Cheap Car Insurance in New York With Bad Credit (2026)
Erie offers the cheapest car insurance for drivers with bad credit in New York state, with an average monthly liability premium of $97.
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Written byCatherine Hiles
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Catherine HilesInsurance, Personal Finance Writer
16+ years in personal finance and insurance writing
Certified Financial Education Instructor
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Edited byKatie Powers
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Katie PowersLicensed P&C Agent, Senior Insurance Editor
Licensed auto and home insurance agent
4+ years experience in insurance and personal finance editing
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John LeachLicensed P&C Agent, Chief Copy Editor
Licensed property and casualty insurance agent
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Quick Facts
New York allows insurers to use credit information when determining car insurance premiums.[1]
Drivers in New York with bad credit pay an average of $152 per month for car insurance.
New York drivers can take a New York State Department of Motor Vehicles-approved accident prevention course to get a discount on car insurance.
Cheapest car insurance in New York for bad credit
Erie has the cheapest liability-only car insurance rates in New York for drivers with bad credit, with an average monthly rate of $97. That’s lower than the state average of $171.
Your location within the state also affects how much you pay. New York City drivers with bad credit pay higher rates, averaging $209 per month for liability-only coverage. Drivers in Binghamton with poor credit pay less for the same coverage, averaging $87 per month.
The data below shows the cheapest insurers for drivers with bad credit in New York.
The below rates in New York are estimated rates current as of: Tuesday, June 30 at 5:00 PM PDT.
Insurance Company  | Average Monthly Quote: Liability Only |
|---|---|
| USAA | $83 |
| Erie | $97 |
| Travelers | $97 |
| Allstate | $121 |
| GEICO | $127 |
| State Farm | $135 |
| CSAA | $207 |
| Progressive | $225 |
| Chubb | $292 |
| Bristol West | $319 |
Disclaimer: Table data sourced from real-time New York car insurance quotes from Insurify's 500+ partner insurance providers and quote estimates from Quadrant Information Services. Actual car insurance quotes in New York may vary based on the policy buyer's unique driver profile.
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Average New York car insurance rates by credit tier
Your credit tier can affect your New York car insurance rates. Drivers in New York with poor credit reports pay about 29% more than the national average for drivers with poor credit, while drivers with good credit pay about 44% more than the national average.
In comparison, drivers in New Jersey with these same credit tiers pay higher rates than both the New York and national averages. The following table compares insurance premiums for drivers with excellent, good, fair, and poor credit.
Credit Tier | New York Average Monthly Rate | National Average Monthly Rate |
|---|---|---|
| Excellent | $152 | $124 |
| Good | $196 | $136 |
| Fair | $223 | $148 |
| Poor | $224 | $173 |
Disclaimer: Table data is based on real-time New York quotes from Insurify’s network of 500+ insurance partners. Actual rates may vary depending on the policyholder’s individual profile and coverage needs.
How credit affects car insurance rates in New York
In New York, insurance companies can use credit-based insurance scores when setting car insurance premiums. A credit-based insurance score uses information from your credit report, such as payment history, outstanding debt, and length of credit history, to help insurers assess risk. But state law places strict limits on how that information can affect your rates.
New York drivers with fair or poor credit may pay significantly higher rates than drivers with good or excellent credit. Current law requires insurers to notify customers when they use their credit information during underwriting.
Insurers must let customers know whether they’d get a lower premium with a higher credit score. Also, insurers can’t legally cancel your insurance policy or implement rate increases at renewal based on your credit information.
Insurers use credit-based insurance scores to help determine the likelihood that someone will file an insurance claim.[2] Research shows a correlation between lower credit scores and higher claim frequency. But lower credit doesn’t automatically make someone a riskier driver.[3]
How to get cheaper New York car insurance with bad credit
Your credit is only one factor insurers use to determine your car insurance rates in New York. No matter your credit, you have several ways to get cheaper coverage in the Empire State, including the following:
Ask about any applicable discounts. Insurers may offer savings for carpooling, low annual mileage, good grades, insuring multiple cars, or bundling your homeowners or renters insurance or other insurance products.
Take a driving course. The Empire State requires insurers to offer a discount to anyone who completes a New York State Department of Motor Vehicles-approved accident prevention course.
Look into local programs. Ask your insurer whether it offers a discount for participating in a Combat Auto Theft (CAT) program, which is available in many areas of New York state.
Enroll in usage-based insurance (UBI) programs. New York drivers who practice safe driving habits or drive fewer miles may save with a UBI policy. Insurers base premiums on your driving statistics, like miles driven, time of day driven, acceleration and braking patterns, and location.
