What are the top 10 states with highest car insurance?

Louisiana, Florida, California, Michigan, Colorado, South Dakota, Kentucky, Montana, Washington, D.C., and Oklahoma are the 10 most expensive states for car insurance. Many factors play into the cost of car insurance, and each of these states faces high costs for a variety of reasons.

Louisiana

Louisiana has some of the highest car insurance rates in the country, with average annual premiums of $2,883. That’s almost $1,000 more than the national average. Why? Severe weather plays a major role. Hurricanes and other severe storms cause extensive damage including flooding, which means a lot of claims. There are other factors, though. One of them is increased lawsuits. Another is uninsured drivers — Louisiana has a high number of them. Population density and a considerable number of drivers on the road play a big part.

  • Average annual premium for full coverage: $2,883
  • Dollar difference from national average: $988

Florida

Florida’s average annual car insurance rate is $2,694, 42% more than the national average. Florida has some of the most severe weather in the country. It has also experienced many lawsuits, uninsured drivers, and fraud related to claims. Florida is a no-fault state, a system meant to reduce lawsuits, but in practice, it hasn’t worked out that way. Florida has more insurance litigation than any other state.

  • Average annual premium for full coverage: $2,694
  • Dollar difference from national average: $799

California

Car insurance costs about $2,416 per year in California, which is 27% more than the national average. Many parts of California have heavy traffic patterns, leading to a high number of accidents. Los Angeles, for example, has 27% of the entire population of the state and over 6.7 million drivers. With the cost of car parts increasing, insurance companies have to pay out more for claims. California has had multiple wildfires in recent years, which has caused thousands of claims. All these factors play a part in increasing car insurance rates. 

  • Average annual premium for full coverage: $2,416
  • Dollar difference from national average: $521

Michigan

Michigan’s average annual car insurance rate is $2,352, which is 24% higher than the national average. According to a 2023 report by the Insurance Information Institute (Triple-I), Michigan has a high number of uninsured drivers. Michigan’s no-fault insuranceAn auto insurance system where medical expenses are covered by your insurer regardless of fault. Personal injury protection (PIP) and medical payments (MedPay) are no-fault insurance coverages. laws play a role in the high cost of coverage. Although recent legislation has made some changes, the high limits on personal injury protectionPersonal injury protection (PIP) pays for your medical, hospital and funeral expenses resulting from a car accident, regardless of who's at fault. have historically driven up the cost of claims and created a system ripe for fraud. As a result, Michigan has spent a lot of time among the most expensive states for car insurance.

  • Average annual premium for full coverage: $2,352
  • Dollar difference from national average: $457

Colorado

Colorado's annual average car insurance rate is $2,337. The state experiences severe weather, and hail damage from various storms wreaks havoc on cars, which is one reason for higher premiums. Also, like the other states on the list, uninsured drivers are a problem in Colorado. 

  • Average annual premium for full coverage: $2,337
  • Dollar difference from national average: $442

South Dakota

The same issues that plague other states also affect South Dakota–  a high number of uninsured motorists, increasing cost of car parts and severe weather. Another factor is high health insurance costs. If you are in an accident and one of the parties involved needs medical care, these costs play a part in what’s paid out in claims. Higher claims payouts equal higher rates. South Dakota’s annual average rates are $2,280, which is 20% more than the national average.

  • Average annual premium for full coverage: $2,280
  • Dollar difference from national average: $385

Kentucky

Kentucky has an annual average rate of $2,228. Like several other states on this list, Kentucky is a no-fault state, which drives up insurance costs since insurers must pay medical claims regardless of cost. Kentucky also has high traffic and vehicle theft, both of which drive up car insurance costs.

  • Average annual premium for full coverage: $2,228
  • Dollar difference from national average: $333

Montana

Montana drivers pay an average of $2,193 per year for car insurance. Montana experiences some severe weather, which means more claims. Montana also has a high number of traffic fatalities. Simply put, driving in Montana is considered risky and insurers adjust their pricing accordingly. Other factors also contribute to higher rates– more expensive replacement parts for cars, higher healthcare costs and uninsured drivers.

  • Average annual premium for full coverage: $2,193
  • Dollar difference from national average: $298

Washington, D.C.

