Curious why car insurance rates often increase from year to year? Do you wonder why you pay more for car insurance than your friend in another ZIP code?
The premiums charged by your insurance company are based on different criteria, such as your driving history, vehicle year/make/model and your age. The city you live in can also impact how much you will pay for car insurance.
What drivers pay across the country based on the town or area they reside in makes for a fascinating study. Read on for facts about car insurance rates related to ZIP code and learn how you can save the most money on a policy.
- Average car insurance rates by ZIP code
- Most expensive ZIP codes for car insurance by state
- Which ZIP codes have the cheapest car insurance in the U.S.?
- Average annual car insurance rates compared to 2019
- How your location affects your car insurance rate
- Why do car insurance rates vary so much among insurance companies?
Average car insurance rates by ZIP code
Recently, CarInsurance.com collected automobile insurance premium data from every state and major ZIP code in the country. Our analysis shows which cities/ZIP codes have the costliest car insurance rates, on average, and the least expensive automobile insurance rates.
Living in a more rural ZIP code area can yield cheaper car insurance premiums than in large metropolitan ZIP codes. Keep reading for more about which cities are more or less expensive for car insurance.
2022 average annual car insurance premiums- State Minimum: $511
- 50/100/50 Liability Only: $637
- Full Coverage 100/300/100: $1,682
Most expensive ZIP codes for car insurance by state
Below are the cities (based on ZIP codes) with the highest car insurance rates, according to 2022 data.
| State | ZIP Code | City | Annual Premium |
|---|---|---|---|
| Michigan | 48210 | Detroit | $5,460 |
| New York | 11212 | New York | $5,349 |
| Louisiana | 70145 | New Orleans | $4,288 |
| Missouri | 63107 | St. Louis | $3,851 |
| Florida | 33603 | Tampa | $3,775 |
| California | 91205 | Glendale | $3,615 |
| Delaware | 19801 | Wilmington | $3,069 |
| Pennsylvania | 19142 | Philadelphia | $3,056 |
| Nevada | 89106 | Las Vegas | $3,019 |
| Massachusetts | 2119 | Roxbury | $3,014 |
Other ZIP codes with pricey car insurance rates include Chicago ($2,919), Baltimore ($2,918) Lookout, Ky. ($2,890), Newark, NJ ($2,807), and Providence, RI ($2,726).
Keep in mind that these are average rates across these ZIP codes within these states.
However, taking a closer look unveils the highest actual premium prices policyholders in many of the ZIP codes may end up paying in 2022 (on a low-to-high range, not averaged out), although they will pay less on average for a policy in these cities:
- Detroit: $16,397
- New York: $13,850
- St. Louis: $10,332
- Chicago: $10,121
- Wilmington: $7,679
Geoff Cudd, a Philadelphia-based consumer advocate and owner of FindTheBestCarPrice.com, says many factors play into why car insurance rates vary so greatly from location to location.
“Among them are social factors like population density, how many people are on the road, how high the theft rate is, and how many accidents occur in that state. There are also environmental factors like what road conditions are like in that state and how bad the weather is,” Cudd says.
