If you feel like your car insurance bill has been creeping up lately, you aren’t imagining things. Across the board, auto insurance rates have seen huge hikes over the last few years due to inflation, rising vehicle repair costs, and an increase in severe weather claims. Yikes.
However, where you park your car every night has a massive impact on your monthly premium. According to recent industry analysis from data experts like Forbes Advisor, the national average for a full-coverage auto policy currently sits at roughly $2,126 per year. But that national average hides some wild state-by-state extremes.
Here is a breakdown of the most and least expensive states for full-coverage car insurance right now, plus a complete 50-state guide so you can see exactly how your hometown stacks up.
The 5 Most Expensive States for Car Insurance
If you live in a state with high population density, frequent extreme weather, or high rates of uninsured drivers and litigation, you are going to pay a massive premium to protect your ride.
- Louisiana: $3,718 per year
- Florida: $3,536 per year
- New York: $2,898 per year
- Michigan: $2,859 per year
- California: $2,848 per year
Why are they so high?
States like Florida and Louisiana are massive liabilities for insurance companies due to hurricane and flood risks. New York and California suffer from extreme urban traffic congestion, resulting in a staggering number of daily claims. Michigan and New York also operate under no-fault insurance laws, which historically invite higher rates of medical claim fraud, pushing the cost up for everyone else.
The 5 Cheapest States for Car Insurance
If you want to keep your automotive overhead as low as possible, you need to head for the mountains or the countryside. The cheapest states share a few common traits: lower population density, less traffic congestion, and fewer severe weather events.
- Vermont: $1,237 per year
- Idaho: $1,339 per year
- Maine: $1,408 per year
- North Carolina: $1,412 per year
- Ohio: $1,422 per year
Why are they so cheap?
Simply put, fewer people on the road means fewer accidents. Vermont and Idaho consistently rank at the very bottom of the pricing charts simply because there is far less bumper-to-bumper traffic, resulting in significantly fewer collision claims.
The Complete 50-State Average Insurance Cost Table
Curious how your state compares to the national average? Here is the full breakdown of average annual costs for full-coverage insurance across all 50 states.
| State | Average Annual Cost |
|---|---|
| Alabama | $1,836 |
| Alaska | $2,217 |
| Arizona | $2,257 |
| Arkansas | $2,321 |
| California | $2,848 |
| Colorado | $2,315 |
| Connecticut | $2,310 |
| Delaware | $2,500 |
| Florida | $3,536 |
| Georgia | $2,410 |
| Hawaii | $1,655 |
| Idaho | $1,339 |
| Illinois | $2,004 |
| Indiana | $1,668 |
| Iowa | $1,683 |
| Kansas | $2,171 |
| Kentucky | $2,807 |
| Louisiana | $3,718 |
| Maine | $1,408 |
| Maryland | $2,290 |
| Massachusetts | $1,777 |
| Michigan | $2,859 |
| Minnesota | $2,021 |
| Mississippi | $2,008 |
| Missouri | $2,326 |
| Montana | $2,048 |
| Nebraska | $1,839 |
| Nevada | $2,535 |
| New Hampshire | $1,480 |
| New Jersey | $2,687 |
| New Mexico | $1,921 |
| New York | $2,898 |
| North Carolina | $1,412 |
| North Dakota | $1,825 |
| Ohio | $1,422 |
| Oklahoma | $2,576 |
| Oregon | $1,857 |
| Pennsylvania | $2,334 |
| Rhode Island | $2,414 |
| South Carolina | $2,407 |
| South Dakota | $2,150 |
| Tennessee | $1,787 |
| Texas | $2,260 |
| Utah | $2,002 |
| Vermont | $1,237 |
| Virginia | $1,776 |
| Washington | $1,519 |
| West Virginia | $2,135 |
| Wisconsin | $1,750 |
| Wyoming | $1,720 |
What Can You Do to Lower Your Rate?
No matter what state you live in, the best ways to combat rising premiums remain the same: keep your driving record clean, maintain a good credit score (which heavily influences your rate in most states), and shop around for a new quote at least once a year to ensure your provider is still offering you the most competitive deal.
