Car insurance rates by state in 2024

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The national average rate for full coverage car insurance is $1,895, but how much you’ll pay depends largely on where you live. The state you reside in is one of the biggest factors influencing the price of your auto insurance premium.

Louisiana is the most expensive state for car insurance with an average auto insurance premium of $2,883 annually. Maine’s average insurance premium for full coverage is $1,175 annually, making this the cheapest state for car insurance in 2024.

Below is the detailed list of the top 10 most and least expensive states for car insurance, along with their rates.

Key Takeaways

Maine is the cheapest state for car insurance at $1,175 annually, or $97 monthly, for a full coverage policy.

Louisiana is the most expensive state for car insurance at $2,883 annually for a full coverage policy.

Car insurance premium spikes have been attributed to inflation, weather and accident claims, poor driving habits and population density.

How much car insurance costs by state

Behind Louisiana, Florida, California, Colorado and South Dakota followed as the most expensive states in the country for auto insurance. 

In general, rates have increased due to inflation affecting the cost of parts and repairs, but other factors that spike car insurance rates include higher population, crime rates and weather trends. Additionally, more uninsured drivers and costly lawsuits always push up premiums.

Rates in Louisiana have seen a significant increase this year, with a $189 difference between the Pelican State and Florida, the second-most expensive state for full coverage car insurance. Louisiana’s rates have ticked to the top of the list mainly due to inflation and national car insurance premium hikes.

“If driving in one state is more dangerous than another, insurance companies will charge higher rates for their policies,” says Jim Brau, Joel C. Peterson professor of finance at Brigham Young University’s Marriott School of Business. 

When it comes to the most affordable car insurance full coverage premiums, Maine has the cheapest rates in 2023. New Hampshire came in second, followed by Vermont, Ohio and Idaho.

In Maine, the average full coverage premium is $1,175 annually, 38% less than the national average of $1,895. With a lower population density and fewer car insurance claims, Maine residents benefit from more affordable car insurance options. 

The most expensive states for car insurance

According to data analysis by Insure.com, Louisiana tops the list of most expensive states for car insurance in 2024 with an average annual premium of $2,883, followed closely by Florida at $2,694 and California at $2,416.

Other high-cost states include Colorado and South Dakota, with averages of $2,337 and $2,280, respectively.

The cheapest states for car insurance

While car insurance rates are increasing across the country, residents in some states still get to enjoy affordable prices — for now. Residents of Maine, New Hampshire and Vermont see the cheapest rates across the country.

The cheapest state for car insurance: Maine

The average premium in the Pine Tree State is $1,175. 

“Maine’s historically low auto insurance losses have helped to keep premiums low, as has the state’s competitive auto insurance market,” says Judi Watters, consumer outreach specialist with the Maine Bureau of Insurance. 

Low density and plenty of insured drivers help drive low insurance rates. Maine ranks 42nd for population density, leading to fewer accidents and claims when compared to our most expensive states.

New Hampshire and Vermont follow at average annual premiums of $1,265 and $1,319, respectively.

How have car insurance rates changed over the past two years?

Car insurance rates saw an uptick in 2023 — more than 19% from 2022, according to analysis from the U.S. Bureau of Labor Statistics. While inflation impacts the cost of repairs and parts, medical and insurance claims have also increased since the pandemic as noted in a recent study by the American Property Casualty Insurance Association (APCIA). 

Pennsylvania, South Dakota and Ohio all had increases of more than 40% from 2022 to 2023. See more year-over-year increases in the chart below.

Factors impacting the top five most expensive states for car insurance

1st most expensive state: Louisiana sees rate hikes by state regulators

Louisiana saw an average premium increase of 14% in 2023, jumping $348 from 2022 to 2023, from $2,535 to $2,883 for full coverage car insurance. Rates in Louisiana increased a whopping 73% from 2019.

While the Pelican State has been in the top three most expensive states for car insurance since 2017, it rose to first place this year for several reasons. 

State regulators approved Louisiana car insurers to increase rates across the board in August 2023. According to Insurance Commissioner Jim Donelon, significant rate increases have been seen as inflation impacts increase the cost of parts and labor. 

Additionally, Louisiana has statistically high numbers of uninsured and underinsured drivers. In a 2019 report, the state had an estimated 11.7% uninsured driver rate. This high percentage creates an increased risk of lawsuits and uninsured motorist claims, which will cause car insurance rates to spike. 

