Eager to learn why car insurance rates often increase from year to year? Wonder why you pay more for car insurance than your friend does 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 have an impact on what 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 in 2022

Recently, CarInsurance.com collected automobile insurance premium data from every state and major ZIP code in the country. Armed with these numbers, we can now assess how much you can anticipate paying for vehicle insurance, on average, in most cities across the nation.

Our analysis below reports on which cities/ZIP codes have the costliest car insurance rates, on average, as well as the least expensive automobile insurance rates.

The methodology we followed assumes you are a 40-year-old male with a clean driving record (no recent moving violations/tickets) who requires full coverage, drives approximately 12 miles to work, and possesses a good insurance score.

Some of our findings were surprising, while others were somewhat expected. As you might anticipate, living in a more rural ZIP code area can yield cheaper car insurance premiums as opposed to residing in a major metropolitan ZIP code.

Keep reading for more granular detail on which cities charge more versus less for automobile insurance coverage.

Tip icon2022 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

Per our research, here’s the listing of cities (based on ZIP codes) where car insurance rates are the highest in 2022.

Most expensive ZIP codes for auto insurance in 2022
StateZIP CodeCityAnnual Premium
Michigan48210Detroit$5,460
New York11212New York$5,349
Louisiana70145New Orleans$4,288
Missouri63107St. Louis$3,851
Florida33603Tampa$3,775
California91205Glendale$3,615
Delaware19801Wilmington$3,069
Pennsylvania19142Philadelphia$3,056
Nevada89106Las Vegas$3,019
Massachusetts2119Roxbury$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 the reason why car insurance rates vary so greatly from location to location.

Geoff Cudd Philadelphia-based consumer advocate and owner of FindTheBestCarPrice.com
Geoff Cudd
Philadelphia-based consumer advocate and owner of FindTheBestCarPrice.com

“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.

Most expensive ZIP codes in the U.S. for auto insurance in 2022
State ZIP Code City Annual Premium Lowest Price Highest Price
Michigan48210Detroit$5,460$1,666$16,397
New York11212New York$5,349$1,831$13,850
Louisiana70145New Orleans$4,288$2,203$5,958
Missouri63107St. Louis$3,851$893$10,332
Florida33603Tampa$3,775$1,942$6,547
California91205Glendale$3,615$2,235$5,744
Delaware19801Wilmington$3,069$1,466$7,679
Pennsylvania19142Philadelphia$3,056$1,917$7,370
Nevada89106Las Vegas$3,019$1,084$6,133
Massachusetts2119Roxbury$3,014$1,330$4,414
Illinois60624Chicago$2,919$1,326$10,121
Maryland21216Baltimore$2,918$1,479$4,810
Kentucky41542Lookout$2,890$1,922$6,108
New Jersey7102Newark$2,807$1,509$5,029
Rhode Island2909Providence$2,726$1,136$4,510
Nebraska69337Chadron$2,578$874$8,922
Texas77201Houston$2,482$1,382$3,907
Connecticut6604Bridgeport$2,472$1,373$7,636
Colorado80219Denver$2,452$1,270$4,430
Wisconsin53206Milwaukee$2,452$936$7,358
South Carolina29933Miley$2,398$1,393$6,282
Arizona85009Phoenix$2,325$1,364$3,971
Georgia30032Candler-McAfee$2,312$1,516$3,690
Oklahoma73105Oklahoma City$2,093$1,067$3,370
South Dakota57770Pine Ridge$2,034$1,128$3,397
Minnesota55130St. Paul$2,000$1,406$2,939
West Virginia25674Kermit$1,958$1,047$3,088
Montana59089Wyola$1,906$962$3,274
Indiana46402Gary$1,895$844$3,782
New Mexico87121Albuquerque$1,880$1,131$3,155
Mississippi39086Hermanville$1,861$1,057$2,773
Washington D.C.20001Washington$1,858$862$3,830
Kansas67854Jetmore$1,851$1,127$3,349
Tennessee38127Memphis$1,848$1,138$2,899
Arkansas71644Grady$1,833$1,097$3,754
North Carolina28212Charlotte$1,809$1,101$2,952
Wyoming82716Gillette$1,804$880$2,890
Washington98118Seattle$1,792$1,024$4,125
Utah84104Salt Lake City$1,765$859$3,048
Oregon97266Portland$1,736$1,214$2,276
Alabama35218Birmingham$1,726$1,022$2,382
Iowa51654Thurman$1,599$985$3,373
New Hampshire3101Manchester$1,597$840$5,129
Alaska99504Anchorage$1,590$1,024$2,272
North Dakota58552Linton$1,583$779$3,184
Virginia23222Richmond$1,549$931$3,966
Hawaii96704Captain Cook$1,398$1,055$1,833
Ohio44104Cleveland$1,275$779$1,906
Vermont5073Taftsville$1,209$756$1,978
Idaho83546Pierce$1,208$794$2,042
Maine4491Vanceboro$1,204$717$2,416

Mark Friedlander, director of Corporate Communications for the Insurance Information Institute in St. Johns, Florida, explains that the ZIP code you live in can make a big difference in your out-of-pocket insurance costs.

