How Much Car Insurance Rates Vary by State

The modal monetary value of cable car insurance varies by $ 4,004 per class depending on the state in which you live .
The national average rate for a minimal coverage cable car insurance policy is $ 784 a year, but state laws and other factors cause rates to vary significantly .
A 30-year-old male driver with a fair credit score and clean drive record would pay $ 4,386 per class on modal for minimal coverage in Michigan, the submit with the most expensive car indemnity. By contrast, the driver would pay entirely $ 382 on average in Iowa, the department of state with the cheapest minimum coverage indemnity .
That’s more than 11 times more expensive. individual rates differ not entirely by state but besides based on variables like long time and accident history, so your own car insurance premiums may be good above or below the average costs you see below.

Comparison of the average cost of auto insurance by state

Michigan has the highest rates for car insurance, with drivers paying an average of $ 4,386 a class for minimum coverage. Iowa has the cheapest car policy — drivers in the state give precisely $ 382 a year on average for minimum coverage. See how median car indemnity premiums in your state compare to those in other states and to the national median .

State

Average min coverage cost

Average full coverage cost

Michigan $4,386 $7,161
Florida $2,072 $2,962
Rhode Island $1,197 $2,750
Delaware $1,153 $2,239
Nevada $1,138 $2,636

Show All RowsCompare Rates Full coverage adds collision and comprehensive examination coverages on top of indebtedness. Collision and comprehensive coverages ensure your own car is protected in the event of an accident, while minimal coverage in most states only protects wrong done to another driver ‘s person or property .
Because car indemnity is regulated at the country level, states have different requirements for the minimum coverage drivers must have to drive legally. There are typically five kinds of indemnity that states can require drivers to carry, including :

  • Bodily injury liability (BI)
  • Property damage liability (PD)
  • Uninsured/underinsured bodily injury (UIM)
  • Uninsured/underinsured property damage (UIM)
  • Personal injury protection (PIP) or another first-party benefit insurance

With a few exceptions, most states require drivers to carry car policy. All states except Florida ask policyholders to have bodily injury liability, and all 50 states american samoa well as the District of Columbia require property damage liability. About half of all states require some kind of uninsured or underinsured coverage, and 15 states require PIP .
These differences in minimum coverage requirements partially account for the variations in car insurance price, so be certain you understand the details of what coverage is required in your express before you begin shopping .
No states require drivers to carry wide coverage, and you ‘ll pay extra for this add auspices. tied in Maine, the state with the smallest difference between full and minimal coverage policies, drivers who opt for wax coverage pay an extra $ 599 each class. Consider the deserving of your car and whether it makes sense to pay more for full coverage. { “ backgroundColor ” : ” frosting ”, ” content ” : ” \u003C\/p\u003E\n\n\u003Cp\u003ENo states require drivers to carry entire coverage, and you ‘ll pay excess for this add protective covering. even in Maine, the department of state with the smallest dispute between full and minimum coverage policies, drivers who opt for full coverage yield an extra $ 599 each year. Consider the deserving of your cable car and whether it makes sense to pay more for full coverage. \n ”, ” padding ” : ” double ” }
Either way, get car insurance quotes from multiple insurers both boastfully and minor to find your best rates. Our inquiry found that, of the major home insurers, USAA and State Farm offer the cheapest rates for fully coverage. You may find a better hand with a humble local or regional insurance company, though, so it pays to shop around before purchasing a policy .

Which states have the cheapest car insurance?