2nd most expensive state: Florida’s high-risk drivers and weather-related claims raise premiums 

Florida drops from the most expensive state for car insurance to the second-most expensive in 2024 — with Louisiana seeing $189 more annually than the Sunshine State. The average 2023 premium for full coverage in Florida was up 4%, or $111, from $2,583 in 2022 to $2,694 annually. 

Florida is no stranger to high car insurance premiums. The state sits in “hurricane alley” — a prime location for consistent high winds, flooding and property damage. Weather-related claims from hail and water damage in Florida led to substantial underwriting losses, which caused premiums in Florida to spike. Some insurers left the market altogether. 

With 12 universities, an enrollment of more than 300,000 students, and many more colleges and trade and art schools, there are a lot of young drivers on the road in the state. This poses a high risk for accidents and claims, which increases car insurance premiums. 

Florida also has a high number of uninsured drivers on the road: more than 20%. This is one of the highest rates in the country for uninsured drivers, 9% less than Mississippi’s 29% — the highest rate for uninsured motorists in the U.S. 

3rd most-expensive state: California sees state-approved rate increases and insurer policy approval slow down 

California’s insurance premiums climbed from an annual average of $2,110 in 2022 to $2,416 in 2023, making the state the top three most expensive in the country for full coverage car insurance. This 15% increase can be attributed to state-mandated car insurance changes, car insurance company processes and inflation increases in auto parts and labor services.

In 2023, the state insurance department approved 111 car insurance rate increases. Residents also saw a slowdown in new car insurance approvals as California auto insurers aimed to stem losses by discouraging, delaying and denying customer access to insurance, according to California Insurance Commissioner Ricardo Lara. 

Nearing the end of 2023, Lara said that the “insurers’ passive-aggressive tactics are unacceptable, dangerous, and will not be tolerated.” The state Insurance Commissioner’s office will continue to monitor insurers’ processes and take action against them if laws are not being followed. 

4th most-expensive state: Colorado rates increase 29% with inflation, poor driving habits and legality issues

Coloradans are seeing hikes in their car insurance premiums due to a perfect storm of rising costs, risky driving behaviors and murky car insurance policy laws. Rising 29% to an average annual rate of $2,337 from $1,807 — Colorado drivers saw an increase of $530 full coverage insurance in 2023. 

According to the Rocky Mountain Insurance Association, insurance rates have seen a 53% increase over the past decade, and recent hikes in costs can be attributed to inflation, higher claims and legal factors. The report highlights a sharp 40% increase in bodily injury claim severity between 2018 and 2022, attributed to medical inflation, legal system abuse and a rise in fatalities. 

Additionally, legal transparency and clarity in insurance policies are needed as policyholders have double-dipped on medical payment coverages and lawsuits have followed some market-based incidents. These factors also impact premium increases.

5th most-expensive state: South Dakota rates rise 47% as accidents and claims see a sharp uptick

In 2023, South Dakota full coverage car insurance premiums nearly doubled, from $1,553 to $2,280 annually. This sharp increase can be attributed to rising inflation costs, increased road accidents and claims and more driving miles. 

State Farm Agent Ryan Reiner recently stated to Dakota News Now the state has seen more drivers on the road since 2020, which is causing an uptick in accidents. These claims, mixed with inflation increasing the cost of labor and parts, contribute to the increase in insurance premiums. Additionally, some insurers are increasing their rates for driving miles — a 7% to 8% increase from 7,500 miles to 10,000 miles per year, Reiner says.

The most expensive states for liability-only car insurance

Liability-only insurance provides bare-bones liability coverage. Drivers can add additional coverage options to their policy to ensure their vehicle and health are covered during an accident. Before opting for additional protections, you should know how your state ranks for liability-only car insurance. 

Find out which states ranked the highest for the most expensive liability-only car insurance below. 

1. Florida: $1,629 annually

2. Louisiana: $1,266 annually

3. Nevada: $1,042 annually

4. Delaware: $1,022 annually

5. South Dakota: $925 annually

Most expensive liability-only rates by state

Cheapest states for liability-only car insurance

Some states have much lower liability-only car insurance than others. Residents of Iowa, Vermont and Wyoming see the cheapest rates nationwide for liability-only policies with limits of 50/100/50.

1. Iowa: $320

2. Vermont: $324 

3. Wyoming: $331 

4. South Dakota: $338

5. Maine: $341

Most expensive states for state minimum liability-only car insurance

Nearly every state requires drivers to carry a minimum amount of car insurance coverage — typically liability-only. This type of car insurance generally provides both bodily injury and property damage coverages for other drivers should you be involved in a car accident. 

