CarInsurance.com Insights
- Six states raised minimum liability limits in 2025 and 2026: California, Massachusetts, North Carolina, Utah, Virginia and New Jersey.
- Full coverage costs the most in Louisiana at $3,999 a year and the least in Vermont at $1,660.
- State minimum coverage ranges from $326 in Wyoming to $2,546 in New York, a spread of eight to one.
- Dropping to minimum coverage cuts a Wyoming bill by about 84%. In New York it saves $50 a year.
- The national motor vehicle insurance index fell in May, June and July 2026, which does not mean your own renewal fell.
Six states raised their minimum car insurance limits in 2025 and 2026: California, Massachusetts, North Carolina, Utah, Virginia and New Jersey. If you live in one of them and carry minimum coverage, your insurer raised your limits at renewal, and your bill went up with them. Everywhere else, how much you pay depends mostly on your state.
Full coverage averages $2,578 a year nationally. In Vermont it runs $1,660. In Louisiana it runs $3,999. That spread tells you more about your renewal than any national inflation figure will.
What changed in your state in 2025 and 2026?
Six states raised their minimum liability limits in 2025 and 2026. Those changes lift the legal floor on coverage, which raises the price of the cheapest policy a driver in that state can legally buy. If you carry minimum coverage in one of these states – California, Utah, Virginia, Massachusetts, North Carolin and New Jersey — your insurer adjusted your limits automatically at your first renewal after the effective date.
| State | Previous limits | New limits | Effective |
|---|---|---|---|
| California | 15/30/5 | 30/60/15 | Jan. 1, 2025 |
| Utah | 25/65/15 | 30/65/25 | Jan. 1, 2025 |
| Virginia | 30/60/20 | 50/100/25 | Jan. 1, 2025 |
| Massachusetts | 20/40/5 | 25/50/30 | July 1, 2025 |
| North Carolina | 30/60/25 | 50/100/50 | July 1, 2025 |
| New Jersey | 25/50/25 | 35/70/25 | Jan. 1, 2026 |
North Carolina made the largest change. Its minimum went to 50/100/50, the highest property damage requirement in the country, and its uninsured and underinsured motorist limits now match. The effect shows up in the data. North Carolina is the only state where minimum coverage and liability-only coverage carry the same average price, $693 a year, because its legal floor now sits at the same 50/100/50 limits used for the liability-only comparison.
California’s increase was the first since 1967. Massachusetts made its first change since 1988. In both states the old property damage floor was $5,000, an amount that no longer covers the repair bill on an average new car.
Insurers file rate changes with state regulators every year, and those filings track claims costs where you live, not statute.
How much car insurance costs in your state right now
Full coverage averages $2,578 a year nationally; state minimum coverage averages $738 and a non-owner policy averages $486. Your state can sit far from all three. Louisiana drivers pay $3,999 for full coverage. Vermont drivers pay $1,660 for the same coverage level, a difference of $2,339 a year for identical protection.
Four states exceed $3,900 a year for full coverage: Louisiana, Michigan, Nevada and Florida. All four sit more than 50% above the national average. Washington, D.C. reaches $3,465, which would place fifth if it were a state.
At the other end, five states stay under $1,850: Vermont, New Hampshire, Hawaii, Ohio and Maine. Every one of them runs at least 30% below the national average. See more rates in the table below.
| State | Full coverage | Liability-only | State-minimum | Non-owner |
|---|---|---|---|---|
| Alabama | $2,116 | $633 | $596 | $469 |
| Alaska | $2,167 | $700 | $681 | $296 |
| Arizona | $2,420 | $787 | $684 | $652 |
| Arkansas | $2,942 | $707 | $645 | $440 |
| California | $3,444 | $1,120 | $1,019 | $500 |
| Colorado | $3,181 | $799 | $692 | $506 |
| Connecticut | $2,742 | $1,201 | $1,112 | $1,054 |
| Delaware | $3,157 | $1,703 | $1,525 | $936 |
| Florida | $3,916 | $2,320 | $1,763 | $668 |
| Georgia | $2,503 | $1,094 | $982 | $510 |
| Hawaii | $1,757 | $546 | $475 | $389 |
| Idaho | $1,901 | $577 | $534 | $297 |
| Illinois | $1,938 | $827 | $752 | $518 |
| Indiana | $1,894 | $620 | $572 | $320 |
| Iowa | $2,460 | $491 | $450 | $280 |
| Kansas | $2,496 | $691 | $616 | $408 |
| Kentucky | $2,624 | $649 | $599 | $499 |
| Louisiana | $3,999 | $1,602 | $1,231 | $410 |
| Maine | $1,808 | $470 | $461 | $271 |
| Maryland | $1,999 | $1,621 | $1,428 | $516 |