Reduce your collision and comprehensive deductibles. You may also choose to meet New York’s minimum insurance requirements and eliminate collision and comprehensive coverages on older, paid-off vehicles if they don’t make financial sense.
Is bad credit considered ‘high risk’ in New York?
New York insurers may consider drivers with bad credit as riskier to insure. But it doesn’t necessarily mean you’re a “high-risk” driver if you have a clean driving record.
Insurers may consider you to be high risk if you have an incident on your record, like driving while intoxicated (DWI) or a series of speeding tickets. Some states require these drivers to obtain an SR-22 form as proof of insurance, but New York doesn’t.[4]
The amount a high-risk driver pays for car insurance in New York depends on their specific infraction. Here are the most common infractions and their average costs:
DWI: $345 per month
At-fault accident: $289 per month
Speeding ticket: $246 per month
Credit still matters, though. Drivers in New York with poor credit pay around 47% more than drivers with excellent credit, according to Insurify data.
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Best car insurance in New York for drivers with bad credit
New York ranks No. 5 in vehicle thefts by volume, according to Insurify data, which often translates into higher insurance premiums. But it’s still possible to find affordable coverage in the Empire State.
The three insurers listed below are some of the best car insurance companies in New York for drivers with bad credit.
Erie: Best for cheap coverage
| User Reviews | 4.4 |
|---|---|
| IQ Score The Insurify Quality (IQ) Score uses more than 15 criteria to objectively rate insurance companies on a one-to-ten scale. The Insurify editorial team researches insurer data to determine the final scores. | 8.4 /10 |
| Liability Only Liability-only insurance, sometimes called minimum-coverage insurance, pays for bodily injury and property damage to others in an accident the policyholder causes. It does not pay for the insured’s own damages. | $69/mo |
| Full Coverage Full-coverage car insurance generally includes liability, collision, and comprehensive coverage, and may include other optional coverages such as uninsured motorist coverage. Collision covers a policyholder’s repair or replacement costs in case of an accident. Comprehensive covers damages caused by non-accident events. The average quote displayed here reflects policies with the following coverage limits: $50,000 bodily injury liability per person; $100,000 bodily injury liability per accident; $50,00 property damage liability per accident; $1,000 collision deductible; and a $1,000 comprehensive deductible. | $109/mo |
4.4
Best choice in New YorkBased on 539 verified driver reviews and ratings
Erie Insurance's score | Industry average | |
|---|---|---|
| Coverage options | 4.2 | 3.2 |
| Customer service | 3.6 | 3.6 |
| Discounts | 3.8 | 2.9 |
| Policy transparency | 4.0 | 3.1 |
| Value | 3.7 | 2.9 |
How drivers feel about Erie Insurance
Customers appreciate the insurer’s excellent customer service and quick claim handling but are dissatisfied with the unexpected and unexplained rate increases. Some also found the policy details hard to understand.
Based on analysis of verified reviews collected by Insurify
Best in New York for
Showing recent national reviewsSee all 237 Erie Insurance reviews
Verified Review
Reviewed in Pennsylvania on June 23, 2026
They used to be the low price leader, not so much anymore.
Verified Review
Reviewed in Pennsylvania on June 9, 2026
They have a good reputation, but they make changes to your policy that you may not be aware of unless you pay attention.
Verified Review
Reviewed in Ohio on May 25, 2026
Where I'm at is very good and satisfying. My daughter said I should check you out, so that's why I'm here. I do feel it's good to check out your options instead of going with the first company.
…
JD Power
J.D. Power data measures overall customer satisfaction and claims satisfaction based on a 1,000-point scale.
700
NAIC Index
Average amount of customer complaints relative to competitors on a 0-5 scale. A lower score represents fewer complaints.
0.68
A.M. Best
A.M. Best analyzes an insurer’s financials, operating performance, business profile, and other factors to generate an opinion-based rating of a company’s financial and credit strength. Ratings range from A++ (exceptional) to D (poor).
A+
Why we picked this company
Erie Insurance has some of the lowest auto insurance rates in New York for drivers with bad credit. The insurer has dozens of agents across New York state to help you find the best coverage at a price you can afford.
While J.D. Power doesn’t include Erie in its customer satisfaction ranking, the insurer received top marks in Consumer Reports’ car insurance rating model.
