Car Insurance Rates and Trends by State: Cheapest & Most Expensive States in 2021
- 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%.
Average Car Insurance Rates by State
car policy costs can vary wildly based on your localization and whether you carry broad coverage or liability-only insurance, so MoneyGeek analyzed hundreds of thousands of car insurance quotes from across the country to determine the average cost of 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 indemnity premium of $ 1,265 nationally. But because each state is so different, this driver could pay anywhere from a few hundred to respective thousand dollars depending on his specific location.
Average Cost of Comprehensive and Collision Coverage by State
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- department of state annual premium 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. 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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- state annual agio 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 policy costs change from year to class, but there are many reasons your premium might go up or down over meter. Changes in state insurance rules and regulations can impact your premiums. so can an increase or decrease in the number of claims made in your state. And as your driving habits evolve — for exemplar, if you have a shorter commute or a accelerate ticket on your phonograph record — you may besides see those changes reflected in lower or higher premiums. The table below shows the changes in the average full coverage insurance rate by state from 2020 to 2021 and the change 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
District of Columbia
Local Legislation and Traffic Trends
Some states saw changes in cost due to new local laws :
- Arizona: Arizona increased the minimum liability levels in a change effective July 1, 2020. While many have expressed concern that this will ultimately raise rates, this has indeed far not give birth out : Arizona ‘s rates have slenderly decreased from 2020 to 2021 alternatively .
- Michigan: Michigan experienced the largest decrease in rates from 2020 to 2021, with rates declining an average of 25 %. This is due, in separate, to the submit ‘s late move to reduce no-fault requirements — a primary coil driver of the state ‘s historically high gear policy rates .
- New Jersey: New Jersey ‘s car insurance premiums have declined the most over the longer term, with drivers experiencing a 30 % neglect in annual premiums since 2015. Whether that downward vogue continues is still to be determined : there are two legislative proposals presently being debated that, if passed, will have a significant impact on insurance rates. The first is Senate Bill S111, which would ban car insurers from considering a driver ‘s credit score, occupation, education degree, marital status and other alike factors when determining premium amounts. And the second gear, the New Jersey Insurance Fair Conduct Act, would make it easier for citizens to file civil lawsuits against insurers for badly faith claims .
- South Carolina: South Carolinians saw the largest year-over-year rate increase in indemnity costs : their rates increased an average of 4.3 % from 2020 to 2021. While data is not yet available for 2020, collisions have been on the rise in late years. According to the South Carolina Department of Public Safety, there was one dealings collision every 3.7 minutes and one fateful collision every 9 hours on average in 2018. And the number of fateful collisions in a year has increased steadily — from 756 in 2014 to 969 in 2018 — a drift that is undoubtedly reflected in South Carolina ‘s car insurance rates .
- Montana: Montana holds the circus tent blemish for indemnity premium pace hikes, with Montana residents seeing the steepest increase in coverage costs over the survive six years. Rates there increased by an average of 37 % since 2015. As with South Carolina, this can, in large part, be attributed to Montana ‘s persistently high traffic fatality rate. The state counted 212 dealings fatalities in 2012, and preliminary data on 2020 ‘s fatality numbers indicate this issue 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 indemnity premiums was refunded to customers because policy companies saw upwards of a 40 % reduction in losses. many policy companies expect that some of the changes brought approximately by the pandemic will be permanent. That has encouraged them to get ahead of the competition and lower their rates to compensate for the decrease in drivers on the road. In February 2020, there were 3,277,759 million miles repel in the United States, but that phone number dropped to 2,857,200 million miles by November. With many companies announcing that work from home options will continue for the foreseeable future, indemnity companies are fresh to consider that the reduction in miles drive may continue for many months or years. While the final examination numbers weren ’ thyroxine available at the time of this writing, the second quarter of 2020 showed a decline in overall traffic fatalities, further reducing policy premiums for drivers across the area.
Which States Have the Cheapest Car Insurance?
After careful review, MoneyGeek has determined that the ten states listed below have the cheapest fully coverage policy in the nation. however, even if you live in one of the states with the brassy car policy, you should distillery compare quotes to find the cheapest coverage in your state. here are the states with the lowest median annual full coverage premiums :
- Maine: $589
- Idaho: $674
- Iowa: $674
- Indiana: $685
- Ohio: $719
- North Dakota: $733
- New Hampshire: $741
- South Dakota: $758
- Virginia: $785
- Vermont: $785
With premium prices varying so widely by express, MoneyGeek researched why prices are so abject in the three cheapest states.
