Curious why car insurance rates often increase from year to year? For example, why do you pay more for car insurance than a 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 age. The city you live in can also impact how much you will pay for car insurance.

Keep reading to compare car insurance rates by ZIP code and which cities are the most expensive.

Average car insurance rates by ZIP code

Recently, collected automobile insurance premium data from every state and significant ZIP code in the country. Our analysis shows which cities/ZIP codes have the costliest car insurance rates and the least expensive automobile insurance rates, on average.

Living in a more rural ZIP code area can yield cheaper car insurance premiums than large metropolitan ZIP codes. Keep reading to learn which cities are more or less expensive for car insurance.

Tip iconAverage annual car insurance premiums
  • State Minimum: $511
  • 50/100/50 Liability Only: $637
  • Full Coverage 100/300/100: $1,682

Most expensive car insurance rates by ZIP code

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
New York11212New York$5,349
Louisiana70145New Orleans$4,288
Missouri63107St. Louis$3,851
Nevada89106Las Vegas$3,019

Other ZIP codes with pricey car insurance rates include Chicago ($2,919), Baltimore ($2,918) Lookout, Kentucky ($2,890), Newark, New Jersey ($2,807) and Providence, Rhode Island ($2,726). Remember, these are average rates across these ZIP codes within these states.

Which cities have the highest car insurance cost?

However, taking a closer look unveils the highest actual premium prices policyholders in many of the ZIP codes may end up paying (on a low-to-high range, not averaged out), although they will pay less on average for a policy in these cities:

  • Detroit, Mich.: $16,397
  • New York, NY: $13,850
  • St. Louis, Mo.: $10,332
  • Chicago, Ill.: $10,121
  • Wilmington, Del.: $7,679

Geoff Cudd, a Philadelphia-based consumer advocate and owner of, 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
New York11212New York$5,349$1,831$13,850
Louisiana70145New Orleans$4,288$2,203$5,958
Missouri63107St. Louis$3,851$893$10,332
Nevada89106Las Vegas$3,019$1,084$6,133
New Jersey7102Newark$2,807$1,509$5,029
Rhode Island2909Providence$2,726$1,136$4,510
South Carolina29933Miley$2,398$1,393$6,282
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
New Mexico87121Albuquerque$1,880$1,131$3,155
Washington D.C.20001Washington$1,858$862$3,830
North Carolina28212Charlotte$1,809$1,101$2,952
Utah84104Salt Lake City$1,765$859$3,048
New Hampshire3101Manchester$1,597$840$5,129
North Dakota58552Linton$1,583$779$3,184
Hawaii96704Captain Cook$1,398$1,055$1,833

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: Which states are no-fault states and what does that mean?

Cheapest car insurance rates by ZIP code

On the other hand, there are plenty of areas in the U.S. where you will fork over much less for car insurance. See the table below for the cheapest car insurance rates by ZIP code and city, state and annual car insurance cost.

Cheapest ZIP codes for car insurance in 2022
StateZIP CodeCityAnnual Premium
Ohio43456Put In Bay$861
Idaho83716Boise City$973
Maine4769Presque Isle$1,016
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).

Which cities and ZIP codes have the cheapest car insurance?

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
North Carolina28745Lake Junaluska$1,123$712$1,605
Tennessee37604Johnson City$1,123$804$1,691
Pennsylvania17266Walnut Bottom$1,150$653$2,714
New Hampshire3446Swanzey$1,161$722$2,879
North Dakota58104Fargo$1,184$685$2,298
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
South Dakota57064Tea$1,329$936$1,917
Utah84720Cedar City$1,337$785$2,057
West Virginia25401Martinsburg$1,371$733$2,222
Alabama36507Bay Minette$1,385$869$2,205
Rhode Island2842Newport East$1,394$809$2,422
South Carolina29665Newry$1,495$1,042$3,080
California96067Mount Shasta$1,571$1,038$2,228
New Jersey8730Brielle$1,613$933$2,795
Texas76306Wichita Falls$1,616$1,035$2,740
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

Why does car insurance cost vary by ZIP code?

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 than those 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. Friedlander says new vehicle prices are up 12.2% yearly, while used vehicle prices have increased by 40.5%.

Final thoughts: Car insurance rates by ZIP code

Car insurance companies assess many factors when setting rates, and your ZIP code is one of them — based on the number, severity or cost of car insurance claims, insurers assign different risk levels.

To estimate car insurance costs, input your coverage needs and location into our estimator tool.

Resources & Methodology


Insurance Information Institute. “Facts + Statistics: Uninsured motorists.” Accessed June 2022.

Methodology 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 and data from 2019 and 2022 vehicle data.

– Michelle Megna contributed to this story.

Laura Longero

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Laura Longero

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Laura is an award-winning editor with experience in content and communications covering auto insurance and personal finance. She has written for several media outlets, including the USA Today Network. She most recently worked in the public sector for the Nevada Department of Transportation.

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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 and