Auto Insurance Rates by State (2024)

Auto insurance rates by state vary, due to different coverage requirements, fault designation laws, and cost of living. In addition, the best auto insurance companies in each state charges different rates since insurers have unique formulas to calculate premiums.

We’ll show you the car insurance cost by state and the cheapest companies in each state to help you learn how to get the most affordable coverage available. Geico car insurance rates are the cheapest in most states but vary by driver. Read more in our Geico auto insurance review.

Below, we’ll help you learn more about average car insurance rates by state, the top 10 states with the highest car insurance costs, and show you a ranking of car insurance rates by state.

Ranking of Auto Insurance Rates by State

Many factors affect your auto insurance rates, including where you live. Your state creates insurance laws and coverage requirements that impact the cost of coverage. While other factors are also at play, the state you reside in makes a significant difference.

This table shows the average monthly cost of car insurance in each state. How does your state stack up?

Full Coverage Auto Insurance Monthly Rates by State & Provider

Depending on personal factors like driving records, drivers who live in expensive car insurance states can pay 10 times as much for the same coverage as a person in an inexpensive state.

It may surprise you that there’s such a significant difference in the cost of coverage. While Virginia has the lowest rate at $79 a month, Michigan has the highest rate at $266 monthly. The required coverages in each state play a role in the rate disparity.

While both states require bodily injury and property damage liability, Michigan requires almost double the coverage as Virginia. In addition, Michigan requires a large amount of personal injury (PIP) protection auto insurance, causing rates to increase.

Rates can also vary based on how the state designates fault in an accident. Most states are tort or at-fault states, so the person who causes the accident is responsible for damages. However, some states are no-fault, meaning your insurance pays for your damages, regardless of fault.

No-fault states typically have higher than average car insurance rates since drivers must carry extra coverages, such as PIP.

Select your state from the list below to get more detailed information about the cost of auto insurance in your state:

Auto Insurance in Your State

Additionally, some states require drivers to carry uninsured and underinsured motorist coverage, especially if there are a lot of uninsured drivers in the state. For example, Michigan has a 25% uninsured driver rate.

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Auto Insurance Companies With Cheapest Rates by State

Drivers have multiple car insurance companies to choose from within each state. While rates vary from state to state, they also differ by company within a state. So, drivers get vastly different quotes for the same coverage.

To calculate rates, every car insurance company looks at personal factors like age and driving record. However, each company uses a different formula to determine rates, so quotes are typically different.

For example, one company may not raise your rates after your first speeding ticket, but another may raise rates considerably until the ticket comes off your driving record.

This table shows the cheapest car insurance company for a 45-year-old driver with a clean driving record in each state. However, this varies by the driver since other factors change, like credit scores and vehicle.

Geico is the cheapest insurer in most states, but rates still vary up to $68 from state to state. In addition, State Farm is the cheapest in nine states, Travelers is the most affordable company in four states, Progressive is the most inexpensive in three states, and Liberty Mutual is the cheapest in two states.

Most car insurance companies also offer discounts, which can determine the cheapest insurer for you. While one company may offer a considerable discount for being claims-free, another may only offer 5%. It’s important to consider available discounts when calculating rates.

Since each car insurance company calculates different rates, shopping around for coverage is essential. Compare rates from multiple insurers within your state to find the best rates available.

Lowest Auto Insurance Rates by State

Each state has different car insurance rates, and some are significantly cheaper than others. While low car insurance rates may not dictate where you live, knowing what to expect can give you peace of mind.

What states have the cheapest auto insurance rates? These are the states with the cheapest car insurance rates:

• Virginia
• Idaho
• Washington
• Ohio
• Iowa
• Maine
• Hawaii
• North Carolina
• Illinois
• New Hampshire

All state car insurance rates are based on mandated coverage, driver information, and other factors like population, natural disasters, and crime rates.

For example, states with low populations, few weather-related disasters, and low motor vehicle theft rates have the lowest rates. However, since each state makes its own insurance regulations, rates vary widely.

New Hampshire and Virginia are the only states on the list that don’t require car insurance. Instead, New Hampshire drivers must show they have sufficient funds to meet the state’s 25/50 liability requirement. Virginia drivers can pay $500 a year to opt out of getting coverage.

