Car Insurance Rates by State

How where you live impacts auto insurance rates

One of the primary factors used in car insurance pricing is location. Average car insurance rates by state may vary based on regulations and insurance companies’ efforts to set prices 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.

Review our data below to get a rough idea of how much you might pay for car insurance based on your location. If you want a more accurate picture of your costs, get car insurance quotes online.

Table of contents:

1. Car insurance rates by state
2. The cheapest states for car insurance
3. The most expensive states for car insurance
4. State-by-state car insurance minimums
5. How to handle insurance when moving to a new state

Average car insurance rates by state

See below an alphabetical list of U.S. states with corresponding average monthly car insurance costs. Learn more about our methodology.

Which U.S. states have the cheapest car insurance?

The states with the most affordable car insurance rates are Ohio, New Hampshire and North Carolina. Each of these eastern states boasts average auto insurance rates at least 40% lower than the national average of $124 per month. The state that enjoyed the largest decrease in average insurance rates over the past year was Michigan, at 18%.

10 CHEAPEST STATES FOR AUTO INSURANCE

Most states — even the most expensive locations for car insurance — observed decreases in insurance costs than increases. Arkansas and Louisiana drivers were among the unlucky few Americans to receive a small price hike on insurance over the past year, while others faced decreases of as much as 18%. New York and Arkansas made their first appearances among the most expensive states, supplanting Oklahoma and Delaware.

The priciest region in the U.S. for auto insurance was the Far West, with California and Nevada among the most expensive states.

Many factors lead to a state’s average insurance rates being expensive.

Key factors include:

• 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 record, credit score, coverage level and specific location.

State minimum requirements for auto insurance

Insurance is regulated at the state level, so each state carries its own set of requirements for the minimum coverage you are legally obligated to hold as a driver. These requirements include limits for bodily injury liability (BI), property damage (PD), uninsured/underinsured motorist coverage (UM/UIM), and personal injury protection (PIP). Almost every state requires some level of bodily injury protection and property damage, but requirements for UM/UIM and PIP vary. Check out the table below to find your state’s minimum insurance requirements.

There are a few details to note regarding certain states and their coverage requirements. 

• In Kansas, in addition to PIP requirements, drivers can get up to $900 per month for disability or loss of income, $25 a day for in-home services, $4,500 for rehabilitation and $2,000 for funeral or cremation costs.
• Maine, New Hampshire and Pennsylvania have medical payments coverage that operates like PIP.
• Michigan requires property protection insurance, which acts like PIP but for property damage, with limits of $1 million.
• Car insurance is not mandatory in New Hampshire, but if you opt into insurance, the table above lists the minimum requirements.
• The state of New York has an additional $50,000 per person and $100,000 per accident in the event of death in that accident.
• The following states also have underinsured motorist insurance in addition to uninsured motorist coverage: Connecticut, Kansas, Minnesota, New Hampshire, Washington D.C., North Dakota and South Dakota.

How to handle car insurance when moving to a new state

If you’re moving from one state to another, car insurance might be low on your list of logistical issues. However, if you want to carry continuous coverage — and stay insured against the threat of costly damages — you need to modify your auto insurance when moving, whether in- or out-of-state.

A guide to car insurance and moving between states

You'll need to update your car insurance policy when moving for two reasons: state regulations and location-specific pricing.

State insurance laws

If you’re moving from one state to another, you must update your car insurance policy. Because car insurance is regulated at the state level, your policy needs to be written to accommodate the laws in your new home state.

If you were to move from California to Texas, your insurance coverage requirements would change. California has minimum coverage levels of $15,000 per person (bodily injury coverage), $30,000 per accident (bodily injury coverage), and $5,000 per property damage accident. Texas’ minimum coverage levels are much higher: $30,000 per person and $60,000 per accident for bodily injury coverage, and $25,000 for total property damage.

Due largely to the difference in coverage requirements, the difference between average auto insurance premiums in California and Texas is approximately $5 per month (more than $60 per year).

Additionally, your premiums and insurance policies may change if you move to or from a no-fault state. No-fault insurance requires that all drivers pay for their own medical bills associated with any claim. While damages to your vehicle or property are covered by the at-fault party, any bodily injury losses would not. In theory, this eases the burden on small claims courts and the healthcare system.

If you move to a no-fault state, you’ll be required to add personal injury protection. Personal injury protection (PIP) provides coverage for medical expenses and work loss protection for you and your passengers — regardless of fault. The amount of PIP coverage required varies by state.

The following states are no-fault: Florida, Hawaii, Kansas, *Kentucky, Massachusetts, Michigan, Minnesota, New Jersey, *New York, North Dakota, *Pennsylvania and *Utah.

*In Kentucky, New York, Utah, and Pennsylvania, you may elect to participate in no-fault coverage.

Location-specific car insurance pricing

The pricing system of car insurance makes it imperative to update your policy when moving — whether you're planning an inter- or intrastate move. Your auto insurance premium is made up of myriad factors, including your location — down to your ZIP code. Location is a primary rating factor, meaning it goes a long way toward determining your rate.

Living near a coastline or beach can raise your rates, as your vehicle could be more susceptible to flooding or hurricane damage. This is also true for areas with higher population densities, as you could be more likely to get into an accident in these areas. Instances of theft and vandalism could be more common in higher-density areas as well.

How to change car insurance when moving out of state

This process may change depending on the state to which you're moving. If you move to a state in which your current insurance company writes policies, the simplest option is to call a representative at your car insurance company and have a new policy written for your new state.

However, this isn’t always the cheapest solution. Even if you maintain a policy with the same company, your rates are likely to change, for better or worse. Your best option is to shop around and get car insurance quotes prior to your move, finding the company with the cheapest insurance rates in your new residence.

Even if looking for a new car insurance policy isn’t very high on your moving to-do list, it’s still hugely important. If you’re looking to save time and energy in this process, have the following ready before you start shopping.

• Personal information of all drivers, including driver's licenses, date of birth, and residence — if different from yours.
• Your address in your new state
• Driving history of all drivers on the policy
• Desired insurance coverage
• Insurance history
• Average annual mileage
• Vehicle information: This includes the vehicle identification number (VIN), date of purchase, and if the vehicle is leased, financed or owned

This won’t be all the information you need to get a quote, but it will help give you the most accurate rates as quickly as possible.

If you’re moving within your state, you will still need to update your car insurance. Car insurance is priced by ZIP code, so even moving to a new neighborhood can impact rates. Be sure to call your insurer to inform the company of your new address.

How to update your registration when moving states

Vehicle registration is handled through each state's department of motor vehicles (DMV). In many cases, you can submit your driver’s license (don't forget to get that updated), proof of insurance, and vehicle title information to the DMV online. From there, your state-specific plates and registration documents will be mailed to you.

Changing your registration could be a more involved process, depending on your state's rules. Check your new state’s DMV page for details and required documentation.

Additional resources and methodology

The big takeaway for car insurance when moving from one state to another is to shop around and compare rates. Because your rates will be impacted by different rating factors in your new state (such as coverage and claims history), you will have a different premium and an entirely new policy. Use this opportunity to compare car insurance premiums from as many insurers as possible.

The Zebra's rate methodology is based on our annual State of Auto Insurance analysis, using a standard driver profile: a 30-year-old single male driver of a Honda Accord.

State comparisons for auto insurance rates