Car Insurance Rates by State 2025
See which states have the cheapest and most expensive car insurance. Learn how location affects rates and compare quotes to find affordable coverage near you.
Some states have higher car insurance rates than others. In fact, where you live is one of the biggest influences on your auto insurance premiums. Factors such as high vehicle theft rates and severe weather often lead to higher average annual premiums.
On the other hand, rural areas with low traffic density often have more favourable car insurance rates. This blog goes into detail on auto insurance rates by state, including the cheapest and most expensive states.
National Average Cost of Car Insurance
According to Bankrate, the nationwide average annual cost of full‑coverage car insurance (i.e., liability + collision + comprehensive) is $2,638 per year.
However, note that state car insurance rates differ due to factors such as weather, population density, regulations, and repair costs. This is why you should compare car insurance quotes from multiple companies to find the cheapest option in the state.
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Why Does Location Affect the Cost of Insurance?
Location is one of the most important factors that affect auto insurance pricing. The reasons include:
- Population Density and Traffic Volume: Urban areas tend to have more collisions, car theft cases, vandalism, and claims, which drive up premiums. Rural areas, on the other hand, often have lower rates.
- Repair and Medical Expenses. States with expensive repairs or medical claims will push insurers to increase rates.
- Insurance Regulation. Some states prohibit insurers from raising rates or dictate how they must format policies, which can affect the average auto insurance rates.
- Litigation & Legal Environment. States with more frequent lawsuits or no‑fault systems often see higher premiums than those without such systems.
- Weather and Natural Disasters. Areas that experience severe weather, such as hail, floods, heavy snow, and storms, will face higher insurance costs.
- Minimum Coverage Requirements and Mandates. Insurance laws vary by state, with some having higher legal minimums. In such cases, it forces drivers to carry more liability, which tends to raise the average premium.
Because of these factors, two drivers with identical profiles but living in different states may pay different car insurance costs even for similar coverage. We compare car insurance quotes to help you find the cheapest providers.
Average Car Insurance Rates by State
| State | Average Annual Full Coverage |
|---|---|
| Alabama | $2,056 |
| Alaska | $2,488 |
| Arizona | $2,637 |
| Arkansas | $2,444 |
| California | $3,102 |
| Colorado | $3,233 |
| Connecticut | $2,715 |
| Delaware | $2,931 |
| Florida | $3,874 |
| Georgia | $2,895 |
| Hawaii | $1,650 |
| Idaho | $1,443 |
| Illinois | $2,491 |
| Indiana | $1,704 |
| Iowa | $1,911 |
| Kansas | $2,486 |
| Kentucky | $2,581 |
| Louisiana | $3,953 |
| Maine | $1,631 |
| Maryland | $2,966 |
| Massachusetts | $2,096 |
| Michigan | $3,225 |
| Minnesota | $2,552 |
| Mississippi | $2,302 |
| Missouri | $2,491 |
| Montana | $2,364 |
| Nebraska | $2,358 |
| Nevada | $3,566 |
| New Hampshire | $1,655 |
| New Jersey | $3,061 |
| New Mexico | $2,124 |
| New York | $4,031 |
| North Carolina | $1,825 |
| North Dakota | $1,736 |
| Ohio | $1,820 |
| Oklahoma | $2,798 |
| Oregon | $2,096 |
| Pennsylvania | $2,397 |
| Rhode Island | $2,959 |
| South Carolina | $1,941 |
| South Dakota | $2,287 |
| Tennessee | $1,972 |
| Texas | $2,599 |
| Utah | $2,136 |
| Vermont | $1,491 |
| Virginia | $2,146 |
| Washington | $2,825 |
| West Virginia | $2,164 |
| Wisconsin | $1,920 |
| Wyoming | $1,760 |
Source: Car insurance rates by state for November 2025 (Bankrate)
Highest Car Insurance Rates by State
The following states have the highest average full‑coverage car insurance rates:
New York
New York is the state with the highest car insurance rates in the nation, at $4,031 for full coverage per year. The main reason why New York has high insurance rates is urban congestion. It leads to more traffic, increasing the likelihood of car accidents, theft, and vandalism.
In addition, New York's mandatory coverage requirements are more stringent, which can increase the basic cost of a policy. Also, as a no-fault state, New York has high medical and legal costs associated with Personal Injury Protection (PIP) coverage claims. Find the cheapest car insurance in New York.
Louisiana
Louisiana has the second-most-expensive auto insurance rates at $3,953 for full coverage annually. The state has some of the highest frequencies of bodily injury claims and litigation, which causes auto insurers to increase rates.
Also, because the state has a high percentage of uninsured drivers, Uninsured Motorist (UM) coverage is more expensive. Louisiana drivers may also pay more because hurricanes and flooding in the state lead to higher comprehensive claim costs.
