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The national average rate for full coverage car insurance is $1,895, but how much you’ll pay depends largely on where you live. The state you reside in is one of the biggest factors influencing the price of your auto insurance premium.

Louisiana is the most expensive state for car insurance with average auto premiums of $2,883 annually. Maine’s average insurance premium for full coverage is $1,175 annually, making this the cheapest state for car insurance in 2024.

Key Takeaways

  • Maine is the cheapest state for car insurance at $1,175 annually, or $97 monthly, for a full coverage policy.
  • Louisiana is the most expensive state for car insurance at $2,883 annually for a full coverage policy. 
  • Car insurance premium spikes in 2023 were attributed to inflation, weather and accident claims, poor driving habits and population density. 

Car insurance rates by state in 2024

Behind Louisiana at No. 1, Florida, California, Colorado and South Dakota followed as the most expensive states in the country for auto insurance. 

In general, rates have increased due to inflation affecting the cost of parts and repairs, but other factors that spike car insurance rates include higher population, crime rates and weather trends. Additionally, more uninsured drivers and costly lawsuits always push up premiums.

Rates in Louisiana have seen a significant increase this year, with a $189 difference between the Pelican State and Florida, the second-most expensive state for full coverage car insurance. Louisiana’s rates have ticked to the top of the list mainly due to inflation and national car insurance premium hikes.

“If driving in one state is more dangerous than another, insurance companies will charge higher rates for their policies,” says Jim Brau, Joel C. Peterson professor of finance at Brigham Young University’s Marriott School of Business. 

When it comes to the most affordable car insurance full coverage premiums, Maine has the cheapest rates in 2023. New Hampshire came in second, followed by Vermont, Ohio and Idaho.

In Maine, the average full coverage premium is $1,175 annually, 38% less than the national average of $1,895. With a lower population density and fewer car insurance claims, Maine residents benefit from more affordable car insurance options. 

Average car insurance rates by State

State Average annual rate (full coverage) Avg annual rate (liability-only) Average annual rate (State-minimum liability-only)
Alaska $1,676  $508  $398 
Alabama $1,860  $639  $433 
Arkansas $1,957  $589  $397 
Arizona $1,812  $764  $516 
California $2,416  $864  $551 
Colorado $2,337  $717  $437 
Connecticut $1,725  $783  $704 
Washington, D.C. $2,157  $785  $558 
Delaware $2,063  $1,022  $788 
Florida $2,694  $1,629  $993 
Georgia $1,970  $789  $577 
Hawaii $1,517  $572  $396 
Iowa $1,630  $320  $260 
Idaho $1,428  $440  $357 
Illinois $1,532  $471  $421 
Indiana $1,515  $498  $417 
Kansas $1,900  $471  $434 
Kentucky $2,228  $810  $606 
Louisiana $2,883  $1,266  $722 
Massachusetts $1,726  $655  $511 
Maryland $1,746  $756  $727 
Maine $1,175  $341  $335 
Michigan $2,266  $645  $604 
Minnesota $1,911  $512  $475 
Missouri $1,982  $582  $488 
Mississippi $2,008  $637  $463 
Montana $2,193  $540  $350 
North Carolina $1,741  $523  $476 
North Dakota $1,665  $370  $349 
Nebraska $1,902  $373  $331 
New Hampshire $1,265  $416  $397 
New Jersey $1,902  $915  $853 
New Mexico $2,049  $658  $421 
Nevada $2,060  $1,042  $720 
New York $1,870  $827  $731 
Ohio $1,417  $446  $362 
Oklahoma $2,138  $657  $408 
Oregon $1,678  $710  $641 
Pennsylvania $1,872  $504  $375 
Rhode Island $2,061  $808  $646 
South Carolina $2,009  $925  $720 
South Dakota $2,280  $338  $307 
Tennessee $1,677  $547  $442 
Texas $2,043  $774  $572 
Utah $1,825  $756  $582 
Virginia $1,469  $477  $428 
Vermont $1,319  $324  $306 
Washington $1,608  $731  $438 
Wisconsin $1,664  $425  $365 
West Virginia $2,005  $585  $510 
Wyoming $1,758  $331  $288 

The most expensive states for car insurance

Car insurance rates saw an uptick in 2023 — more than 19% from 2022, according to analysis from the U.S. Bureau of Labor Statistics. While inflation impacts the cost of repairs and parts, medical and insurance claims have also increased since the pandemic as noted in a recent study by the American Property Casualty Insurance Association (APCIA). 

