The national average rate for a minimum coverage cable car policy 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 citation score and scavenge force record would pay $ 4,386 per year on median for minimum coverage in Michigan, the state with the most expensive car indemnity. By line, the driver would pay only $ 382 on average in Iowa, the state with the cheapest minimum coverage insurance .
That’s more than 11 times more expensive. individual rates differ not only by submit but besides based on variables like historic period and accident history, so your own car policy premiums may be well 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 year for minimum coverage. Iowa has the cheapest car indemnity — drivers in the department of state give equitable $ 382 a year on average for minimal coverage. See how average car insurance premiums in your state comparison to those in early states and to the national average .
|
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 coverages on crown of indebtedness. Collision and comprehensive coverages ensure your own car is protected in the consequence of an accident, while minimum coverage in most states only protects damage done to another driver ‘s person or property .
Because car policy is regulated at the express degree, states have unlike requirements for the minimal coverage drivers must have to drive legally. There are typically five kinds of policy 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 command policyholders to have bodily wound liability, and all 50 states adenine well as the District of Columbia require property wrong 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 indemnity cost, then be sure you understand the details of what coverage is required in your country before you begin shopping .
No states require drivers to carry full coverage, and you ‘ll pay extra for this add security. even in Maine, the state with the smallest deviation between wide and minimum coverage policies, drivers who opt for wide coverage pay an extra $ 599 each year. Consider the worth of your cable car and whether it makes common sense to pay more for wide coverage. { “ backgroundColor ” : ” ice ”, ” subject ” : ” \u003C\/p\u003E\n\n\u003Cp\u003ENo states require drivers to carry full coverage, and you ‘ll pay supernumerary for this add protection. even in Maine, the state with the smallest difference between fully and minimum coverage policies, drivers who opt for full coverage pay an supernumerary $ 599 each year. Consider the worth of your cable car and whether it makes sense to pay more for wax coverage. \n ”, ” padding ” : ” doubling ” }
Either manner, get car indemnity quotes from multiple insurers both bombastic and small to find your best rates. Our inquiry found that, of the major national insurers, USAA and State Farm offer the cheapest rates for wide coverage. You may find a better deal with a modest 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 insurance. If living in a state with low-cost car insurance premiums is significant to you, these states are some of the cheapest places or car indemnity .
Iowa. With an average annual premium of barely $ 382 for minimum coverage, Iowa is the department of state where you will find the cheapest car insurance — 51 % cheaper than the national median. Iowa drivers should consider getting a policy with IMT ( Wadena ), Auto-Owners or State Farm, as our inquiry found that these companies offer the cheapest minimal coverage car insurance in the state .
South Dakota. much like Iowa, South Dakota ‘s rural landscape and gloomy share of uninsured drivers result in cheap minimum car insurance 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 car indemnity coverage .
Wisconsin. The average annual premium in Wisconsin costs only $ 396, making it 49 % cheaper than modal. We found that State Farm, American Family and Erie offer the cheapest rates for minimum coverage, so Wisconsin drivers shopping around for low-cost rates should keep these three insurers in mind .
North Dakota. A minimum coverage policy in North Dakota costs precisely $ 422 each year — 46 % cheaper than the national modal. 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 modal. Our psychoanalysis showed that the average annual policy in Wyoming costs just $ 422, with State Farm and Geico offering the most low-cost minimal coverage policies. limited dealings on rural roads, a humble population and a small phone number of uninsured motorists help insurers keep rates low-cost for residents of the Cowboy State .
Car insurance rates by city
car insurance costs vary not just by state — they besides vary importantly by city. As a general convention, the more populous the city you live in, the more expensive your car policy rates will be. This is partially because drivers who frequently travel on busy roads are more probable to get into an accident. Insurers pass this risk on to policyholders in the mannequin of increased premiums .
In Texas, for exemplify, an annual minimal coverage policy is $ 382 more in Houston, the state ‘s most populous city, than in Austin .
Car insurance rates by ZIP code
policy companies price car policy by ZIP code a well as by city. If you compare one ZIP code with another, you ‘ll find that average car insurance rates can vary by more than a one-third — even within the same city .
Take Houston 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 minimum coverage car policy on his Honda Civic EX. By line, if he lives in ZIP code 77059, he will pay just $ 790 — a $ 219 remainder. { “ backgroundColor ” : ” butter ”, ” content ” : ” \u003C\/p\u003E\n\n\u003Cp\u003ETake \u003Cspan\u003E\u003Ca class=\ ” ShortcodeLink — root 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 case : We found that if a 30-year-old driver with a clean driving read 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 difference. \n ”, ” padding ” : ” double ” }
Do n’t be excessively alarmed if your car indemnity rates change when you move across township. Be sure to shop around for the cheapest car policy rates in your new ZIP code to make sure 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 insurance premiums in the country, though the reasons for these rates vary by state .