Expert Advice
Mark Friedlander Director of Corporate Communications for the Insurance Information Institute in St. Johns, Florida

Mark Friedlander

Director of Corporate Communications for the Insurance Information Institute in St. Johns, Florida

“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.

Motor City madness: Why car insurance rates are so high in Detroit

Detroit may be known as “Motor City” and home to many famous automakers, but it’s also the town with the dubious distinction of having the most expensive automobile insurance premiums, on average, in 2022.

Why? Consider that Michigan is a no-fault state. That means drivers are required to have personal injury protection coverage that safeguards against financial losses no matter who causes a vehicle accident.

The state also obligates drivers to have property protection insurance and at least a liability coverage ratio of 20/40/10. These mandatory coverages result in significantly increased premiums for drivers in Detroit and throughout Michigan.

Among the other reasons why motorists in Detroit and its home state pay more for car insurance is that Michigan has an extremely high rate of uninsured drivers – 25.5%, the second-highest in the nation – which causes carriers to shift to policyholders the extra expenses they have to pay for accidents involving uninsured drivers.

Learn more about Which states are no fault and what does it mean?

Which ZIP codes have the cheapest car insurance?

On the other hand, there are plenty of areas in the USA where you will likely fork over much less for car insurance.

Here are the top 10 cheapest ZIP codes in 2022, on average, in order
StateZIP CodeCityAnnual Premium
Ohio43456Put In Bay$861
Idaho83716Boise City$973
Maine4769Presque Isle$1,016
Iowa50014Ames$1,085
Virginia22802Harrisonburg$1,093
Oregon97408Eugene$1,095
Indiana46052Lebanon$1,103
Vermont5488Swanton$1,107
North Carolina28745Lake Junaluska$1,123
Tennessee37604Johnson City$1,123

Five additional ZIP codes that boast lower rates are Ketchikan, Ala. ($1,150); Walnut Bottom, Pa. ($1,150); Anahola, Hawaii ($1,158); Howard, Wis. ($1,159); and Swanzey, NH ($1,161).

Want to know where you can actually get the very lowest automobile insurance policies (cheapest on a range, not averaged out, although you will pay higher on average for a policy in these ZIP codes)?

Check out these incredible rates:

  • Corning, NY: $488
  • Northfield, Mass.: $495
  • Put In Bay, Ohio: $523
  • Lebanon, Ind.: $583
  • Boise City, Idaho: $642
Cheapest ZIP codes in the U.S. for auto insurance in 2022
State ZIP Code City Annual Premium Lowest Price Highest Price
Ohio43456Put In Bay$861$523$1,425
Idaho83716Boise City$973$642$1,514
Maine4769Presque Isle$1,016$646$1,949
Iowa50014Ames$1,085$744$1,605
Virginia22802Harrisonburg$1,093$637$2,166
Oregon97408Eugene$1,095$681$1,471
Indiana46052Lebanon$1,103$583$1,899
Vermont5488Swanton$1,107$754$1,781
North Carolina28745Lake Junaluska$1,123$712$1,605
Tennessee37604Johnson City$1,123$804$1,691
Alaska99901Ketchikan$1,150$812$1,842
Pennsylvania17266Walnut Bottom$1,150$653$2,714
Hawaii96703Anahola$1,158$879$1,544
Wisconsin54313Howard$1,159$529$2,826
New Hampshire3446Swanzey$1,161$722$2,879
North Dakota58104Fargo$1,184$685$2,298
Massachusetts1360Northfield$1,185$495$1,802
Washington98261Lopez Island$1,185$731$3,066
New Mexico88310Alamogordo$1,270$819$1,962
New York14830Corning$1,281$488$2,346
Maryland21742Fountainhead-Orchard Hills$1,301$751$2,260
Arizona86403Lake Havasu City$1,306$830$3,259
Minnesota56003North Mankato$1,309$844$2,042
Illinois61704Bloomington$1,311$679$3,432
South Dakota57064Tea$1,329$936$1,917
Georgia31605Valdosta$1,330$860$2,298
Utah84720Cedar City$1,337$785$2,057
Kansas66502Manhattan$1,356$873$2,364
West Virginia25401Martinsburg$1,371$733$2,222
Alabama36507Bay Minette$1,385$869$2,205
Colorado81507Redlands$1,385$811$1,849
Mississippi39759Starkville$1,387$841$2,109
Arkansas72941Lavaca$1,394$935$2,777
Rhode Island2842Newport East$1,394$809$2,422
Kentucky42303Owensboro$1,435$1,039$2,232
Montana59626Helena$1,464$795$2,407
South Carolina29665Newry$1,495$1,042$3,080
Nevada89406Fallon$1,499$688$3,264
Nebraska68512Lincoln$1,525$940$2,908
Connecticut6035Granby$1,539$837$3,883
California96067Mount Shasta$1,571$1,038$2,228
Oklahoma74006Bartlesville$1,578$1,015$2,318
New Jersey8730Brielle$1,613$933$2,795
Texas76306Wichita Falls$1,616$1,035$2,740
Michigan49107Buchanan$1,658$1,185$2,408
Wyoming82801Sheridan$1,666$808$2,517
Delaware19970Ocean View$1,769$987$3,601
Missouri65109Jefferson City$1,785$893$4,558
Washington D.C.20001Washington$1,858$862$3,830
Louisiana71064Plain Dealing$1,925$1,189$2,958
Florida32459Santa Rosa Beach$1,951$1,162$2,478