Drivers who skip car insurance, even legally, risk paying out of pocket for damages and injuries in an accident. 

Top 10 States With Highest Auto Insurance Rates

Now, let’s look at the top 10 states with the highest car insurance rates:

• Michigan
• Delaware
• Louisiana
• New Jersey
• Rhode Island
• Georgia
• California
• New York
• Texas

Some of the states on this list are no-fault states, meaning each driver pays their own damages regardless of who caused the accident. In addition, several of these states require drivers to carry PIP coverage to pay for medical costs resulting from an accident, which increases rates.

Many of these states also have a high number of uninsured drivers. In that case, car insurance companies raise rates to pay for damages caused by drivers without insurance. 

Where you live in the state also makes a difference. Auto insurance rates vary by ZIP code within your state. 

For example, cities with many vehicle thefts and a high traffic volume see higher car insurance rates than the suburbs or rural areas with lower crime rates and less traffic. However, rates are lower since drivers are less likely to have a vehicle stolen or be in an accident.

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Why Auto Insurance Rates Vary by State and ZIP Code

When you enter a store, you expect prices to be similar, regardless of where you are. However, that’s not the case with car insurance. Car insurance rates fluctuate widely depending on your state.

Why does auto insurance vary from state to state? You’ll see many different rates from state to state for several reasons.

First, whether a state is a tort or no-fault state makes a big difference in rates. 

The at-fault driver’s insurance pays for property damage and bodily injuries in a tort state. However, in a no-fault state, each driver’s insurance pays for damages and injuries, regardless of who caused the accident. No-fault states typically require drivers to carry extra coverages, such as PIP, which raises rates.

Next, each state creates its own auto insurance laws. For example, most states require drivers to carry a minimum amount of coverage. While some states have low coverage requirements, others require drivers to carry higher limits, resulting in higher rates.

Additionally, the number of uninsured drivers in the state may affect car insurance rates. Car insurance companies know they have to pay more claims in a state with many uninsured drivers since there may not be another insurance company to pay for damages.

Finally, the characteristics of the state itself influence car insurance rates. For example, states with a high cost of living, frequent natural disasters, a high crime rate, or a large population see higher rates.

Since drivers in these states are more likely to file a claim for theft, damages, or accidents, car insurance companies charge increased rates. In addition, these states may have higher parts and repair costs.

Minimum Auto Insurance Requirements by State

It’s easy to be confused about what car insurance coverage you need since each state sets its own minimum auto insurance requirements. Most states require liability coverage, and some require uninsured and underinsured motorist and PIP coverage.

Some states mandate very little coverage, and others require drivers to carry more coverage. These required coverages can increase or decrease car insurance rates significantly. For example, Washington only requires drivers to carry bodily injury liability coverage for $25,000 per person and $50,000 per accident, with $10,000 in property damage liability per accident.

On the other hand, Michigan requires drivers to carry bodily injury liability coverage for $50,000 per person and $100,000 per accident, with $10,000 in property damage liability per accident. In addition, drivers with qualified health coverage must also have $250,000 in PIP coverage.

Check out this chart to see each state’s car insurance requirements.

Auto Insurance Minimum Liability Requirements by State

The more coverage a car insurance company must extend, the higher the rates. So, states requiring higher coverage amounts and more coverage types see increased rates.

While most states have a minimum amount of required coverage, most drivers find it insufficient since limits are typically very low and there’s no protection for your vehicle.

Experts suggest increasing limits and adding full coverage, which combines collision and comprehensive. Collision coverage pays for damages to your vehicle from an accident, and comprehensive coverage pays for damages unrelated to an accident, such as theft and vandalism.

While full coverage rates are more expensive, you’ll have significant out-of-pocket expenses if your vehicle gets damaged and you have no coverage.

No-Fault Auto Insurance States

If your state is a no-fault state, you’ll have to pay for damages and injuries yourself, no matter who caused the accident.

For example, if someone runs a traffic light in a no-fault state and causes you to break your leg, your car insurance pays for the injuries. The other driver isn’t responsible for the damages even though they’re at fault. 

Car insurance in no-fault states is the same as in tort states, but it pays for any injuries to the insured regardless of fault. 

The benefit of no-fault auto insurance is that you determine how much coverage is available. So, if you want to ensure your damages and injuries are covered, you can increase your limits. In addition, you’re not dependent on the other driver’s insurance, which may have very low limits.