Iowa, North and South Dakota, Wisconsin and Wyoming are the states with the lowest rates for minimum car indemnity. If living in a express with low-cost car indemnity premiums is important to you, these states are some of the cheapest places or car insurance .
Iowa. With an average annual premium of just $ 382 for minimal coverage, Iowa is the state where you will find the cheapest car policy — 51 % cheaper than the national average. Iowa drivers should consider getting a policy with IMT ( Wadena ), Auto-Owners or State Farm, as our research found that these companies offer the cheapest minimum coverage car indemnity in the state .
South Dakota. much like Iowa, South Dakota ‘s rural landscape and humble percentage of uninsured drivers result in brassy minimum car indemnity rates : The average annual policy in the state costs $ 387, which is 51 % lower than the national average. We recommend that drivers in South Dakota get a policy with Auto-Owners, American Family or State Farm, since these companies offer the lowest rates for minimum cable car indemnity coverage .
Wisconsin. The modal annual agio in Wisconsin costs lone $ 396, making it 49 % cheaper than average. We found that State Farm, American Family and Erie offer the cheapest rates for minimal coverage, so Wisconsin drivers shopping around for low-cost rates should keep these three insurers in beware .
North Dakota. A minimal coverage policy in North Dakota costs precisely $ 422 each year — 46 % cheaper than the national average. Drivers in North Dakota should consider a policy with american Family or State Farm, as these insurers offer the cheapest rates for minimum coverage .
Wyoming. As one of the cheapest states to have car indemnity, Wyoming drivers pay 46 % less than the national average. Our analysis showed that the average annual policy in Wyoming costs equitable $ 422, with State Farm and Geico offering the most low-cost minimum coverage policies. limited dealings on rural roads, a low population and a little phone number of uninsured motorists help insurers keep rates low-cost for residents of the Cowboy State .

Car insurance rates by city

car policy costs vary not equitable by express — they besides vary significantly by city. As a general rule, the more populous the city you live in, the more expensive your car insurance rates will be. This is partially because drivers who frequently travel on interfering roads are more likely to get into an accident. Insurers pass this risk on to policyholders in the shape of increased premiums .
In Texas, for example, an annual minimum coverage policy is $ 382 more in Houston, the submit ‘s most populous city, than in Austin .

Car insurance rates by ZIP code

policy companies price car insurance by ZIP code angstrom well as by city. If you compare one ZIP code with another, you ‘ll find that average car indemnity rates can vary by more than a third — even within the same city .
Take Houston as an example : We found that if a 30-year-old driver with a blank drive commemorate lives in ZIP code 77036, he will pay $ 1,009 on average for minimum coverage car policy on his Honda Civic EX. By contrast, if he lives in ZIP code 77059, he will pay fair $ 790 — a $ 219 dispute. { “ backgroundColor ” : ” butter ”, ” subject ” : ” \u003C\/p\u003E\n\n\u003Cp\u003ETake \u003Cspan\u003E\u003Ca class=\ ” ShortcodeLink — settle ShortcodeLink — black\ ” title=\ ” Houston\ ” href=\ ” hypertext transfer protocol : \/\/www.valuepenguin.com\/best-cheap-car-insurance-houston-texas # neighborhood\ ” \u003EHouston\u003C\/a\u003E\u003C\/span\u003E as an example : We found that if a 30-year-old driver with a clean drive record lives in ZIP code 77036, he will pay $ 1,009 on average for minimal coverage car insurance on his Honda Civic EX. By contrast, if he lives in ZIP code 77059, he will pay just $ 790 \u2014 a $ 219 deviation. \n ”, ” padding ” : ” double ” }
Do n’t be excessively alarmed if your car insurance rates change when you move across town. Be certain to shop around for the cheapest car indemnity rates in your modern ZIP code to make indisputable you ‘re getting the best deal .

What states have the highest car insurance rates?

Michigan, Florida, Rhode Island, Delaware and Nevada have the most expensive car insurance rates. Drivers in these states have some of the highest car indemnity premiums in the country, though the reasons for these rates vary by state of matter .
Michigan. The Wolverine State has by far the highest car indemnity premiums in the country : Drivers pay an average of $ 4,386 a year for minimum coverage — 459 % higher than the national average. Michigan ‘s unique approach to car indemnity accounts for this expensive car policy. Prior to July 2020, drivers were required to carry unlimited PIP insurance. This drove up costs and led to many drivers going without indemnity altogether.

