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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.

RankStateAverage annual rate (full coverage)
1Maine$1,175 
2New Hampshire$1,265 
3Vermont$1,319 
4Ohio$1,417 
5Idaho$1,428 
6Virginia$1,469 
7Indiana$1,515 
8Hawaii$1,517 
9Illinois$1,532 
10Washington$1,608 
11Iowa$1,630 
12Wisconsin$1,664 
13North Dakota$1,665 
14Alaska$1,676 
15Tennessee$1,677 
16Oregon$1,678 
17Connecticut$1,725 
18Massachusetts$1,726 
19North Carolina$1,741 
20Maryland$1,746 
21Wyoming$1,758 
22Arizona$1,812 
23Utah$1,825 
24Alabama$1,860 
25New York$1,870 
26Pennsylvania$1,872 
27Kansas$1,900 
28New Jersey$1,902 
29Nebraska$1,902 
30Minnesota$1,911 
31Arkansas$1,957 
32Georgia$1,970 
33Missouri$1,982 
34West Virginia$2,005 
35Mississippi$2,008 
36South Carolina$2,009 
37Texas$2,043 
38New Mexico$2,049 
39Nevada$2,060 
40Rhode Island$2,061 
41Delaware$2,063 
42Oklahoma$2,138 
43Washington, D.C.$2,157 
44Montana$2,193 
45Kentucky$2,228 
46Michigan$2,266 
47South Dakota$2,280 
48Colorado$2,337 
49California$2,416 
50Florida$2,694 
51Louisiana$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)
1Iowa$320 
2Vermont$324 
3Wyoming$331 
4South Dakota$338 
5Maine$341 
6North Dakota$370 
7Nebraska$373 
8New Hampshire$416 
9Wisconsin$425 
10Idaho$440 
11Ohio$446 
12Kansas$471 
13Illinois$471 
14Virginia$477 
15Indiana$498 
16Pennsylvania$504 
17Alaska$508 
18Minnesota$512 
19North Carolina$523 
20Montana$540 
21Tennessee$547 
22Hawaii$572 
23Missouri$582 
24West Virginia$585 
25Arkansas$589 
26Mississippi$637 
27Alabama$639 
28Michigan$645 
29Massachusetts$655 
30Oklahoma$657 
31New Mexico$658 
32Oregon$710 
33Colorado$717 
34Washington$731 
35Utah$756 
36Maryland$756 
37Arizona$764 
38Texas$774 
39Connecticut$783 
40Washington, D.C.$785 
41Georgia$789 
42Rhode Island$808 
43Kentucky$810 
44New York$827 
45California$864 
46New Jersey$915 
47South Carolina$925 
48Delaware$1,022 
49Nevada$1,042 
50Louisiana$1,266 
51Florida$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
1Florida$993 
2New Jersey$853 
3Delaware$788 
4New York$731 
5Maryland$727 
6Louisiana$722 
7South Carolina$720 
8Nevada$720 
9Connecticut$704 
10Rhode Island$646 
11Oregon$641 
12Kentucky$606 
13Michigan$604 
14Utah$582 
15Georgia$577 
16Texas$572 
17Washington, D.C.$558 
18California$551 
19Arizona$516 
20Massachusetts$511 
21West Virginia$510 
22Missouri$488 
23North Carolina$476 
24Minnesota$475 
25Mississippi$463 
26Tennessee$442 
27Washington$438 
28Colorado$437 
29Kansas$434 
30Alabama$433 
31Virginia$428 
32Illinois$421 
33New Mexico$421 
34Indiana$417 
35Oklahoma$408 
36Alaska$398 
37New Hampshire$397 
38Arkansas$397 
39Hawaii$396 
40Pennsylvania$375 
41Wisconsin$365 
42Ohio$362 
43Idaho$357 
44Montana$350 
45North Dakota$349 
46Maine$335 
47Nebraska$331 
48South Dakota$307 
49Vermont$306 
50Wyoming$288 
51Iowa$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
1Iowa$260 
2Wyoming$288 
3Vermont$306 
4South Dakota$307 
5Nebraska$331 
6Maine$335 
7North Dakota$349 
8Montana$350 
9Idaho$357 
10Ohio$362 
