Between April 2023 and April 2024, car insurance rates skyrocketed 22.6%, according to Consumer Price Index data from the Bureau of Labor Statistics. This far surpasses the 3.36% rate of inflation, leaving consumers baffled and frustrated.

Across all states, the average full coverage auto insurance rate is $2,118 per year. For minimum coverage, Americans pay an average of $591 per year.

That said, auto insurance rates vary drastically depending on the state you live in. While Floridians pay an average of $4,362 per year for full coverage, Idaho residents pay just $1,021 per year. Below are the average car insurance rates in each state, followed by the factors impacting these rates.

Data shown is the average annual cost for full coverage and the average annual cost for minimum coverage as provided by Forbes.

Most and Least Expensive States

The following states have the most expensive premiums for full coverage auto insurance:

• New York, $4,769 per year
• Florida, $4,362 per year
• Louisiana, $3,629 per year
• Pennsylvania, $3,600 per year
• Maryland, $3,349 per year

The following states have the least expensive premiums for full coverage auto insurance:

• Idaho, $1,021 per year
• Vermont, $1,037 per year
• Ohio, $1,112 per year
• Maine, $1,216 per year
• Iowa, $1,238 per year

The following states have the most expensive premiums for minimum coverage auto insurance:

• Michigan, $1,450 per year
• Florida, $1,286 per year
• New Jersey, $1,119 per year
• New York, $1,016 per year
• Delaware, $936

The following states have the least expensive premiums for minimum coverage auto insurance:

• Iowa, $275 per year
• Vermont, $278 per year
• Wyoming, $295 per year
• South Dakota, $301 per year
• Idaho, $341 per year

Why Car Insurance Varies by State

Insurance companies base rates on risk—the higher the likelihood of you filing a claim, the higher your premium will be. Several factors influence the level of risk insurance companies deem states to have.

Amount of Claims in Your State

Drivers in states with higher accident and vehicle theft rates file more claims. This leads to higher premiums because insurance companies are statistically more likely to pay out claims in those areas.

States with larger populations, and therefore more vehicles on the road, tend to have higher accident rates. According to data from the Insurance Institute for Highway Safety (IIHS), the states with the highest rate of fatal motor vehicle crashes are Mississippi, South Carolina, and Arkansas.

Road Conditions

Poor road conditions, like potholes and uneven pavement, can lead to more accidents. They also cause more wear and tear on vehicles, leading to higher claim rates—even if they aren’t collision-related. To cover the potential payment due to claims, insurance companies charge higher premiums.

Based on the percentage of roadways in poor condition, Rhode Island, New Jersey, and California are said to have the worst road conditions.

Crime

Areas with higher crime rates see higher insurance premiums. As rates of vehicle theft and vandalism continue to rise, more claims have been filed. While some of these offenses cause seemingly minor damage, like a broken window, they can be costly to repair. This leaves insurance companies to shoulder the burden of repair costs, leading to higher premiums.

Source: Council on Criminal Justice

While crime rates can impact the average insurance in each state, the rate you’ll see depends on your exact zip code. The cities with the highest motor vehicle theft rates in 2022 to 2023 include Rochester, Baltimore, Buffalo, Charlotte, and Cincinnati.

Weather

Florida has the highest auto insurance rates in the country, which might be unsurprising. States with severe weather conditions see higher rates. Simply put, vehicles exposed to hurricanes, tornadoes, heavy snow, and floods may experience more accidents and damage. This leads to more filed claims and more for the insurance companies to cover.

States most impacted by natural disasters and weather-related claims include Mississippi, Louisiana, Texas, Florida, and Iowa.

Lawsuit Frequency

While the frequency of lawsuits isn’t the primary driver of increased auto insurance costs, it does have an impact. Lawsuits associated with car accidents can be time-consuming and expensive for insurance companies. If you live in a state with a high number of vehicle-related lawsuits, you may see higher premiums.

Cost to Repair Cars

The higher the cost to repair vehicles, the more insurance companies will have to spend when a driver files an insurance claim for damage. This leads to higher insurance premiums.

