Auto Insurance Rates by State: Averages and Why They Differ

Average auto insurance expenditure by state (2022)

Source: National Association of Insurance Commissioners, average expenditures for auto insurance by state, 2022, as published by the Insurance Information Institute. Average expenditure equals total written premium divided by insured vehicle years; it is not a quote.

Most and least expensive states

Source: National Association of Insurance Commissioners, average expenditures for auto insurance by state, 2022, as published by the Insurance Information Institute. Average expenditure equals total written premium divided by insured vehicle years; it is not a quote.

Source: National Association of Insurance Commissioners, average expenditures for auto insurance by state, 2022, as published by the Insurance Information Institute. Average expenditure equals total written premium divided by insured vehicle years; it is not a quote.

Florida, Louisiana, New York, the District of Columbia, and Rhode Island topped the list. North Dakota, Maine, Idaho, Iowa, and Vermont had the lowest averages. The Insurance Research Council has also reported that Louisiana is the least affordable state when auto insurance costs are compared with household income.

What the averages mean

The NAIC's average expenditure is total written premium divided by the number of insured vehicle years. It blends liability-only and full-coverage policies, so states where many drivers carry only minimum coverage can show lower averages. It is also a few years old; rates rose sharply in 2023 and 2024, and the NAIC's countrywide average expenditure for 2023 was $1,281.60. Use the table to compare states, not to predict your own premium.

Why costs differ by state

• Insurance system. No-fault states with generous personal injury protection, such as Florida, New York, and Michigan, often see higher costs.
• Litigation and claim costs. States with more attorney involvement and higher settlements tend to have higher premiums.
• Population density and traffic. More vehicles in less space mean more crashes.
• Weather. Hail, hurricanes, and flooding raise comprehensive costs.
• Uninsured drivers. More uninsured drivers raise the cost of uninsured motorist coverage.
• Repair and medical costs. Labor rates, parts, and health care prices vary by region.
• Minimum requirements. Higher required limits raise the cost of a minimum policy.
• Rating rules. Some states restrict factors such as credit or gender.

What drives your own premium

Within any state, your premium can be far above or below the average. Your driving record, years licensed, vehicle, garaging ZIP code, annual mileage, coverage limits, deductibles, prior insurance, and, where allowed, credit-based insurance score all matter. The fastest way to know what you will pay is to compare quotes with identical coverage.

State guides

See our guides for Texas, Florida, Arizona, Georgia, North Carolina, Michigan, Kansas, and West Virginia, plus our average monthly auto insurance cost guide.

Coverage terms to match on every quote

Limits shown are examples, not recommendations. State minimum requirements differ.

Three coverage levels compared

Examples only, not recommendations. Add UM/UIM at matching limits where possible.

Moving from the minimum to a middle level often costs less than people expect, because liability premiums do not rise in proportion to limits. Ask for both prices before deciding.

Ways to lower your premium

• Compare at least three quotes with identical coverage every year or two, and whenever your premium jumps at renewal.
• Raise collision and comprehensive deductibles to an amount you could pay tomorrow without strain.
• Drop collision and comprehensive on an older car only when the car's value is low enough that you could replace it yourself.
• Ask about every discount: multi-policy, multi-vehicle, good student, defensive driving, paperless, paid-in-full, and safety equipment.
• Try a driving-data program if you drive carefully and are comfortable sharing driving data. See usage-based insurance.
• Keep continuous coverage. Even a short lapse can raise future rates.
• Report accurate mileage. Lower annual mileage can mean a lower premium.
• Bundle auto with renters or homeowners insurance where the combined price is lower.

Discounts to ask about

Discount names, amounts, and availability vary by insurer and state.

Coverage you should think twice about cutting

Some coverage cuts save very little and expose you to large losses. Be cautious about:

• Buying only the state minimum liability. Minimum limits can be exhausted by a single serious injury, leaving you personally responsible for the rest.
• Rejecting uninsured motorist coverage. It protects you when the at-fault driver has no insurance or too little. See uninsured and underinsured motorist coverage.
• Dropping collision on a financed car. Lenders and lessors usually require it.
• Letting the policy lapse between vehicles or during a move.

How insurers set your price

Most insurers price a policy using your driving record, years licensed, age where allowed, the vehicle, where it is garaged, annual mileage, coverage limits, deductibles, prior insurance history, and, where state law permits, a credit-based insurance score. Each insurer weighs these factors differently, which is why quotes for the same driver can differ by hundreds of dollars. Improving the factors you control, especially your record and continuous coverage, pays off over several renewals.

If you are considered high risk

If several insurers decline you because of violations, accidents, a lapse, or a DUI, you still have options. Many insurers specialize in higher-risk drivers, and every state has a residual market plan for drivers who cannot find coverage in the voluntary market. Prices are higher, but keeping coverage continuous and your record clean will usually bring rates down over three to five years. If a court or the motor vehicle agency requires an SR-22 or similar filing, see our SR-22 insurance and high-risk auto insurance pages.

Switching insurers without a gap

If a new quote is lower, switch carefully so you are never uninsured:

1. Confirm the final price after the insurer verifies your information.
2. Set the new policy to start on or before the date the old one ends.
3. Give the new insurer your lender or lessor information if the vehicle is financed.
4. Save your new ID cards and declarations page.
5. Cancel the old policy effective the same day, and ask about any refund of unused premium.
6. If you have an SR-22, confirm the new insurer files it before the old filing ends.

What to have ready for a quote

These details help produce accurate quotes.

1. Driver details. License numbers and dates of birth for every household driver.
2. Vehicle VINs. And annual mileage for each vehicle.
3. Driving history. Accidents and violations in the past three to five years.
4. Current declarations page. To match limits and deductibles.
5. Garaging address. Where each vehicle is kept.

Auto insurance rates by state FAQs

Related guides

• Average monthly auto insurance cost
• Auto insurance calculator
• Cheap auto insurance

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