| State | ZIP Code | City | Annual Premium | Lowest Price | Highest Price |
|---|---|---|---|---|---|
| Michigan | 48210 | Detroit | $5,460 | $1,666 | $16,397 |
| New York | 11212 | New York | $5,349 | $1,831 | $13,850 |
| Louisiana | 70145 | New Orleans | $4,288 | $2,203 | $5,958 |
| Missouri | 63107 | St. Louis | $3,851 | $893 | $10,332 |
| Florida | 33603 | Tampa | $3,775 | $1,942 | $6,547 |
| California | 91205 | Glendale | $3,615 | $2,235 | $5,744 |
| Delaware | 19801 | Wilmington | $3,069 | $1,466 | $7,679 |
| Pennsylvania | 19142 | Philadelphia | $3,056 | $1,917 | $7,370 |
| Nevada | 89106 | Las Vegas | $3,019 | $1,084 | $6,133 |
| Massachusetts | 2119 | Roxbury | $3,014 | $1,330 | $4,414 |
| Illinois | 60624 | Chicago | $2,919 | $1,326 | $10,121 |
| Maryland | 21216 | Baltimore | $2,918 | $1,479 | $4,810 |
| Kentucky | 41542 | Lookout | $2,890 | $1,922 | $6,108 |
| New Jersey | 7102 | Newark | $2,807 | $1,509 | $5,029 |
| Rhode Island | 2909 | Providence | $2,726 | $1,136 | $4,510 |
| Nebraska | 69337 | Chadron | $2,578 | $874 | $8,922 |
| Texas | 77201 | Houston | $2,482 | $1,382 | $3,907 |
| Connecticut | 6604 | Bridgeport | $2,472 | $1,373 | $7,636 |
| Colorado | 80219 | Denver | $2,452 | $1,270 | $4,430 |
| Wisconsin | 53206 | Milwaukee | $2,452 | $936 | $7,358 |
| South Carolina | 29933 | Miley | $2,398 | $1,393 | $6,282 |
| Arizona | 85009 | Phoenix | $2,325 | $1,364 | $3,971 |
| Georgia | 30032 | Candler-McAfee | $2,312 | $1,516 | $3,690 |
| Oklahoma | 73105 | Oklahoma City | $2,093 | $1,067 | $3,370 |
| South Dakota | 57770 | Pine Ridge | $2,034 | $1,128 | $3,397 |
| Minnesota | 55130 | St. Paul | $2,000 | $1,406 | $2,939 |
| West Virginia | 25674 | Kermit | $1,958 | $1,047 | $3,088 |
| Montana | 59089 | Wyola | $1,906 | $962 | $3,274 |
| Indiana | 46402 | Gary | $1,895 | $844 | $3,782 |
| New Mexico | 87121 | Albuquerque | $1,880 | $1,131 | $3,155 |
| Mississippi | 39086 | Hermanville | $1,861 | $1,057 | $2,773 |
| Washington D.C. | 20001 | Washington | $1,858 | $862 | $3,830 |
| Kansas | 67854 | Jetmore | $1,851 | $1,127 | $3,349 |
| Tennessee | 38127 | Memphis | $1,848 | $1,138 | $2,899 |
| Arkansas | 71644 | Grady | $1,833 | $1,097 | $3,754 |
| North Carolina | 28212 | Charlotte | $1,809 | $1,101 | $2,952 |
| Wyoming | 82716 | Gillette | $1,804 | $880 | $2,890 |
| Washington | 98118 | Seattle | $1,792 | $1,024 | $4,125 |
| Utah | 84104 | Salt Lake City | $1,765 | $859 | $3,048 |
| Oregon | 97266 | Portland | $1,736 | $1,214 | $2,276 |
| Alabama | 35218 | Birmingham | $1,726 | $1,022 | $2,382 |
| Iowa | 51654 | Thurman | $1,599 | $985 | $3,373 |
| New Hampshire | 3101 | Manchester | $1,597 | $840 | $5,129 |
| Alaska | 99504 | Anchorage | $1,590 | $1,024 | $2,272 |
| North Dakota | 58552 | Linton | $1,583 | $779 | $3,184 |
| Virginia | 23222 | Richmond | $1,549 | $931 | $3,966 |
| Hawaii | 96704 | Captain Cook | $1,398 | $1,055 | $1,833 |
| Ohio | 44104 | Cleveland | $1,275 | $779 | $1,906 |
| Vermont | 5073 | Taftsville | $1,209 | $756 | $1,978 |
| Idaho | 83546 | Pierce | $1,208 | $794 | $2,042 |
| Maine | 4491 | Vanceboro | $1,204 | $717 | $2,416 |
Mark Friedlander, director of corporate communications for the Insurance Information Institute in St. Johns, Florida, explains that your ZIP code can significantly affect your out-of-pocket insurance costs.
“You could reside in a large city like Chicago or Los Angeles and pay significantly different rates based on what ZIP code you live in within that city,” he says.
Learn more about Which states are no fault and what does it mean?
Which ZIP codes have the cheapest car insurance in the U.S.?
On the other hand, there are plenty of areas in the U.S. where you will fork over much less for car insurance.
| State | ZIP Code | City | Annual Premium |
|---|---|---|---|
| Ohio | 43456 | Put In Bay | $861 |
| Idaho | 83716 | Boise City | $973 |
| Maine | 4769 | Presque Isle | $1,016 |
| Iowa | 50014 | Ames | $1,085 |
| Virginia | 22802 | Harrisonburg | $1,093 |
| Oregon | 97408 | Eugene | $1,095 |
| Indiana | 46052 | Lebanon | $1,103 |
| Vermont | 5488 | Swanton | $1,107 |
| North Carolina | 28745 | Lake Junaluska | $1,123 |
| Tennessee | 37604 | Johnson City | $1,123 |
Five additional ZIP codes that boast lower rates are Ketchikan, Alaska ($1,150); Walnut Bottom, Pa. ($1,150); Anahola, Hawaii ($1,158); Howard, Wis. ($1,159); and Swanzey, New Hampshire ($1,161).
