CarInsurance.com Insights

  • State impacts insurance costs dramatically — average car insurance premiums vary widely across the U.S., with some states costing much more than others.
  • Most expensive states include Louisiana, Michigan and Nevada— these markets show the highest average annual full-coverage premiums.
  • Cheapest states include Vermont, New Hampshire and Hawaii — drivers in these states see some of the lowest average car insurance rates.
  • State laws and risks drive rate differences — minimum coverage requirements, accident rates, theft frequency and weather-related claims all influence premiums.
  • Comparing insurers in your state pays off — even within a high-cost state, shopping around can help you save significantly on car insurance.

The average cost of car insurance varies widely by state. Drivers in Louisiana, Michigan and Nevada pay the most for car insurance nationwide, while drivers in Vermont, New Hampshire and Hawaii have the cheapest car insurance.

Every state has its own car insurance laws and requirements, and that’s one reason why car insurance rates by state vary dramatically.

Additionally, auto insurers assign risk levels to ZIP codes based on the number of uninsured drivers and the frequency of thefts, collisions and vandalism to gauge the likelihood of such incidents in an area.

Car insurance rates by state
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Car insurance in state

Average car insurance rates by state

CarInsurance.com gathered car insurance premium data from every state for nearly every ZIP, so you can see how much car insurance costs in your state. The editors included data on which states offer the cheapest car insurance by state, on average, and which states have the most expensive car insurance rates.

The national average annual cost for a full-coverage policy is $2,578, but laws in your state and your driving profile and vehicle profile can cause rates to vary.

The editors’ findings might surprise you.

Some of the states with the lowest average annual car insurance premiums are those with a higher average cost of living. Some of the smallest and least-populated states in the nation rank among the 10 states with the highest average annual car insurance premium rates.

See the table below for the average car insurance rates by state.

StateAverage annual cost
Alabama$2,116
Alaska$2,167
Arizona$2,420
Arkansas$2,942
California$3,444
Colorado$3,181
Connecticut$2,742
Delaware$3,157
Florida$3,916
Georgia$2,503
Hawaii$1,757
Idaho$1,901
Illinois$1,938
Indiana$1,894
Iowa$2,460
Kansas$2,496
Kentucky$2,624
Louisiana$3,999
Maine$1,808
Maryland$1,999
Massachusetts$2,429
Michigan$3,964
Minnesota$2,591
Mississippi$2,397
Missouri$2,151
Montana$2,476
Nebraska$2,095
Nevada$3,963
New Hampshire$1,689
New Jersey$3,122
New Mexico$2,577
New York$2,596
North Carolina$2,638
North Dakota$2,439
Ohio$1,783
Oklahoma$2,993
Oregon$2,048
Pennsylvania$2,327
Rhode Island$2,878
South Carolina$2,417
South Dakota$2,575
Tennessee$2,235
Texas$3,106
Utah$2,356
Vermont$1,660
Virginia$1,835
Washington$2,389
Washington, D.C.$3,465
West Virginia$2,415
Wisconsin$2,343
Wyoming$2,061

States with the most expensive auto insurance rates

Louisiana, Michigan, Nevada, Florida and Washington, D.C. are the most expensive states for car insurance in the U.S.

Mark Friedlander, director of corporate communications for the Insurance Information Institute in St. Johns, Florida, says Florida rates are driven by severe weather and uninsured motorists.

“Florida drivers pay high average premiums in the United States due to a variety of factors,” Friedlander says. “These include the impact of severe weather on roadways, heavy traffic patterns on interstates generated by residents and millions of annual visitors, congested roadways in major metro areas, a state’s no-fault insurance law … and the fact that Florida has one of the highest uninsured motorist rates in the United States – 20.4%.”

Based on our research, the table below shows the states where average annual car insurance rates are the most expensive:

StateAverage annual rates
Louisiana$3,999
Michigan$3,964
Nevada$3,963
Florida$3,916
Washington, D.C.$3,465
California$3,444
Colorado$3,181
Delaware$3,157
New Jersey$3,122
Texas$3,106

States with the cheapest car insurance rates

By contrast, the cheapest states for car insurance include Vermont, New Hampshire and Hawaii.

“States that have the lowest overall car insurance premiums on average may have lower populations, which result in fewer car accidents and less money paid out by insurance companies, resulting in cheaper insurance premiums,” says Lauren McKenzie, an insurance broker at A Plus Insurance in Liberty, South Carolina.

