Car Insurance Rates and Trends by State: Cheapest & Most Expensive States in 2021

local laws, regulations and other factors can dramatically impact insurance costs, which means wide variations in car insurance rates by state. For exemplar, as of this spell, Maine has the cheapest rates in the nation, with an average annual bounty of $ 589. Michigan has the most expensive rates in the state, with an average annual agio of $ 4,003, making indemnity 579.63 % more expensive in Michigan than in Maine. These numbers are based on a variety of factors, including whether drivers had full moon indemnity coverage. A detail dislocation of MoneyGeek ’ south methodology and high standard for data integrity can be found at the end of this article.

Key Takeaways

  • The most expensive state for full coverage auto insurance is Michigan, at roughly $4,003, over three times the national average of $1,265.
  • The least expensive state for full coverage auto insurance is Maine, at roughly $589, 53.4% below the national average.
  • The most expensive minimum coverage state is Michigan (about $2,653), while Wyoming is the least expensive (about $284).
  • Rates have on average decreased across the country by 2.7% driven by the pandemic.
  • The largest change in rates year over year is Michigan with a 25% decline in annual premiums. South Carolina had the largest increase in rates in 2021 with a 4.3% increase in rates.
  • On average rates since 2015 are flat, but that disguises large differences by state. In Montana rates increased by 37% while in New Jersey rates have come down by 30%.

Insurance Rates

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Average Car Insurance Rates by State

car insurance costs can vary wildly based on your placement and whether you carry full coverage or liability-only insurance, so MoneyGeek analyzed hundreds of thousands of car policy quotes from across the state to determine the average cost of cable car insurance by state. Sample policy quotes were based on a 40-year-old male driver with a clean drive record who carries comprehensive and collision coverage. This fabricated driver would have an average annual insurance premium of $ 1,265 nationally. But because each submit is so unlike, this driver could pay anywhere from a few hundred to several thousand dollars depending on his particular localization.

Average Cost of Comprehensive and Collision Coverage by State

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  • country annual agio Vs. National Average
  • 1. Michigan $ 4,003 216.5 %
  • 2. New York $ 3,896 208.1 %
  • 3. Louisiana $ 3,419 170.3 %
  • 4. Florida $ 1,919 51.7 %
  • 5. maryland $ 1,886 49.1 %
  • 6. Rhode Island $ 1,788 41.4 %
  • 7. nevada $ 1,738 37.4 %
  • 8. georgia $ 1,511 19.5 %
  • 9. New Jersey $ 1,463 15.7 %
  • 10. delaware $ 1,453 14.9 %
  • 11. Kentucky $ 1,410 11.4 %
  • 12. California $ 1,409 11.4 %
  • 13. connecticut $ 1,385 9.5 %
  • 14. colorado $ 1,350 6.8 %
  • 15. university of pennsylvania $ 1,345 6.4 %
  • 16. minnesota $ 1,343 6.2 %
  • 17. Massachusetts $ 1,341 6.0 %
  • 18. Washington $ 1,231 -2.7 %
  • 19. arizona $ 1,228 -2.9 %
  • 20. Illinois $ 1,181 -6.6 %
  • 21. missouri $ 1,173 -7.2 %
  • 22. oklahoma $ 1,156 -8.6 %
  • 23. District of Columbia $ 1,155 -8.7 %
  • 24. Montana $ 1,129 -10.7 %
  • 25. New Mexico $ 1,119 -11.5 %
  • 26. Arkansas $ 1,105 -12.6 %
  • 27. South Carolina $ 1,086 -14.1 %
  • 28. Mississippi $ 1,070 -15.4 %
  • 29. utah $ 1,063 -15.9 %
  • 30. Texas $ 1,059 -16.3 %
  • 31. tennessee $ 1,002 -20.8 %
  • 32. alabama $ 999 -21.0 %
  • 33. hawaii $ 981 -22.4 %
  • 34. West Virginia $ 959 -24.1 %
  • 35. alaska $ 936 -26.0 %
  • 36. oregon $ 934 -26.1 %
  • 37. Kansas $ 898 -29.0 %
  • 38. wisconsin $ 887 -29.9 %
  • 39. North Carolina $ 820 -35.2 %
  • 40. nebraska $ 801 -36.7 %
  • 41. Wyoming $ 800 -36.8 %
  • 42. vermont $ 785 -37.9 %
  • 43. Virginia $ 785 -38.0 %
  • 44. South Dakota $ 758 -40.1 %
  • 45. New Hampshire $ 741 -41.4 %
  • 46. North Dakota $ 733 -42.1 %
  • 47. ohio $ 719 -43.1 %
  • 48. Indiana $ 685 -45.9 %
  • 49. Iowa $ 674 -46.7 %
  • 50. Idaho $ 674 -46.7 %
  • 51. maine $ 589 -53.4 %
Average Cost of State-Minimum Liability Coverage by State

