Car insurance rates soar for half a million drivers in New York

Thousands of drivers in New York are set to experience significant increases in their car insurance rates as the new year begins. The New York Department of Financial Services approved rate hikes ranging from 3.6% to 22% for several insurance companies in December.

The Hartford Casualty Insurance Group, Trumbull Insurance Company, four USAA companies, GEICO, three Travelers Insurance companies, New South Insurance Company, and Utica National Insurance Group have all been authorized to raise their rates. This decision will impact around 582,625 auto and motorcycle insurance policies across the state.

As of December 2024, the average annual cost for a full-coverage policy in New York was $3,804 according to Insurify data.

For The Hartford Casualty Insurance Group, which has not issued new auto policies in New York since 2015, an overall rate increase of 12% was approved. Most of the affected policies will see premiums rise between $251 and $500. Fifty policyholders may face increases exceeding $1,000 when their policies renew after February 28.

Trumbull Insurance Company is set to implement a 19.8% increase affecting 45,572 policies. Approximately 43% of these policyholders will experience premium rises between $251 and $500 upon renewal; over 1,200 will see annual increases above $1,000.

USAA received approval for rate hikes across its four member companies: USAA (8%), USAA-CIC (10%), USAA-GIC (13.4%), and Garrison (22.1%). These changes will affect about 190,117 current policyholders. Of those affected, 67,559 will see premium increases under $100 annually; however, approximately 1,000 customers could face increases exceeding $1,000 with some experiencing hikes over $2,000.

GEICO's motorcycle policies are subject to a state-approved increase of 12.5%, impacting about 72,986 policies with most seeing premiums rise by less than $100 annually.

Travelers Personal Insurance Company and its affiliates have implemented a modest rate hike of 3.6%, affecting both existing and new Quantum 2.0 Automobile Insurance policies totaling around 236,423 statewide.

New South Insurance Company's overall rate increase stands at 5%, impacting roughly 1,660 policyholders primarily with rises between five percent and seven percent per annum while Utica National received authorization for an overall hike amounting up towards thirteen-and-a-half percent which shall apply onto thirty-three thousand eighty-nine accounts wherein almost two thousand individuals can expect additional costs surpassing one grand each year alongside two hundred fifty-seven others whose adjustments might exceed twenty-two hundred dollars respectively

Nationally speaking car-insurance expenses continue climbing upwards since last reaching averages such as sixteen-thirty-three back during twenty-twenty-two until now surpassing twenty-three-hundred nationwide by mid-twenty-four whereupon figures specific unto Empire State had already eclipsed thirty-three-twenty-five then too ranking third highest behind merely California plus Michigan alike reportedly driven chiefly via factors including prevalent thefts congestion amidst urban locales throughout region altogether