Washington, D.C.'s high population density and traffic, which result in many accidents and vehicle thefts, make car insurance expensive. The annual average for car insurance is $2,157, 14% above the national average. Although it’s not a state, D.C. makes our list due to a population that is as great as or greater than some states.

  • Average annual premium for full coverage: $2,157
  • Dollar difference from national average: $262

Oklahoma

Oklahoma has average annual premiums of $2,138, about 13% more than the national average. Oklahoma is in “tornado alley,” a region of the United States prone to tornado activity. Severe weather drives up car insurance costs because multiple people file claims all at once, putting strain on the insurance companies’ finances. Oklahoma also has a high number of accidents. Inflationary costs that affect car parts play a big part in the amount insurance companies pay out after accidents, which in turn increases premiums.

  • Average annual premium for full coverage: $2,138
  • Dollar difference from national average: $243

States with the highest car insurance rates by coverage level

The amount and type of car insurance you purchase will directly impact how much you pay for car insurance. However, because states have different mandatory coverage limits, the cost of a state minimum policy will be very different by state.

Below, you can compare the highest car insurance rates by state for state minimum car insurance, liability only coverage at 50/100/50, and full coverage car insurance with liability limits of 100/300/100 and $500 deductibles.

StateAverage monthly premium for full coverageAverage 6 months premium for full coverage
Louisiana$240$1,442
Florida$224$1,347
California$201$1,208
Michigan$196$1,176
Colorado$195$1,169
South Dakota$190$1,140
Kentucky$186$1,114
Montana$183$1,097
Washington, D.C.$180$1,079
Oklahoma$178$1,069
Delaware$172$1,032
Rhode Island$172$1,030
Nevada$172$1,030
New Mexico$171$1,024
Texas$170$1,022
South Carolina$167$1,005
Mississippi$167$1,004
West Virginia$167$1,002
Missouri$165$991
Georgia$164$985
Arkansas$163$978
Minnesota$159$956
Nebraska$159$951
New Jersey$159$951
Kansas$158$950
Pennsylvania$156$936
New York$156$935
Alabama$155$930
Utah$152$913
Arizona$151$906
Wyoming$146$879
Maryland$145$873
North Carolina$145$871
Massachusetts$144$863
Connecticut$144$863
Oregon$140$839
Tennessee$140$838
Alaska$140$838
North Dakota$139$832
Wisconsin$139$832
Iowa$136$815
Washington$134$804
Illinois$128$766
Hawaii$126$758
Indiana$126$757
Virginia$122$735
Idaho$119$714
Ohio$118$709
Vermont$110$659
New Hampshire$105$633
Maine$98$587
StateAverage monthly premium for liability-onlyAverage 6 months premium for liability-only
Florida$136$815
Louisiana$106$633
Nevada$87$521
Delaware$85$511
South Carolina$77$462
New Jersey$76$457
California$72$432
New York$69$413
Kentucky$67$405
Rhode Island$67$404
Georgia$66$395
Washington, D.C.$65$393
Connecticut$65$391
Texas$65$387
Arizona$64$382
Maryland$63$378
Utah$63$378
Washington$61$365
Colorado$60$359
Oregon$59$355
Michigan$58$347
New Mexico$55$329
Oklahoma$55$328
Massachusetts$55$328
Alabama$53$319
Mississippi$53$318
Arkansas$49$295
West Virginia$49$293
Missouri$49$291
Hawaii$48$286
Tennessee$46$273
Montana$45$270
North Carolina$44$261
Minnesota$43$256
Alaska$42$254
Pennsylvania$42$252
Indiana$42$249
Virginia$40$239
Illinois$39$236
Kansas$39$236
Ohio$37$223
Idaho$37$220
Wisconsin$35$212
New Hampshire$35$208
Nebraska$31$186
North Dakota$31$185
Maine$28$170
South Dakota$28$169
Wyoming$28$166
Vermont$27$162
Iowa$27$160
StateMonthly premium for state minimum coverage6-months premium for state minimum
Florida$83$497
New Jersey$71$426
Delaware$66$394
New York$61$366
Maryland$61$363
Louisiana$60$361
South Carolina$60$360
Nevada$60$360
Connecticut$59$352
Michigan$54$327
Rhode Island$54$323
Oregon$53$320
Kentucky$51$303
Utah$49$291
Georgia$48$288
Texas$48$286
Washington, D.C.$46$279
California$46$276
Arizona$43$258
Massachusetts$43$256
West Virginia$43$255
Missouri$41$244
North Carolina$40$238
Minnesota$40$238
Mississippi$39$232
Tennessee$37$221
Washington$36$219
Colorado$36$219
Kansas$36$217
Alabama$36$217
Virginia$36$214
Illinois$35$211
New Mexico$35$211
Indiana$35$208
Oklahoma$34$204
Alaska$33$199
New Hampshire$33$199
Arkansas$33$198
Hawaii$33$198
Pennsylvania$31$187
Wisconsin$30$183
Ohio$30$181
Idaho$30$178
Montana$29$175
North Dakota$29$174
Maine$28$168
Nebraska$28$166
South Dakota$26$154
Vermont$25$153
Wyoming$24$144
Iowa$22$130

