Which U.S. States Have the Highest and Lowest Average Car Insurance by State?

Understanding State-by-State Insurance Variations

The cost of car insurance varies dramatically across America. Geographic location, population density, accident rates, weather patterns, and local driving behaviors all influence premiums. When searching for average car insurance by state, understanding these factors helps drivers grasp why their rates differ so significantly from neighbors in other regions.

The Ten States With the Steepest Insurance Premiums

Ohio’s Counterpart: Where Premiums Peak

At the opposite end of the affordability spectrum, certain states demand substantially higher annual payments. Florida and Louisiana lead this unfortunate category, with Florida drivers paying an average annual premium of $2,560. The state attracts high-risk driver demographics—senior citizens, first-time drivers, and frequent tourists—all classified as elevated-risk by insurers. Louisiana follows closely at $2,546, where an estimated 11.7% of residents drive uninsured, forcing insured motorists to shoulder greater liability costs.

The Midwest and Mid-Atlantic Premium Burden

Louisiana ranks just above Florida in average car insurance by state metrics. Moving up the list, Delaware residents face $2,137 annually due to rising medical costs, inflation pressures, and coastal weather vulnerabilities including tropical cyclones. Michigan charges $2,133 because of its no-fault insurance system, mandatory Personal Injury Protection coverage, higher fraud rates, and a 130% increase in personal injury lawsuits over the past decade.

California’s famous expense extends to vehicle coverage at $2,115 annually. Dense urban centers, elevated healthcare and repair costs, plus intensifying weather and natural disaster risks from climate change all contribute. Kentucky ranks at $2,105, driven by vehicle theft rates and uninsured motorist prevalence.

Rising Accident Rates Drive Missouri’s Costs

Missouri’s average annual premium sits at $2,104, reflecting increasing road congestion. Fatal crashes jumped from 803 in 2015 to 914 in 2020, directly correlating with higher insurance expenses statewide. Nevada charges $2,023 annually, attributed to high vehicle theft rates in metropolitan areas like Las Vegas and growing luxury vehicle ownership leading to costlier repair claims.

New York commands $2,020 in average annual premiums, a consequence of massive population density and the concentration of one of Earth’s largest metropolitan areas. Nebraska rounds out the top ten at $2,018, where severe weather patterns including storms, droughts, and floods increase accident frequency.

The Ten Most Affordable States for Coverage

Maine and Idaho Lead the Affordability Rankings

Conversely, states with lower population densities and reduced accident rates maintain dramatically lower average car insurance by state figures. Maine charges the second-lowest rate at $1,116, ranking 38th nationally in population density. Fewer residents translate directly into fewer accidents and reduced insurance claims.

Idaho holds an even lower position at $1,121, with sparse urban development and minimal traffic congestion creating consistently reduced accident probability. Ohio dominates affordability at $1,023 annually—approximately 40% cheaper than the national average. Despite annual increases of 3%, Ohio maintains America’s most economical vehicle insurance landscape.

Vermont and Oregon Provide Substantial Savings

Vermont’s average annual premium reaches $1,158, supported by numerous budget-conscious insurance providers and universally lower metrics across population, traffic, theft rates, and premiums. Oregon charges $1,244 despite Portland’s population growth, maintaining relatively low overall urban density and moderate traffic patterns combined with reduced vehicle theft.

Mountain and Northeastern Affordability

Indiana offers $1,256 annually through lower population density and minimal auto theft rates, resulting in fewer claim filings. Oregon provides $1,244, while Vermont stabilizes at $1,158. Hawaii brings a unique approach at $1,306, where insurers charge identical premiums regardless of age—a 60-year-old pays equivalently to a 20-year-old—and credit score-based pricing remains prohibited by state law.

New Hampshire residents enjoy $1,307 rates after paying annual uninsured motorist fees, while Iowa matches Virginia at $1,321. Both states maintain below-national-average accident rates and population densities.

Virginia Demonstrates Accident Prevention Benefits

Virginia leads the cheaper category at $1,321, where lower cost-of-living indices correlate with reduced accident rates. Lower claim probability translates directly into lower insurance rates, creating a virtuous cycle of affordability.

Data sourced from insure.com and reflects November 2023 figures.