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  • country annual premium Vs. National Average
  • 1. Michigan $ 2,653 293.7 %
  • 2. New York $ 2,604 286.4 %
  • 3. Louisiana $ 1,611 139.0 %
  • 4. maryland $ 1,195 77.3 %
  • 5. Rhode Island $ 1,077 59.8 %
  • 6. Florida $ 973 44.4 %
  • 7. nevada $ 964 43.0 %
  • 8. New Jersey $ 909 34.9 %
  • 9. delaware $ 877 30.1 %
  • 10. georgia $ 871 29.2 %
  • 11. Kentucky $ 857 27.2 %
  • 12. connecticut $ 855 26.8 %
  • 13. minnesota $ 851 26.2 %
  • 14. colorado $ 712 5.7 %
  • 15. Washington $ 697 3.4 %
  • 16. university of pennsylvania $ 672 -0.3 %
  • 17. District of Columbia $ 662 -1.7 %
  • 18. Massachusetts $ 659 -2.2 %
  • 19. California $ 650 -3.6 %
  • 20. utah $ 642 -4.7 %
  • 21. Illinois $ 622 -7.7 %
  • 22. South Carolina $ 621 -7.9 %
  • 23. arizona $ 620 -7.9 %
  • 24. oregon $ 616 -8.5 %
  • 25. missouri $ 600 -10.9 %
  • 26. Arkansas $ 574 -14.9 %
  • 27. New Mexico $ 572 -15.2 %
  • 28. oklahoma $ 558 -17.2 %
  • 29. Texas $ 536 -20.5 %
  • 30. alaska $ 525 -22.1 %
  • 31. alabama $ 515 -23.6 %
  • 32. tennessee $ 515 -23.6 %
  • 33. Montana $ 497 -26.3 %
  • 34. Mississippi $ 497 -26.3 %
  • 35. hawaii $ 495 -26.6 %
  • 36. West Virginia $ 484 -28.1 %
  • 37. wisconsin $ 475 -29.5 %
  • 38. Virginia $ 440 -34.6 %
  • 39. Kansas $ 435 -35.5 %
  • 40. New Hampshire $ 428 -36.5 %
  • 41. nebraska $ 424 -37.2 %
  • 42. North Carolina $ 423 -37.3 %
  • 43. ohio $ 421 -37.5 %
  • 44. vermont $ 397 -41.1 %
  • 45. Indiana $ 394 -41.6 %
  • 46. Idaho $ 367 -45.6 %
  • 47. North Dakota $ 364 -46.0 %
  • 48. maine $ 345 -48.9 %
  • 49. South Dakota $ 326 -51.6 %
  • 50. Iowa $ 314 -53.4 %
  • 51. Wyoming $ 284 -57.8 %

Car Insurance Cost Trends by State

It can be confusing to see your insurance costs change from class to year, but there are many reasons your bounty might go up or down over time. Changes in submit policy rules and regulations can impact your premiums. thus can an increase or decrease in the act of claims made in your state. And as your driving habits evolve — for model, if you have a shorter permute or a speed ticket on your record — you may besides see those changes reflected in lower or higher premiums. The table below shows the changes in the median full coverage indemnity rate by state of matter from 2020 to 2021 and the variety in rates since 2015.