Geoff Cudd, a Philadelphia-based consumer advocate and owner of FindTheBestCarPrice.com, says states with milder weather and rural areas pay cheaper car insurance rates.

“That generally means less chance of accidents and weather-related claims, which means car insurance companies will have to spend less money,” Cudd says.

See the states with the cheapest full coverage car insurance in the table below.

StateAverage annual rates
Vermont$1,660
New Hampshire$1,689
Hawaii$1,757
Ohio$1,783
Maine$1,808
Virginia$1,835
Indiana$1,894
Idaho$1,901
Illinois$1,938
Maryland$1,999

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How much have car insurance rates increased over time?

Car insurance costs have climbed sharply nationwide between 2023 and 2026, with nearly every state seeing double-digit percentage increases. The average jump across the U.S. was roughly 36%, reflecting continued inflation in repair costs, rising claim severity and weather-related losses.

More than 40 states experienced double-digit increases in these two years, and 11 states saw annualized gains of 50% or higher.

The most significant overall increases from 2023-26 occurred in:

  • Nevada (92%)
  • Michigan (69%)
  • New Jersey (64%)
  • Washington, D.C. (61%)
  • Connecticut (59%)

These states posted annualized increases between 59% and 92%, the highest in the nation, mainly due to dense traffic, higher repair and medical costs, and severe weather claims.

On the other end of the spectrum, Missouri (9%), Nebraska (10%), Montana (13%) and South Dakota (13%) saw the smallest increases — all under 15% annualized. These states have lower population density, fewer catastrophic weather events, and historically stable claim patterns.

Overall, the data show that insurance affordability continues to diverge regionally. States like Nevada and Michigan already had among the nation’s highest rates in 2023 and saw further sharp increases in 2026, while lower-cost rural states like Hawaii and Maryland remain relatively affordable despite moderate hikes.

State% Change (2023-2026)
Alabama14%
Alaska29%
Arizona34%
Arkansas50%
California43%
Colorado36%
Connecticut59%
Delaware53%
Florida45%
Georgia27%
Hawaii16%
Idaho33%
Illinois27%
Indiana25%
Iowa51%
Kansas31%
Kentucky18%
Louisiana39%
Maine54%
Maryland14%
Massachusetts41%
Michigan69%
Minnesota36%
Mississippi19%
Missouri9%
Montana13%
Nebraska10%
Nevada92%
New Hampshire34%
New Jersey64%
New Mexico26%
New York39%
North Carolina52%
North Dakota46%
Ohio26%
Oklahoma40%
Oregon22%
Pennsylvania24%
Rhode Island40%
South Carolina20%
South Dakota13%
Tennessee33%
Texas52%
Utah29%
Vermont26%
Virginia25%
Washington49%
Washington, D.C.61%
West Virginia20%
Wisconsin41%
Wyoming17%

Why car insurance rates vary by state

Car insurance rates aren’t just about your driving record — where you live can play an even bigger role. Each state sets its own rules for required coverage, liability limits, and claims handling, all of which affect how much drivers pay.

Here are the biggest reasons rates differ from state to state:

  • State coverage requirements: Some states require only basic liability coverage, while others mandate additional protections, such as uninsured motorist or personal injury protection (PIP). States with higher minimums naturally see higher average premiums.
  • Population density and traffic: Urban areas with higher traffic and congestion, such as New York and California, tend to have more accidents and higher insurance costs than rural states like Vermont and Maine.
  • Weather and natural disasters: States prone to hurricanes, floods, or hailstorms, including Florida and Louisiana, experience higher claim volumes and repair costs, driving up premiums.
  • Uninsured drivers: When more people on the road are uninsured, insured drivers end up paying more to cover that risk. For instance, Florida and Mississippi consistently rank among the states with the highest uninsured motorist rates.
  • Repair and medical costs: Regional labor, medical care, and parts pricing also impact premiums. States with higher healthcare or body shop costs tend to have higher full coverage premiums.

See how much car insurance costs in each state in the table below.

