The most and least expensive states for car insurance 

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The national average premium for full coverage car insurance is $2,513, but the price you’ll pay also depends on where you live. Your location is one of the biggest factors influencing the price of your auto insurance premium.

Louisiana is the most expensive state for car insurance, with an average premium of $4,180 annually. On the other hand, Vermont’s average premium for full coverage is $1,504 annually, making it the cheapest state.

How much is car insurance per month? 

On average, drivers in the U.S. pay about $209 per month for a full coverage car insurance policy, or $2,513 annually, according to our data.

If you’re looking for the lowest level of protection, minimum coverage is much cheaper. Monthly premiums typically fall between $42 and $56, though the exact cost depends heavily on your state’s insurance requirements and local risk factors.

How much does car insurance cost in each state?

Behind Louisiana, Florida, Washington, D.C., Nevada and Colorado 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.

Louisiana now has the highest car insurance rates in the country, costing $328 more than Florida, the second-most expensive state for full coverage. This spike is largely driven by inflation and nationwide increases in auto insurance premiums.

“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, Vermont has the cheapest rates. New Hampshire came in second, followed by Maine and Hawaii. 

Car insurance costs an average of $1,504 annually in Vermont, $1,009 less than the national average of $2,513. With a lower population density and fewer car insurance claims, Vermont residents benefit from more affordable car insurance rates.

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The most expensive states for car insurance

Car insurance costs vary widely depending on where you live, and some states consistently rank at the top for high premiums. Factors like accident frequency, severe weather, and population density all drive rates higher.

Louisiana tops the list of most expensive states for car insurance with an average annual premium of $4,180, followed closely by Florida at $3,852 and Washington, D.C. at $3,394.

Below are the 10 most expensive states for full coverage car insurance

The cheapest states for car insurance

On the other end of the spectrum, some states offer significantly lower premiums. These states tend to have fewer claims, less traffic congestion, and lower repair or medical costs. 

The table below shows the 10 least expensive states for full coverage, with Vermont drivers paying the lowest average at just $1,504 annually.

Factors impacting the top five most expensive states for car insurance

#1 most expensive state: Louisiana takes the top spot as the most expensive state for car insurance

Louisiana drivers face some of the highest car insurance costs in the country. The average premium is $4,180 a year, which is $1,667 higher than the national average and 45% more than last year’s average of $2,883.

Rates in Louisiana have climbed sharply over the past two years. According to NAIC data, drivers in the state file more than twice as many bodily injury claims as the national average — meaning insurers face steeper medical and legal costs after accidents. Those higher claim expenses drive up overall losses, which in turn push premiums higher for nearly everyone on the road.

The good news? Things may finally be turning around. Since January 2025, insurers in Louisiana have submitted more than 20 rate decrease requests, citing fewer accidents as the main reason behind the shift.

“Our focus on improving our regulatory and legal environments while ensuring rates are justified will promote competition and ultimately stabilize auto insurance premiums for Louisiana drivers,” stated Louisiana Commissioner Temple in a press release. 

#2 most expensive state: Weather and storm claims keep Florida’s rates high

Florida drivers pay some of the highest car insurance rates in the country, with an average annual premium of $3,852 — $1,339 more than the national average. Florida’s premiums have increased by 43% since 2023.

A major reason for Florida’s high car insurance rates is its constant exposure to hurricanes, floods, and severe storms. These weather events don’t just damage vehicles directly — they also cause more accidents in difficult driving conditions. As insurers handle a higher number of costly claims, they raise premiums to offset the added risk.

#3 most expensive state: High vehicle thefts push D.C. insurance costs higher

Drivers in Washington, D.C. pay some of the highest car insurance rates in the nation — an average of $3,394 a year, which is $881 more than the U.S. average.

Part of the reason is the growing cost of claims. Today’s vehicles are packed with cameras, sensors, and high-tech components that make even minor repairs costly, pushing premiums higher across the board.

Additionally, the state tops the list of states with high theft rates in the National Insurance Crime Bureau’s latest report. Insurers factor in theft rates and traffic conditions when setting premiums, which helps explain why D.C. rates are above average.

#4 most expensive state: Nevada premiums up 59% since 2023

Nevada ranks as the fourth most expensive state for car insurance. Rates have climbed 59% since 2023, with drivers now paying an average of $3,283 per year — about $771 more than the national average of $2,513.

One of the biggest reasons for these high costs is vehicle theft. According to the National Insurance Crime Bureau, Nevada is among the top five states for car thefts. When thefts rise, insurers face more claims and higher payouts, which leads to higher premiums for drivers.

The Nevada Division of Insurance report also points to other contributing factors, including a higher number of accidents and more severe injuries resulting from those crashes. Together, these issues make the state one of the most expensive places in the nation to insure a vehicle.

#5 most expensive state: Colorado sees 38% spike in auto insurance rates

The average full-coverage premium in Colorado is $3,222 per year, nearly 28% higher than the national average.

