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

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.

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

Below are the cities (based on ZIP codes) with the highest car insurance rates, according to 2022 data.

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 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.

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 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.

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, 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.

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 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 $22 (1%).
2022 auto insurance rates vs. 2019 rates
Coverage Set2019 Average Annual Premium2022 Average Annual Premium$ 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 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.

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
 

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.

author image
Contributing Researcher

Erik J. Martin is a Chicago area-based freelance writer whose articles have been published by AARP The Magazine, The Motley Fool, The Costco Connection, USAA, US Chamber of Commerce, Bankrate, The Chicago Tribune, and other publications. He often writes on topics related to insurance, real estate, personal finance, business, technology, health care, and entertainment. Erik also hosts a podcast and publishes several blogs, including Martinspiration.com and Cineversegroup.com.