The priciest states for state-minimum-only car insurance:

1. Florida: $993 annually
2. New Jersey: $853 annually
3. Delaware: $788 annually
4. New York: $731 annually
5. Maryland: $727 annually

While this insurance is mandatory, it often doesn’t cover the full financial obligations resulting from an accident. Find out which states have the most expensive liability-only car insurance below. 

Cheapest states for state minimum liability-only car insurance

Iowa, Wyoming, Vermont, South Dakota and Nebraska residents pay the least for the state minimum car insurance in the U.S. Find the cheapest states for liability-only car insurance below. 

The cheapest states for state-minimum-only car insurance:

1. Iowa: $260 annually
2. Wyoming: $288 annually
3. Vermont: $306 annually
4. South Dakota: $307 annually
5. Nebraska: $331 annually

Why do car insurance costs vary by state?

Each state has regulations regarding premiums determined by certain factors such as population density, weather and driving incident data. When looking at driving data, insurance companies consider what collision and claims records state and identify risk areas and prices accordingly. There are also state-mandated insurance laws that insurance companies must abide by and provide insurance coverage options for. These can vary in cost. 

For example, some states are tort states — where the at-fault driver’s insurance pays for the other driver’s injuries and property damage. On the other hand, some states are no-fault states — where your insurance pays for your medical costs when you’re involved in an accident, regardless of who is at fault. 

What your state requires you to carry coverage for — liability minimum, medical coverage or personal injury protection (PIP) — can impact insurance premiums.

Which states don’t require car insurance?

All U.S. states except New Hampshire require drivers to carry some form of coverage. Drivers in the Granite State are not mandated to carry car insurance. Still, they must prove they have sufficient funds to meet the state’s financial responsibility requirements should they be in an accident. Additionally, Virginia drivers can opt out of the state’s insurance requirements if they pay the uninsured motorist fee annually. They will still be responsible for at-fault accident damages. 

How can moving states affect your car insurance premiums?

Relocation has been trending for several years as more people seek new opportunities and affordable living. However, it’s important to consider how your car insurance could be impacted when setting up a new life in a new state. 

Before you pack the moving truck, calculate the cost of living in your soon-to-be new home state. Knowing how your everyday expenses will vary from ZIP code to ZIP code and how much you can anticipate spending (or saving!) on home and car insurance is valuable. 

Typically, car insurance rates are partially based on an area’s claims history — thefts, break-ins, accidents — and crime rates in your new hometown help determine car insurance premiums. It will also help to consider your potential commute and how that may impact your premium (or provide a low-mileage discount!).

How to save money on auto insurance rates in any state

One easy way to find cheap car insurance in your state is to ask your insurance company about available discounts. Here are several common cost-saving discount options:

• Receive a good or safe driver discount by keeping your driving record clear of any violations or accidents.
• Purchase your home, auto and life insurance policies from the same insurance company to bundle your premiums and save.
• Students can receive good student discounts for good grades. 
• Sign up for online statements and automatic bill pay often discounts a small amount from your monthly bill. 
• Drivers who travel less than 10,000 miles can apply for a low-mileage discount. 
• Take courses, such as defensive driving or training classes, to earn a safe driver discount.

What our expert says

Q: Why do car insurance rates vary so much from state to state?

Dr. James BrauJoel C. Peterson Professor of Finance Brigham Young University

It all comes down to risk. If driving in one state is more dangerous than another, insurance companies will charge higher rates for their policies. For example, suppose most of the population in one state lives in a very large city where there are relatively more wrecks and thefts. In that case, insurance rates will be higher than in another state where maybe there aren’t as many people and the rural areas don’t have these problems as much.

Methodology

Insure.com editors in 2023 collected rates from Quadrant Information Services for a 40-year-old driving a Honda Accord LX with a good insurance score and no violation on record with a 12-mile commute and 10,000 annual mileage. We analyzed 51,088,003 records, 34,588 ZIP codes and 167 insurance companies nationwide.

Katrina Raenell

Contributing Researcher

 

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Katrina Raenell is a writer, editor and educator with 20 years of experience in content and communications for international organizations, nonprofits and start-ups. In her previous roles, she was a communications manager for study abroad, content project manager for higher education and finance websites, reported on arts and culture, and was a managing editor for an online health and wellness publication.