01\/New-York-pic-1024x681.jpg\" data-srcset=\"https:\/\/insuranceindustryblog.iii.org\/wp-content\/uploads\/2026\/01\/New-York-pic-1024x681.jpg 1024w, https:\/\/insuranceindustryblog.iii.org\/wp-content\/uploads\/2026\/01\/New-York-pic-300x200.jpg 300w, https:\/\/insuranceindustryblog.iii.org\/wp-content\/uploads\/2026\/01\/New-York-pic-768x511.jpg 768w, https:\/\/insuranceindustryblog.iii.org\/wp-content\/uploads\/2026\/01\/New-York-pic.jpg 1430w\"><\/a><\/figure>\n<\/p>\n<p><strong><em>By Lewis Nibbelin, Research Writer, Triple-I<\/em><\/strong><\/p>\n<p>New Yorkers pay the fourth-highest personal auto expenditures in the United States, costing households an average of $1,935 in 2024, or 2.23 percent of the state\u2019s median household income, according to Triple-I\u2019s latest <a href=\"https:\/\/www.iii.org\/white-paper\/new-york-personal-auto-insurance-trends-and-cost-drivers-nationwide-rankings-012226\">Affordability Outlook<\/a>.<\/p>\n<p>Up from New York\u2019s average of $1,753 in 2023, Triple-I\u2019s estimates reflect the burgeoning toll of several expenditure cost drivers in the Empire State, many of which are structural factors beyond the insurance industry. Citing data from the <a href=\"https:\/\/www.insurance-research.org\/\">Insurance Research Council<\/a>&nbsp;(IRC) \u2013 like Triple-I, an affiliate of <a href=\"https:\/\/web.theinstitutes.org\/designations?utm_source=google&amp;utm_medium=cpc&amp;utm_campaign=Brand_-_The_Institutes&amp;utm_term=the%20institutes&amp;hsa_tgt=kwd-343732133713&amp;hsa_grp=105962356048&amp;hsa_mt=e&amp;hsa_cam=9897859198&amp;hsa_ver=3&amp;hsa_src=g&amp;hsa_net=adwords&amp;hsa_kw=the%20institutes&amp;hsa_acc=3682144158&amp;hsa_ad=689637822432&amp;gad_source=1&amp;gad_campaignid=9897859198&amp;gbraid=0AAAAADI0O7nAuNmfNIOKr_ICO2DGsrkUI&amp;gclid=Cj0KCQjwmYzIBhC6ARIsAHA3IkTDeORsCRN7MiLe-PW6sEUB0dM-UNsRk_a7GMHTSRgMd0z3I16xDIEaAuCYEALw_wcB\">The Institutes<\/a> \u2013 the report highlights four cost drivers that rank among the highest in the country, including:<\/p>\n<ul>\n<li><strong>Repair costs<\/strong>: New York has the third-highest auto repairs costs in the United States, at $864 more than the national average;<\/li>\n<li><strong>Carrier expense index<\/strong>: New York has the third-highest carrier expense index for personal auto insurance, at 14.9 percent of losses;<\/li>\n<li><strong>Injury claim costs<\/strong>: New York has the third-highest average injury claim severity in the country, at more than twice the national average; and<\/li>\n<li><strong>Accident frequency<\/strong>: New York has the eighth-highest average frequency of personal auto accidents in the nation, at 3.09 accidents.<\/li>\n<\/ul>\n<p>While traffic density, road conditions, and driver education can contribute to accident frequency and severity, excessive and fraudulent claims litigation also fuel rising auto insurance premiums and overall costs in the state. Wiping out billions of dollars in U.S. economic activity annually, legal system abuse costs New York residents <a href=\"https:\/\/static1.squarespace.com\/static\/6816b81e37deb72d32ac2542\/t\/681b814ac17cd30e053cf846\/1746633036661\/UPDATED-Perryman-Impact-of-Tort-Reform-11-25-2024-1.pdf\">427,794<\/a> jobs and <a href=\"https:\/\/instituteforlegalreform.com\/wp-content\/uploads\/2024\/11\/2024_ILR_USTorts-CostStudy-FINAL.pdf\">$7,027<\/a> for each household per year, earning the state a recurring spot on the American Tort Reform Foundation\u2019s list of \u201c<a href=\"https:\/\/judicialhellholes.org\/hellhole\/2025-2026\/new-york-city\/\">judicial hellholes<\/a>.\u201d<\/p>\n<p>A surge in staged crashes underpins these figures, leaving drivers increasingly vulnerable to fraudulent damage or injury claims. Such incidents \u2013 totaling 1,729 in New York in 2023 \u2013 keep upward pressure on auto rates for all policyholders, inflating average auto premium by as much as $300 per year, Triple-I estimates.<\/p>\n<p>To alleviate these cost burdens, a package of state budget proposals was <a href=\"https:\/\/www.governor.ny.gov\/news\/money-your-pockets-governor-hochul-highlights-proposals-bring-down-costs-vehicle-insurance\">recently unveiled<\/a> to secure $2 million in funding for investigations into alleged auto fraud and introduce new regulations that extend the timeframe for carriers to report suspicious claims. Another law would cap pain and suffering damages awarded to drivers who engaged in criminal behavior, such as those who were uninsured at the time of the incident.