One of the more important factors that aid in calculating the cost of insurance is where you call home. More densely populated places tend to have higher auto insurance costs, whereas areas with fewer weather claims and lower vehicle theft rates benefit from lower coverage costs.
The next table rates the most costly cities in New York for low income drivers in which to purchase auto insurance. Buffalo shows up at #13 with the yearly price of $1,488 for coverage, which is approximately $124 each month.
| Rank | City | Average Per Year |
|---|---|---|
| 1 | New York | $2,708 |
| 2 | Freeport | $2,235 |
| 3 | Hempstead | $2,233 |
| 4 | Levittown | $2,001 |
| 5 | Yonkers | $1,978 |
| 6 | Mount Vernon | $1,919 |
| 7 | Hicksville | $1,919 |
| 8 | West Babylon | $1,875 |
| 9 | Brentwood | $1,872 |
| 10 | Coram | $1,714 |
| 11 | New Rochelle | $1,659 |
| 12 | White Plains | $1,629 |
| 13 | Buffalo | $1,488 |
| 14 | Cheektowaga | $1,203 |
| 15 | West Seneca | $1,201 |
| 16 | Niagara Falls | $1,189 |
| 17 | Tonawanda | $1,165 |
| 18 | Utica | $1,125 |
| 19 | Syracuse | $1,086 |
| 20 | Albany | $1,067 |
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Rates are approximated as the vehicle garaging location can change coverage prices significantly.
The car, truck, or SUV you are insuring is one of the biggest factors when shopping around for the lowest-priced car insurance for low income drivers. Vehicles with higher performance, poor crash test ratings, or a history of substantial liability claims will cost significantly more to insure than safer models.
The data below features auto insurance rates for a handful of the cheaper vehicles to buy insurance for.
| Vehicle | Estimated Cost for Full Coverage |
|---|---|
| Ford Escape XLT 4WD | $2,236 |
| Ford Edge Limited 2WD | $2,539 |
| Chevrolet Impala LS | $2,549 |
| Chevrolet Malibu Hybrid | $2,589 |
| Toyota RAV4 Limited 4WD | $2,598 |
| GMC Sierra SLE Regular Cab 2WD | $2,589 |
| Hyundai Elantra GLS 4-Dr Sedan | $2,723 |
| Honda CR-V EX-L 2WD | $2,747 |
| Toyota Prius | $2,774 |
| Chevrolet Silverado 3500HD LT Crew Cab 2WD | $2,824 |
| Ford Focus S 4-Dr Sedan | $2,915 |
| Chevrolet Silverado LT Crew Cab 2WD | $2,958 |
| Toyota Camry Hybrid | $2,965 |
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Data based on single female driver age 40, no speeding tickets, no at-fault accidents, $1,000 deductibles, and New York minimum liability limits. Discounts applied include claim-free, safe-driver, homeowner, multi-policy, and multi-vehicle. Rate quotes do not factor in specific location information which can affect price quotes greatly.
Based on these rates, you can conclude that cars like the Ford Escape, Ford Edge, Chevrolet Impala, and Chevrolet Malibu are likely to be the cheaper vehicles to insure for poor drivers.
Figuring out which company has the most affordable insurance rates for low income drivers takes a little more work in order to find coverage that fits your budget.
Every insurance provider uses a little different formula for determining prices, so we will examine the most competitive insurance companies in New York.
Lowest Insurance Price Quotes in New York
| Rank | Company | Cost Per Year |
|---|---|---|
| 1 | USAA | $1,199 |
| 2 | Erie | $1,255 |
| 3 | Progressive | $1,542 |
| 4 | Utica National | $1,549 |
| 5 | Travelers | $1,559 |
| 6 | Amica | $1,596 |
| 7 | Allstate | $1,603 |
| 8 | MetLife | $1,636 |
| 9 | Preferred Mutual | $1,703 |
| 10 | New York Central Mutual | $1,892 |
| 11 | GEICO | $1,907 |
| 12 | Safeco | $1,908 |
| 13 | State Farm | $1,982 |
| 14 | Liberty Mutual | $2,026 |
| 15 | Central Mutual | $2,028 |
| 16 | Hanover | $2,323 |
| 17 | Encompass | $2,662 |
| 18 | Nationwide | $3,085 |
| 19 | Mercury | $3,809 |
| 20 | 21st Century | $4,455 |
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USAA generally has some of the cheapest car insurance rates in Buffalo at around $1,199 annually. This is $876 less than the average rate paid by New York drivers of $2,075. Erie, Progressive, Utica National, and Travelers also qualify as some of the lowest-priced Buffalo, NY car insurance companies.
In the rate table above, if you currently have a policy with Utica National and switched to Erie, you might realize a yearly savings of in the vicinity of $294. Drivers with Travelers might save as much as $304 a year, and Amica policyholders might realize rate reductions of up to $341 a year.
Be aware that those policy rates are averaged for all drivers and vehicles and do not factor in a specific vehicle garaging location for low income drivers. So the auto insurance company that can offer you the best rate may not even be in the top 20 companies in the list above. That illustrates why you need to get quotes using your own specific driver and vehicle information.
Cost difference between full coverage and liability
Saving money on insurance is probably important to most drivers, and one great way to pay lower rates for insurance for low income drivers is to buy only liability coverage. The illustration below illustrates the difference between insurance premiums with full physical damage coverage compared to only buying liability only. The rate quotes are based on a clean driving record, no claims, $100 deductibles, single status, and no discounts are applied.
Averaged for all age groups, physical damage insurance costs an additional $1,523 per year more than just insuring for liability. That is a large expense which might make you wonder if physical damage coverage is worth the money. There is no written rule that works best for making the decision to drop comprehensive and collision coverage on your policy, but there is a general guideline you can use. If the yearly cost of comp and collision coverage is more than around 10% of the settlement you would receive from your company, then it may be the right time to buy liability only.
There are some circumstances where removing full coverage is not recommended. If you haven’t satisfied your loan, you are required to maintain full coverage in order to prevent your loan from defaulting. Also, if you can’t afford to buy a different vehicle in the event your current vehicle is totaled, you should keep full coverage on your policy.
The information below shows how choosing a deductible can change insurance costs when searching for cheap insurance for low income drivers. The data is based on a single male driver, comprehensive and collision coverage, and no discounts are applied to the premium.
The data above shows that a 40-year-old driver could save $296 a year by switching the physical damage coverage from a $100 deductible up to a $500 deductible, or save $444 by choosing a $1,000 deductible. Even younger drivers, like the age 20 example, could roll back prices as much as $982 or more just by choosing higher deductibles when buying full coverage.
If you make the decision to raise deductibles, it will now be necessary to have enough savings to enable you to pay the extra out-of-pocket expense that is associated with using high deductibles.
Insurance rate increases from tickets or accidents
The ideal way to maintain the cheapest insurance premiums for poor drivers is to drive safely and avoid getting tickets or having accidents. The diagram below highlights how speeding tickets and at-fault accidents can drive up auto insurance rates for each age group. The costs are based on a married male driver, comp and collision included, $250 deductibles, and no discounts are taken into consideration.
The data in the chart shows the average cost of an auto insurance policy in Buffalo per year with no accidents or violations is $1,195. Factor in one speeding ticket and the average cost increases to $1,369, an increase of $174 each year. Then add in two accidents along with the one speeding ticket and the annual cost of insurance for low income drivers goes up to an average of $2,888. That’s an increase of $1,693, or $141 per month, just for a couple of infractions!