Highest car insurance rates by city

The table below shows specific cities in the states mentioned above so you can see how car insurance rates compare city to city. 

Here are some of the cities with the highest rates, among others:

  • Miami - $3,345
  • Dearborn - $3,305
  • Baton Rouge - $3,166
  • Los Angeles - $3,149
StateCityAvg annual rate% compared to state avg
LouisianaAlexandria$3,25613% more
LouisianaBaton Rouge$3,16610% more
LouisianaBossier City$2,6259% less
LouisianaHouma$2,7395% less
LouisianaKenner$2,9874% more
LouisianaLafayette$3,1529% more
LouisianaLake Charles$3,0616% more
LouisianaMonroe$3,16610% more
LouisianaNew Orleans$2,9492% more
LouisianaShreveport$2,8401% less
FloridaCape Coral$2,5914% less
FloridaFort Lauderdale$3,17418% more
FloridaHialeah$3,35525% more
FloridaJacksonville$2,692almost equal
FloridaMiami$3,34524% more
FloridaOrlando$2,8355% more
FloridaPort St. Lucie$2,8245% more
FloridaSt. Petersburg$2,9098% more
FloridaTallahassee$2,5376% less
FloridaTampa$3,13116% more
CaliforniaAnaheim$2,5726% more
CaliforniaBakersfield$2,4773% more
CaliforniaFresno$2,3851% less
CaliforniaLong Beach$2,68111% more
CaliforniaLos Angeles$3,14930% more
CaliforniaOakland$2,80216% more
CaliforniaSacramento$2,66510% more
CaliforniaSan Diego$2,3244% less
CaliforniaSan Francisco$2,77715% more
CaliforniaSan Jose$2,406almost equal
MichiganAnn Arbor$2,11910% less
MichiganDearborn$3,30541% more
MichiganDetroit$3,28039% more
MichiganGrand Rapids$2,2484% less
MichiganLansing$2,2345% less
MichiganLivonia$2,79419% more
MichiganSterling Heights$2,68014% more
MichiganTroy$2,61711% more
MichiganWarren$2,64512% more
MichiganWestland$3,05830% more
ColoradoArvada$2,3601% more
ColoradoAurora$2,4324% more
ColoradoColorado Springs$2,3491% more
ColoradoDenver$2,337almost equal
ColoradoFort Collins$2,2095% less
ColoradoGreeley$2,3561% more
ColoradoLakewood$2,4927% more
ColoradoPueblo$2,4836% more
ColoradoThornton$2,2205% less
ColoradoWestminster$2,2344% less
South DakotaAberdeen$1,98313% less
South DakotaBrookings$1,91616% less
South DakotaHuron$2,1506% less
South DakotaMitchell$2,0918% less
South DakotaPierre$2,3232% more
South DakotaRapid City$2,49710% more
South DakotaSioux Falls$1,99712% less
South DakotaSpearfish$2,56112% more
South DakotaWatertown$1,93915% less
South DakotaYankton$2,1117% less
KentuckyBowling Green$1,98711% less
KentuckyCovington$2,0389% less
KentuckyElizabethtown$1,91014% less
KentuckyFlorence$1,92813% less
KentuckyGeorgetown$2,00110% less
KentuckyJeffersontown$2,1752% less
KentuckyJeffersonville$2,1762% less
KentuckyLexington$1,94513% less
KentuckyLouisville$2,3596% more
KentuckyNicholasville$1,99211% less
KentuckyOwensboro$1,86316% less
KentuckyRichmond$1,91914% less
MontanaAnaconda-Deer Lodge County$2,0138% less
MontanaBelgrade$2,0188% less
MontanaBillings$2,1572% less
MontanaBozeman$2,0268% less
MontanaButte$2,0546% less
MontanaGreat Falls$2,0716% less
MontanaHavre$2,2221% more
MontanaHelena$1,94211% less
MontanaKalispell$2,196almost equal
MontanaMissoula$1,90813% less
OklahomaBroken Arrow$2,2254% more
OklahomaEdmond$2,2696% more
OklahomaEnid$1,9967% less
OklahomaLawton$2,0096% less
OklahomaMidwest City$2,41113% more
OklahomaMoore$2,2716% more
OklahomaNorman$2,2023% more
OklahomaOklahoma City$2,37311% more
OklahomaStillwater$2,0643% less
OklahomaTulsa$2,3399% more

