Car insurance rates by state vary, depending on your zip code and the level of risk in your area. Some cities with higher populations are at a greater risk of car accidents, which can lead to higher rates.
What Factors Affect Car Insurance Rates?
Car insurance rates vary, depending on many factors including:
- Location
- Age
- Vehicle type
- Driving history
Location has a significant effect on your insurance rates. This includes not only your state but also your zip code. This is due to the fact that each city has its own level of risk, which is determined by the number of car accidents and theft claims in the area. Also, if you live in an area that is at risk of weather-related damages, like floods or hurricanes, you can expect to pay a higher insurance premium.
Car Insurance Rates By State
Because different states have different laws, you can expect rates to vary significantly. Each state has different requirements for minimum coverage, which can lead to a big difference between rates. According to Insure.com, you can expect an average insurance rate of the following:
- Alabama: Average annual rate of $435 (minimum) and $1513 (full)
- Alaska: Average annual rate of $467 (minimum) and $1388 (full)
- Arizona: Average annual rate of $482 (minimum) and $1517 (full)
- Arkansas: Average annual rate of $458 (minimum) and $1749 (full)
- California: Average annual rate of $611 (minimum) and $1974 (full)
- Colorado: Average annual rate of $510 (minimum) and $1720 (full)
- Connecticut: Average annual rate of $790 (minimum) and $1782 (full)
- Delaware: Average annual rate of $839 (minimum) and $1730 (full)
- Florida: Average annual rate of $948 (minimum) and $2587 (full)
- Georgia: Average annual rate of $640 (minimum) and $1746 (full)
- Hawaii: Average annual rate of $354 (minimum) and $1234 (full)
- Idaho: Average annual rate of $337 (minimum) and $1055 (full)
- Illinois: Average annual rate of $462 (minimum) and $1400 (full)
- Indiana: Average annual rate of $372 (minimum) and $1187 (full)
- Iowa: Average annual rate of $274 (minimum) and $1122 (full)
- Kansas: Average annual rate of $468 (minimum) and $1567 (full)
- Kentucky: Average annual rate of $738 (minimum) and $1850 (full)
- Louisiana: Average annual rate of $765 (minimum) and $2351 (full)
- Maine: Average annual rate of $312 (minimum) and $831 (full)
- Maryland: Average annual rate of $858 (minimum) and $1787 (full)
- Massachusetts: Average annual rate of $478 (minimum) and $1399 (full)
- Michigan: Average annual rate of $1219 (minimum) and $2105 (full)
- Minnesota: Average annual rate of $625 (minimum) and $1622 (full)
- Mississippi: Average annual rate of $482 (minimum) and $1719 (full)
- Missouri: Average annual rate of $688 (minimum) and $1955 (full)
- Montana: Average annual rate of $316 (minimum) and $1365 (full)
- Nebraska: Average annual rate of $389 (minimum) and $1329 (full)
- Nevada: Average annual rate of $836 (minimum) and $1903 (full)
- New Hampshire: Average annual rate of $427 (minimum) and $1137 (full)
- New Jersey: Average annual rate of $912 (minimum) and $1763 (full)
- New Mexico: Average annual rate of $370 (minimum) and $1374 (full)
- New York: Average annual rate of $1295 (minimum) and $2498 (full)
- North Carolina: Average annual rate of $444 (minimum) and $1378 (full)
- North Dakota: Average annual rate of $349 (minimum) and $1211 (full)
- Ohio: Average annual rate of $320 (minimum) and $998 (full)
- Oklahoma: Average annual rate of $445 (minimum) and $1741 (full)
- Oregon: Average annual rate of $578 (minimum) and $1281 (full)
- Pennsylvania: Average annual rate of $374 (minimum) and $1372 (full)
- Rhode Island: Average annual rate of $790 (minimum) and $2066 (full)
- South Carolina: Average annual rate of $537 (minimum) and $1568 (full)
- South Dakota: Average annual rate of $314 (minimum) and $1597 (full)
- Tennessee: Average annual rate of $358 (minimum) and $1281 (full)
- Texas: Average annual rate of $708 (minimum) and $1974 (full)
- Utah: Average annual rate of $536 (minimum) and $1301 (full)
- Vermont: Average annual rate of $314 (minimum) and $1123 (full)
- Virginia: Average annual rate of $398 (minimum) and $1136 (full)
- Washington: Average annual rate of $408 (minimum) and $1305 (full)
- Washington D.C.: Average annual rate of $638 (minimum) and $1810 (full)
- West Virginia: Average annual rate of $518 (minimum) and $1631 (full)
- Wisconsin: Average annual rate of $330 (minimum) and $1049 (full)
- Wyoming: Average annual rate of $264 (minimum) and $1335 (full)
These rates will vary, depending on specific zip codes, age, driving record, and in some cases, gender. Some states also factor in credit scores, but it is usually not as important of a factor than the others.
Most Expensive States for Car Insurance
According to The Zebra, the most expensive states for car insurance coverage are Michigan, Florida, and Louisiana. Michigan and Florida are no-fault auto insurance states. This means if you’re in a car accident, your own insurance company will cover your damages. Many drivers in a no-fault state are also required to carry personal injury protection (PIP). This can result in higher rates. Other no-fault states include New Jersey, New York, Pennsylvania, Hawaii, Kansas, Kentucky, Massachusetts, Minnesota, North Dakota, and Utah.
Michigan has consistently had the highest rates year after year. Their rates can be as high as 90 percent over the national average. Other expensive car insurance states include Rhode Island, Kentucky, and California.
Cheapest State for Car Insurance
The cheapest states for car insurance include Ohio, New Hampshire, and North Carolina. These rates can be as low as 40 percent cheaper than the national average. The cheapest states for car insurance usually have a smaller population, which can mean fewer claims.
Other cheap states for car insurance include Virginia, Vermont, and Wisconsin. New Hampshire is different than the other states in that it is the only U.S. state to not require car insurance. Drivers can show that they have funds to cover a car accident, rather than buying car insurance.
While you may not be able to change your location to get better insurance rates, you can improve your driving record. You can also shop around to find the best rates, as different providers often have significantly different rates.
Check this out if you need additional information, resources, or guidance on car insurance.
Sources:
Car insurance rates by state, 2020 edition
How where you live impacts auto insurance rates
Can You Negotiate Car Insurance: Everything You Need to Know
Full Coverage Auto Insurance in Michigan
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