Why Maine Auto Insurance Is So Cheap
Maine has much higher minimal indemnity requirements than many other states, but they placid manage to keep their average indemnity rates low. This is because they have the lowest percentage of uninsured drivers in the nation : lone 4.5 % of Maine drivers are uninsured. They besides have low rates of vehicle larceny and overall accident fatality rates, both of which contribute to their low annual premiums.
Why Idaho Auto Insurance Is So Cheap
Idaho is second gear on the list of lowest policy costs in the state, primarily because Idaho has very low rates of larceny, with fewer than 88 vehicles stolen per 100,000 people annually. It is besides a sparsely populate state : fewer drivers share the roads, which helps bring down the numeral of accidents each class.
Why Iowa Auto Insurance Is So Cheap
much like Idaho, Iowa is sparsely populated. This means Iowa ’ s insurance rates are lower than other states with higher population densities. Iowa besides has fewer cable car thefts than the national average, which helps keep its rates among the lowest in the nation. Loading …
Which States Have the Most Expensive Car Insurance?
Though this tilt can change from year to class, as of 2020, the ten states listed below are the most expensive car indemnity states in the state. 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 cable car indemnity on modal are :
- Michigan: $4,003
- New York: $3,896
- Louisiana: $3,419
- Florida: $1,919
- Maryland: $1,886
- Rhode Island: $1,788
- Nevada: $1,738
- Georgia: $1,511
- New Jersey: $1,463
- Delaware: $1,453
With bounty prices varying so widely by submit, MoneyGeek researched why prices are sol high in the three most expensive states.
Why Michigan Auto Insurance Is So Expensive
Michigan has the most expensive indemnity for multiple reasons, but the chief induce is the submit ’ second no-fault policy laws. Though these laws were initially intended to help lower indemnity costs, states with no-fault insurance laws have alternatively seen their rates skyrocket over the years. More than that, Michigan has a high share of uninsured drivers, and its default shoot policy guarantees outright coverage.
Why New York Auto Insurance Is So Expensive
New York City has the highest population concentration of any topographic point in the U.S., with more than 27,000 people per square mile. This incredibly dense population is separate of what causes high indemnity rates in New York. early factors, such as rates of vandalism and pedestrians injured or killed in an car accident, stem from the incredibly high number of people living in the same area.
Why Louisiana Auto Insurance Is So Expensive
Louisiana makes the tilt of most expensive states for cable car policy because their legislative act of limitations is only one class, which means people must rush to court if they think they may be owed compensation 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. Loading …
Why Does Car Cost Insurance Vary by State?
cable car policy costs can vary wide from state of matter to state. local laws and population density 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 placid have some questions regarding car indemnity rates by state of matter. here are our answers to a few of the most common ones .
Maine, Idaho, Iowa, Indiana and Ohio presently have the bum car insurance rates in the country .
Michigan, New York, Louisiana, Florida and Maryland presently have the most expensive car insurance rates in the state .
New Hampshire and Virginia are the entirely states that don ’ thyroxine ask car policy. But this doesn ’ triiodothyronine 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 insurance are required to pay $ 500 to the state of matter. This fee doesn ’ triiodothyronine include any coverage, however, so most drivers prefer to have car indemnity .
An increase of 36.8 % means Montana has seen the steepest rise in indemnity costs for drivers with broad coverage.
MoneyGeek analyzed car indemnity quotes across all 50 states to determine the car indemnity 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 read.
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Loading … About the writer Rachael Brennan is a professional finance writer and licensed policy agent. She has worked in the policy industry for more than a decade, 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 well-known companies such as twenty-first Century Insurance and BlueCross BlueShield and was the unitarian Universalist Association ( UUA ) policy plans coordinator for three years. She specializes in place, fatal accident, health, animation, accidental death and disability indemnity. Rachael earned her bachelor of skill academic degree in communications from Texas A & M University-Commerce. Rachael combines her write background with her indemnity and personal finance know to contribution practical cognition and serve people make inform fiscal decisions.
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