11Wisconsin$365 
12Pennsylvania$375 
13Hawaii$396 
14Arkansas$397 
15New Hampshire$397 
16Alaska$398 
17Oklahoma$408 
18Indiana$417 
19New Mexico$421 
20Illinois$421 
21Virginia$428 
22Alabama$433 
23Kansas$434 
24Colorado$437 
25Washington$438 
26Tennessee$442 
27Mississippi$463 
28Minnesota$475 
29North Carolina$476 
30Missouri$488 
31West Virginia$510 
32Massachusetts$511 
33Arizona$516 
34California$551 
35Washington, D.C.$558 
36Texas$572 
37Georgia$577 
38Utah$582 
39Michigan$604 
40Kentucky$606 
41Oregon$641 
42Rhode Island$646 
43Connecticut$704 
44Nevada$720 
45South Carolina$720 
46Louisiana$722 
47Maryland$727 
48New York$731 
49Delaware$788 
50New Jersey$853 
51Florida$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)
1Louisiana$2,883 
2Florida$2,694 
3California$2,416 
4Colorado$2,337 
5South Dakota$2,280 
6Michigan$2,266 
7Kentucky$2,228 
8Montana$2,193 
9Washington, D.C.$2,157 
10Oklahoma$2,138 
11Delaware$2,063 
12Rhode Island$2,061 
13Nevada$2,060 
14New Mexico$2,049 
15Texas$2,043 
16South Carolina$2,009 
17Mississippi$2,008 
18West Virginia$2,005 
19Missouri$1,982 
20Georgia$1,970 
21Arkansas$1,957 
22Minnesota$1,911 
23Nebraska$1,902 
24New Jersey$1,902 
25Kansas$1,900 
26Pennsylvania$1,872 
27New York$1,870 
28Alabama$1,860 
29Utah$1,825 
30Arizona$1,812 
31Wyoming$1,758 
32Maryland$1,746 
33North Carolina$1,741 
34Massachusetts$1,726 
35Connecticut$1,725 
36Oregon$1,678 
37Tennessee$1,677 
38Alaska$1,676 
39North Dakota$1,665 
40Wisconsin$1,664 
41Iowa$1,630 
42Washington$1,608 
43Illinois$1,532 
44Hawaii$1,517 
45Indiana$1,515 
46Virginia$1,469 
47Idaho$1,428 
48Ohio$1,417 
49Vermont$1,319 
50New Hampshire$1,265 
51Maine$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)
1Maine$1,175 
2New Hampshire$1,265 
3Vermont$1,319 
4Ohio$1,417 
5Idaho$1,428 
6Virginia$1,469 
7Indiana$1,515 
8Hawaii$1,517 
9Illinois$1,532 
10Washington$1,608 
11Iowa$1,630 
12Wisconsin$1,664 
13North Dakota$1,665 
14Alaska$1,676 
15Tennessee$1,677 
16Oregon$1,678 
17Connecticut$1,725 
18Massachusetts$1,726 
19North Carolina$1,741 
20Maryland$1,746 
21Wyoming$1,758 
22Arizona$1,812 
23Utah$1,825 
24Alabama$1,860 
25New York$1,870 
26Pennsylvania$1,872 
27Kansas$1,900 
28New Jersey$1,902 
29Nebraska$1,902 
30Minnesota$1,911 
31Arkansas$1,957 
32Georgia$1,970 
33Missouri$1,982 
34West Virginia$2,005 
35Mississippi$2,008 
36South Carolina$2,009 
37Texas$2,043 
38New Mexico$2,049 
39Nevada$2,060 
40Rhode Island$2,061 
41Delaware$2,063 
42Oklahoma$2,138 
43Washington, D.C.$2,157 
44Montana$2,193 
45Kentucky$2,228 
46Michigan$2,266 
47South Dakota$2,280 
48Colorado$2,337 
49California$2,416 
50Florida$2,694 
51Louisiana$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 BrauDr. Brau teaches finance principles, entrepreneurial finance, financial planning, and corporate finance at Brigham Young University’s School of Business. His research includes issues related to initial public offerings, financial education, real estate, and entrepreneurial finance.
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.