Why do insurance rates vary by state?

Car insurance rates can vary from state to state based upon various factors,” says Cindy Baroway, executive director of risk management & insurance (RMI) program at the University of Colorado Denver. “They are:

  1. The required minimum liability rates in each state
  2. Jury verdict awards for auto accident cases
  3. Personal Injury Protection (PIP) requirements or not
  4. Number of uninsured motorists in the state
  5. Types of storms that damage cars—such as hail in Colorado (claims frequency and severity)
  6. Frequency of auto thefts and/or vandalism.”

The amount of liability insurance you must legally carry varies by state. This means the price for basic insurance will vary as well. There are many other things that go into car insurance rates, however. Some states, such as Florida, have had a high incidence of lawsuits related to insurance claims. 

Another factor is the number of uninsured or underinsured drivers in a particular state. Most of the states on the list have a lot of uninsured drivers, and this puts a strain on those who do have insurance. The risk is pooled together for everyone to pay, so essentially, you’re paying for accidents that both insured and uninsured people are involved in. Some states require uninsured motorist coverage to combat the costs of uninsured accidents, but that drives up rates for insured drivers as well.

Weather is another huge factor that affects car insurance costs. Severe weather and natural disasters like wildfires damage a lot of property, causing hundreds or thousands of claims all at once. This means the insurance company must not only do extra administrative work to process claims but also pay out millions of dollars in a short period of time. This can cause rates to increase significantly. Sometimes an insurer leaves a state if there are too many natural disaster claims because it’s not worth it to their bottom line. This makes it difficult for drivers to find competitive insurance quotes.

How drivers can lower their insurance costs

Baroway points to the following ways to lower your car insurance rates:

  • Have a good motor vehicle record—no accidents, no points, or low points on their driving record
  • Increase deductibles
  • Take driver training courses (usually age-dependent—for new drivers such as high schoolers or for older drivers)
  • Carry only the coverage you need (on an older car, full coverage may not be necessary or worth the cost)
  • Have a good insurance score (this is based on your credit history, so work to improve it)

While some factors are out of your control, like the weather, cost of car parts and healthcare and the number of uninsured drivers on the road, these are things you can do to keep your personal costs down.

Methodology

Insurance.com commissioned car insurance rates from Quadrant Information Services for all 50 states and Washington, D.C., covering 34,588 ZIP codes. The rates sampled are based on a 40-year-old male driver with a clean record and good credit who drives a 2023 Honda Accord LX. Rates are based on full coverage of 100/300/100 liability limits and $500 deductibles.

Sources:

FAQ

Why is car insurance more expensive in some states?

Car insurance is more expensive in some states due to many factors. Severe weather, lawsuits, uninsured drivers and state minimum liability requirements all affect rates.

Can I lower my car insurance premium if I live in a high-cost state?

You can lower your car insurance premium by maintaining a good driving record, increasing your deductibleThe deductible is the amount you pay out of pocket for a covered loss when you file a claim. (make sure you can afford it if you need to pay it) and taking advantage of all discounts your insurance carrierAn insurance carrier is the company that provides your car insurance policy and pays claims. offers. Some factors are simply out of your control, however.