Pennsylvania, South Dakota and Ohio all had increases of more than 40% from 2022 to 2023. See more year-over-year increases in the chart below.

State 2023 rates 2022 rates % Increase 2021-2023 $ Increase 2021-2023
Louisiana $2,883  $2,535  14% $348
Florida $2,694  $2,583  4% $111
California $2,416  $2,110  15% $306
Colorado $2,337  $1,807  29% $530
South Dakota $2,280  $1,553  47% $727
Michigan $2,266  $2,158  5% $108
Kentucky $2,228  $1,869  19% $359
Montana $2,193  $1,751  25% $442
Washington, D.C. $2,157  $1,845  17% $312
Oklahoma $2,138  $1,700  26% $438
Delaware $2,063  $2,135  -3% -$72
Rhode Island $2,061  $1,717  20% $344
Nevada $2,060  $1,978  4% $82
New Mexico $2,049  $1,516  35% $533
Texas $2,043  $1,796  14% $247
South Carolina $2,009  $1,902  6% $107
Mississippi $2,008  $1,494  34% $514
West Virginia $2,005  $1,536  31% $469
Missouri $1,982  $1,948  2% $34
Georgia $1,970  $1,570  25% $400
Arkansas $1,957  $1,423  38% $534
Minnesota $1,911  $1,463  31% $448
New Jersey $1,902  $1,928  -1% -$26
Nebraska $1,902  $1,955  -3% -$53
Kansas $1,900  $1,529  24% $371
Pennsylvania $1,872  $1,256  49% $616
New York $1,870  $2,072  -10% -$202
Alabama $1,860  $1,451  28% $409
Utah $1,825  $1,428  28% $397
Arizona $1,812  $1,480  22% $332
Wyoming $1,758  $1,617  9% $141
Maryland $1,746  $1,486  17% $260
North Carolina $1,741  $1,324  31% $417
Massachusetts $1,726  $1,528  13% $198
Connecticut $1,725  $1,736  -1% -$11
Oregon $1,678  $1,249  34% $429
Tennessee $1,677  $1,313  28% $364
Alaska $1,676  $1,354  24% $322
North Dakota $1,665  $1,285  30% $380
Wisconsin $1,664  $1,311  27% $353
Iowa $1,630  $1,319  24% $311
Washington $1,608  $1,213  33% $395
Illinois $1,532  $1,378  11% $154
Hawaii $1,517  $1,306  16% $211
Indiana $1,515  $1,184  28% $331
Virginia $1,469  $1,224  20% $245
Idaho $1,428  $1,045  37% $383
Ohio $1,417  $998  42% $419
Vermont $1,319  $1,081  22% $238
New Hampshire $1,265  $1,268  0% -$3
Maine $1,175  $1,100  7% $75

The top five most expensive states each face various factors impacting high premiums. 

1st most expensive state: Louisiana sees rate hikes by state regulators

Louisiana saw an average premium increase of 14% in 2023, jumping $348 from 2022 to 2023, from $2,535 to $2,883 for full coverage car insurance. Rates in Louisiana increased a whopping 73% from 2019.

While the Pelican State has been in the top three most expensive states for car insurance since 2017, it rose to first place this year for several reasons. 

State regulators approved Louisiana car insurers to increase rates across the board in August 2023. According to Insurance Commissioner Jim Donelon, significant rate increases have been seen as inflation impacts increase the cost of parts and labor. 

Additionally, Louisiana has statistically high numbers of uninsured and underinsured drivers. In a 2019 report, the state had an estimated 11.7% uninsured driver rate. This high percentage creates an increased risk of lawsuits and uninsured motorist claims, which will cause car insurance rates to spike. 