Change in Car Insurance Costs Over Time by State

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  • state 2021 % Increase 2020-2021 % Increase 2015-2021
  • South Carolina

    $1,086

    4.3%

    11.8%

  • Virginia

    $785

    4.2%

    -2.3%

  • Louisiana

    $3,419

    4.2%

    33.7%

  • Wisconsin

    $887

    4.0%

    6.5%

  • California

    $1,409

    3.7%

    13.7%

  • Missouri

    $1,173

    3.6%

    19.3%

  • Maine

    $589

    3.5%

    -2.5%

  • Alaska

    $936

    1.7%

    -9.5%

  • Illinois

    $1,181

    0.9%

    -24.5%

  • Florida

    $1,919

    0.7%

    24.6%

  • New York

    $3,896

    0.5%

    14.2%

  • Connecticut

    $1,385

    0.4%

    -23.2%

  • Massachusetts

    $1,341

    0.4%

    -5.9%

  • South Dakota

    $758

    0.4%

    10.7%

  • Nevada

    $1,738

    0.1%

    23.0%

  • Wyoming

    $800

    0.0%

    -2.2%

  • Colorado

    $1,350

    -0.2%

    1.0%

  • Ohio

    $719

    -0.2%

    -21.6%

  • Rhode Island

    $1,788

    -0.7%

    -3.2%

  • Montana

    $1,129

    -0.9%

    36.8%

  • Washington

    $1,231

    -1.1%

    -4.9%

  • Mississippi

    $1,070

    -1.3%

    -8.1%

  • District of Columbia

    $1,155

    -1.7%

    -12.6%

  • Hawaii

    $981

    -1.9%

    -7.9%

  • Arizona

    $1,228

    -1.9%

    16.2%

  • Texas

    $1,059

    -2.1%

    0.7%

  • Tennessee

    $1,002

    -2.2%

    -0.9%

  • Idaho

    $674

    -2.3%

    2.2%

  • Kentucky

    $1,410

    -2.5%

    -3.2%

  • Delaware

    $1,453

    -2.5%

    -1.9%

  • North Carolina

    $820

    -2.6%

    11.2%

  • Nebraska

    $801

    -2.6%

    14.8%

  • Vermont

    $785

    -2.8%

    4.0%

  • Kansas

    $898

    -3.1%

    -15.6%

  • Arkansas

    $1,105

    -3.4%

    -24.9%

  • Minnesota

    $1,343

    -4.0%

    -7.3%

  • New Hampshire

    $741

    -4.5%

    -6.4%

  • West Virginia

    $959

    -4.5%

    -19.4%

  • North Dakota

    $733

    -4.8%

    -16.2%

  • Oklahoma

    $1,156

    -4.9%

    -14.3%

  • New Jersey

    $1,463

    -5.7%

    -29.8%

  • Utah

    $1,063

    -7.2%

    4.9%

  • Indiana

    $685

    -7.3%

    -2.8%

  • Georgia

    $1,511

    -7.7%

    7.8%

  • Maryland

    $1,886

    -7.8%

    -11.6%

  • Iowa

    $674

    -7.9%

    -3.3%

  • Oregon

    $934

    -9.7%

    -23.8%

  • New Mexico

    $1,119

    -10.2%

    -6.8%

  • Pennsylvania

    $1,345

    -10.6%

    -1.1%

  • Alabama

    $999

    -11.9%

    6.0%

  • Michigan

    $4,003

    -24.9%

    13.5%

Local Legislation and Traffic Trends

Some states saw changes in cost due to new local laws :

  • Arizona: Arizona increased the minimal liability levels in a change effective July 1, 2020. While many have expressed business that this will ultimately raise rates, this has so army for the liberation of rwanda not bear out : Arizona ‘s rates have slightly decreased from 2020 to 2021 rather .
  • Michigan: Michigan experienced the largest decrease in rates from 2020 to 2021, with rates declining an average of 25 %. This is ascribable, in part, to the department of state ‘s late move to reduce no-fault requirements — a chief driver of the country ‘s historically high indemnity rates .
  • New Jersey: New Jersey ‘s car policy premiums have declined the most over the longer condition, with drivers experiencing a 30 % shed in annual premiums since 2015. Whether that downward drift continues is hush to be determined : there are two legislative proposals presently being debated that, if passed, will have a meaning impact on policy rates. The first is Senate Bill S111, which would ban car insurers from considering a driver ‘s citation score, occupation, education flush, marital status and other similar factors when determining premium amounts. And the second, the New Jersey Insurance Fair Conduct Act, would make it easier for citizens to file civil lawsuits against insurers for bad religion claims .
  • South Carolina: South Carolinians saw the largest year-over-year rate increase in policy costs : their rates increased an average of 4.3 % from 2020 to 2021. While data is not even available for 2020, collisions have been on the get up in holocene years. According to the South Carolina Department of Public Safety, there was one traffic collision every 3.7 minutes and one fatal collision every 9 hours on average in 2018. And the number of fatal collisions in a class has increased steadily — from 756 in 2014 to 969 in 2018 — a tendency that is undoubtedly reflected in South Carolina ‘s car insurance rates .
  • Montana: Montana holds the top blemish for indemnity premium rate hikes, with Montana residents seeing the steepest increase in coverage costs over the death six years. Rates there increased by an average of 37 % since 2015. As with South Carolina, this can, in big part, be attributed to Montana ‘s persistently high traffic fatality pace. The department of state counted 212 traffic fatalities in 2012, and preliminary data on 2020 ‘s fatality numbers indicate this number has stayed high : the Montana Highway Patrol reported there were 207 deaths last year due to car accidents .

