AUTO INSURANCE IS A TAX ON MOBILITY, ANALYSIS FINDS NY DRIVERS PAYING SOME OF THE HIGHEST PREMIUMS IN THE NATION

Without State Intervention, Skyrocketing Car Insurance Rates Will Fuel New York’s Affordability Crisis

NEW YORK – Citizens for Affordable rates today released a new fact sheet highlighting how surging auto insurance premiums are worsening New York’s affordability crisis, squeezing working families, small businesses, and delivery drivers across the state.

According to data compiled by CAR, the average annual cost of full-coverage auto insurance in New York now exceeds $4,000 per year, compared with a national average of roughly $2,400. Minimum-coverage plans range from $1,700 to $2,700, several times higher than in most other states.

New York drivers are facing an average 13.5% rate increase in 2025, the fourth-highest jump in the nation. By contrast, the national average increase in personal-auto premiums is around 7%.

“Car insurance has become a tax on mobility. Every month, New Yorkers are paying what amounts to a week’s worth of groceries just to stay insured,” said James Freedland, a spokesperson for Citizens for Affordable Rates. “For families already struggling with rising housing, food, and utility costs, it’s totally unsustainable. Until the state takes action, soaring premiums will continue to deepen New York’s affordability crisis.”

The motor-vehicle insurance component of the Consumer Price Index in New York rose nearly 8% year-over-year in the first half of 2025, far outpacing general inflation. Experts attribute the spike to higher repair costs, tariffs, and climate-related damage claims — all magnified by New York’s already high baseline rates.

At about $333 per month, full-coverage premiums represent a major share of take-home pay for many working families. When premiums rise faster than wages, rent, and groceries, drivers face impossible trade-offs – delaying renewals, downgrading coverage, or even driving uninsured. Those choices increase both household risk and community costs.

The full fact sheet, “Auto Insurance and the Affordability Crisis in New York,” is available here.

About Citizens for Affordable Rates (CAR)

Citizens for Affordable Rates (CAR) is a coalition of citizens, advocates, and organizations dedicated to tackling the root causes of high insurance premiums in New York. Through advocacy, education, and policy reform, CAR is committed to building an affordable and dependable insurance system for all. To learn more, please visit: www.citizensforaffordablerates.org