Florida drops from the most expensive state for car insurance to the second-most expensive in 2024 — with Louisiana seeing $189 more annually than the Sunshine State. The average 2023 premium for full coverage in Florida was up 4%, or $111, from $2,583 in 2022 to $2,694 annually. 

Florida is no stranger to high car insurance premiums. The state sits in “hurricane alley” — a prime location for consistent high winds, flooding and property damage. Weather-related claims from hail and water damage in Florida led to substantial underwriting losses, which caused premiums in Florida to spike. Some insurers left the market altogether. 

With 12 universities, an enrollment of more than 300,000 students, and many more colleges and trade and art schools, there are a lot of young drivers on the road in the state. This poses a high risk for accidents and claims, which increases car insurance premiums. 

Florida also has a high number of uninsured drivers on the road: more than 20%. This is one of the highest rates in the country for uninsured drivers, 9% less than Mississippi’s 29% — the highest rate for uninsured motorists in the U.S. 

3rd most-expensive state: California sees state-approved rate increases and insurer policy approval slow down 

California’s insurance premiums climbed from an annual average of $2,110 in 2022 to $2,416 in 2023, making the state the top three most expensive in the country for full coverage car insurance. This 15% increase can be attributed to state-mandated car insurance changes, car insurance company processes and inflation increases in auto parts and labor services.

In 2023, the state insurance department approved 111 car insurance rate increases. Residents also saw a slowdown in new car insurance approvals as California auto insurers aimed to stem losses by discouraging, delaying and denying customer access to insurance, according to California Insurance Commissioner Ricardo Lara. 

Nearing the end of 2023, Lara said that the “insurers’ passive-aggressive tactics are unacceptable, dangerous, and will not be tolerated.” The state Insurance Commissioner’s office will continue to monitor insurers’ processes and take action against them if laws are not being followed. 

4th most-expensive state: Colorado rates increase 29% with inflation, poor driving habits and legality issues

Coloradans are seeing hikes in their car insurance premiums due to a perfect storm of rising costs, risky driving behaviors and murky car insurance policy laws. Rising 29% to an average annual rate of $2,337 from $1,807 — Colorado drivers saw an increase of $530 full coverage insurance in 2023. 

According to the Rocky Mountain Insurance Association, insurance rates have seen a 53% increase over the past decade, and recent hikes in costs can be attributed to inflation, higher claims and legal factors. The report highlights a sharp 40% increase in bodily injury claim severity between 2018 and 2022, attributed to medical inflation, legal system abuse and a rise in fatalities. 

Additionally, legal transparency and clarity in insurance policies are needed as policyholders have double-dipped on medical payment coverages and lawsuits have followed some market-based incidents. These factors also impact premium increases.

5th most-expensive state: South Dakota rates rise 47% as accidents and claims see a sharp uptick

In 2023, South Dakota full coverage car insurance premiums nearly doubled, from $1,553 to $2,280 annually. This sharp increase can be attributed to rising inflation costs, increased road accidents and claims and more driving miles. 

State Farm Agent Ryan Reiner recently stated to Dakota News Now the state has seen more drivers on the road since 2020, which is causing an uptick in accidents. These claims, mixed with inflation increasing the cost of labor and parts, contribute to the increase in insurance premiums. Additionally, some insurers are increasing their rates for driving miles — a 7% to 8% increase from 7,500 miles to 10,000 miles per year, Reiner says.

The cheapest states for car insurance

While car insurance rates are increasing across the country, residents in some states still get to enjoy affordable prices — for now. Residents of Ohio, Maine and Idaho see the cheapest rates across the country.

