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Most Expensive Car Insurance States

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Its Not Cheap To Insure Your Auto In These States

Michigan: Among Top States For Most Expensive Car Insurance

Following Michigan as the most expensive states are Montana, New Jersey, Louisiana, Oklahoma, Washington, D.C., California, Florida, Maryland and Rhode Island.

The average annual premium across the 50 states $1,325.

Heres how premiums break down by state:

Michigan
Rhode Island$1608

What do you do if you live in a high-cost state? Youve got to shop your auto insurance. Price differences from one insurer to another for the same driver or the same family can be gigantic.

The same exact person could be paying well more than $1,000 more annually than they need tojust because they havent shopped. Some insurers consider unusual factors like credit score, education and employment that could cause you to overpay. Others will only look at your driving record. Hence the huge differences.

Clark recommends you shop your insurance every three years. See whats out there and get the best deal. Heres how to get started:

Top 10 States With The Most Expensive Car Insurance Premiums

LOS ANGELES, CA / ACCESSWIRE / November 26, 2020 / Compare-autoinsurance.org has launched a new blog post that presents the reasons why car insurance rates vary from state to state and where drivers pay the most expensive premiums.

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Before people move to a new state, they consider the cost of living in their new location. Among the house prices, property taxes, and sales taxes, people also consider the price of car insurance. In the US car insurance prices can vary wildly from state to state.

The most expensive states for car insurance in 2020 are the following:

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What States Have The Highest Car Insurance Rates

Michigan, Florida, Rhode Island, Delaware and Nevada have the most expensive car insurance rates. Drivers in these states have some of the highest auto insurance premiums in the country, though the reasons for these rates vary by state.

Michigan. The Wolverine State has by far the highest car insurance premiums in the country: Drivers pay an average of $4,386 a year for minimum coverage â 459% higher than the national average. Michigan’s unique approach to auto insurance accounts for this expensive auto insurance. Prior to July 2020, drivers were required to carry unlimited PIP insurance. This drove up costs and led to many drivers going without insurance altogether.

Thanks to recent reform, drivers now need only carry $250,000 in PIP insurance, and those with Medicare can opt out altogether. This will significantly reduce annual rates in the coming years and make auto insurance more accessible for drivers, which in turn will improve safety on the roads. Michigan drivers may want to consider purchasing a minimum coverage policy from Auto-Owners Insurance or USAA, as our analysis found these two insurers had the cheapest policies for minimum coverage.

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How Much Does Car Insurance Cost By Company

While car insurance companies use many of the same factors to set your rate including your location, age, and driving history not every company evaluates these factors the same way. Thats why average rates can vary by thousands of dollars per year from one car insurance company to another.

Based on an analysis of the largest auto insurance companies in the country, Policygenius found that the average cost of full-coverage auto insurance varies by as much as $1,586 per year .

Insurer
Comprehensive$168

The specific kinds of car insurance coverage that make up your policy will also help determine the price of your monthly premiums. A so-called full coverage auto insurance policy includes comprehensive and collision coverage in addition to liability.

Liability coverage, which is the backbone of a policy, covers the costs if you injure someone or damage their property with your car, while collision coverage covers damage to your own car after an accident, even if you caused it, and comprehensive coverage covers damage not from car accidents, like if a heavy tree branch falls on your car.

States With The Most Expensive Car Insurance

Most And Least Expensive States For Car Insurance

State

Note: Premiums are for a 45-year-old good driver with a minimum-coverage policy individual premiums will vary.

The national average cost of a minimum-coverage car insurance policy is around $60 per month, which is 62% less than the average policy in Michigan. You can help offset those high costs by shopping around for the cheapest car insurance providers and comparing quotes regularly. Also, taking advantage of all available discounts can help you save a lot each year.

To learn more, check out WalletHubs guide to how much car insurance costs.

Do car insurance rates differ by state?

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Which Us State Has The Most Expensive Car Insurance

Trust us, the answer is not what you’d expect.

We doubt most Americans choose to live in any state based purely on car insurance rates, but the overall cost of living for anyone anywhere is often a factor. But say you wanted to keep your car insurance as low as possible, which state should you live and, more importantly, which ones should you avoid? According to The Detroit Bureau and Insure.com, Michigan, of all places, has the highest average cost of car insurance in the US. That average? $2,738 a year. That’s more than double the national average of $1,325.