COVID-19’s Impact on Car Insurance Rates

In 2020, the worldly concern saw unprecedented changes caused by the COVID-19 pandemic that took millions of drivers off the road as they decided to work from home. An calculate $ 14 billion in policy premiums was refunded to customers because indemnity companies saw upwards of a 40 % reduction in losses. many indemnity companies expect that some of the changes brought about by the pandemic will be permanent. That has encouraged them to get ahead of the competition and lower their rates to compensate for the reduction in drivers on the road. In February 2020, there were 3,277,759 million miles drive in the United States, but that number dropped to 2,857,200 million miles by November. With many companies announcing that solve from home options will continue for the foreseeable future, policy companies are knowing to consider that the reduction in miles drive may continue for many months or years. While the concluding numbers weren ’ thyroxine available at the time of this writing, the second base stern of 2020 showed a refuse in overall traffic fatalities, further reducing indemnity premiums for drivers across the state.

Which States Have the Cheapest Car Insurance?

After careful recapitulation, MoneyGeek has determined that the ten-spot states listed below have the cheapest fully coverage policy in the nation. however, even if you live in one of the states with the cheap cable car policy, you should still compare quotes to find the cheapest coverage in your state. here are the states with the lowest modal annual full coverage premiums :

  1. Maine: $589
  2. Idaho: $674
  3. Iowa: $674
  4. Indiana: $685
  5. Ohio: $719
  6. North Dakota: $733
  7. New Hampshire: $741
  8. South Dakota: $758
  9. Virginia: $785
  10. Vermont: $785

With premium prices varying therefore widely by state of matter, MoneyGeek researched why prices are therefore first gear in the three cheapest states.

Why Maine Auto Insurance Is So Cheap

The state of Maine Maine has much higher minimum insurance requirements than many other states, but they even manage to keep their average insurance rates low. This is because they have the lowest percentage of uninsured drivers in the nation : alone 4.5 % of Maine drivers are uninsured. They besides have moo rates of vehicle larceny and overall accident fatality rates, both of which contribute to their broken annual premiums.

Why Idaho Auto Insurance Is So Cheap

The state of Idaho Idaho is second on the list of lowest indemnity costs in the nation, chiefly because Idaho has very low rates of larceny, with fewer than 88 vehicles stolen per 100,000 people per annum. It is besides a sparsely populated state : fewer drivers share the roads, which helps bring down the number of accidents each year.

Why Iowa Auto Insurance Is So Cheap

The state of Iowa much like Idaho, Iowa is sparsely populate. This means Iowa ’ s indemnity rates are lower than other states with higher population densities. Iowa besides has fewer car thefts than the national average, which helps keep its rates among the lowest in the state .

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Which States Have the Most Expensive Car Insurance?

Though this list can change from year to year, as of 2020, the ten states listed below are the most expensive car insurance states in the nation. Residents in these ten states can save several hundred dollars each year by comparing quotes to find the cheapest available coverage. The states with the most expensive annual car insurance on average are :

  1. Michigan: $4,003
  2. New York: $3,896
  3. Louisiana: $3,419
  4. Florida: $1,919
  5. Maryland: $1,886
  6. Rhode Island: $1,788
  7. Nevada: $1,738
  8. Georgia: $1,511
  9. New Jersey: $1,463
  10. Delaware: $1,453

With premium prices varying so widely by express, MoneyGeek researched why prices are so high in the three most expensive states.