Want to know where you can get the cheapest car insurance? Here are a few:
- Corning, NY: $488
- Northfield, Mass.: $495
- Put In Bay, Ohio: $523
- Lebanon, Ind.: $583
- Boise City, Idaho: $642
See the table below for the cheapest ZIP codes for car insurance in the U.S.
| State | ZIP Code | City | Annual Premium | Lowest Price | Highest Price |
|---|---|---|---|---|---|
| Ohio | 43456 | Put In Bay | $861 | $523 | $1,425 |
| Idaho | 83716 | Boise City | $973 | $642 | $1,514 |
| Maine | 4769 | Presque Isle | $1,016 | $646 | $1,949 |
| Iowa | 50014 | Ames | $1,085 | $744 | $1,605 |
| Virginia | 22802 | Harrisonburg | $1,093 | $637 | $2,166 |
| Oregon | 97408 | Eugene | $1,095 | $681 | $1,471 |
| Indiana | 46052 | Lebanon | $1,103 | $583 | $1,899 |
| Vermont | 5488 | Swanton | $1,107 | $754 | $1,781 |
| North Carolina | 28745 | Lake Junaluska | $1,123 | $712 | $1,605 |
| Tennessee | 37604 | Johnson City | $1,123 | $804 | $1,691 |
| Alaska | 99901 | Ketchikan | $1,150 | $812 | $1,842 |
| Pennsylvania | 17266 | Walnut Bottom | $1,150 | $653 | $2,714 |
| Hawaii | 96703 | Anahola | $1,158 | $879 | $1,544 |
| Wisconsin | 54313 | Howard | $1,159 | $529 | $2,826 |
| New Hampshire | 3446 | Swanzey | $1,161 | $722 | $2,879 |
| North Dakota | 58104 | Fargo | $1,184 | $685 | $2,298 |
| Massachusetts | 1360 | Northfield | $1,185 | $495 | $1,802 |
| Washington | 98261 | Lopez Island | $1,185 | $731 | $3,066 |
| New Mexico | 88310 | Alamogordo | $1,270 | $819 | $1,962 |
| New York | 14830 | Corning | $1,281 | $488 | $2,346 |
| Maryland | 21742 | Fountainhead-Orchard Hills | $1,301 | $751 | $2,260 |
| Arizona | 86403 | Lake Havasu City | $1,306 | $830 | $3,259 |
| Minnesota | 56003 | North Mankato | $1,309 | $844 | $2,042 |
| Illinois | 61704 | Bloomington | $1,311 | $679 | $3,432 |
| South Dakota | 57064 | Tea | $1,329 | $936 | $1,917 |
| Georgia | 31605 | Valdosta | $1,330 | $860 | $2,298 |
| Utah | 84720 | Cedar City | $1,337 | $785 | $2,057 |
| Kansas | 66502 | Manhattan | $1,356 | $873 | $2,364 |
| West Virginia | 25401 | Martinsburg | $1,371 | $733 | $2,222 |
| Alabama | 36507 | Bay Minette | $1,385 | $869 | $2,205 |
| Colorado | 81507 | Redlands | $1,385 | $811 | $1,849 |
| Mississippi | 39759 | Starkville | $1,387 | $841 | $2,109 |
| Arkansas | 72941 | Lavaca | $1,394 | $935 | $2,777 |
| Rhode Island | 2842 | Newport East | $1,394 | $809 | $2,422 |
| Kentucky | 42303 | Owensboro | $1,435 | $1,039 | $2,232 |
| Montana | 59626 | Helena | $1,464 | $795 | $2,407 |
| South Carolina | 29665 | Newry | $1,495 | $1,042 | $3,080 |
| Nevada | 89406 | Fallon | $1,499 | $688 | $3,264 |
| Nebraska | 68512 | Lincoln | $1,525 | $940 | $2,908 |
| Connecticut | 6035 | Granby | $1,539 | $837 | $3,883 |
| California | 96067 | Mount Shasta | $1,571 | $1,038 | $2,228 |
| Oklahoma | 74006 | Bartlesville | $1,578 | $1,015 | $2,318 |
| New Jersey | 8730 | Brielle | $1,613 | $933 | $2,795 |
| Texas | 76306 | Wichita Falls | $1,616 | $1,035 | $2,740 |
| Michigan | 49107 | Buchanan | $1,658 | $1,185 | $2,408 |
| Wyoming | 82801 | Sheridan | $1,666 | $808 | $2,517 |
| Delaware | 19970 | Ocean View | $1,769 | $987 | $3,601 |
| Missouri | 65109 | Jefferson City | $1,785 | $893 | $4,558 |
| Washington D.C. | 20001 | Washington | $1,858 | $862 | $3,830 |
| Louisiana | 71064 | Plain Dealing | $1,925 | $1,189 | $2,958 |
| Florida | 32459 | Santa Rosa Beach | $1,951 | $1,162 | $2,478 |
Average annual car insurance rates compared to 2019
Based on Carinsurance.com 2022 data compared with 2019, you can see how car insurance premiums have changed over time.