No-fault car insurance also diminishes the number of lawsuits filed. Since there’s no fault assigned in an accident, each driver must deal with their own car insurance company and available coverage.

There are only 12 no-fault states: Florida, Hawaii, Kansas, Kentucky, Massachusetts, Michigan, Minnesota, New Jersey, New York, North Dakota, Pennsylvania, and Utah.

Tort Auto Insurance States

Most states are tort or at-fault states, and liability coverage pays for property damage and bodily injuries to others.

If you live in a tort or at-fault state, your insurance pays for any damages you cause in an accident. For example, if you run a stop sign and damage another vehicle, your car insurance pays for the repairs and any bodily injuries to the other vehicle and driver.

These states require liability coverage, and some require uninsured and underinsured motorist coverage. However, you need collision and comprehensive coverage to pay for damages to your vehicle.

“No Pay, No Play” States

Most states require car insurance to drive legally. While there are typically consequences for driving without insurance, such as fines, driver’s license suspension, and jail time, some states take it a bit further.

In no pay, no play states, uninsured drivers involved in an accident can’t receive compensation for certain damages, such as pain and suffering. Some states also limit the physical damages that uninsured drivers can claim.

For example, Louisiana uninsured drivers can’t receive compensation for property damages up to $25,000 and bodily injuries up to $15,000. So, if a Louisiana driver is uninsured and hit by another driver, the uninsured driver must pay for repairs and medical costs themselves up to those limits.

On the other hand, Kansas allows uninsured drivers to be compensated for damages and injuries if they’ve been uninsured for less than 45 days and carried coverage for a year before.

The 11 no-pay, no-play states are:

• Alaska
• California
• Indiana
• Iowa
• Kansas
• Louisiana
• Michigan
• Missouri
• New Jersey
• North Dakota
• Oregon

Uninsured drivers in these 11 states have few options for recovering damages, even if they didn’t cause the accident.

Why Auto Insurance Rates Are Going Up in Each State

Car insurance companies are for-profit businesses. The goal is to make more money in premiums than the company pays in claims. When a company has to spend more money, it has to charge higher rates.

Unfortunately, car insurance rates continue to increase yearly in almost every state. While the minimum required coverage doesn’t usually change, the cost of claims rises due to increased inflation, more car accidents, and expensive repairs.

For example, many newer vehicles are more costly to repair since they come with expensive technology and safety features. Features like electronic stability control, adaptive cruise control, and multiple cameras make cars safer, but it also costs more to repair or replace these components.

Natural disasters and acts of nature are also on the rise. For example, more hurricanes, floods, and high winds cause damages that car insurance companies must cover. In turn, rates go up to balance the increased number of claims. 

Drivers should expect to see a continued increase in car insurance rates. However, comparison shopping helps drivers find the cheapest car insurance available.

How Moving to a Different State Affects Auto Insurance Rates

Chances are your car insurance rates will change if you move to a different state. As we discussed, state laws and coverage requirements impact auto insurance rates. In addition, rates will increase when you move from a state with few natural disasters to a state like Florida, which often sees hurricanes and flooding.

For example, Virginia has some of the cheapest car insurance rates on average, and Michigan has some of the most expensive rates. As a result, drivers who move from Virginia to Michigan may get sticker shock. On the other hand, Michigan drivers moving to Virginia will see rates drop.

Speaking with your car insurance company when planning a move is essential. While some insurers provide coverage nationwide, others don’t cover every state. Checking with your insurer before you move allows you time to find the cheapest coverage for your new state.

It’s crucial that you don’t allow your insurance coverage to lapse during a move. So, get your new policy from your new state in place before canceling your previous one. 

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Other Factors Affecting Auto Insurance Rates

While your state impacts your costs, many other factors affect car insurance rates. Though some are obvious, others might surprise you.

Age, Gender, and Marital Status

First, your age, gender, and marital status affect auto insurance rates. Younger drivers are less experienced behind the wheel and more likely to be in an accident. So, insurers charge higher rates than older, more experienced drivers.

In addition, males and unmarried drivers pay higher rates. Statistics show that females and married drivers take fewer risks and get in fewer accidents. However, some states, like California, don’t allow insurers to use gender when determining costs.