Florida
Florida's high average rates are often a result of extreme weather. It is the most hurricane-prone state, leading to a high number of car insurance claims for flooded and wind-damaged vehicles. This forces providers to raise premiums.
Car insurance premiums in Florida are also high because the state has a high number of uninsured drivers, which increases the cost of UM coverage.
Other states with high rates include Nevada, Colorado, Michigan, and California.
| State | Average Annual Full Coverage |
|---|---|
| New York | $4,031 |
| Louisiana | $3,953 |
| Florida | $3,874 |
| Nevada | $3,566 |
| Colorado | $3,233 |
Source: Car insurance rates by state for November 2025 (Bankrate)
Lowest Car Insurance Rates by State
States with the cheapest average full‑coverage rates include:
Idaho
Idaho drivers spend much less for car insurance at an average annual rate of $1,443 per year. Their sample rates are lower than those of any other state because the area is largely rural. This means lower traffic congestion and density, and thus, fewer chances of vehicle collisions. Idaho also reports low crime rates, which often translate into lower comprehensive coverage costs.
Vermont
The average cost of full coverage insurance in Vermont is $1,491. Vermont is also a rural state with a low vehicle-to-square-mile ratio. This means they have a very low accident frequency rate. Vermont also maintains stable rates across cities, indicating a low-risk and stable statewide insurance pool.
Maine
Maine drivers pay an average of $1,631 per year for full coverage. The state has a low population density, which insurers use to calculate premiums, often resulting in lower rates. In addition, Maine has one of the lowest rates of uninsured drivers, so UM coverage does not inflate or fluctuate frequently.
Other states with cheap coverage include New Hampshire, Hawaii, Indiana, and North Dakota.
| State | Average Annual Full Coverage |
|---|---|
| Idaho | $1,443 |
| Vermont | $1,491 |
| Maine | $1,631 |
| New Hampshire | $1,655 |
| Hawaii | $1,650 |
Source: Car insurance rates by state for November 2025 (Bankrate)
Minimum Coverage Requirements by State
Below is a table showing the minimum liability coverage requirements for all 50 states:
| State | Minimum Liability Limits (Bodily Injury per Person / Bodily Injury per Accident / Property Damage) |
|---|---|
| Alabama | 25/50/25 |
| Alaska | 50/100/25 |
| Arizona | 25/50/15 |
| Arkansas | 25/50/25 |
| California | 30/60/15 |
| Colorado | 25/50/15 |
| Connecticut | 25/50/25 |
| Delaware | 25/50/10 |
| Florida | 10/20/10 |
| Georgia | 25/50/25 |
| Hawaii | 20/40/10 |
| Idaho | 25/50/15 |
| Illinois | 25/50/20 |
| Indiana | 25/50/25 |
| Iowa | 20/40/15 |
| Kansas | 25/50/25 |
| Kentucky | 25/50/25 |
| Louisiana | 15/30/25 |
| Maine | 50/100/25 |
| Maryland | 30/60/15 |
| Massachusetts | 20/40/5 |
| Michigan | 50/100/10 |
| Minnesota | 30/60/10 |
| Mississippi | 25/50/25 |
| Missouri | 25/50/25 |
| Montana | 25/50/20 |
| Nebraska | 25/50/25 |
| Nevada | 25/50/20 |
| New Hampshire | 25/50/25 |
| New Jersey | 25/50/25 |
| New Mexico | 25/50/10 |
| New York | 25/50/10 |
| North Carolina | 50/100/50 |
| North Dakota | 25/50/25 |
| Ohio | 25/50/25 |
| Oklahoma | 25/50/25 |
| Oregon | 25/50/20 |
| Pennsylvania | 15/30/5 |
| Rhode Island | 25/50/25 |
| South Carolina | 25/50/25 |
| South Dakota | 25/50/25 |
| Tennessee | 25/50/25 |
| Texas | 30/60/25 |
| Utah | 30/65/25 |
| Vermont | 25/50/10 |
| Virginia | 50/100/25 |
| Washington | 25/50/10 |
| West Virginia | 25/50/25 |
| Wisconsin | 25/50/10 |
| Wyoming | 25/50/20 |
Sources: Car insurance rates by state for November 2025 (Bankrate), These States are increasing minimum coverage requirements in 2025 (Bankrate)
No‑Fault States
In the U.S., some states operate under a “no‑fault” auto insurance system. It means that after a crash, each driver’s insurer pays for their injuries (up to the coverage limits) regardless of who is at fault. Issues around tort liability for pain & suffering may be limited.
Below are the no-fault states:
- Florida
- Hawaii
- Kansas
- Kentucky (drivers can reject no-fault provision)
- Massachusetts
- Michigan
- Minnesota
- New Jersey (drivers can choose full tort or limited tort option)
- New York
- North Dakota
- Pennsylvania (drivers can choose full tort or limited tort option)
- Utah
The no-fault system can increase premiums because cost recovery through claims and medical/rehab costs may be higher.
