10 States Where Car Insurance Costs Most (and Least)

It’s no secret that owning a car in 2023 is not a cheap matter. One of the biggest expenses –outside of gas, maintenance and a monthly payment on the car itself — is insurance. In some states, you might pay a higher rate of insurance and, in others, the lowest you’ll find across the United States.

What are the states where car insurance costs the most and the least? Here are the top ten states for both categories.

Nebraska

• Average Annual Premium: $2,018

Taking the spot for least expensive of the most expensive is Nebraska. While a little over $2,000 isn’t exactly expensive, it’s still a high premium that takes into account the more volatile weather in the region — such as storms, droughts and floods — that contributes to more accidents statewide.

• Average Annual Premium: $2,020

Are you driving here? Expect to pay slightly over $2,000 each year for car insurance in New York. That’s because this large state is home to one of the biggest cities in the world and a high-density population that adds a markup.

• Average Annual Premium: $2,023

A state that’s known for gambling makes residents put a lot of money down to cover their drive. According to The Nevadan, this is due to “the high rate of vehicle thefts, especially in larger cities like Las Vegas, and the increasing rate of luxury vehicle ownership in the state with claims for costlier repairs driving up premiums.”

• Average Annual Premium: $2,104

There are more drivers on the road in Missouri these days than there have been in the past. This is contributing to more accidents — 914 fatal crashes statewide in 2020, up from 803 fatal crashes in 2015 — and higher insurance costs.

• Average Annual Premium: $2,105

Because of the high rates of car thefts and uninsured motorists, drivers in Kentucky are finding that they are paying a little over $2,100 each year to insure their vehicles.

• Average Annual Premium: $2,115

Nothing in the Golden State is ever cheap, including car insurance. That’s because California comes with urban centers with big populations, pricey healthcare costs and expensive auto repairs, not to mention more and more severe weather and natural disasters due to climate change.

• Average Annual Premium: $2,133

Home to Motor City, Michigan does not lower its rates for locally sourced materials. Car and Driver notes that the state’s higher insurance premiums are due to the No-Fault car insurance system, Compulsory Personal Injury Protection (PIP), higher rates of insurance fraud and an uptick of 130% over the last decade of personal injury lawsuits in Michigan.

• Average Annual Premium: $2,137

The main reasons for Delaware’s high car insurance costs come down to rising inflation and medical expenses, which have increased an average of 2% for the last few years. Plus, the state’s coastline makes it a target of bad weather, including tropical cyclones.

• Average Annual Premium: $2,546

Blame uninsured drivers for driving up the price of car insurance in Louisiana — an estimated 11.7% of the state’s population does not have insurance but remain behind the wheel.

• Average Annual Premium: $2,560

High risk drivers aren’t just uninsured drivers. They are senior citizens, new student drivers and visitors. Florida has them all, and all of them are considered higher-risk in the eyes of the insurance companies.

Virginia

• Average Annual Premium: $1,321

The cost of living in Virginia is significantly lower than the national average, as is the rate of car accidents. If there is a lower chance of claims, insurance rates go down, and Virginia is a state where that is the case for drivers.

• Average Annual Premium: $1,321

Iowa’s car insurance rates are below the national average of about $2,000 annually for full coverage and roughly $700 per year for minimum coverage. There are less densely populated areas across the state, which tends to mean fewer drivers are on the road.

• Average Annual Premium: $1,307

Drivers pay an annual fee to drive in New Hampshire without insurance. This means motorists are not covered financially when an accident occurs. Anyone who chooses not to pay the uninsured motorist fee just has to meet the minimum insurance requirements as set by the state, which means a lower price on an annual premium.

• Average Annual Premium: $1,306

In the island state, older drivers in their 60s pay the same amount as younger drivers in their 20s. This brings Hawaii’s overall annual car insurance down in cost. Plus, Hawaii prohibits the practice of determining premiums based on credit scores that’s allowed in other states.

• Average Annual Premium: $1,256

Indiana keeps things low — that includes the amount of people living in the state, as well as the rate of auto theft. Therefore, car insurance claims are not filed at such a high rate in Indiana, reducing costs in premiums statewide.

• Average Annual Premium: $1,244

While the populations in larger cities like Portland have increased over the past decade, overall urban population density is fairly low across Oregon. There is only medium traffic density in the state, as well as lower rates of vehicle theft, giving way for cheap insurance to thrive.

• Average Annual Premium: $1,158

There’s a large number of cost-effective insurance providers in Vermont. All the other numbers are lower across the state — population, traffic, car thefts and insurance rates.

• Average Annual Premium: $1,121

Idaho has very few urban areas, which means fewer people driving and a reduced chance of accidents on the road. Lower population density helps Idaho residents save on their car insurance premiums each year.

• Average Annual Premium: $1,116

For population density, Maine takes the number 38 spot in the country. There are fewer accidents and fewer claims when stacked up against other states in the nation with higher populations.

• Average Annual Premium: $1,023

There is cheap minimum coverage in Ohio, ranking it the No. 1 state for inexpensive car insurance in America, about 40% lower on average than the rest of the country. Even with a 3% increase in annual premiums each year, Ohio still manages to have the cheapest vehicle coverage nationwide.

All data was sourced via insure.com and is accurate as of Nov. 6, 2023.