Driving Record

Next, your driving record is essential in determining car insurance rates. Your driving record allows car insurance companies to predict if you’ll cost them money in claims. Drivers with accidents, speeding tickets, and DUIs pay much higher rates.

Not only will you pay a fine, but your rates will increase for years with marks on your record. In some states, an accident or ticket raises rates for up to five years, and a DUI affects rates for 10 years.

Credit Score

Many drivers are unaware their credit score impacts auto insurance rates. Drivers with a higher credit score are less likely to file claims and typically can pay for damages out of pocket.

However, California, Hawaii, and Massachusetts don’t allow insurers to use credit scores to calculate rates.

Your vehicle also plays a part in your insurance rates. Expensive cars have higher rates since they’re more costly to repair or replace.

Auto Insurance Coverage Type

Finally, your car insurance coverage affects rates. The more coverage you have, the higher the cost. However, more coverage typically means less out-of-pocket costs if your vehicle needs repair.

While you can’t change factors like your age, improving other areas helps lower your rates. For example, maintain a clean driving record, improve your credit score, and drive a less expensive vehicle to lower rates.

How to Get Cheap Auto Insurance Rates in Your State

Even if car insurance rates are high in your state, there are ways to save. Getting the lowest car insurance rates by state is essential, no matter where you live.

Ask for Auto Insurance Discounts

First, find out if there are any auto insurance discounts. Most insurance companies offer discounts for drivers who meet specific criteria. Generally, discounts consider the driver, policy, and vehicle, and most drivers qualify for more than one. So, bundle discounts for the most savings.

Read more: How to Get a Persistency Auto Insurance Discount

Popular savings include safe driver, good student, claims-free, and paid-in-full discounts. Drivers can also save with their vehicle’s safety features, such as air bags, cameras, and collision warning systems.

Review Your Auto Insurance Policy

Next, take a look at your policy. While full coverage is encouraged, drivers with older vehicles or who can pay for repairs themselves may be able to lower coverages. In addition, you can drop some add-on features like roadside assistance to lower rates.

Modify Your Auto Insurance Deductible

You can also adjust your deductible to lower rates. For example, while a higher deductible means you must pay more out of pocket if your vehicle gets damaged, your rates are lower.

Think Carefully Before Filling an Auto Insurance Claim 

Think carefully before you file a claim. Filing a claim can raise your rates for three to five years. However, depending on your vehicle’s damage and financial situation, paying for repairs may be much cheaper.

Keep a Good Driving Record

It’s also imperative to maintain a clean driving record. Accidents and tickets can raise your rates for three to five years, depending on your state. In addition, DUIs can affect your car insurance rates for up to 10 years.

Shop Around for Auto Insurance Rates by State

Finally, shop around to find the best auto insurance rates by state. As we’ve shown, each car insurance company in your state calculates your rates a bit differently.

While national companies tend to offer the best average rates, don’t overlook insurers local to your state. They may offer even better rates. Compare rates and discounts from multiple companies to find your best deal.

Comparing Average Auto Insurance Rates by State

Auto insurance rates vary from state to state. Since each state makes its own laws and requirements, no two states are the same. Instead, minimum required car insurance coverage, fault designation, and state statistics like natural disasters, population, and theft determine rates.

For example, more rural states with low population and motor theft rates that don’t experience many natural disasters have the lowest car insurance rates.

We’ve found that Idaho has the lowest average car insurance rates, and Michigan has the highest average rates. Michigan’s high rates are due in part to the state’s high PIP requirements and the fact that the state is no-fault, so each driver has to use their own insurance in an accident.

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Unfortunately, car insurance rates are increasing and will continue to rise. An increasing number of claims filed, more natural disasters, and higher inflation play a large part in the rate increase. Additionally, cars are more expensive to repair as technology advances.

However, drivers can save money on car insurance regardless of where they live. Adding discounts, reconsidering coverage needs, and comparison shopping help drivers find the lowest rates. A clean driving record is essential for getting cheap car insurance. Unfortunately, at-fault accidents, tickets, and DUIs raise rates for years, making it difficult to find affordable car insurance.

If you move to a new state, you must learn the coverage requirements and get new car insurance as soon as possible. Remember that your rates will most likely differ in your new state.

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