Average car insurance rates decline since 2019

Based on Carinsurance.com 2022 data v. 2019, we can trace how car insurance premiums have gone up or down over the past three years.

Amazingly, the average annual premium has decreased across three common sets of coverage:

  • State minimum coverage: $211 (average 2022 premium), down $68 (12%) since 2019
  • 50/100/50 liability-only coverage: $637, down $11 (2%)
  • 100/300/100 full coverage: $1,682, down $22 (1%).
2022 auto insurance rates vs. 2019 rates
Coverage Set2019 Avg Annual Premium2022 Avg Annual Premium$ Decrease% Decrease
State Minimum$579$511$6812%
50/100/50 Liability Only$648$637$112%
Full Coverage 100/300/100$1,704$1,682$221%

How your location affects your car insurance rate

Friedlander again points to a simple fact: The town you live in often has a significant effect on 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.

It stands to reason that drivers in ZIP codes with lower populations and lower accident rates will be charged less than motorists in cities with higher traffic volumes, accident frequencies and severity, vandalism, theft, and crime rates and insurance payouts.

Expert Advice
Mark Friedlander Director of Corporate Communications for the Insurance Information Institute in St. Johns, Florida

Mark Friedlander

Director of Corporate Communications for the Insurance Information Institute in St. Johns, Florida

“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.”

What’s more, 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 a whopping 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 take into account 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.

Other pricing factors, such as your driving record, type of car you drive and your age are then added into the calculation.

Average rates for 2021 vehicles by type:
Graph
Table
VehiclesAverage 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
 

To estimate car insurance costs, you can take into account your age, the level of coverage you need and your location.

Every car insurance company uses its own base rate and formula, which is why rates can vary so much, and why it’s important to comparison shop to get affordable car insurance. For instance, CarInsurance.com’s rate analysis found the following potential savings, or the difference between the highest and lowest price, for the same policy:

Here are average rates for 2021 vehicles by type
CoverageHighest PriceLowest Price$ Difference% Difference
Full Coverage 100/300/100$16,397$468$15,9293404%
State Minimum$6,843$127$6,7165288%

How to save on car insurance regardless of your ZIP code

Live in a ZIP code where auto insurance premiums are off the charts? Having trouble affording car insurance no matter what town you call home? There are several strategies you can pursue to decrease your coverage costs.

Price around for a policy:

Request quotes from several different insurance carriers and compare apples-to-apples coverages, limits and deductibles.

Inquire about discounts:

Expert Advice
Justin Yoshizawa Director of Product Management for Mercury Insurance in Brea, California

Justin Yoshizawa

Director of Product Management for Mercury Insurance in Brea, California

“Drivers should speak with their agent regarding all of the discounts that a carrier has to offer,” says Justin Yoshizawa.

“For example, if you have more than one vehicle or drivers related to you living in your home, insurers will give discounts for insuring multiple vehicles in the same household.” Other discounts you can seek out include discounts for having an antitheft device, taking a defensive driving course and having no accidents or moving violations for the past three years.

Check out our detailed guide on the Best car insurance discounts

Drive less than expected:

“Some insurers offer discounts to motorists who drive a lower-than-average number of miles a year, including drivers who carpool to work,” says Friedlander.

Bundle your vehicle and home insurance:

By purchasing two or more types of insurance products from the same insurer, you can possibly save big money on each policy.

Increase your deductible:

“By requesting higher deductibles, you can lower your costs substantially. For example, increasing your deductible from $200 to $500 could reduce your collision and comprehensive coverage cost by 15% to 30%,” explains Yoshizawa. “Going to a $1,000 deductible can save you 40% or more.”

Read more about Why Raising Deductibles Saves you Money?

Explore group insurance:

“Some companies offer reductions to drivers who get insurance through a group plan from their employers, through professional, business, and alumni groups, or from other associations. Ask your employer and inquire with groups or clubs you are a member of to see if this is possible,” Friedlander suggests.

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.