MALVERN, PA — New York drivers paid an average of $1,935 for personal auto insurance in 2024, the highest level ever recorded for the state and the fourth-highest expenditure nationwide, according to a new outlook from the Insurance Information Institute.
The report found that New York households devoted about 2.23 percent of median household income to auto insurance last year, up from $1,753, or 2.15 percent, in 2023. Even then, New York already ranked as the fourth least affordable state in the nation for auto insurance as a share of income.
By comparison, U.S. households spent an average of 1.59 percent of median income on personal auto insurance in 2023, highlighting a widening affordability gap for New York drivers. Analysts said the trend reflects persistent cost pressures rather than short-term pricing cycles.
“Auto insurance affordability is ultimately driven by the underlying costs,” said Michel Léonard, Ph.D., CBE, chief economist and data scientist at the Insurance Information Institute. He said elevated repair costs, severe injury claims, high claims-handling expenses, and frequent accidents continue to push premiums higher, keeping New York among the most expensive states in the country to drive.
The analysis identified four of New York’s six major auto insurance cost drivers as ranking among the highest nationally. The state posted the third-highest auto repair cost severity, third-highest carrier expense ratio, third-highest injury claim severity, and the eighth-highest accident frequency, contributing to sustained pressure on premiums statewide.
The report said recent reform proposals, including strengthening insurer anti-fraud programs, limiting damages for individuals engaging in unlawful behavior or at fault in accidents, lowering the serious injury threshold, and expanding the use of technology, could produce meaningful improvements in long-term affordability.
The findings come as winter storms again highlight the broader financial risks facing households and businesses. Winter weather events caused nearly $6 billion in insured losses nationwide in 2022, the second-highest total in the past decade, according to industry data. The third-costliest winter event since 1950 occurred in December 2022, generating $3.5 billion in insured losses. By contrast, the 2021 Polar Vortex resulted in roughly $18.6 billion in insured losses, illustrating the scale of potential exposure.
Insurance experts said understanding coverage before disaster strikes can speed recovery and reduce financial stress. Standard homeowners policies typically cover structural damage from snow, ice, or wind, water damage from burst pipes, and additional living expenses if a home becomes uninhabitable. Auto insurance coverage depends on policy selections, with comprehensive coverage protecting against non-collision damage such as falling branches, ice, snow, and flooding. For businesses, interruption insurance may cover lost income and ongoing expenses, though outages and supply chain disruptions often require additional endorsements.
“Winter storms can cause significant losses for homeowners, drivers, and businesses alike,” said Loretta Worters, vice president of media relations at the Insurance Information Institute. She said understanding what coverage is included, what is optional, and where gaps exist is critical to protecting finances and speeding recovery.
The full auto insurance outlook and additional analysis are available at https://www.iii.org.
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