Without State Intervention, Skyrocketing Car Insurance Rates Will Fuel New York's Affordability Crisis and Push Working Families to the Breaking Point
New York—Citizens for Affordable Rates (CAR) today released a new fact sheet highlighting how surging auto insurance premiums are crushing working families, immigrant communities, small businesses, and delivery drivers across New York 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. For immigrant families and low-income workers who depend on minimum-coverage plans, costs still range from $1,700 to $2,700 – several times higher than in most other states and often more than a month's rent.
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%. For families already living paycheck to paycheck, these increases are devastating.
“Car insurance has become a tax on mobility that's pricing working families out of their own communities,” said José Bayona, a spokesperson for Citizens for Affordable Rates. “For immigrant families working two or three jobs, for delivery drivers supporting their households, for parents who need a car to get their kids to school and themselves to work – paying $333 every single month just to stay insured means choosing between insurance and groceries, between coverage and rent. Until the state takes action, our neighbors will continue to be forced out or forced to risk everything by driving uninsured.”
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 and wage growth in the communities hit hardest. Experts attribute the spike to higher repair costs, tariffs, and climate-related damage claims – all magnified by New York's already high baseline rates and a broken system that allows fraud to drive up costs for everyone.
At about $333 per month, full-coverage premiums now equal what many working families spend on food. When premiums rise faster than wages while rent, groceries, and utilities are also climbing, families across Latino, South Asian, African, Caribbean, and other immigrant communities face impossible choices – skipping insurance payments, dropping coverage to dangerous minimums, or driving uninsured and risking losing everything if something happens.
These are not just statistics. They're our neighbors, our small business owners, the drivers who deliver our food, the home health aides caring for our elderly, the families who came to New York for opportunity but are now being priced out by a system that refuses to fix itself.
The full fact sheet, "Auto Insurance and the Affordability Crisis in New York," is attached along with pictures for editors to use.
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