The average annual premium has decreased across three common sets of coverage:
- State minimum coverage: $211 (average 2022 premium), down $68 (12%).
- 50/100/50 liability-only coverage: $637, down $11 (2%).
- 100/300/100 full coverage: $1,682, down $22 (1%).
| Coverage Set | 2019 Average Annual Premium | 2022 Average Annual Premium | $ Decrease | % Decrease |
|---|---|---|---|---|
| State Minimum | $579 | $511 | $68 | 12% |
| 50/100/50 Liability Only | $648 | $637 | $11 | 2% |
| Full Coverage 100/300/100 | $1,704 | $1,682 | $22 | 1% |
How your location affects your car insurance rate
Friedlander points to a simple fact: The city you live in often significantly affects car insurance premiums.
“Metro area drivers pay much more for auto insurance than drivers in rural locations in the same state,” he says. “For example, drivers in the Chicago area pay much more for auto insurance compared to downstate Illinois cities.”
Additionally, ZIP codes with single-digit uninsured motorist rates “have lower average rates compared to ZIP codes with uninsured motorist rates above 20%,” Friedlander says.
Drivers in ZIP codes with lower populations and accident rates will be charged less than motorists in cities with higher traffic volumes, accident frequencies and severity, vandalism, theft, crime rates and insurance payouts.
“Inflation is also contributing to higher auto premiums,” Friedlander says. “According to an analysis from the Insurance Information Institute, what we are now seeing are double-digit year-over-year increases in repair costs, driven by supply chain shortages of replacement parts and higher labor costs. Parts and equipment are up 12.6% year-over-year.”
Moreover, the cost of vehicles plays a huge role in the pricing equation for insurance. Year-over-year, new vehicle prices are up 12.2%, Friedlander says, while used vehicle prices have increased by 40.5%.
Why do car insurance rates vary so much among insurance companies?
Car insurance companies assess many factors when setting rates, and your location is chief among them. Based on the number and severity, or cost, of car insurance claims within the area, insurers assign ZIP codes at different risk levels.
Insurers consider the frequency of thefts, collisions and vandalism to gauge the likelihood of such incidents happening to drivers within the ZIP code. This is used as the base rate from which insurers calculate your premium.
To estimate car insurance costs, input your coverage needs and location into CarInsurance.com’s Car Insurance Estimator tool. Other pricing factors, such as your driving record, car make/model and your age are also a factor in how much you’ll pay.
| Vehicles | Average Rates |
|---|---|
| Convertibles | $2,628 |
| Hybrids | $2,042 |
| Vans | $1,606 |
| Trucks | $1,787 |
| SUVs | $1,946 |
| Tesla Model 3 | $2,503 |
| Cars | $2,316 |
| Electric vehicles | $2,322 |
Resources & Methodology
Source
Insurance Information Institute. “Facts + Statistics: Uninsured motorists.” Accessed June 2022.
Methodology
CarInsurance.com commissioned Quadrant Information Services in 2022 for auto insurance rates for a 40-year-old male driver with a good insurance score (no violations) and a 12-mile commute with a full-coverage policy. The data includes auto coverage by ZIP code for 2022 as well as data from 2019 and 2022 vehicle data.
– Michelle Megna contributed to this story.
