States with Highest and Lowest Car Insurance Rates

Free Wheeling

Despite tightening restrictions around the coronavirus in some areas of the country, many people are returning to some semblance of normalcy. Maybe you’re back to commuting to work or finally taking that long-awaited road trip. As traffic patterns shift back toward pre-pandemic levels, you may wonder what that means for car insurance — but to start with you need to know where insurance is already the most and least expensive. These average insurance premiums were obtained by WalletHub.

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Most Expensive States

Car insurance prices vary based on a number of factors, including a driver’s age, gender, and driving history. Regardless of these factors, you’re still likely to pay more in certain states — places that tend to have a few commonalities. Many have a higher cost of living overall, which affects health care and auto repair costs, and higher population densities that make accidents more likely. Having more uninsured drivers on the road drives up costs as well; companies have to pay out or require higher amounts of uninsured motorist coverage that makes for higher bills for insured drivers. Finally, some states are considered “no-fault,” which means drivers must file with their own insurance company even if not at fault in an accident. Many no-fault states also require drivers to carry personal injury protection to cover medical bills sustained in a car accident.

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Most Expensive State: Michigan

Average yearly premium: $1,908

Why insurance is so expensive:

No-fault state
Harsh winter weather and poor road conditions
High rates of uninsured drivers and fraudulent insurance claims

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49. New York

Average yearly premium: $1,828

Why insurance is so expensive:

No-fault state
More severe weather-related claims
High rates of uninsured drivers and fraudulent insurance claims
Rising health care costs
Expensive repairs
High overall cost of living
High population density

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48. New Jersey

Average yearly premium: $1,287

Why insurance is so expensive:

Rising repair costs, more drivers, higher health care costs, and more uninsured drivers on the road
Higher minimum insurance requirements than many other states
High overall cost of living
One of the highest population densities in the country

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47. Louisiana

Average yearly premium: $1,263

Why insurance is so expensive:

High number of uninsured or underinsured drivers
Low minimum insurance requirements
Increases in adverse weather such as flooding
Ranks among the worst drivers based onFriend, Levinson, & Turner data looking at such factors as DUIs, collision fatalities per capita, and percent of uninsured drivers

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46. Delaware

Average yearly premium: $1,133

Why insurance is so expensive:

Rising costs for health care, auto repairs, and more drivers on the road
Ranks among the worst drivers based on Friend, Levinson, and Turner data
High population density

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45. Nevada

Average yearly premium: $1,108

Why insurance is so expensive:

Relaxed alcohol laws and Las Vegas partyers
High rates of uninsured drivers coupled with more people on the road
Rising repair and health care costs

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44. Georgia

Average yearly premium: $1,095

Why insurance is so expensive:

High rates of uninsured motorists
Uninsured motorist coverage not required
High motor vehicle accident death rate per 100,000 residents

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43. Maryland

Average yearly premium: $1,069

Why insurance is so expensive:

High overall cost of living
High minimum liability coverage requirements
Uninsured driver and personal injury protection required
Rising cost of repairs and health care
More severe weather events

42. Connecticut

Average yearly premium: $1,027

Why insurance is so expensive:

Many expensive vehicles on the road mean higher coverage levels needed
High rates of uninsured drivers and more people on the road
Higher health care and repair costs
More likely to be affected by bad weather
Among the highest population densities

Sean Pavone/istockphoto

41. Virginia

Average yearly premium: $931

Why insurance is so expensive:

High rates of uninsured drivers
Rising costs for health care and repairs
Likelihood of more extreme weather events

Sean Pavone / istockphoto

Least Expensive States

In general, you can expect to see lower insurance premiums in states that are less populated. Fewer drivers on the road typically mean fewer accidents. Despite sometimes extreme winter driving conditions, many Midwestern states also rank among the cheapest due to their lower overall cost of living. Competitive insurance markets can also help drive down costs for consumers, as can high rates of insured drivers.

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