Thanks to late reform, drivers now need alone carry $ 250,000 in PIP policy, and those with Medicare can opt out all in all. This will importantly reduce annual rates in the coming years and make car indemnity more accessible for drivers, which in turn will improve safety on the roads. Michigan drivers may want to consider purchasing a minimum coverage policy from Auto-Owners Insurance or USAA, as our analysis found these two insurers had the cheapest policies for minimum coverage .
Florida. Florida not only holds the doubtful eminence of having one of the highest percentages of uninsured motorists in the state, but it is besides one of the most expensive states in which to insure a car. Floridians pay an average of $ 2,072 for an annual minimal coverage policy, or about 164 % more than the national modal .
In addition to a high share of uninsured drivers, Florida ‘s frequent exposure to natural disasters leads to insurers charging more than they do in states with more stable weather. Geico and State Farm offer the most low-cost quotes for minimal coverage, so we recommend that Florida shoppers purchase a policy from one of these companies .
Rhode Island. Rhode Island ranks as the third most expensive submit for car indemnity. Residents pay $ 1,197 on average for an annual bounty with minimum coverage, making rates 53 % higher than the national average. Our analysis found that Progressive, Nationwide and Geico offered the cheapest minimum coverage rates to Rhode Island drivers .
Delaware. Despite not being a no-fault state, Delaware requires drivers to carry PIP policy. This raises prices 51 % above the national modal : kentucky drivers pay about $ 1,183 a year for minimum coverage policy, making it one of the most expensive places for cable car indemnity in the area. State Farm offers residents of the First State the most low-cost minimal coverage .
Nevada. With residents paying an average of $ 1,138 for minimum coverage, Nevada has the fifth-highest cable car insurance rates in the nation. A combination of factors around cities such as Las Vegas and Reno, which account for much of the submit ‘s population, causes insurers to charge rates 45 % higher than the national average. Silver State drivers should consider a policy from Progressive and State Farm ; according to our analysis, these companies quoted the most low-cost annual policies for minimum coverage .

No-fault state vs. fault states

States with the most expensive car indemnity rates often experience these high costs because of a legal structure known as “ no-fault. ” No-fault states require drivers to carry PIP insurance that covers their own medical bills in case of an accident and limit the rights of a driver to sue for damages after an accident. Of the 12 no-fault states, four appear in our analysis of the states with the highest car insurance premiums .
mistake states take the face-to-face approach. Rather than having drivers cover their own injuries, as in no-fault states, the person who caused the cable car accident must use their liability policy to pay for the other driver ‘s injuries .
The 12 no-fault states are :

  • Florida
  • Hawaii
  • Kansas
  • Kentucky
  • Massachusetts
  • Michigan
  • Minnesota
  • New Jersey
  • New York
  • North Dakota
  • Pennsylvania
  • Utah

A few states, including New Jersey and Pennsylvania, permit drivers to pay more to opt out of the no-fault system. This allows them to sue for “ pain and suffer. ”
Some states, notably Delaware, Maine and Oregon, necessitate PIP, even though they are not no-fault states .

What else besides location impacts my auto insurance premium?

In addition to location-specific factors like ZIP code and crime rates, insurers besides include personal demographic details about the driver when setting policy rates. These variables include :
Every insurance company has its own unique formula for developing rates, with some insurers emphasizing certain factors more powerfully than others. That ‘s why it ‘s so important to shop around at multiple insurers. merely by comparing quotes can you maximize your chances of getting your best rate .

Will my state see an increase in auto insurance premiums?

