Auto Insurance Premiums Skyrocket, Deepening Affordability Crisis for New Yorkers * Brooklyn Paper

"According to expert analysts at Bankrate, New Yorkers pay an average of $4,031 annually for full-coverage auto insurance - nearly $1,500 above the national average of $2,679. A separate report from Experian shows minimum coverage in the state costs nearly as much as the national average for full coverage. For drivers from Buffalo to Brooklyn, that translates into hundreds of dollars in additional monthly expenses, often without a corresponding increase in wages."

"The increase in premiums is outpacing general inflation. The motor vehicle insurance component of New York's Consumer Price Index rose nearly 8% in the first half of 2025, more than double the state's overall inflation rate of about 3%. Insurance experts cite multiple pressures behind the surge. Globally, supply chain shortages and tariffs have driven up the cost of parts and repairs. The spike in prices for new and used cars has inflated replacement costs. Climate-driven claims from severe storms and floods - events that hit New York particularly hard - have also played a role."

"A major contributor to inflated rates is the abuse of New York's no-fault insurance system. Staged accidents - fake or exaggerated crashes designed to trigger payouts - remain a persistent problem, particularly in the New York City metro area. These scams cost insurers millions each year, and those losses are ultimately passed onto everyday drivers."

New York drivers face rapidly escalating auto insurance premiums that significantly exceed national averages. Average full-coverage costs $4,031 annually, roughly $1,500 above the national average, while minimum coverage in the state rivals the national full-coverage average. Premium increases are outpacing general inflation, with the motor vehicle insurance component of New York's CPI rising nearly 8% in early 2025 versus overall inflation of about 3%. Contributing factors include global supply-chain and parts cost pressures, higher new and used car prices, climate-driven storm and flood claims, rampant staged-accident fraud under the no-fault system, and high uninsured motorist rates.

Read at Brooklyn Paper