Rank State Average annual rate (full coverage)
1 Maine $1,175 
2 New Hampshire $1,265 
3 Vermont $1,319 
4 Ohio $1,417 
5 Idaho $1,428 
6 Virginia $1,469 
7 Indiana $1,515 
8 Hawaii $1,517 
9 Illinois $1,532 
10 Washington $1,608 
11 Iowa $1,630 
12 Wisconsin $1,664 
13 North Dakota $1,665 
14 Alaska $1,676 
15 Tennessee $1,677 
16 Oregon $1,678 
17 Connecticut $1,725 
18 Massachusetts $1,726 
19 North Carolina $1,741 
20 Maryland $1,746 
21 Wyoming $1,758 
22 Arizona $1,812 
23 Utah $1,825 
24 Alabama $1,860 
25 New York $1,870 
26 Pennsylvania $1,872 
27 Kansas $1,900 
28 New Jersey $1,902 
29 Nebraska $1,902 
30 Minnesota $1,911 
31 Arkansas $1,957 
32 Georgia $1,970 
33 Missouri $1,982 
34 West Virginia $2,005 
35 Mississippi $2,008 
36 South Carolina $2,009 
37 Texas $2,043 
38 New Mexico $2,049 
39 Nevada $2,060 
40 Rhode Island $2,061 
41 Delaware $2,063 
42 Oklahoma $2,138 
43 Washington, D.C. $2,157 
44 Montana $2,193 
45 Kentucky $2,228 
46 Michigan $2,266 
47 South Dakota $2,280 
48 Colorado $2,337 
49 California $2,416 
50 Florida $2,694 
51 Louisiana $2,883 

1. Cheapest state for car insurance: Maine

The average premium in the Pine Tree State is $1,175. 

“Maine’s historically low auto insurance losses have helped to keep premiums low, as has the state’s competitive auto insurance market,” says Judi Watters, consumer outreach specialist with the Maine Bureau of Insurance. 

Low density and plenty of insured drivers help drive low insurance rates. Maine ranks 42nd for population density, leading to fewer accidents and claims when compared to our most expensive states.

2. New Hampshire

The average annual premium in New Hampshire is $1,265.

3. Vermont

The average annual premium in Vermont is $1,319.

Most expensive states for liability-only car insurance

Liability-only insurance provides bare-bones liability coverage. Drivers can add additional coverage options to their policy to ensure their vehicle and health are covered during an accident. Before opting for additional protections, it’s essential to know how your state ranks for liability-only car insurance. 

Find out which states ranked the highest for the most expensive liability-only car insurance below. 

1. Florida: $1,629 annually

2. Louisiana: $1,266 annually

3. Nevada: $1,042 annually

4. Delaware: $1,022 annually

5. South Dakota: $925 annually

Most expensive liability-only car insurance average annual rates by state

State Average annual rate (50/100/50 liability-only)
Florida $1,629 
Louisiana $1,266 
Nevada $1,042 
Delaware $1,022 
South Carolina $925 
New Jersey $915 
California $864 
New York $827 
Kentucky $810 
Rhode Island $808 
Georgia $789 
Washington, D.C. $785 
Connecticut $783 
Texas $774 
Arizona $764 
Maryland $756 
Utah $756 
Washington $731 
Colorado $717 
Oregon $710 
New Mexico $658 
Oklahoma $657 
Massachusetts $655 
Michigan $645 
Alabama $639 
Mississippi $637 
Arkansas $589 
West Virginia $585 
Missouri $582 
Hawaii $572 
Tennessee $547 
Montana $540 
North Carolina $523 
Minnesota $512 
Alaska $508 
Pennsylvania $504 
Indiana $498 
Virginia $477 
Illinois $471 
Kansas $471 
Ohio $446 
Idaho $440 
Wisconsin $425 
New Hampshire $416 
Nebraska $373 
North Dakota $370 
Maine $341 
South Dakota $338 
Wyoming $331 
Vermont $324 
Iowa $320 

Cheapest states for liability-only car insurance

Some states have much lower liability-only car insurance than others. Residents of Iowa, Vermont and Wyoming see the cheapest rates nationwide for liability-only policies with limits of 50/100/50.

