New York’s affordability crisis is squeezing small businesses from every direction. Rising rents, higher labor costs, supply chain disruptions, and inflation have already pushed many neighborhood companies to the brink. But one major cost driver has quietly become one of the most punishing: auto insurance.
New York drivers now pay some of the highest auto insurance rates in the nation, nearly double the national average. According to Bankrate, full coverage costs an average of $4,031 per year in New York, compared to $2,679 nationwide. Minimum coverage averages $1,729 annually – more than twice the national figure of $808. Premiums jumped another 13.5 percent in 2025, one of the largest increases in the country.
