Every state has car insurance regulations that require drivers to purchase insurance before they hit the road. While the national average rate for a car insurance policy is $1,655 per year, the cost of insurance can vary depending on the state in which you live. In this article, discover the average amount you can expect to pay for car insurance by state, and learn about other factors that might impact your premium.
Average Car Insurance By State
Here are the average amounts you may expect to pay for full coverage car insurance by state, ranked from most to least expensive:
- New York: $2,996 per year
- Louisiana: $2,864 per year
- Florida: $2,762 per year
- Nevada: $2,426 per year
- Michigan: $2,345 per year
- California: $2,190 per year
- Colorado: $2,019 per year
- Pennsylvania: $2,002 per year
- Georgia: $1,985 per year
- Delaware: $1,963 per year
- Kentucky: $1,954 per year
- Washington D.C.: $1,948 per year
- Maryland: $1,931 per year
- Oklahoma: $1,902 per year
- New Jersey: $1,891 per year
- Texas: $1,868 per year
- Missouri: $1,861 per year
- Rhode Island: $1,847 per year
- Arkansas: $1,806 per year
- Kansas: $1,802 per year
- Montana: $1,795 per year
- Alaska: $1,770 per year
- Alabama: $1,760 per year
- Arizona: $1,743 per year
- Mississippi: $1,701 per year
- Minnesota: $1,692 per year
- Illinois: $1,548 per year
- South Dakota: $1,542 per year
- Nebraska: $1,538 per year
- Connecticut: $1,533 per year
- West Virginia: $1,527 per year
- Wyoming: $1,510 per year
- New Mexico: $1,489 per year
- South Carolina: $1,464 per year
- Utah: $1,449 per year
- North Carolina: $1,392 per year
- Tennessee: $1,383 per year
- Oregon: $1,371 per year
- Virginia: $1,340 per year
- Washington: $1,313 per year
- Massachusetts: $1,296 per year
- Iowa: $1,254 per year
- Wisconsin: $1,249 per year
- Indiana: $1,242 per year
- North Dakota: $1,225 per year
- Hawaii: $1,206 per year
- Ohio: $1,200 per year
- New Hampshire: $1,182 per year
- Idaho: $1,065 per year
- Vermont: $1,000 per year
- Maine: $876 per year
Factors That Influence State Average Car Insurance
There are a variety of reasons average car insurance rates differ so dramatically between states. Here are a few to consider.
Minimum State Insurance Requirements
Each state may have different requirements for what type of insurance it requires from drivers. There are five types of car insurance:
- Bodily Injury Liability
- Property Damage Liability
- Personal Injury Protection (PIP)
- Uninsured/Underinsured Bodily Injury
- Uninsured/Underinsured Property Damage
Most states require both bodily injury liability and property damage liability. Approximately half of states require uninsured or underinsured coverage for bodily injury or property damage, while approximately one quarter of states require PIP insurance. A state’s minimum coverage requirement can have a large impact on its average car insurance cost. States that require less coverage are likely to have lower average insurance costs than states that require more coverage.
The number of drivers in a state can also affect insurance costs, as can the percentage of uninsured or underinsured drivers. States with large populations concentrated in urban centers may be more likely to have high insurance rates, because more individuals concentrated on the road can increase the risk of an accident. Urban populations may also be more likely to experience theft or vandalism, which can increase their insurance rates accordingly. Similarly, the number of uninsured or underinsured drivers can increase the risk of an accident, driving insurance rates up.
The driving conditions in your state can also affect insurance rates. For example, if you live somewhere with extreme weather, your car insurance rates might be higher than those for drivers in states where the weather is more temperate. Ice that causes slippery roads or hail that damages cars can contribute to insurance hikes.
Road conditions can also affect collision risk and, therefore, alter insurance premiums. Well-maintained infrastructure like bridges, roads, traffic stops, and highways can help reduce road collisions, so insurance companies might charge drivers in states with positive infrastructure ratings lower average car insurance rates.
Fault vs. No-Fault Regulations
Some states have a “no-fault” insurance regulation that requires all drivers to purchase PIP insurance that can cover personal medical bills in the case of an auto accident. States with this requirement generally have higher average insurance rates because of the cost of this additional insurance. This regulation also includes limitations on driver’s rights to sue following a collision. In states that don’t have this requirement, the individual ruled at-fault for the collision uses liability insurance to pay for the injuries of the driver ruled not at-fault.
Factors That Might Affect Your Premium
The state in which you live is not the only factor that can affect your insurance premium. Car insurance companies consider the statistical behaviors of certain groups and compare the findings to your personal data to determine the level of risk you pose. Clients with higher determined risk might expect to pay more than clients with lower levels of determined risk. Here are some factors that insurance companies may consider when calculating your personal premium:
- Age: Teen drivers with less road experience and elderly drivers with health risks may pay higher insurance premiums than young adult or middle-aged drivers.
- Gender: Men may expect to pay higher insurance rates than women in many states.
- Marital Status: In many states, married drivers may pay lower rates than single drivers.
- Driving Record: A clean driving record can indicate excellent driving skills and a low level of risk for the insurance company, so these individuals might expect to pay less for their policies. Individuals with a history of ticketed driving infractions or at-fault collisions, however, can expect to pay more.
- Credit Score: In many states, a good credit score can result in lower insurance rates, while a poor credit score can result in high insurance rates. Some states, including California, Hawaii, Massachusetts, Michigan, and Washington, do not allow insurance companies to use this metric.
Hopefully this article has improved your understanding of average car insurance by state. If you want to learn more about insurance in your state, feel free to contact us online with your questions.
At FIXD, our mission is to make car ownership as simple, easy, and affordable as possible. Our research team utilizes the latest automotive data and insights to create tools and resources that help drivers get peace of mind and save money over the life of their car.