| Massachusetts | $2,429 | $1,496 | $1,327 | $686 |
| Michigan | $3,964 | $1,682 | $1,577 | $855 |
| Minnesota | $2,591 | $1,171 | $1,099 | $352 |
| Mississippi | $2,397 | $667 | $599 | $474 |
| Missouri | $2,151 | $543 | $496 | $346 |
| Montana | $2,476 | $566 | $519 | $412 |
| Nebraska | $2,095 | $508 | $447 | $402 |
| Nevada | $3,963 | $2,036 | $1,746 | $823 |
| New Hampshire | $1,689 | $722 | $673 | $437 |
| New Jersey | $3,122 | $1,691 | $1,568 | $1,141 |
| New Mexico | $2,577 | $772 | $668 | $413 |
| New York | $2,596 | $2,902 | $2,546 | $606 |
| North Carolina | $2,638 | $693 | $693 | $681 |
| North Dakota | $2,439 | $498 | $462 | $353 |
| Ohio | $1,783 | $452 | $418 | $291 |
| Oklahoma | $2,993 | $667 | $613 | $477 |
| Oregon | $2,048 | $850 | $767 | $644 |
| Pennsylvania | $2,327 | $1,211 | $928 | $279 |
| Rhode Island | $2,878 | $1,300 | $1,054 | $511 |
| South Carolina | $2,417 | $915 | $832 | $448 |
| South Dakota | $2,575 | $534 | $490 | $216 |
| Tennessee | $2,235 | $698 | $658 | $507 |
| Texas | $3,106 | $1,112 | $1,006 | $564 |
| Utah | $2,356 | $1,088 | $1,011 | $658 |
| Vermont | $1,660 | $404 | $365 | $460 |
| Virginia | $1,835 | $702 | $689 | $549 |
| Washington | $2,389 | $729 | $668 | $516 |
| Washington, D.C. | $3,465 | $1,052 | $918 | $661 |
| West Virginia | $2,415 | $637 | $520 | $442 |
| Wisconsin | $2,343 | $888 | $743 | $398 |
| Wyoming | $2,061 | $354 | $326 | $270 |
The gap between minimum and full coverage
Full coverage costs 6.3 times as much as minimum coverage in Wyoming and 1.02 times as much in New York. That ratio, not the headline rate, tells you what you give up by buying the cheapest legal policy in your state.
In Wyoming, minimum coverage runs $326 and full coverage runs $2,061. Dropping to the minimum saves about $1,735 a year. For an older car with no loan on it, that can be a defensible trade.
New York is the opposite. Minimum coverage averages $2,546 and full coverage averages $2,596. The difference is about $50 a year. A New York driver who drops to the legal minimum gives up comprehensive and collision coverage entirely and saves four dollars a month from the state minimum but pays less than having a liability-only policy with limits of 50/100/50.
Where the state minimum saves you the least
| State | State minimum | Full coverage | Full coverage costs |
|---|---|---|---|
| New York | $2,546 | $2,596 | 1.0x as much |
| Maryland | $1,428 | $1,999 | 1.4x as much |
| Massachusetts | $1,327 | $2,429 | 1.8x as much |
| New Jersey | $1,568 | $3,122 | 2.0x as much |
| Delaware | $1,525 | $3,157 | 2.1x as much |
Where the state minimum saves you the most
| State | State minimum | Full coverage | Full coverage costs |
|---|---|---|---|
| Wyoming | $326 | $2,061 | 6.3x as much |
| Iowa | $450 | $2,460 | 5.5x as much |
| North Dakota | $462 | $2,439 | 5.3x as much |
| South Dakota | $490 | $2,575 | 5.3x as much |
| Oklahoma | $613 | $2,993 | 4.9x as much |
Sophie’s Tip
Before you drop to your state minimum to save money, do the subtraction for your own state. If full coverage costs less than double the minimum where you live, you are giving up comprehensive and collision protection for extraordinarily little. Run the numbers on your own quote, not the state average, because your ZIP code and your car move both figures.
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Why national trends do not match your renewal
The national motor vehicle insurance index fell 1.7% in May 2026, 2.0% in June and 0.3% in July, according to the U.S. Bureau of Labor Statistics. Three consecutive monthly declines. If your renewal still went up, nothing is wrong with either number.
A national index averages every policy in the country. Your premium reflects your ZIP code, your vehicle, your record and your insurer’s loss experience where you live. A rate filing approved in your state can move your price in the opposite direction from the national trend, and so can you claim a birthday a new car or a move across town.
Drew Pearson, a public information officer with the Nevada Division of Insurance, has made the same point about statewide averages.
“There has been a regular increase in requests for premiums for auto insurance rates, such as 2021’s average of 9.0%,” Pearson said. “Keep in mind: Averages can be somewhat deceptive, as the largest insurers support multiple plans and rates for a wide variety of vehicles, and other carriers may have more niche markets, such as motorcycles or higher-end vehicles exclusively.”
