10 States Where Car Insurance Costs Most and Least

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Car insurance is a necessary expense for every driver in the United States, but rates can vary widely depending on where you live.

Numerous factors contribute to these disparities, including the state’s population density, weather conditions, percentage of uninsured motorists, and the frequency of claims filed. Let’s explore the states where car insurance costs the most and least.

States with the Highest Car Insurance Costs:

  1. Louisiana:
    • Average Annual Premium: $2,225
    • High traffic density and a high rate of uninsured motorists contribute to Louisiana’s top position in car insurance costs.
  2. Florida:
    • Average Annual Premium: $2,162
    • Florida faces high insurance costs due to its weather-related claims and a high percentage of uninsured drivers.
  3. Michigan:
    • Average Annual Premium: $2,114
    • Michigan’s unique no-fault car insurance system leads to higher premiums, along with a high frequency of claims.
  4. New York:
    • Average Annual Premium: $1,962
    • Dense traffic and a high rate of accidents in metropolitan areas contribute to New York’s high insurance costs.
  5. California:
    • Average Annual Premium: $1,846
    • The high cost of living and extensive urban congestion drive up California’s insurance premiums.

States with the Lowest Car Insurance Costs:

  1. Maine:
    • Average Annual Premium: $865
    • Maine’s low population density and low crime rate contribute to its affordable car insurance rates.
  2. Virginia:
    • Average Annual Premium: $901
    • A competitive insurance market and a low percentage of uninsured drivers help keep Virginia’s rates low.
  3. Hawaii:
    • Average Annual Premium: $913
    • Hawaii benefits from a regulated car insurance market, which keeps prices more consistent and affordable.
  4. Idaho:
    • Average Annual Premium: $925
    • Idaho’s rural environment and lower vehicle theft rates contribute to its lower car insurance costs.
  5. Iowa:
    • Average Annual Premium: $951
    • Iowa enjoys low rates due to a smaller population and fewer large urban centers, which results in fewer accidents.

Car insurance rates can be influenced by a multitude of factors that vary from state to state. If you live in a state with higher insurance premiums, it’s even more critical to shop around for the best rates and discounts available.

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Furthermore, maintaining a clean driving record and choosing a safe, reliable vehicle can help mitigate the costs, ensuring that you stay protected on the road without breaking the bank.

Editor's note: This article was produced via automated technology and then fine-tuned and verified for accuracy by a member of GOBankingRates' editorial team.

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