It’s the third year in a row Michigan has had this distinction. So why the high rates? “Michigan’s no-fault requirement, while trying to curb insurance fraud, causes astronomical rates. It then creates a high percentage of drivers who cannot afford to be insured raising rates even more so. It’s a dangerous cycle,” stated Penny Gusner, Insure.com analyst. Montana, New Jersey, Louisiana and Oklahoma round out the remaining top five for most expensive. So, which state is the cheapest? That’d be Maine, followed by Ohio, Wisconsin, Idaho and New Hampshire. How come? “Most of the least expensive states don’t have as large metropolitan areas as the most expensive group. With less congestion comes fewer accidents and less risk for insurers.”

Car Insurance Cost Trends By State

It can be confusing to see your insurance costs change from year to year, but there are many reasons your premium might go up or down over time. Changes in state insurance rules and regulations can impact your premiums. So can an increase or decrease in the number of claims made in your state. And as your driving habits evolve for example, if you have a shorter commute or a speeding ticket on your record you may also see those changes reflected in lower or higher premiums. The table below shows the changes in the average full coverage insurance rate by state from 2020 to 2021 and the change in rates since 2015.

Change in Car Insurance Costs Over Time by State

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Car Insurance Rates By State

Where you live can have a big impact on your premium. A recent Consumer Federation of America study finds many auto insurers are setting rates not based on driving record, but on your street address and neighborhood you live in. To see the full study done by the CFA, .

Other off-beat factors insurers may look at that could influence your premium are credit score, your homeownership status , and even your education level and job title!

So which states residents suffer with the highest premiums? This list, provided by Insure.com, pulls together quotes for all 50 states plus Washington D.C.

The hypothetical quotes were developed by surveying Allstate, Farmers, GEICO, Nationwide, Progressive and State Farm in 10 ZIP codes per state for the cheapest-to-insure 2016 model-year versions of Americas 20 best-selling vehicles. Then those quotes were averaged together to create one master quote for each state.

The rates below, which are for illustrative purposes only, are based on full coverage for a single, 40-year-old male who commutes 12 miles to work each day. Policy limits are 100/300/50 with a $500 deductible on collision and comprehensive coverage.

Actual rates will vary in each state.

1 Michigan $2738

Average Car Insurance Rates By Age And State

Study: Nevada on list of most expensive states for car insurance

Delaney Simchuk, Car Insurance WriterFeb 11, 2022

Average car insurance rates by age group range from $716 per year for 45-year-old drivers to $3,343 per year for drivers who are 16 years old. Car insurance rates are highest for teens and seniors, on average, because they are considered high-risk due to an increased likelihood of accidents and expensive claims.

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Cheapest States For Car Insurance In 2020

On a regional basis, New England has the cheapest car insurance with an average rate of $1,305. Contributing to this is the fact that Maine is the cheapest US state to get auto insurance in, with an average price of just $935, while New Hampshire is the fourth cheapest at $1,037.

Massachusetts ranks right in the middle of the pack in 25th place, while Vermont also makes it into the top ten states for cheap car insurance listed below starting with the cheapest.

  • Maine $935
  • Indiana $1,165

Dont Forget About Discounts

The Insurance Information Institute reminds you that there are a ton of different discounts out there. Here are some you can ask about:

  • Anti-theft devices
  • Multiple policies with the same company
  • College students living away from home
  • Defensive driving courses
  • No accidents in three years
  • No moving violations in three years
  • Student drivers with good grades

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Be Prepared To Take A Higher Deductible

You should always opt for a $1,000 deductible for the best savings on your policy. At that level, youll pay a lower premium and wont be tempted to file any small piddling claims.

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How Much Does Car Insurance Cost In Each State

The most (and least) expensive states for car insurance

While the average cost of car insurance is $1,652 per year, rates vary widely by state. We found that the cost of car insurance in the most and least expensive states are separated by $1,905 per year. This is because your ZIP code is one of the most important factors in determining how much you’ll pay for coverage.

There are a few reasons why location matters so much when it comes to car insurance rates if your area is densely populated, crime rates are high, or natural disasters are frequent, that means more claims, which means higher rates.

So where does car insurance cost the mostand least? Below is a breakdown of the average annual cost of auto insurance by state, according to our analysis.