1. Iowa: $320

2. Vermont: $324 

3. Wyoming: $331 

4. South Dakota: $338

5. Maine: $341

Rank State Average annual rate (50/100/50 liability-only)
1 Iowa $320 
2 Vermont $324 
3 Wyoming $331 
4 South Dakota $338 
5 Maine $341 
6 North Dakota $370 
7 Nebraska $373 
8 New Hampshire $416 
9 Wisconsin $425 
10 Idaho $440 
11 Ohio $446 
12 Kansas $471 
13 Illinois $471 
14 Virginia $477 
15 Indiana $498 
16 Pennsylvania $504 
17 Alaska $508 
18 Minnesota $512 
19 North Carolina $523 
20 Montana $540 
21 Tennessee $547 
22 Hawaii $572 
23 Missouri $582 
24 West Virginia $585 
25 Arkansas $589 
26 Mississippi $637 
27 Alabama $639 
28 Michigan $645 
29 Massachusetts $655 
30 Oklahoma $657 
31 New Mexico $658 
32 Oregon $710 
33 Colorado $717 
34 Washington $731 
35 Utah $756 
36 Maryland $756 
37 Arizona $764 
38 Texas $774 
39 Connecticut $783 
40 Washington, D.C. $785 
41 Georgia $789 
42 Rhode Island $808 
43 Kentucky $810 
44 New York $827 
45 California $864 
46 New Jersey $915 
47 South Carolina $925 
48 Delaware $1,022 
49 Nevada $1,042 
50 Louisiana $1,266 
51 Florida $1,629 

Most expensive states for state minimum liability-only car insurance

Nearly every state requires drivers to carry a minimum amount of car insurance coverage — typically liability-only. This type of car insurance generally provides both bodily injury and property damage coverages for other drivers should you be involved in a car accident. 

The priciest states for state-minimum-only car insurance:

  1. Florida: $993 annually
  2. New Jersey: $853 annually
  3. Delaware: $788 annually
  4. New York: $731 annually
  5. Maryland: $727 annually

While this insurance is mandatory, it often doesn’t cover the full financial obligations resulting from an accident. Find out which states have the most expensive liability-only car insurance below. 

Rank State State-minimum liability-only car insurance rates
1 Florida $993 
2 New Jersey $853 
3 Delaware $788 
4 New York $731 
5 Maryland $727 
6 Louisiana $722 
7 South Carolina $720 
8 Nevada $720 
9 Connecticut $704 
10 Rhode Island $646 
11 Oregon $641 
12 Kentucky $606 
13 Michigan $604 
14 Utah $582 
15 Georgia $577 
16 Texas $572 
17 Washington, D.C. $558 
18 California $551 
19 Arizona $516 
20 Massachusetts $511 
21 West Virginia $510 
22 Missouri $488 
23 North Carolina $476 
24 Minnesota $475 
25 Mississippi $463 
26 Tennessee $442 
27 Washington $438 
28 Colorado $437 
29 Kansas $434 
30 Alabama $433 
31 Virginia $428 
32 Illinois $421 
33 New Mexico $421 
34 Indiana $417 
35 Oklahoma $408 
36 Alaska $398 
37 New Hampshire $397 
38 Arkansas $397 
39 Hawaii $396 
40 Pennsylvania $375 
41 Wisconsin $365 
42 Ohio $362 
43 Idaho $357 
44 Montana $350 
45 North Dakota $349 
46 Maine $335 
47 Nebraska $331 
48 South Dakota $307 
49 Vermont $306 
50 Wyoming $288 
51 Iowa $260 

Cheapest states for state minimum liability-only car insurance

Iowa, Wyoming, Vermont, South Dakota and Nebraska residents pay the least for the state minimum car insurance in the U.S. Find the cheapest states for liability-only car insurance below. 

The cheapest states for state-minimum-only car insurance:

  1. Iowa: $260 annually
  2. Wyoming: $288 annually
  3. Vermont: $306 annually
  4. South Dakota: $307 annually
  5. Nebraska: $331 annually
Rank State State-minimum liability-only car insurance rates
1 Iowa $260 
2 Wyoming $288 
3 Vermont $306 
4 South Dakota $307 
5 Nebraska $331 
6 Maine $335 
7 North Dakota $349 
8 Montana $350 
9 Idaho $357 
10 Ohio $362 
11 Wisconsin $365 
12 Pennsylvania $375 
13 Hawaii $396 
14 Arkansas $397 
15 New Hampshire $397 
16 Alaska $398 
17 Oklahoma $408 
18 Indiana $417 
19 New Mexico $421 
20 Illinois $421 
21 Virginia $428 
22 Alabama $433 
23 Kansas $434 
24 Colorado $437 
25 Washington $438 
26 Tennessee $442 
27 Mississippi $463 
28 Minnesota $475 
29 North Carolina $476 
30 Missouri $488 
31 West Virginia $510 
32 Massachusetts $511 
33 Arizona $516 
34 California $551 
35 Washington, D.C. $558 
36 Texas $572 
37 Georgia $577 
38 Utah $582 
39 Michigan $604 
40 Kentucky $606 
41 Oregon $641 
42 Rhode Island $646 
43 Connecticut $704 
44 Nevada $720 
45 South Carolina $720 
46 Louisiana $722 
47 Maryland $727 
48 New York $731 
49 Delaware $788 
50 New Jersey $853 
51 Florida $993 