Pros
Affordable coverage for drivers with bad credit
Many local New York insurance agents
Top Consumer Reports car insurance rating
Cons
No J.D. Power customer satisfaction rating
Can’t purchase coverage online
Safe driving discount not available in New York
USAA: Best for military and veterans
| User Reviews | 4.9 |
|---|---|
| IQ Score The Insurify Quality (IQ) Score uses more than 15 criteria to objectively rate insurance companies on a one-to-ten scale. The Insurify editorial team researches insurer data to determine the final scores. | 9.1 /10 |
| Liability Only Liability-only insurance, sometimes called minimum-coverage insurance, pays for bodily injury and property damage to others in an accident the policyholder causes. It does not pay for the insured’s own damages. | $71/mo |
| Full Coverage Full-coverage car insurance generally includes liability, collision, and comprehensive coverage, and may include other optional coverages such as uninsured motorist coverage. Collision covers a policyholder’s repair or replacement costs in case of an accident. Comprehensive covers damages caused by non-accident events. The average quote displayed here reflects policies with the following coverage limits: $50,000 bodily injury liability per person; $100,000 bodily injury liability per accident; $50,00 property damage liability per accident; $1,000 collision deductible; and a $1,000 comprehensive deductible. | $113/mo |
4.9
Best choice in New YorkBased on 3,951 verified driver reviews and ratings
USAA's score | Industry average | |
|---|---|---|
| Coverage options | 4.9 | 3.2 |
| Customer service | 4.9 | 3.6 |
| Discounts | 4.9 | 2.9 |
| Policy transparency | 4.9 | 3.1 |
| Value | 4.9 | 2.9 |
How drivers feel about USAA
Customers appreciate the insurer’s reliable customer service and claim handling but express concerns about high rates and frequent price increases. Some also find the insurer’s security protocols and communication methods frustrating.
Based on analysis of verified reviews collected by Insurify
Best in New York for
Showing 9 reviews from New York driversSee all 1,609 USAA reviews
Verified Review
Reviewed in New York on April 20, 2026
USAA is the best overall insurance company!
Verified Review
Reviewed in New York on April 11, 2026
Easy to use.
Verified Review
Reviewed in New York on April 1, 2026
Too expensive for being a customer for over 5 years.
JD Power
J.D. Power data measures overall customer satisfaction and claims satisfaction based on a 1,000-point scale.
739
NAIC Index
Average amount of customer complaints relative to competitors on a 0-5 scale. A lower score represents fewer complaints.
1.31
A.M. Best
A.M. Best analyzes an insurer’s financials, operating performance, business profile, and other factors to generate an opinion-based rating of a company’s financial and credit strength. Ratings range from A++ (exceptional) to D (poor).
A++
Why we picked this company
USAA offers affordable coverage to military, veterans, and their family members with bad credit. The insurer has a high J.D. Power customer satisfaction rating, reflecting strong customer experiences and claims service. Active-duty military members can get unique discounts, including up to 15% off premiums when garaging a car on base and up 60% off while deployed.
Pros
SafePilot telematics program can save you money
Unique perks for active-duty military members
High J.D. Power customer satisfaction rating
Cons
Available only to active-duty military, veterans, and eligible family members
No 24/7 customer service
Fewer discounts than some competitors
State Farm: Best for discounts
| User Reviews | 4.1 |
|---|---|
| IQ Score The Insurify Quality (IQ) Score uses more than 15 criteria to objectively rate insurance companies on a one-to-ten scale. The Insurify editorial team researches insurer data to determine the final scores. | 9.3 /10 |
| Liability Only Liability-only insurance, sometimes called minimum-coverage insurance, pays for bodily injury and property damage to others in an accident the policyholder causes. It does not pay for the insured’s own damages. | $98/mo |
| Full Coverage Full-coverage car insurance generally includes liability, collision, and comprehensive coverage, and may include other optional coverages such as uninsured motorist coverage. Collision covers a policyholder’s repair or replacement costs in case of an accident. Comprehensive covers damages caused by non-accident events. The average quote displayed here reflects policies with the following coverage limits: $50,000 bodily injury liability per person; $100,000 bodily injury liability per accident; $50,00 property damage liability per accident; $1,000 collision deductible; and a $1,000 comprehensive deductible. | $155/mo |
4.1
Best choice in New YorkBased on 19,396 verified driver reviews and ratings
State Farm's score | Industry average | |
|---|---|---|
| Coverage options | 4.1 | 3.2 |
| Customer service | 4.3 | 3.6 |
| Discounts | 3.9 | 2.9 |
| Policy transparency | 3.9 | 3.1 |
| Value | 3.7 | 2.9 |
How drivers feel about State Farm
Customers appreciate the insurer’s excellent customer service and personal attention but dislike the high prices and frequent rate increases. They also express frustration with the claims process.