If you live in California, Hawaii, or Florida, you may see higher premiums due to higher car repair costs. On the flip side, if you live in West Virginia, Wyoming, or Vermont, you may see lower premiums due to lower repair costs. Factors like the overall cost of living, road conditions, and higher mechanic salaries can impact these costs.

Cost of Medical Care

Medical costs have a significant impact on auto insurance rates. When a driver injured in an accident files an insurance claim, insurance companies may cover some of the costs of subsequent medical costs. Depending on the extent of the injury, treatment costs can amount to a hefty sum.

You may see higher premiums if you live in Alaska, New York, and Massachusetts, as these states have the highest average annual medical care costs.

No Fault States

A no-fault state is one in which both parties in an accident, regardless of who caused it, file insurance claims with their own insurance company. This means you’ll use your own insurance to cover vehicle damages and injuries after a crash, even if you aren’t at fault.

This is different from states without no-fault laws, called at-fault states, where the insurance company of the individual at fault covers crash-related expenses. In at-fault states, you’d file an insurance claim with the other person’s insurance company.

No-fault states often require drivers to hold additional coverage, like Personal Injury Protection (PIP) coverage, third party liability coverage, and uninsured motorist protection. This increases the premiums drivers pay.

The following states are no-fault states:

• Florida
• Hawaii
• Kansas
• Kentucky
• Massachusetts
• Michigan
• Minnesota
• New Jersey
• New York
• North Dakota
• Pennsylvania
• Utah

Other Factors Impacting Car Insurance Rate

While the above factors impact the average premiums in each state, there are individual factors impacting your premiums as well.

Age

Younger drivers receive higher premiums due to their lack of experience on the road. On the flip side, elderly drivers receive higher premiums as well due to their increased risk of being in an accident.

Gender

Studies have shown men engage in riskier driving behaviors, like consuming alcohol, not wearing a seatbelt, and speeding. These behaviors place drivers at a higher likelihood of experiencing an accident, leaving men to see higher insurance premiums.

Driving Record

Auto insurance companies base premiums on an assessment of risk. When evaluating your driving record, prior accidents and mishaps on the road may indicate future risk. Minor offenses like parking tickets won’t impact your premiums much, but more serious offenses like speeding and driving under the influence will lead to higher premiums.

Zip Code

In general, drivers in urban neighborhoods see higher auto insurance premiums. Due to the density and crime rates in urban neighborhoods, the risk of vehicle theft and vandalism is higher. To cover the potential increase in claims, insurance companies charge higher premiums in these areas.

Car You Drive

The cost to repair your vehicle influences the premiums you’ll see. If you drive a new, expensive vehicle with high repair costs, you’ll see higher premiums. If you drive a used, less-expensive vehicle with lower repair costs, you’ll see lower premiums.

Vehicle safety ratings also impact insurance rates. Vehicles known to be safe and reliable, like Subaru Outbacks and Honda CR-Vs are often cheaper to insure.

How Much You Drive

The more you drive, the more chances you have of being in an accident. This means drivers with long commutes may see higher premiums. Those that drive under 7,500 miles per year may qualify for “pleasure use” insurance, which is cheaper than other coverage options.

Frequently Asked Questions

Is $200 a Month a Lot for Car Insurance?

The average full coverage auto insurance rate, across all states, is $2,118 per year, or $176.50 per month. For minimum coverage, the average monthly premium across all states is $49.25. Based on this information, we’d say $200 per month is a lot for car insurance.

That said, if you have a poor driving record, live in a state with a high cost of living, and drive an unreliable car with comprehensive coverage, $200 per month isn’t too far fetched. For the average person, however, $200 per month is high.

To find cheaper auto insurance coverage, compare rates across different providers.

Which State Has the Highest Car Insurance?

New York, Florida, and Louisiana have the highest car insurance rates in the United States.

Which State Has the Cheapest Car Insurance?

Vermont, Idaho, and Iowa have the lowest car insurance rates in the United States.

Who Typically has the Cheapest Car Insurance?

USAA, Geico, and State Farm offer the cheapest annual car insurance rates, according to one US News Study.