Most expensive states for full coverage car insurance

While full coverage car insurance — a combination of liability, collision and comprehensive insurance coverage — tends to have higher premiums than liability-only coverage, it provides a broader range of protections. Your insurance company will cover the damage if your vehicle is damaged during an accident, stolen, or vandalized. 

Some states, however, have more expensive rates than others. Explore the most expensive states for full coverage car insurance in the chart below.

1. Louisiana: $2,883 annually

2. Florida: $2,694 annually

3. California: $2,416 annually

4. Colorado: $2,337 annually

5. South Dakota: $2,280

Rank State Avg annual rate (full coverage)
1 Louisiana $2,883 
2 Florida $2,694 
3 California $2,416 
4 Colorado $2,337 
5 South Dakota $2,280 
6 Michigan $2,266 
7 Kentucky $2,228 
8 Montana $2,193 
9 Washington, D.C. $2,157 
10 Oklahoma $2,138 
11 Delaware $2,063 
12 Rhode Island $2,061 
13 Nevada $2,060 
14 New Mexico $2,049 
15 Texas $2,043 
16 South Carolina $2,009 
17 Mississippi $2,008 
18 West Virginia $2,005 
19 Missouri $1,982 
20 Georgia $1,970 
21 Arkansas $1,957 
22 Minnesota $1,911 
23 Nebraska $1,902 
24 New Jersey $1,902 
25 Kansas $1,900 
26 Pennsylvania $1,872 
27 New York $1,870 
28 Alabama $1,860 
29 Utah $1,825 
30 Arizona $1,812 
31 Wyoming $1,758 
32 Maryland $1,746 
33 North Carolina $1,741 
34 Massachusetts $1,726 
35 Connecticut $1,725 
36 Oregon $1,678 
37 Tennessee $1,677 
38 Alaska $1,676 
39 North Dakota $1,665 
40 Wisconsin $1,664 
41 Iowa $1,630 
42 Washington $1,608 
43 Illinois $1,532 
44 Hawaii $1,517 
45 Indiana $1,515 
46 Virginia $1,469 
47 Idaho $1,428 
48 Ohio $1,417 
49 Vermont $1,319 
50 New Hampshire $1,265 
51 Maine $1,175 

Cheapest states for full coverage car insurance

With all the protections full coverage car insurance offers — compensation for property damages, theft, vandalism and medical bills — premiums are often some of the highest. However, this isn’t true for all states. 

Learn more about the cheapest states for full coverage car insurance in the chart below.

