Auto insurance rates by state
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One of the primary factors used in car insurance pricing is location. Average car insurance rates by state tend to vary based on legal regulations and insurance companies’ efforts to price accurately based on these differences.
For instance, drivers in no-fault states such as Michigan and Florida often pay more for insurance than do drivers in other areas of the country. Dive into the details and compare auto insurance rates by state below!
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What are the cheapest states for car insurance?
The states with the most affordable car insurance rates are Maine, North Carolina, and Virginia. Each of these East Coast states boasts average annual auto insurance rates that are more than 53% lower than the national average of $1,548. Despite this, drivers in Maine, Virginia, and North Carolina endured year-over-year insurance rate increases. The state that saw the largest decrease in average insurance rates this year was Texas, at 23%.
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10 CHEAPEST STATES FOR AUTO INSURANCE
State | 2020 Average Annual Rate | Change vs. 2019 Rate |
$935 | +4.39% | |
$954 | +0.82% | |
$1,005 | +9.52% | |
$1,037 | -6.11% | |
$1,045 | -3.31% | |
$1,046 | +1.45% | |
$1,106 | +11.98% | |
$1,155 | +7.51% | |
$1,164 | +14.35% | |
$1,164 | +1.28% | |
$1,548 | +5.31% |
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In general, less-dense states — and those with drivers qualifying as low-risk — enjoy the cheapest car insurance rates. Many of America’s most affordable car insurance states are low-density locales such as Idaho, Utah, Maine, Vermont, and Iowa. The cheapest US region for car insurance is New England ($1,305 per year), followed closely by the Great Plains ($1,449).Â
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What are the most expensive states for car insurance?
The states with the highest auto insurance rates are Michigan, Louisiana, and Florida. Two of these states — Michigan and Florida — are no-fault car insurance states, meaning every driver involved in an incident pays for their own injuries and damages.
In states with no-fault laws, car insurance companies raise rates to account for the added financial risk they bear. Louisiana’s rates are atypically expensive due to its high number of uninsured drivers and its tendency to sustain damages via floods and hurricanes.
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10 MOST EXPENSIVE STATES FOR AUTO INSURANCE
State | 2020 Average Annual Rate | Change vs. 2019 Rate |
$1,548 | +5.31% | |
$1,757 | +4.48% | |
$1,786 | +14.55% | |
$1,802 | -1.37% | |
| California | $1,868 | +2.92% |
$1,973 | +3.06% | |
$2,102 | -0.35% | |
$2,208 | +16.35% | |
$2,309 | +12.15% | |
$2,378 | +1.7% | |
$3,096 | +14.97% |
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Delaware and Rhode Island drivers were among the lucky few Americans to receive a small price break on insurance over the past year, while others faced increases by as much as over 16%. Colorado and Oklahoma made their first appearances among the most expensive states, supplanting Texas and New York from the previous year.Â
The priciest US region for auto insurance was the Far West, with California and Nevada among the most expensive states.
Many elements lead to a state’s average insurance rates being expensive, with key factors including:
- No-fault insurance laws
- Large numbers of uninsured drivers
- High numbers of claims (via the number of vehicles on the road or natural disasters)
Car insurance rates are set based on a variety of rating factors, including age, gender, profession, driving history, credit score, coverage level, and specific location.
Use The Zebra's auto insurance rate engine to get more specific than car insurance by state and find an insurance policy today!
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Moving to a new state? Compare auto insurance rates:
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Arizona
the Grand Canyon State
California
the Golden State
Colorado
the Centennial State
Connecticut
the Constitution State
Florida
the Sunshine State
Georgia
the Peach State
Illinois
the Prairie State
Indiana
the Hoosier State
Kansas
the Sunflower State
Michigan
the Great Lakes State
Missouri
the Show Me State
Nevada
the Silver State
New Jersey
the Garden State
New York
the Empire State
North Carolina
the Tar Heel State
Ohio
the Buckeye State
Oklahoma
the Sooner State
Oregon
the Beaver State
Tennessee
the Volunteer State
Texas
the Lone Star State
Utah
the Beehive State
Virginia
the Old Dominion State
Washington
the Evergreen State