Cheapest Auto Insurance Companies
The cheapest auto insurance company often depends on factors such as location and your driving profile. However, there are companies that consistently provide competitive rates throughout the country. They are:
| Company | Average Monthly Premium | Average Annual Premium | Cheapest For |
|---|---|---|---|
| Auto Owners | $42 | $508 | Overall |
| Geico | $49 | $596 | Poor Credit |
| USAA | $53 | $636 | Military Community |
| State Farm | $76 | $918 | Local Offices |
| Amica | $105 | $1,268 | Stellar Service |
Source: Cheapest car insurance in November 2025 (Bankrate)
What Factors Other Than Location Affect Auto Insurance Rates?
Insurers consider many other factors when setting premiums. These include:
- Driving Record: At-fault accidents and even a single speeding ticket can impact premiums. Good drivers, on the other hand, receive the cheapest rates.
- Age & Gender: Teen drivers pay much more, while older drivers pay less. Male drivers also tend to pay more than females.
- Type of Vehicle: Expensive cars, high‑repair‑cost models, sport vehicles, and newer cars cost more to insure.
- Coverage Types and Deductibles: Higher liability limits and lower deductibles, for example, often increase premiums.
- Credit History: In many states, insurers use your credit rating to create a credit‑based insurance score that helps predict risk and set rates.
- Claims History: Your personal loss history and the claims history in your area also affect insurance rates.
- Mileage: How many miles you drive can affect your rates, with low-mileage drivers often receiving discounts.
- Optional Coverages: Adding optional insurance such as comprehensive, collision, uninsured/underinsured motorist, and Medpay increases premiums.
- Lender/Lease Requirements: If you finance or lease your car, your lender or lessor may require you to carry full coverage rather than minimum liability only, which means higher costs.
Each factor interacts with others. Even two drivers in the same city with the same car may pay different rates because of these individual differences. For comparative purposes, always get multiple quotes to find the cheapest car insurance by state or city.
Tips for Getting the Cheapest Car Insurance Rates
Here are some steps to save money on car insurance:
- Shop Around Annually. Compare car insurance quotes from multiple companies since rates and discounts vary by insurer and state.
- Raise your Deductible. A higher deductible lowers premiums. However, make sure you can afford it in case of a claim.
- Maintain a Clean Driving Record. Avoid tickets, DUI convictions, and accidents as they drive up your auto insurance premiums.
- Bundle Policies. Combine auto with home or renters insurance under the same company for multi‑policy discounts.
- Check your Credit‑based Insurance Score. If your state allows insurers to use credit scores to determine your premiums, work on improving yours. Good credit means cheaper auto insurance costs.
- Review your Vehicle Choice. A safe, repair‑cheap car often costs less to insure than a luxury or high‑performance vehicle.
- Ask About Discounts. Good student, defensive driving courses, safety features, and low‑mileage discounts can apply. Just ask your provider about them.
- Avoid Letting Insurance Lapse. A coverage gap can increase your future rates.
- Evaluate your Coverage. If your car’s value is low, consider dropping collision/comprehensive. But if your net worth is high, consider increasing liability coverage so you’re protected.
Explore our guides on cheapest car insurance in California, Florida, Texas, Colorado and Nevada.
Frequently Asked Questions
Which State Has the Highest Car Insurance Rates?
New York has the highest auto insurance rates, at $4,031 per year for full coverage. It is due to traffic congestion and higher crime rates. Other states with high premiums include Louisiana, Florida, Nevada, and Colorado.
What Factors Affect My Car Insurance Rate?
Your state of residence affects your car insurance rates. Other factors that can affect premiums include coverage levels, vehicle type, driving record, credit score, age, gender, usage, and claims history.
Does Credit Score Affect Car Insurance?
Yes. Insurers in many states use a credit‑based insurance score to determine car insurance costs. A better score means lower premiums, while a poor score can increase your rates.
What Is a Tort State?
A “tort state” is one where the at‑fault driver or their insurer may be sued by the injured party for damages such as medical costs and property damage after a car accident. Litigation risk in tort states often increases insurance costs. This is different from no‑fault states, where each driver’s insurer pays their own costs regardless of fault.
What Is the Best Car Insurance Company in My State?
There is no one best company for all drivers, even in the same state. The best depends on your personal profile: your vehicle, driving history, credit score, ZIP code, and coverage needs. Always compare car insurance quotes with us to get the cheapest coverage for your profile.
Is Car Insurance Required in My State?
Yes. Almost all U.S. states require drivers to carry at least liability insurance or to maintain financial responsibility. The exception is New Hampshire, which allows drivers to meet financial responsibility requirements without a traditional insurance policy. Always check your specific state requirements and keep proof of insurance in your car.