<\/p>\n<p>New York policymakers also <a href=\"https:\/\/news.ambest.com\/newscontent.aspx?AltSrc=104&amp;RefNum=271702\">passed<\/a> legislation last month aimed at third-party litigation funding (TPLF), or funding from often anonymous investors who can delay prompt settlements in exchange for a share of larger damage awards, thereby propelling claims costs. Though falling short of mandating TPLF disclosure during litigation, the new law parallels effective <a href=\"https:\/\/insuranceindustryblog.iii.org\/legal-reforms-prompt-declines-in-louisianaauto-insurance-rates\/\">tort reforms <\/a>in other states, offering hope toward insurance market stability.<\/p>\n<p><strong>Homeowners insurance holds steady<\/strong><\/p>\n<p>Conversely, New York\u2019s homeowners insurance premiums \u201care relatively average and reasonable as a percentage of household income,\u201d contradicting \u201cthe narrative of an affordability crisis in New York\u2019s homeowners insurance market,\u201d said Patrick Schmid, Triple-I\u2019s chief insurance officer, in <a href=\"https:\/\/insuranceindustryblog.iii.org\/triple-i-testifies-onnew-york-insurance-affordability\/\">written testimony<\/a> to state lawmakers.<\/p>\n<p>With a 2.11 percent ratio of homeowners insurance expenditure to median household income, New York ranks 29<sup>th<\/sup> in an affordability study by the IRC, suggesting property and replacement costs contribute to the state\u2019s housing affordability issues.<\/p>\n<p>Policy interventions in insurance markets \u201cwould address a symptom rather than the cause\u201d of such issues, Schmid stressed, urging lawmakers to focus instead on improving building material and labor costs; litigation trends; and other inflationary pressures.<\/p>\n<p>While the specific policy levers may differ, <a href=\"https:\/\/www.iii.org\/article\/trends-and-insights-florida-reforms-bear-fruit-as-premium-rates-stabilize\">Florida\u2019s<\/a> legal reforms in 2022 and 2023 led to 17 new insurance companies entering the state and rate reductions for dozens of homeowners and auto insurers, including a 6.5 percent average rate decrease for the state\u2019s top five personal auto insurers in 2025.<\/p>\n<p>Once a \u201cposter child\u201d for legal system abuse, Florida\u2019s success demonstrates the need for continued reform in 2026 to promote a more competitive insurance market and greater affordability for consumers.<\/p>\n<p><strong><em>Learn More:<\/em><\/strong><\/p>\n<p><a href=\"https:\/\/insuranceindustryblog.iii.org\/triple-i-testifies-onnew-york-insurance-affordability\/\">Triple-I Testifies on New York Insurance Affordability<\/a><\/p>\n<p><a href=\"https:\/\/insuranceindustryblog.iii.org\/florida-governor-touts-auto-insurance-rebates-tort-reform-success\/\">Florida Governor Touts Auto Insurance Rebates, Tort Reform Success<\/a><\/p>\n<p><a href=\"https:\/\/insuranceindustryblog.iii.org\/litigation-reform-works-florida-auto-insurance-premium-rates-declining\/\">Litigation Reform Works: Florida Auto Insurance Premium Rates Declining<\/a><\/p>\n<p><a href=\"https:\/\/insuranceindustryblog.iii.org\/insurance-affordability-availability-demand-collaboration-innovation\/\">Insurance Affordability, Availability Demand Collaboration, Innovation<\/a><\/p>\n<p><a href=\"https:\/\/insuranceindustryblog.iii.org\/disasters-litigation-reshape-homeowners-insurance-affordability\/\">Disasters, Litigation Reshape Homeowners\u2019 Insurance Affordability<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>By Lewis Nibbelin, Research Writer, Triple-I New Yorkers pay the fourth-highest personal auto expenditures in the United States, costing households an average of $1,935 in 2024, or 2.23 percent of the<\/p>\n","protected":false},"author":0,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[13],"tags":[],"class_list":["post-2774","post","type-post","status-publish","format-standard","hentry","category-auto-insurance"],"_links":{"self":[{"href":"http:\/\/egocene.com\/index.php\/wp-json\/wp\/v2\/posts\/2774","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/egocene.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/egocene.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"http:\/\/egocene.com\/index.php\/wp-json\/wp\/v2\/comments?post=2774"}],"version-history":[{"count":0,"href":"http:\/\/egocene.com\/index.php\/wp-json\/wp\/v2\/posts\/2774\/revisions"}],"wp:attachment":[{"href":"http:\/\/egocene.com\/index.php\/wp-json\/wp\/v2\/media?parent=2774"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/egocene.com\/index.php\/wp-json\/wp\/v2\/categories?post=2774"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/egocene.com\/index.php\/wp-json\/wp\/v2\/tags?post=2774"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}