New Report: Surging Auto Insurance Costs Are Fueling New York’s Affordability Crisis
Premiums Rose 24 Percent Since 2020, Outpacing Inflation
Today, Chamber of Progress released a report outlining how surging auto insurance premiums in New York have become a major, and often overlooked, driver of the state’s affordability crisis.
The report found that from 2020 to 2024, New York’s auto insurance premiums rose 24 percent, far exceeding wage growth (13 percent) and inflation (18 percent). New Yorkers now face some of the highest insurance costs in the nation, with full-coverage premiums averaging more than $4,000 per year.
The report, by Chamber of Progress Senior Economist and Research Director Kaitlyn Harger, analyzes wage trends, household budgets, and insurance market dynamics to quantify the burden on New York families. Key findings include:
- Strain on Working Families: A household earning $40,000 spends roughly 10 percent of its income on mandatory auto insurance.
- Disproportionate Impact: Drivers with poor credit pay an average of $7,590 per year, nearly double what drivers with good credit pay. Men under 25 face premiums approaching $9,900 annually, pricing many young people out of car ownership.
- Geographic Inequities: New Yorkers in urban areas like Brooklyn pay more than $6,700 per year on average, compared with $1,777 in lower-risk rural areas such as Fairport, NY.
“New York leaders are finally getting serious about the state’s cost of living crisis,” said Brianna January, Northeast Government Relations Director at Chamber of Progress. “Auto insurance has quietly become one of the fastest-growing household expenses, and it deserves a place in the cost of living conversation.”
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Chamber of Progress (progresschamber.org) is a center-left tech industry policy coalition promoting technology’s progressive future. We work to ensure that all Americans benefit from technological leaps, and that the tech industry operates responsibly and fairly.
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