1. Maine: $1,175 annually

2. New Hampshire: $1,265 annually

3. Vermont: $1,319 annually

4. Ohio: $1,417 annually

5. Idaho: $1,428 annually 

Rank State Avg. annual rate (full coverage)
1 Maine $1,175 
2 New Hampshire $1,265 
3 Vermont $1,319 
4 Ohio $1,417 
5 Idaho $1,428 
6 Virginia $1,469 
7 Indiana $1,515 
8 Hawaii $1,517 
9 Illinois $1,532 
10 Washington $1,608 
11 Iowa $1,630 
12 Wisconsin $1,664 
13 North Dakota $1,665 
14 Alaska $1,676 
15 Tennessee $1,677 
16 Oregon $1,678 
17 Connecticut $1,725 
18 Massachusetts $1,726 
19 North Carolina $1,741 
20 Maryland $1,746 
21 Wyoming $1,758 
22 Arizona $1,812 
23 Utah $1,825 
24 Alabama $1,860 
25 New York $1,870 
26 Pennsylvania $1,872 
27 Kansas $1,900 
28 New Jersey $1,902 
29 Nebraska $1,902 
30 Minnesota $1,911 
31 Arkansas $1,957 
32 Georgia $1,970 
33 Missouri $1,982 
34 West Virginia $2,005 
35 Mississippi $2,008 
36 South Carolina $2,009 
37 Texas $2,043 
38 New Mexico $2,049 
39 Nevada $2,060 
40 Rhode Island $2,061 
41 Delaware $2,063 
42 Oklahoma $2,138 
43 Washington, D.C. $2,157 
44 Montana $2,193 
45 Kentucky $2,228 
46 Michigan $2,266 
47 South Dakota $2,280 
48 Colorado $2,337 
49 California $2,416 
50 Florida $2,694 
51 Louisiana $2,883 

Frequently asked questions

What are the top 10 states with the highest car insurance rates?

Our data finds that the most expensive states for car insurance in 2024 are: 

  • Louisiana: $2,883 a year
  • Florida: $2,694 a year
  • California: $2,416 a year
  • Colorado: $2,337 a year
  • South Dakota: $2,280 a year
  • Michigan: $2,266 a year
  • Kentucky: $2,228  a year
  • Montana: $2,193 a year
  • Washington, D.C.: $2,157 a year
  • Oklahoma: $2,138 a year

What states have the lowest car insurance rates? 

Most of the states with the lowest car insurance rates are smaller and less populated. Because of a lower population density, fewer accidents and claims occur, lowering rates for everyone.

The states mentioned below have the lowest car insurance rates:

  • Maine
  • New Hampshire
  • Vermont
  • Ohio
  • Idaho

What is the average car insurance cost by ZIP code? 

As per Insure.com study, the most expensive ZIP code for car insurance in the U.S. is 48204, whereas 43456 stands out as the least expensive with an average annual premium of just $832. Read our guide to car insurance rates by ZIP code to get the more details.

How are car insurance rates determined?

Car insurance rates are set based on numerous factors and vary by state. Some of the top factors include the following:

  • Driving record: One of the essential elements in determining rates is a driver’s record. Accidents, claims and violations raise your premiums. For the best rates, drive safely and obey all traffic rules. 
  • Gender and age: When calculating insurance rates, the driver’s gender and age matter in most states. When an insurance company assesses risk, these two factors can spike rates if the driver is in a high-risk group. For example, male teen drivers’ rates are typically higher because they have an increased risk of being in an accident and are likely to file a claim. 
  • Location: If you live in a populated city with higher rates of crime and traffic violations, you’ll likely pay more. Insurers evaluate local data and make risk-based decisions based on where you live. Increased crime or claim frequencies will result in higher premiums. Weather is also considered, as is where you park your car at night. For example, your rate may be lower if you park in a garage.
  • Credit score: Your credit score is used by insurance companies in most states. It is a big component of many insurers’ scores. Typically, if your credit score is lower or you show high revolving accounts and missed payments, your car insurance premium can be higher. Currently, insurance companies are not permitted to consider your credit score in the following states: California, Hawaii, Maryland, Massachusetts, Michigan, Oregon and Utah. 
  • The type of vehicle you drive: The car you drive will impact your insurance premium. Again, insurance companies are assessing risk and potential claims costs. If you drive a luxury vehicle with premium parts, you may be looking at a higher insurance premium as a collision with your car could be an expensive claim.

How to get the best car insurance rates

While there’s no one way to get the best car insurance rates, there are some money-saving strategies you can try. In addition to maintaining safe driving habits, you can shop around for new premiums a couple of times a year, inquire about available discounts and improve your credit report.

  • One way to improve your driving habits would be to avoid speeding tickets and drive defensively to avoid accidents. Some insurance companies also offer usage-based safe driving programs that monitor your driving habits and reward you with discounts or a monthly decrease in your premium rate. 
  • Improve your credit rating by consistently paying down debts and not accruing new debts, contacting debtors to work on payment plans, making on-time payments and monitoring your account for fraudulent activity. 
  • Talk to your insurance company about bundling your car insurance and inquire about available discounts. You may be able to bundle your car insurance policy with another vehicle in your home or add it to your home insurance policy for a discount. 