Michigan. The Wolverine State has by far the highest car insurance premiums in the area : Drivers pay an average of $ 4,386 a year for minimum coverage — 459 % higher than the national median. Michigan ‘s unique approach path to car policy accounts for this expensive car indemnity. Prior to July 2020, drivers were required to carry outright PIP indemnity. This drove up costs and led to many drivers going without policy raw.
Thanks to holocene reform, drivers now need alone carry $ 250,000 in PIP indemnity, and those with Medicare can opt out wholly. This will importantly reduce annual rates in the coming years and make car insurance more accessible for drivers, which in turn will improve guard on the roads. Michigan drivers may want to consider purchasing a minimal 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 alone holds the doubtful differentiation of having one of the highest percentages of uninsured motorists in the area, but it is besides one of the most expensive states in which to insure a cable car. Floridians pay an average of $ 2,072 for an annual minimum coverage policy, or about 164 % more than the national average .
In addition to a high percentage 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 minimum coverage, so we recommend that Florida shoppers purchase a policy from one of these companies .
Rhode Island. Rhode Island ranks as the one-third most expensive state for car insurance. Residents pay $ 1,197 on average for an annual premium with minimum coverage, making rates 53 % higher than the national median. Our analysis found that Progressive, Nationwide and Geico offered the cheapest minimal coverage rates to Rhode Island drivers .
Delaware. Despite not being a no-fault submit, Delaware requires drivers to carry PIP policy. This raises prices 51 % above the national average : kentucky drivers pay about $ 1,183 a class for minimal coverage insurance, making it one of the most expensive places for cable car policy in the country. 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 indemnity rates in the nation. A combination of factors around cities such as Las Vegas and Reno, which account for much of the department of state ‘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 psychoanalysis, these companies quoted the most low-cost annual policies for minimum coverage .
No-fault state vs. fault states
States with the most expensive car insurance rates much experience these high gear costs because of a legal structure known as “ no-fault. ” No-fault states require drivers to carry PIP insurance that covers their own checkup 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 .
demerit 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 early 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, let drivers to pay more to opt out of the no-fault system. This allows them to sue for “ pain and miserable. ”
Some states, notably Delaware, Maine and Oregon, want PIP, flush 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 insurance rates. These variables include :
Every insurance company has its own singular formula for developing rates, with some insurers emphasizing certain factors more powerfully than others. That ‘s why it ‘s so authoritative 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 year after year, so your state of matter will probable see an increase in car insurance by 2022 .
The most likely keystone 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 natural disasters reached record highs in the 2010s and are expected to increase due to climate change and weather variability .
If you live in a state peculiarly vulnerable to natural disasters — whether it ’ south hurricanes, flooding or fires — you will probably see your car indemnity rates go up in the coming years. Consider purchasing comprehensive examination indemnity, which protects your vehicle from non-collision losses such as weather damage .
How moving to a different state might impact your car insurance premium
Moving across state lines will impact your car insurance rates. As a general principle, 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 .
For example, drivers who move from California to Texas will find that their rates will increase. If you compare the cost of car indemnity in Texas versus California, you ‘ll find that Texas drivers pay 8 % more on average for minimal coverage than California drivers do. This is partially because Texas has higher minimal coverage requirements than California, requiring drivers to carry bodily injury liability limits of $ 30,000 per person and $ 60,000 per accident, with $ 25,000 in place damage liability limits. By contrast, California entirely requires drivers to carry bodily injury indebtedness 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 41 % less on modal for cable car policy — despite the fact that the states have identical minimal coverage requirements and are both no-fault states .
Be certain to budget for these changes when you calculate the price of living in your new state. Remember to factor in the price of changing your adjustment and license american samoa well, as many states require drivers to pay a fee to the department of centrifugal vehicles. { “ backgroundColor ” : ” ice ”, ” subject ” : ” \u003C\/p\u003E\n\n\u003Cp\u003EBe surely to budget for these changes when you calculate the price of life in your newly express. Remember to factor in the price of \u003Cspan\u003E\u003Ca class=\ ” ShortcodeLink — ancestor 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 ampere well, as many states require drivers to pay a fee to the department of drive vehicles. \n ”, ” padding ” : ” double ” }
Methodology
We collected quotes across 50 states and Washington, D.C., for 51 policy companies. Although 37 policy companies were included in the analysis, policy company rates were only included in our lists if their policies were available in at least five states .
Our base 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 recognition history, which makes him equivalent to a driver with below-fair to poor recognition, according to our data source, Quadrant Information Services .
When our driver had a full coverage policy, we gave him coverage limits slenderly above any one state ‘s minimum 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 cost of a policy that meets any submit ‘s minimum want car insurance 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 only — your own quotes may be unlike .
Additional sources
- Aon 2020 Weather, Climate & Catastrophe Insight Report