Why Michigan Auto Insurance Is So Expensive

The state of Michigan Michigan has the most expensive insurance for multiple reasons, but the primary cause is the state ’ second no-fault policy laws. Though these laws were initially intended to help lower policy costs, states with no-fault policy laws have rather seen their rates skyrocket over the years. More than that, Michigan has a high percentage of uninsured drivers, and its default option blip policy guarantees inexhaustible coverage.

Why New York Auto Insurance Is So Expensive

The state of New York New York City has the highest population concentration of any home in the U.S., with more than 27,000 people per feather mile. This incredibly dense population is separate of what causes high insurance rates in New York. other factors, such as rates of vandalism and pedestrians injured or killed in an car accident, stem from the fabulously eminent number of people living in the lapp area.

Why Louisiana Auto Insurance Is So Expensive

The state of Louisiana Louisiana makes the tilt of most expensive states for car insurance because their legislative act of limitations is only one class, which means people must rush to court if they think they may be owed recompense in an accident. Some experts have besides indicated that there are frequent bodily injury claims and lawsuits made in the state, driving up the cost for insurers .

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Why Does Car Cost Insurance Vary by State?

car policy costs can vary wide from country to state. local laws and population concentration are only two of several factors that can dramatically impact the cost of insurance for people living in a specific state, including :

  • No-Fault vs. At-Fault Insurance – Though no-fault coverage was initially conceived to lower insurance rates, it hasn’t worked that way in reality. No-fault states often require Personal Injury Protection coverage, otherwise known as PIP, which can drive up insurance costs.
  • Vehicle Theft – Replacing a stolen vehicle is very expensive, which is why so many people choose to carry comprehensive insurance coverage. Likewise, replacing a vehicle is a costly claim for an insurance company to pay. So states with high levels of vehicle theft are likely to see higher insurance rates to compensate for the additional claims.
  • Uninsured Motorists – The basic concept of insurance is that it spreads out the financial risk of owning a vehicle. Everyone contributes a small amount each month, and those funds are used to pay for emergencies for those who need it. The fewer people there are sharing the risk, the more it costs those in the financial pool. So states with many uninsured drivers will naturally have more expensive insurance rates.
  • Weather/Natural Disasters – Places that experience extreme weather often have higher rates because of it. In Louisiana, for example, hurricanes in the Gulf Coast can cause billions of dollars in damage, and insurance companies are on the hook for paying those claims. The insurance rates in those areas are higher to accommodate those costs.

FAQs About Car Insurance Rates by State

You may calm have some questions regarding car insurance rates by state. here are our answers to a few of the most common ones .

Maine, Idaho, Iowa, Indiana and Ohio presently have the bum cable car policy rates in the country .

Michigan, New York, Louisiana, Florida and Maryland presently have the most expensive cable car insurance rates in the state .

New Hampshire and Virginia are the merely states that don ’ triiodothyronine necessitate cable car policy. But this doesn ’ metric ton mean you have no fiscal responsibilities. New Hampshire residents are still responsible for the damages associated with a car accident, and Virginia residents who choose not to have policy are required to pay $ 500 to the state of matter. This tip doesn ’ t include any coverage, however, so most drivers prefer to have car policy .

An increase of 36.8 % means Montana has seen the steepest rise in policy costs for drivers with full coverage.

Methodology

MoneyGeek analyzed car insurance quotes across all 50 states to determine the car policy companies with the cheapest rates. The cheapest premiums were calculated by gathering quotes for comprehensive and collision coverage of 100/300/100 with a $ 1,000 deductible for a 40-year-old male with a clean drive record.

Read More on Car Insurance

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guarantee you are getting the best rate for your car insurance. Compare quotes from the circus tent insurance companies. widget-location-pin About the writerexpert-profileexpert-profile Rachael Brennan is a master finance writer and licensed policy agent. She has worked in the insurance diligence for more than a ten, earning her P & C license in all 50 states and her life, health and AD & D license in New York and the surrounding states. Rachael has worked for long-familiar companies such as twenty-first Century Insurance and BlueCross BlueShield and was the unitarian Universalist Association ( UUA ) indemnity plans coordinator for three years. She specializes in property, casualty, health, biography, accidental death and disability indemnity. Rachael earned her bachelor of science degree in communications from Texas A & M University-Commerce. Rachael combines her publish background with her policy and personal finance experience to share practical cognition and avail people make inform fiscal decisions.

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Category : Finance

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