StateState minimumLiability-onlyFull coverageNon-owner
Alabama$596$633$2,116$469
Alaska$681$700$2,167$296
Arizona$684$787$2,420$652
Arkansas$645$707$2,942$440
California$1,019$1,120$3,444$500
Colorado$692$799$3,181$506
Connecticut$1,112$1,201$2,742$1,054
Delaware$1,525$1,703$3,157$936
Florida$1,763$2,320$3,916$668
Georgia$982$1,094$2,503$510
Hawaii$475$546$1,757$389
Idaho$534$577$1,901$297
Illinois$752$827$1,938$518
Indiana$572$620$1,894$320
Iowa$450$491$2,460$280
Kansas$616$691$2,496$408
Kentucky$599$649$2,624$499
Louisiana$1,231$1,602$3,999$410
Maine$461$470$1,808$271
Maryland$1,428$1,621$1,999$516
Massachusetts$1,327$1,496$2,429$686
Michigan$1,577$1,682$3,964$855
Minnesota$1,099$1,171$2,591$352
Mississippi$599$667$2,397$474
Missouri$496$543$2,151$346
Montana$519$566$2,476$412
Nebraska$447$508$2,095$402
Nevada$1,746$2,036$3,963$823
New Hampshire$673$722$1,689$437
New Jersey$1,568$1,691$3,122$1,141
New Mexico$668$772$2,577$413
New York$2,546$2,902$2,596$606
North Carolina$693$693$2,638$681
North Dakota$462$498$2,439$353
Ohio$418$452$1,783$291
Oklahoma$613$667$2,993$477
Oregon$767$850$2,048$644
Pennsylvania$928$1,211$2,327$279
Rhode Island$1,054$1,300$2,878$511
South Carolina$832$915$2,417$448
South Dakota$490$534$2,575$216
Tennessee$658$698$2,235$507
Texas$1,006$1,112$3,106$564
Utah$1,011$1,088$2,356$658
Vermont$365$404$1,660$460
Virginia$689$702$1,835$549
Washington$668$729$2,389$516
Washington, D.C.$918$1,052$3,465$661
West Virginia$520$637$2,415$442
Wisconsin$743$888$2,343$398
Wyoming$326$354$2,061$270

Note:

  • State minimum BI/PD
  • Liability only: 50/100/50 BI/PD
  • Full coverage: 100/300/100 BI/PD

Sophie’s data insights

Even two neighboring states can have dramatically different insurance costs. Crossing from Vermont ($1,660/year) into New York ($2,596/year) nearly doubles the average annual premium in 2026.

Does population density affect insurance rates in your state?

Where you live is a crucial factor in determining how much you’ll pay for car insurance, and the population in your state can affect your rates.

“On average, drivers in more sparsely-populated states such as Idaho and North Dakota are going to pay much less for coverage than drivers in more populous states such as California, Florida and New York,” Friedlander says. “But it goes beyond just the state you live in. Insurers determine rates by the city you live in and even your specific ZIP code. Traffic volume, accident frequency and severity, as well as theft and vandalism data, vary in every city throughout every state.”

In other words, you could live in a large metro like Los Angeles or Chicago and pay significantly different rates based on your ZIP code within that city. Urban drivers generally pay much more for auto insurance than motorists in rural areas in the same state.

“If you live in an area with a high crime rate, a large number of accidents and large payouts, insurance prices will be higher there,” McKenzie says. “If you live in a state with busy, expensive cities where gas prices and rent costs are high, car insurance prices will be high as well.”

Tort states vs. no-fault states: What’s the difference?

State laws vary when it comes to who pays for damages; most states are either tort or no-fault states.

In general, car insurance is more expensive in no-fault states because no-fault law states that you do not need to prove who was at fault to receive compensation from your insurance company. In a no-fault state, each driver’s insurance covers their medical expenses and lost wages after an accident, regardless of who is at fault. This system limits the ability to sue the other driver, except in cases of severe injury or significant damage.

On the other hand, if you cause an accident in a tort state, your insurance company will be on the hook for any damage/injuries you’ve caused. A tort state is one in which the driver found at fault in an accident is responsible for covering the other party’s damages and injuries. 

Generally, this means the at-fault driver’s insurance company pays for the damages and medical costs of the other parties involved in the accident. This system allows the injured party to sue the at-fault driver for compensation beyond what insurance covers.

How to find cheaper car insurance in your state

Even if your state’s average rate is above the national average, you still have options to save. Most drivers can lower their premiums with smart shopping and a few simple policy adjustments.

Compare quotes from multiple companies

Car insurance rates can vary by hundreds of dollars — even for the same coverage. Compare quotes from at least three insurers to find the best deal.

Pro Tip: Use a trusted comparison tool like CarInsurance.com to get personalized quotes without spam calls or data sharing.

