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The state you live in has a significant impact on the price you pay for car insurance. Rates can vary by hundreds or even thousands of dollars, depending on what state you live in.
Factors That Affect Car Insurance Rates
Car insurance companies use a variety of factors to calculate your insurance rates. These include your driving record, age, and what type of vehicle you drive. Your ZIP code is another significant factor. Each ZIP code poses a certain amount of risk to your insurance provider. Areas with more accidents, vandalism, and auto thefts are riskier than others.
Each state, as Bankrate notes, has its own requirements when it comes to how much insurance drivers need to carry. While your insurance company won’t let you purchase less than your state’s minimum requirements, it’s still a good idea to know how much insurance your state requires you to have. Unfortunately, your state’s minimum requirements probably aren’t enough to cover the costs of a serious accident. If the costs of an accident exceed your coverage, you’ll end up having to pay the rest out of pocket.
According to Bankrate, the following is what drivers can expect to pay annually, on average, for minimum and maximum coverage in each state:
- Alabama: $435 minimum/$1513 maximum
- Alaska: $467 minimum/$1388
- Arizona: $482 minimum/$1517 maximum
- Arkansas: $458 minimum/$1749 maximum
- California: $611 minimum/$1974 maximum
- Colorado: $510 minimum/$1720 maximum
- Connecticut: $790 minimum/$1782 maximum
- Delaware: $839 minimum/$1730 maximum
- Florida: $958 minimum/$2587 maximum
- Georgia: $640 minimum/$1746 maximum
- Hawaii: $354 minimum/$1234 maximum
- Idaho: $337 minimum/$1055
- Illinois: $462 minimum/$1400 maximum
- Indiana: $372 minimum/$1187 maximum
- Iowa: $274 minimum/$1122 maximum
- Kansas: $468 minimum/$1567 maximum
- Kentucky: $738 minimum/$1850 maximum
- Louisiana: $765 minimum/$2351 maximum
- Maine: $312 minimum/$831 maximum
- Maryland: $858 minimum/$1787 maximum
- Massachusetts: $478 minimum/$1399 maximum
- Michigan: $1219 minimum/$2105 maximum
- Minnesota: $625 minimum/$1622 maximum
- Mississippi: $482 minimum/$1719 maximum
- Missouri: $688 minimum/$1955 maximum
- Montana: $316 minimum/$1365 maximum
- Nebraska: $389 minimum/$1329 maximum
- Nevada: $836 minimum/$1903 maximum
- New Hampshire: $427 minimum/$1137 maximum
- New Jersey: $912 minimum/$1763 maximum
- New Mexico: $370 minimum/$1374 maximum
- New York: $1295 minimum/$2498 maximum
- North Carolina: $444 minimum/$1378 maximum
- North Dakota: $349 minimum/$1211 maximum
- Ohio: $320 minimum/$998 maximum
- Oklahoma: $445 minimum/$1741 maximum
- Oregon: $578 minimum/$1281 maximum
- Pennsylvania: $374 minimum/$1372 maximum
- Rhode Island: $790 minimum/$2066
- South Carolina: $537 minimum/$1568 maximum
- South Dakota: $314 minimum/$1597 maximum
- Tennessee: $358 minimum/$1281 maximum
- Texas: $708 minimum/$1974 maximum
- Utah: $536 minimum/$1301 maximum
- Vermont: $314 minimum/$1123 maximum
- Virginia: $398 minimum/$1136 maximum
- Washington: $408 minimum/$1305 maximum
- Washington, D.C.: $638 minimum/$1810 maximum
- West Virginia: $518 minimum/$1631 maximum
- Wisconsin: $330 minimum/$1049 maximum
- Wyoming: $264 minimum/$1335 maximum
As Insure.com points out, your rates may be higher or lower than the listed state average, based on age, driving record, and other personal details. However, you can use these ranges to determine whether you’re being quoted reasonable rates.
The 10 Cheapest States for Car Insurance
Coverage.com notes that insurance rates vary from state to state because insurance companies factor in characteristics like population and weather. Drivers who live in highly populated states or extreme weather conditions are riskier to insure, so they pay higher rates. On the flip side, drivers who live in states with lower populations and calmer weather often pay less for car insurance. Here are the 10 cheapest states for car insurance and the characteristics that make them so affordable:
- Maine: Only 4.5 percent of Maine drivers don’t have car insurance.
- Ohio: Several insurance companies are located in Ohio, meaning there’s more competition among providers.
- Wisconsin: As a primarily rural state, Wisconsin has fewer drivers on the road, meaning there’s less risk for accidents.
- Idaho: Idaho is a rural state with very few drivers on the road and experiences relatively mild weather.
- Iowa: Except for its tornado season, Iowa is another state with mild weather. It also has a low number of uninsured drivers.
- Vermont: Vermont is the country’s second-most rural state, and it has very few uninsured drivers.
- Virginia: While Virginia is a fairly populous state, it doesn’t experience natural disasters or extreme weather very often.
- New Hampshire: New Hampshire is one of the few states that doesn’t require residents to purchase car insurance. Insurance companies offer New Hampshire drivers lower rates as a way to encourage business.
- Indiana: Because Indiana is another state with a low population, but with many insurance companies operating in the state, providers offer Indiana drivers competitive rates.
- North Dakota: North Dakota has fewer drivers on the road and a low number of uninsured drivers.
The 10 Most Expensive States For Car Insurance
Coverage.com also provides a breakdown of the 10 most expensive states for car insurance and the reasons they’re so expensive:
- Florida: Hurricanes and flooding are common in Florida, which means that Florida drivers file more comprehensive auto insurance claims. Florida also has the highest number of uninsured drivers in the country.
- New York: As a no-fault state, New York’s car insurance rates automatically increase. No-fault insurance fraud is a common crime in New York and insurance companies pass those costs on to consumers.
- Louisiana: Like Florida, Louisiana experiences lots of extreme weather and has a high number of uninsured drivers.
- Michigan: Because Michigan is a no-fault state, Michigan drivers have to carry personal injury protection coverage. Michigan also requires drivers to purchase unlimited lifetime medical benefits, which is quite costly.
- Rhode Island: Car insurance rates are high in Rhode Island because the state is one of the most expensive for car repairs.
- California: Millions of drivers live in California, usually in densely populated cities, which increases the chance of an accident.
- Texas: Like California, Texas has millions of drivers who live in cities. It also experiences extreme weather.
- Missouri: Drivers in Missouri pay higher rates because the state has a high number of uninsured drivers and a high rate of fatal accidents.
- Nevada: Clark County and Las Vegas are densely populated, causing increased rates.
- Kentucky: Because Kentucky is a no-fault state, drivers have to carry more coverage.
No matter what state you live in, your personal driver profile will have as much of an impact on your car insurance rates as that state’s population and weather. Be sure to check with your insurance provider to see if you can qualify for discounts to help lower your rates.
Check this out if you need additional information, resources, or guidance on car insurance.
Sources:
Car insurance rates by state, 2020 edition
Car insurance rates by state for 2021
Do Insurance Rates Go Up After a No-Fault Accident?
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