Insurers have continued to increase car policy rates class after year, so your state will probable see an increase in car policy by 2022 .
The most likely key gene driving the increase in rates is a tendency of companies having to pay more in claims and adjustments than they are earning on policies. Insurers normally raise premiums in these situations to ensure they do n’t lose money. One major vogue drive profit losses and rate increases is natural disasters. According to Aon, economic losses from lifelike disasters reached record highs in the 2010s and are expected to increase ascribable to climate change and weather variability .
If you live in a submit particularly vulnerable to natural disasters — whether it ’ s hurricanes, flooding or fires — you will likely see your car indemnity rates go up in the coming years. Consider purchasing comprehensive policy, which protects your vehicle from non-collision losses such as upwind damage .

How moving to a different state might impact your car insurance premium

Moving across country lines will impact your car indemnity rates. As a general dominion, if the state you ‘re moving to has higher requirements for minimal coverage, you ‘ll pay higher premiums, and if it has lower requirements, you ‘ll pay lower premiums .
You can use our cable car indemnity calculator to get an idea of how much your cable car indemnity rates might change if you move states .
For example, drivers who move from California to Texas will find that their rates will increase. If you compare the price of cable car policy in Texas versus California, you ‘ll find that Texas drivers pay 8 % more on modal for minimal coverage than California drivers do. This is partially because Texas has higher minimum coverage requirements than California, requiring drivers to carry bodily wound liability limits of $ 30,000 per person and $ 60,000 per accident, with $ 25,000 in property damage indebtedness limits. By line, California merely requires drivers to carry bodily injury liability limits of $ 15,000 per person and $ 30,000 per accident, with $ 5,000 in property damage liability limits .
other policyholders will see a decrease in their rates when they move. If you compare rates in New Jersey versus Pennsylvania, you ‘ll find that Pennsylvania drivers pay 49 % less on average for minimum-coverage cable car insurance — despite the fact that the states have identical minimum coverage requirements and are both no-fault states .
Be indisputable to budget for these changes when you calculate the price of support in your raw country. Remember to factor in the monetary value of changing your registration and license a well, as many states require drivers to pay a tip to the department of motive vehicles. { “ backgroundColor ” : ” frosting ”, ” subject ” : ” \u003C\/p\u003E\n\n\u003Cp\u003EBe certain to budget for these changes when you calculate the monetary value of living in your new state. Remember to factor in the cost of \u003Cspan\u003E\u003Ca class=\ ” ShortcodeLink — etymon ShortcodeLink — black\ ” title=\ ” changing your registration and license\ ” href=\ ” hypertext transfer protocol : \/\/www.valuepenguin.com\/moving-new-state-heres-how-transfer-your-car-insurance-and-registration\ ” \u003Echanging your registration and license\u003C\/a\u003E\u003C\/span\u003E vitamin a well, as many states require drivers to pay a tip to the department of motive vehicles. \n ”, ” padding ” : ” double ” }

Methodology

We collected quotes across 50 states and Washington, D.C., for 51 insurance companies. Although 37 policy companies were included in the analysis, policy caller rates were merely included in our lists if their policies were available in at least five states .
Our basis driver was a 30-year-old male who drove a 2015 Honda Civic EX, and quotes were drawn from all available ZIP codes in each state. The driver was profiled as having no or poor credit history, which makes him equivalent to a driver with below-fair to poor accredit, according to our data source, Quadrant Information Services .
When our driver had a full coverage policy, we gave him coverage limits slightly above any one state ‘s minimal requirements :

Coverage type

Study limits

Bodily liability $50,000 per person/$100,000 per accident
Property damage $25,000 per accident
Uninsured/underinsured motorist BI $50,000 per person/$100,000 per accident
Comprehensive & collision $500 deductible
Personal injury protection Minimum when required by state

Our rates for minimum coverage policies represent the average monetary value of a policy that meets any express ‘s minimal want car policy coverage .
ValuePenguin ‘s analysis used indemnity rate data from Quadrant Information Services. These rates were publicly sourced from insurance company filings and should be used for relative purposes lone — your own quotes may be different .
Additional sources

  • Aon 2020 Weather, Climate & Catastrophe Insight Report
informant : https://www.peterswar.net
Category : Finance

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