Some insurance companies offer pay-per-mile insurance coverage — where you pay a monthly base rate plus a per-mile fee. This billing type is great for drivers who don’t drive frequently or travel far from home.

Why do car insurance costs vary by state?

Each state has regulations regarding premiums determined by certain factors such as population density, weather and driving incident data. When looking at driving data, insurance companies consider what collision and claims records state and identify risk areas and prices accordingly. There are also state-mandated insurance laws that insurance companies must abide by and provide insurance coverage options for. These can vary in cost. 

For example, some states are tort states — where the at-fault driver’s insurance pays for the other driver’s injuries and property damage. On the other hand, some states are no-fault states — where your insurance pays for your medical costs when you’re involved in an accident, regardless of who is at fault. 

What your state requires you to carry coverage for — liability minimum, medical coverage or personal injury protection (PIP) — can impact insurance premiums. 

Which states do not require car insurance?

All U.S. states except New Hampshire require drivers to carry some form of coverage. Drivers in the Granite State are not mandated to carry car insurance. Still, they must prove they have sufficient funds to meet the state’s financial responsibility requirements should they be in an accident. Additionally, Virginia drivers can opt out of the state’s insurance requirements if they pay the uninsured motorist fee annually. They will still be responsible for at-fault accident damages. 

How can moving states affect your car insurance premiums?

Relocation has been trending for several years as more people seek new opportunities and affordable living. However, it’s important to consider how your car insurance could be impacted when setting up a new life in a new state. 

Before you pack the moving truck, calculate the cost of living in your soon-to-be new home state. Knowing how your everyday expenses will vary from ZIP code to ZIP code and how much you can anticipate spending (or saving!) on home and car insurance is valuable. 

Typically, car insurance rates are partially based on an area’s claims history — thefts, break-ins, accidents — and crime rates in your new hometown help determine car insurance premiums. It will also help to consider your potential commute and how that may impact your premium (or provide a low-mileage discount!).

How to save money on auto insurance rates in any state

One easy way to find cheap car insurance in your state is to ask your insurance company about available discounts. Here are several common cost-saving discount options:

  • Receive a good or safe driver discount by keeping your driving record clear of any violations or accidents.
  • Purchase your home, auto and life insurance policies from the same insurance company to bundle your premiums and save.
  • Students can receive good student discounts for good grades. 
  • Sign up for online statements and automatic bill pay often discounts a small amount from your monthly bill. 
  • Drivers who travel less than 10,000 miles can apply for a low-mileage discount. 
  • Take courses, such as defensive driving or training classes, to earn a safe driver discount.
expert

What our expert says

Q: Why do car insurance rates vary so much from state to state?

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Dr. James BrauJoel C. Peterson Professor of Finance Brigham Young University
It all comes down to risk. If driving in one state is more dangerous than another, insurance companies will charge higher rates for their policies. For example, suppose most of the population in one state lives in a very large city where there are relatively more wrecks and thefts. In that case, insurance rates will be higher than in another state where maybe there aren’t as many people and the rural areas don’t have these problems as much.

Resources & Methodology

Sources

Methodology

Insure.com editors in 2023 collected rates from Quadrant Information Services for a 40-year-old driving a Honda Accord LX with a good insurance score and no violation on record with a 12-mile commute and 10,000 annual mileage. We analyzed 51,088,003 records, 34,588 ZIP codes and 167 insurance companies nationwide.

How much is car insurance in your state or city

Compare car insurance rates by state and learn about how car insurance works in your area. Select your state or city from the below list to get an estimate of car insurance cost.

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Katrina Raenell
Contributing Researcher

 
  

Katrina Raenell is a writer, editor and educator with 20 years of experience in content and communications for international organizations, nonprofits and start-ups. In her previous roles, she was a communications manager for study abroad, content project manager for higher education and finance websites, reported on arts and culture, and was a managing editor for an online health and wellness publication.