Car insurance premiums rise on Long Island
Cars in traffic. Credit: Newsday / Howard Schnapp
Auto insurance premiums soared across Long Island in 2025. The average annual premium in some neighborhoods rose as much as 80% since 2019, adding to the ballooning cost of living in the region.
Insurance rate fluctuations are difficult to track since individual rates vary starkly based on demographics, location, driving and ticketing history, and credit score. The Point analyzed the latest average annual premium data from The Zebra, an auto insurance search engine site, and compared this with Newsday's reporting of the same from 2019.
Neighborhoods closer to New York City had the highest rates. Inwood's average premium was nearly $5,000 a year, and communities around the hamlet, such as Woodmere, Valley Stream and Lawrence, saw average premiums exceeding $4,800 a year. The data is based on a study of 61 million unique auto insurance rates from 400 companies.
While some areas saw bigger jumps than others, the out-of-proportion rate increase was visible in every ZIP code across Long Island.
For many Long Islanders, a yearly car insurance payment jump from around $2,400 to $4,400 — as in the case for ZIP code 11530 in Garden City — can be significant. The $2,000 difference was the cost of 500 gallons of gas in 2025, or a month of child day care.
Insurers in New York require state approval to increase rates by more than 5%. Yet, the state has among the highest insurance rates in the country, worsened by a global supply crunch of vehicle parts and tariffs, and increasing climate events. The no-fault law and supplemental spousal liability, added in 2023, contribute to higher rates shouldered by all car owners in the state. In the fall of 2025, auto insurance giants Progressive and Geico had strong growth in premiums — 20% and 5% respectively — despite claims being low. Progressive was even required under Florida law to give policyholders in the state refunds for making $950 million to $1 billion in excess profits.
On car-dependent Long Island, most people would be unable to perform their day-to-day routines without access to a vehicle. According to the U.S. Census Bureau, about 63% of residents in Nassau County and 73% in Suffolk drive to work.
The cost of owning a car is often overshadowed by more pressing bills, such as mortgage or rent, food and medical expenses. Between 2010 and 2023, Americans spent 76% more on vehicle ownership expenses, according to the latest data available from the Bureau of Labor Statistics, which includes car insurance and repairs. The Point previously reported on worsening auto delinquency rates on Long Island, as more drivers miss their car payments owing to higher costs of living.