Based on analysis of verified reviews collected by Insurify
Best in New York for
Showing 75 reviews from New York driversSee all 7,742 State Farm reviews
Verified Review
Reviewed in New York on July 6, 2026
I do not have problems with State Farm and I like dealing locally, but I simply can’t afford it. I will be 73 in a week and am having a great deal of trouble covering my basic expenses with the income I have.
Verified Review
Reviewed in New York on July 6, 2026
Friendly, informative, helpful, and courteous.
Verified Review
Reviewed in New York on June 23, 2026
They are always courteous and willing to help. No problems here; these people are the best.
…
JD Power
J.D. Power data measures overall customer satisfaction and claims satisfaction based on a 1,000-point scale.
657
NAIC Index
Average amount of customer complaints relative to competitors on a 0-5 scale. A lower score represents fewer complaints.
0.84
A.M. Best
A.M. Best analyzes an insurer’s financials, operating performance, business profile, and other factors to generate an opinion-based rating of a company’s financial and credit strength. Ratings range from A++ (exceptional) to D (poor).
A++
Why we picked this company
New York drivers with bad credit could enjoy lower premiums through State Farm’s various car insurance discounts. One of the most notable is the Drive Safe & Save telematics program, which could save you 30% based on your driving habits.
Other discounts include those for bundling, safe drivers, good students, low mileage, and loyalty. State Farm’s large insurance agency presence in New York means you can get in-person help to find the best rates and the most discounts.
Pros
Many available discounts
Many local New York insurance agents
High J.D. Power customer satisfaction rating
Cons
Gap insurance not available
Doesn’t offer accident forgiveness
May not be cheapest choice for drivers with bad credit
Our editorial team analyzed regional and national auto insurance companies that sell policies in New York to assess which offer the best rates, coverage options, customer service, and savings to drivers with a low credit score. We prioritized competitive rates, 24/7 customer service, low-mileage discounts or programs, safe driving discounts, homeownership discounts or bundling options, and specialty or supplemental coverages.
New York car insurance with bad credit FAQs
Consider the following answers to common questions when looking for car insurance with bad credit in New York.
How does having bad credit affect car insurance rates in New York?
Drivers with bad credit typically pay higher premiums in New York than drivers with good or excellent credit. Average rates for drivers with poor credit are around $224 per month, compared to $152 for drivers with excellent credit — a difference of almost $75.
How can you find affordable car insurance in New York with bad credit?
To find affordable car insurance policies in New York with bad credit, it’s wise to shop around and compare multiple car insurance quotes. New York law requires car insurance companies to automatically apply car insurance discounts if you complete a defensive driving course or if your car has certain safety or anti-theft features.
How much does full-coverage car insurance cost in New York?
Full-coverage car insurance costs around $237 per month in New York, according to Insurify data.
Sources
- Department of Financial Services. "Homeowners Insurance: Understanding What Affects the Cost of Insurance."
- NAIC. "Credit-Based Insurance Scores."
- Insurance Information Institute. "Trends and Insights: Risk-Based Pricing of Insurance."
- Experian.com. "What Is an SR-22?."
Methodology
Insurify data scientists analyzed more than 190 million quotes served to car insurance applicants in Insurify’s proprietary database to calculate the premium averages displayed on this page. These premiums are real quotes that come directly from Insurify’s 500+ partner insurance companies in all 50 states and Washington, D.C. Quote averages represent the median price for a quote across the given coverage level, driver subset, and geographic area.
Unless otherwise specified, quoted rates reflect the average cost for drivers between 20 and 70 years old with a clean driving record and average or better credit (a credit score of 600 or higher).
Liability-only premium averages correspond to policies with the following coverage limits:
- Bodily injury limits between state-minimum rates and $50,000 per person, $100,000 per accident
- Property damage limits between $10,000 and $50,000
- No additional coverage
- Comprehensive coverage with a $1,000 deductible
- Collision coverage with a $1,000 deductible
Quotes for Allstate, Farmers, GEICO, State Farm, and USAA are estimates based on Quadrant Information Services’ database of auto insurance rates.
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Catherine HilesInsurance, Personal Finance Writer
16+ years in personal finance and insurance writing
Certified Financial Education Instructor
Katie PowersLicensed P&C Agent, Senior Insurance Editor
Licensed auto and home insurance agent
4+ years experience in insurance and personal finance editing
NPN: 20564519
Featured in
John LeachLicensed P&C Agent, Chief Copy Editor
Licensed property and casualty insurance agent
10+ years editing experience
NPN: 20461358
Featured in