Pearson has also framed the pressure on Nevada premiums as part of a wider pattern rather than a local one.
“In 2024 alone, the Nevada Division of Insurance has stepped in to collect over $6.9 million in recoveries on behalf of Nevada citizens. Auto insurance rate increases are a national trend and issue, with the factors affecting Nevada drivers also affecting drivers across the country,” he said.
What moves your premium
Your rate is built from risk factors, most of them tied to where you park the car. Insurers price the claims they expect to pay in your area, then adjust for you.
- Where you live. ZIP-level claim frequency, theft rates and weather exposure carry more weight than any other single factor.
- Coverage level and limits. The gap between your state minimum and full coverage varies from $50 to more than $2,400 a year.
- Your vehicle. Newer cars with sensors and cameras cost more to repair, and repair cost feeds directly into premium.
- Your record. Accidents, tickets and lapses in coverage all raise what you pay, usually for three to five years.
- Uninsured drivers in your area. When uninsured drivers cause crashes, insured drivers absorb the cost through higher premiums.
- Litigation and claim severity. States with heavy injury litigation tend to carry higher liability costs.
Pearson has pointed to traffic volume and uninsured drivers as the local pressures on Nevada premiums, which rank third-highest in the country for full coverage at $3,963.
“There are many people on the road at all times of the day in the Las Vegas Valley. As a 24-hour town, Las Vegas experiences an increased amount of road activity compared to other cities. Since the pandemic, law enforcement has experienced staffing challenges, impacting enforcement,” Pearson says. “There are also Nevadans who don’t have auto insurance, and the cost of accidents is borne by those who are insured. These factors combine to create a trend of increases in automotive insurance rates.”
Ways to cut your costs
You cannot change your state’s coverage floor or its claim costs. You can change which insurer prices you and how much coverage you buy.
- Shop your renewal, especially in a minimum-limit state. If you live in California, Massachusetts, North Carolina, Utah, Virginia or New Jersey, your limits changed recently and your old price comparison is out of date. Get at least three quotes.
- Do the gap math before you cut coverage. In some states the minimum saves you very little and costs you your comprehensive and collision protection.
- Ask about every discount for which you may qualify. Safe driver, good student, low mileage, bundling, automatic payments and defensive driving courses all reduce the premium.
- Raise your deductible if you have the savings to cover it. Moving from $500 to $1,000 usually cuts the comprehensive and collision portion of your bill.
- Recheck after a life change. A move, a paid-off car, a new job with a shorter commute or a birthday can all lower your rate, but only if you ask.
Frequently Asked Questions: Insurance rates
Which states raised car insurance requirements in 2025 and 2026?
Six states raised their minimum liability limits. California, Utah and Virginia changed on Jan. 1, 2025. Massachusetts and North Carolina changed on July 1, 2025. New Jersey changed on Jan. 1, 2026. Drivers in those states had their limits and rates adjusted automatically at renewal.
Which state has the most expensive car insurance?
Louisiana, at $3,999 a year for full coverage. Michigan follows at $3,964 and Nevada at $3,963. All three sit more than 50% above the national average of $2,578.
Which state has the cheapest car insurance?
Vermont, at $1,660 a year for full coverage. New Hampshire follows at $1,689 and Hawaii at $1,757. For state minimum coverage the cheapest is Wyoming at $326 a year.
Why did my rate go up when national car insurance inflation is falling?
National figures average every policy in the country. Yours reflects your ZIP code, your car, your record and what your insurer is paying in claims near you. A state rate filing, a claim in your area or a change to your own record can push your price up in a month when the national index falls.
Resources & Methodology
Sources
- U.S. Bureau of Labor Statistics. “Consumer Price Index Summary, July 2026.” Accessed September 2026.
- North Carolina Department of Insurance. “Changes to the Rating of Automobile Insurance Policies, Effective July 1, 2025.” Accessed September 2026.
- New Jersey Department of Banking and Insurance. “Bulletin No. 25-06.” Accessed September 2026.
- Insurance Business. “Minimum auto liability limits to increase in 4 states.” Accessed September 2026.
- Carrier Management. “Four States See Increase in Auto Insurance Liability Limits in 2025.” Accessed September 2026.
Methodology
CarInsurance.com commissioned Quadrant Information Services for the rate data on this page. Full coverage rates reflect liability limits of 100/300/100 with $500 comprehensive and collision deductibles. Liability-only rates reflect 50/100/50. State minimum rates reflect each state’s legally required limits. Non-owner rates reflect a policy for a driver without a vehicle. Figures are annual averages sourced from Quadrant Information Services,2026. Read the detailed methodology for more information.
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