Adjust your coverage

If your car is older or paid off, you might save money by reducing optional coverages like collision or comprehensive. Just make sure you maintain enough protection to meet state laws and your comfort level.

Take advantage of discounts

Combine your auto and home or renters insurance policies with the same provider to qualify for multi-policy discounts that can save you up to 14%.

Also ask about:

  • Safe driver discounts
  • Savings for earning good grades
  • Usage-based or telematics programs (e.g., Drive Safe, Snapshot)
  • Defensive driving course credits
  • Paperless billing or automatic payments

Review your policy regularly

Rates and life circumstances change. Re-shop every six to 12 months to ensure you’re still getting the best price. Even staying with the same insurer, updating your mileage or address can reduce costs.

Wise Words

Drivers who compare quotes annually can save an average of $1,245 or more per year, depending on their state and driving profile.

Minimum liability insurance requirements by state

Car insurance requirements and costs differ from state to state. Each state sets its minimum coverage limits, affecting how much drivers pay for basic liability insurance.

Some states require only liability coverage, while others mandate higher limits or additional coverages, such as personal injury protection (PIP) or uninsured motorist coverage.

The table below outlines the minimum car insurance requirements in each state.

StateMinimum liability coverage limitsOther insurance required (if any)
Alabama25/50/25 
Alaska50/100/25 
Arizona25/50/15 
Arkansas25/50/25 
California30/60/15 
Colorado25/50/15 
Connecticut25/50/25UM/UIM
Delaware25/50/10PIP
Washington, D.C.25/50/10UM, UMPD
Florida*0/0/10PIP
Georgia25/50/25 
Hawaii20/40/10PIP
Idaho20/50/15 
Illinois25/50/20UM
Indiana25/50/25UM/UIM
Iowa20/40/15 
Kansas25/50/25UM/UIM, PIP
Kentucky25/50/25
Louisiana15/30/25 
Maine50/100/25UM/UIM, MedPay
Maryland30/60/15UM/UIM, UMPD
Massachusetts25/50/30UM, PIP
Michigan50/100/10PIP, PPI
Minnesota30/60/10UM/UIM, PIP
Mississippi25/50/25 
Missouri25/50/25UM
Montana25/50/20 
Nebraska25/50/25UM/UIM
Nevada25/50/20 
New Hampshire**25/50/25UM/UIM, MedPay
New Jersey***35/70/25UM/UIM, PIP
New Mexico25/50/10 
New York25/50/10UM, PIP
North Carolina50/100/50UM, UIM
North Dakota25/50/25UM/UIM, PIP
Ohio25/50/25 
Oklahoma25/50/25 
Oregon25/50/20UM, PIP
Pennsylvania15/30/5PIP (First Party Benefits)
Rhode Island****25/50/25 
South Carolina25/50/25UM, UMPD
South Dakota25/50/25UM/UIM
Tennessee25/50/25 
Texas30/60/25 
Utah30/65/25UM, PIP
Vermont25/50/10UM/UIM, UMPD
Virginia50/100/25UM/UIM, UMPD
Washington25/50/10 
West Virginia25/50/25UM, UMPD
Wisconsin25/50/10UM, UIM, MedPay
Wyoming25/50/20 

Minimum car insurance requirements by state, 2026

* Florida doesn’t require bodily injury liability coverage, but many insurers only offer policies with minimum amounts of 10/20 of bodily injury coverage.

** Auto insurance isn’t mandatory in New Hampshire, but if you choose to buy insurance, these are the minimum amounts.

*** New Jersey increased its limits to 35/70/25 on Jan. 1, 2026.

**** Rhode Island doesn’t require drivers to buy UM/UIM coverage if buying minimum liability coverage. If you buy higher liability limits, UM is required.   

Final thoughts

Car insurance rates vary from state to state. Although you likely can’t change where you live easily, you can switch insurance companies painlessly. Make sure to shop around for the cheapest policy before signing up. 

Frequently Asked Questions: Car insurance rates by state

Which states had the highest annualized car insurance rate increases from 2023 to 2026?

Nevada experienced the fastest annual increase at 92%, followed by Michigan and New Jersey, at 69% and 64%, respectively. Other notable rises occurred in Washington, D.C. (61%), Connecticut (59%) and Maine (54%). 

Which states had the lowest annualized car insurance rate increases?

Missouri (9%), Nebraska (10%), Montana (13%), and South Dakota (13%) recorded the slowest premium growth between 2023 and 2026. 