Several factors contribute to these elevated costs. Colorado faces frequent severe weather events, particularly hailstorms, that lead to expensive repair claims. The state also ranks among the top five for vehicle thefts, according to the NICB

Another key driver of high premiums is the state’s large share of uninsured motorists. Roughly 17.5% of Colorado drivers lack insurance, well above the national average. To account for that added risk, insurers raise rates for all policyholders.

How have car insurance rates changed over the past two years?

According to the U.S. Bureau of Labor Statistics (BLS), car insurance premiums surged 20.3% in 2023 and rose another 11.3% in 2024. The pace slowed in 2025 but remains elevated — up about 4.7% year-over-year as of August, with the Bureau of Transportation Statistics reporting increases between 6% and 8% earlier in the year. Rising repair costs, medical expenses, and claim severity continue to push rates higher. 

A study by the American Property Casualty Insurance Association (APCIA) found that between 2018 and 2022, average bodily injury claims climbed nearly 40%, while property damage claims rose almost 50%, fueling ongoing pressure on premiums.

Nevada, Connecticut and Washington, D.C. all experienced increases of more than 50% from 2023 to 2025. The chart below shows more year-over-year increases.

How much drivers pay for liability-only insurance in each state

Liability-only insurance provides the most basic level of protection, often written as 50/100/50. These numbers represent your coverage limits: up to $50,000 for injuries per person, $100,000 for injuries per accident, and $50,000 for property damage. 

While this meets state minimum requirements in many areas, it doesn’t cover your own medical bills or repairs to your vehicle. Drivers can add optional coverages, like collision or comprehensive, for better protection. Before deciding, check how your state ranks for liability-only car insurance costs.

The table below shows how much drivers pay in each state for this level of coverage.

Most expensive states for liability-only car insurance 

Where you live can dramatically affect how much you pay for even the minimum required coverage. States with higher accident rates, dense traffic, or costly medical and repair expenses often top the list. Drivers in Florida, Louisiana, and Nevada face the highest bills for a 50/100/50 liability-only policy, with annual premiums running well above $1,500 and in Florida’s case reaching over $2,200.

Cheapest states for liability-only car insurance

On the flip side, some states offer far more affordable options for liability-only coverage. Factors like fewer claims, smaller populations, and lower overall repair costs help keep premiums down. Vermont, Wyoming, and North Dakota lead the way with the lowest annual averages, with premiums between $323 and $377 for a 50/100/50 liability-only policy.

Most expensive states for state minimum liability-only car insurance

Nearly every state requires drivers to carry a minimum amount of car insurance, known as state-minimum liability coverage. These limits vary by state — for example, one state may require 25/50/25 while another mandates 30/60/15. By contrast, a liability-only policy can be purchased at either the state minimum or higher limits, such as 50/100/50.

State-minimum liability insurance generally provides coverage for bodily injury and property damage you cause to others in an accident, but it does not cover your own medical bills or repairs to your vehicle.

The priciest states for state-minimum liability coverage are:

• Delaware: $1,277
• Florida: $1,208
• New Jersey: $1,124
• New York: $1,070
• Connecticut: $1,039

While carrying at least this coverage is mandatory, minimum limits are often not enough to cover the full costs of a serious accident. That’s why many drivers choose higher liability limits for better protection.

Car insurance requirements aren’t the same everywhere — each state sets its own minimum liability limits that drivers must carry to legally get on the road. The chart below shows the average annual and monthly premiums for state-minimum liability-only coverage. These rates reflect the minimum amount required in each state, not higher optional limits like 50/100/50.

Cheapest states for state minimum liability-only car insurance

Not all drivers face steep premiums. In fact, some states have significantly lower costs for state-minimum liability coverage, which is the bare minimum amount of insurance required to drive legally. These policies only cover injuries and property damage you cause to others, making them the most affordable option — though they may not be enough to cover a serious accident.

The states with the lowest average annual premiums for state-minimum liability coverage are:

• Wyoming: $286
• Vermont: $299
• Iowa: $330
• North Dakota: $354
• Nebraska: $369

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 don’t 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.

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:

• Maintain a clean driving record to earn a safe driver discount.
• Bundle home, auto, and life policies to save on premiums.
• Keep good grades to qualify for a student discount.
• Enroll in online statements and autopay to receive a discount.
• Drive fewer than 10,000 miles a year to get a low-mileage discount.
• Complete defensive driving courses to earn a safe driver discount.

What our expert says

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

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.

Methodology

Insure.com editors collected rates from Quadrant Information Services for 40-year-old male and female drivers driving a Honda Accord LX with good insurance scores, no violations on record, a 12-mile commute and 10,000 annual miles for the following coverage limits-

• State minimum liability only insurance 
• Liability only insurance policy with limits of 50/100/50
• Full coverage policy with limits of 100/300/100 and $500 collision and comprehensive deductibles

We analyzed 75,263,537 records, 34,588 ZIP codes, and 169 insurance companies nationwide. Rates are for comparison purposes only; your exact premium may vary. 

Katrina Raenell

Contributing Researcher

 

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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.