State
$1,395

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How Do Car Insurance Rates Vary From State To State

Each state has different insurance requirements that drivers must maintain to be considered legal on the road, which is why some states may cost more for insurance than others. Some states require personal injury protection or medical payment coverage, but others dont.

“For example, South Carolina requires drivers to have uninsured/underinsured motorist bodily injury protection and property damage as a minimum requirement on their auto insurance policy, whereas many states offer that coverage but don’t require it,” she says. “That additional coverage has a price associated with it and will increase your total premium.”

Where you live is a crucial factor in calculating the cost of what you will fork over for car insurance and the cost of living in your state can impact insurance prices.

“On average, drivers in more sparsely-populated states such as Idaho and North Dakota are going to pay much less for coverage than drivers in more populous states such as California, Florida and New York,” Friedlander says.

“But it goes beyond just the state you live in. Insurers determine rates by the city you live in and even your specific ZIP code. Traffic volume, accident frequency and severity, as well as theft and vandalism data, vary in every city throughout every state.”

2022 car insurance rates in each state by coverage level

State

Where You Live Impacts Auto Insurance Rates

If youve ever purchased car insurance in more than one state, you may have experienced how significantly the rates can vary. And its not just the state that impacts the cost of car insurance. Your specific ZIP code can also increase or decrease the amount of money you spend on coverage.

Why do car insurance rates fluctuate so much? Ultimately, its because drivers face certain risks based on where they live. For example, more densely populated areas have more cars on the road, which means a higher likelihood of accidents, which can lead to higher premiums. And the more expensive it is to live in an area, the higher your premiums will likely be, too, since claims will cost more to settle. Essentially, the riskier the location, the more car insurance companies usually charge for insurance. Risks can include everything from the number of uninsured drivers in a state, to the crime rate in a certain neighborhood.

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This Is The Most Expensive State For Car Insurance Plus What It Costs In Every State In America

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Theres no doubt that car insurance is expensive NerdWallet reveals that the average cost of car insurance is $1,630 per year and one survey from the company finds that switching could save good drivers about $417 a year.

But the high cost of car insurance can depend on the state you live in , with Maine often being the cheapest and Louisiana the most expensive. Louisianas high rates are largely due to its higher crime rate, frequent extreme weather and growing traffic density, while Maine, a state with low population density, has the lowest amount of uninsured drivers and a lower risk of accidents, says Andrew Hurst, auto insurance expert at Policygenius.

Average car insurance premiums, by state

1

How To Change Car Insurance When Moving Out Of State

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If youre moving out of state, you have two options for car insurance. You can either call your insurance company and ask to get a new policy written in your new state or you can switch providers. Remember that even if you stay with your existing provider, youll need a new policy for your new state and your rate will probably change.

Shopping around for a new provider can help you better understand what a competitive rate looks like for your scenario in your new state. If you decide to switch, heres what to do:

  • Collect the information youll need to switch providers, including your drivers license number, insurance history, annual mileage and the names and personal information of other drivers who will be on your policy.
  • Research providers in your new state, and pay attention to coverage options, discounts and customer service reviews.
  • Get quotes from a few different companies to compare rates.
  • Once youve chosen a company, a representative will walk you through the steps to purchase your policy.
  • Youll then need to contact your prior company to cancel your previous policy on the same date that your new policy starts. That way, you avoid any overlaps or lapses.
  • Finally, make sure you remember to update your registration. Youll likely need to get car insurance in your new state before registering your vehicle.
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    Florida Among The Most Expensive States For Car Insurance

    Florida is now home to the most expensive car insurance alongside New York and Louisiana. Bankrate reports that auto insurance coverage in Florida costs $1000 more than the national average. This makes Floridas premium 56% above average.

    Florida has one of the highest rates of deadly car crashes, ranking third behind Texas and California which had higher fatalities. According to Bankrate, the average annual premium in Florida was $2,364 for full coverage as of December 31, 2021. It got even higher in 2022, with the premium reaching $2762 per year. Since the national average, as stated by Bankrate, is $1674 for full coverage, Florida drivers are paying roughly $700 more for their auto insurance. Premiums can be affected by several factors like where you live in Florida, coverage type, what level you choose, the cost of living, and risks in your area.

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