Car insurance rates are on the rise. From July 2023 to July 2024, car insurance premiums increased 18.6%, according to Consumer Price Index (CPI) data released earlier this month. The average annual full-coverage premium now costs $2,329, according to Insurify. Which states have the cheapest and most expensive rates?
Car insurance rates are based on several factors, like your driving record, credit score and the model of vehicle being insured. Location also has a big impact on your overall rate. Car insurance rates vary from state to state, so how much you’ll pay ultimately depends on where you live, for better or worse.
Price differences between states are based on several factors, like the following.
- Minimum coverage required: There are several types of car insurance, and some states mandate that your auto insurance policy have more coverage than others. In some states, you’ll only need liability coverage, but others require extra coverage such as uninsured motorist coverage and/or personal injury coverage, which can make your policy more expensive.
- The number of claims in the area from accidents or weather-related incidents: Typically, the more claims that are made in an area, the more expensive your insurance policy will be.
- Population or traffic density: The more people in an area, the more likelihood of accidents, which brings your rates up.
- Cost of living: The cost of vehicle repair and labor in your state can also affect how much your insurance rate is going to be.
If you're looking for auto insurance, our comparison tool — in partnership with Bankrate — will help you find the cheapest deals.
Car insurance rates by state
According to U.S. News & World Report, these are currently the cheapest, and most expensive, states for car insurance. It's hardly a surprise that the more sparsely populated states like Idaho, Maine and Vermont are the lowest for insurance, while busy urban centers top the insurance table.
Cheapest U.S. states for car insurance
- Maine: $1,359
- Idaho: $1,523
- Vermont: $1,451
- Ohio: $1,486
- Wisconsin: $1,689
- North Carolina: $1,673
- Indiana: $1,725
- Iowa: $1,787
- Hawaii: $1,471
- Tennessee: $1,787
Most expensive U.S. states for car insurance
- Louisiana: $3,810
- Florida: $3,034
- Delaware: $2,658
- Kentucky: $2,874
- Missouri: $2,665
How to save on car insurance costs
- Shop around: Since different car insurance companies calculate rates differently, it’s important to shop around for the best deal among popular car insurance companies. Requesting quotes from various companies can help you choose the cheapest option available to you at your desired level of coverage. Plus, comparing quotes and reshopping your car insurance can also give you insight into whether or not you’re overpaying for your current coverage.
- Take advantage of insurance discounts: To save on auto insurance, be sure to take advantage of additional discounts offered by your insurance company that can help you save on your rate. Safe driving discounts, good student discounts and multiple policy discounts are some of the most common.
- Improve your credit: Since many car insurance companies use your credit score as a way to determine your rates, (with a few states as exceptions) having a high credit score can help you save.
- Increase your deductibles: Another way to save on car insurance is by increasing your deductibles. Just make sure you keep them at an affordable amount, in case you get in an accident and have to pay. Since your out-of-pocket expense goes up in the case of an accident, your premium will therefore be lower.
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