What’s the national average car insurance rate increase between 2023 and 2026?

Nationwide, car insurance premiums rose roughly 36% over three years. The increase reflects higher claim costs, expensive vehicle repairs, severe weather losses and inflation in both parts and labor.

Why did car insurance rates rise so much from 2023 to 2026?

Rates climbed due to several converging factors:

  • Inflation: Higher prices for auto parts, repairs, and medical care.
  • Severe weather: More costly claims from storms, flooding, and hail.
  • Increased claim frequency and severity: More accidents and higher payouts.
  • Rising reinsurance and legal costs: Insurers are passing some of these costs to consumers.

Which states now have the highest average car insurance costs?

The most expensive states are Louisiana ($3,999), Michigan ($3,964), Nevada ($3,963), Florida ($3,916) and Washington, D.C. ($3,465).

Which states have the cheapest average car insurance?

Vermont ($1,660), New Hampshire ($1,689), Hawaii ($1,757), Ohio ($1,783) and Maine ($1,808) have the lowest average annual rates.

In conversation with experts

Explore what experts have to say about car insurance rates below. 

Collapse allExpand all

How important is it for car owners to shop around, and how often should they compare insurance rates?

You should shop around each time your policy renews. If you opt for a six-month policy, compare car insurance quotes from multiple companies before signing up for another six months. Putting the effort into finding the lowest car insurance rates can lead to big savings.

“Don’t hesitate to shop around and compare quotes from different insurers — prices can vary significantly for the same level of coverage,” says John Crist, founder of Prestizia Insurance. 

What advice would you give drivers in states with high insurance rates to help them reduce their premiums?

“For those in states with high insurance rates, understanding the factors affecting their premiums is a must,” says Scott Distasio, a Florida-based board-certified civil trial lawyer with extensive experience in auto accident law. “Simple actions like regularly checking credit reports, enrolling in defensive driving courses or leveraging multi-policy discounts can yield significant savings.”

For example, let’s say you live in Florida, where car insurance costs are relatively high. Maintaining a clean driving record, insuring multiple vehicles through a single insurance company and bundling your policies could help you keep your costs low for your state. 

What are some recent trends or changes in state laws that are significantly impacting car insurance rates?

“One emerging trend is the adoption of telematics programs, allowing insurers to base premiums on actual driving behavior,” Distasio says. “However, it’s important to be mindful of potential privacy issues. Also, some states are considering prohibiting the use of credit-based insurance scores that could dramatically change how premiums are calculated.”

“Some states are cracking down on gender-based pricing,” says Andrew Lokenauth, founder of Be Fluent In Finance, a publisher of financial information. This change could erase some of the standard differences in rates between male and female drivers. “Weather-related claims are driving up rates in many regions.” 

After severe weather strikes, a spike in claims can put a strain on the insurance industry. Generally, this strain leads to higher auto insurance premiums for drivers.

Resources & Methodology

Sources

  1. U.S. Department of Transportation National Highway Traffic Safety Administration. “Overview of Motor Vehicle Crashes in 2020.”Accessed February 2026.
  2. Virginia Department of Motor Vehicles. “Insurance Requirements.” Accessed February 2026.

Methodology

CarInsurance.com editors collected rates from Quadrant Information Services for a 40-year-old male and female driver carrying a full coverage insurance policy with limits 100/300/100 and $500 comprehensive and collision deductibles. Read the detailed methodology for more information.

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Meet our editorial team
author-img Sarah Sharkey Contributing Researcher
Sarah Sharkey is a personal finance and insurance writer with a master’s degree in management from the Hough School of Business at the University of Florida. She has written for leading publications including Money Under 30 and The College Investor, helping readers make confident decisions about insurance and financial planning.
author-img Dr. Siwei Gao Industry Expert
Dr. Gao is the director of Principles of Risk & Insurance, which she teaches at Eastern Kentucky University.
author-img Laura Longero Editor-in-Chief
Laura Longero is the editor-in-chief of CarInsurance.com and a Nevada-based insurance expert. With more than 15 years of experience simplifying complex financial and insurance topics, she provides clear, trustworthy guidance to help drivers make confident coverage decisions. She serves as a media spokesperson for CarInsurance.com and has been featured in Consumer Affairs, MotorTrend and Business Insider, and completed the pre-licensing course in Personal Lines Property & Casualty Insurance.