Compare Car Insurance Rates by State [2023]

If you’re ready to compare the average cost of car insurance by state, you’ll need your ZIP code and driver’s license number. Car insurance rates are influenced most by where you live and your driving history, as well as age and gender.

Comparing all states’ car insurance costs head-to-head is the best way to see if you’re getting the best possible rates based on where you live.

If you’re moving out of state, it’s important to compare multiple quotes to see how much your rates will change in your new state. Read our guide on how to handle a car insurance policy when moving out of state.

Our data finds that the most expensive states for car insurance are Michigan and Louisiana, while drivers in Idaho pay the lowest monthly rates for full coverage. How much does car insurance cost in your state? The easiest way to find out is by comparing car insurance costs by age.

Keep reading to compare car insurance rates by state from the best companies in the country.

Car Insurance Rates by State

The state you live in is one of the biggest factors that affect car insurance rates. State insurance laws determine how much car insurance you need, and local demographics like weather and population impact your risk as a driver.

Find your home state in the table below to find the average cost of full coverage car insurance where you live:

If you’re wondering if car insurance is cheaper in Maryland or Washington, D.C., rates are about the same, around $135 monthly. These areas share the same traffic and population demographics, but Maryland law requires slightly higher liability limits, which could lead to higher rates. Compare Maryland car insurance rates to get the best price. 

However, Indiana car insurance is cheaper than Kentucky despite the two states neighboring one another. Kentucky car insurance rates average around $152 per month, while Indiana drivers pay closer to $97 for full coverage.

If you choose to carry liability-only insurance, your car insurance rates will be lower in all states, although you won’t be as well-protected behind the wheel.  

How Moving to a Different State Impacts Car Insurance Rates

Car insurance increases by state depending on where you move. Learn how to change car insurance when moving out of state.

You can expect your car insurance rates to increase if you’re moving to a state with higher liability limits, but your rates might go down if you’re required to carry less coverage.

For instance, you likely won’t notice much change in rates when moving from Indiana to Illinois, as both states require 25/50/25 in minimum liability. But if you move from Indiana to Texas, your rates will increase by at least $40 per month to $137. Texas car insurance requires higher liability limits of 30/60/25 and an optional $2,500 minimum in personal injury protection (PIP).  

Your driving record will also impact how much your car insurance rates go up after moving because states have different penalties for traffic violations. So if you need SR-22 in Indiana and then move to Florida, you’ll likely see a rate increase since Florida car insurance regulations require higher levels of minimum liability for SR-22 and FR-44. 

If you’re wondering how your rates compare vs. your neighbors’, compare the cheapest and most expensive car insurance states below.

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Cheapest Car Insurance by State

Why is car insurance more expensive in different states? That’s mainly due to location and risk. Big cities with dense populations and traffic will see higher rates than rural areas with fewer people. 

Insurance rates in your state may also be higher or lower depending on the weather. For example, California drivers pay higher premiums as they are more likely to file claims due to fire or earthquake damage than someone in Maine or Ohio.

Scroll down to see which are the most expensive states for car insurance and which are the cheapest.

Which states have the most expensive car insurance rates?

The states with the highest car insurance rates face a higher risk of theft, accident, or natural disaster. Mostly coastal states and those with the biggest populations made it on our list of the most expensive car insurance states:

Why are car insurance rates so high in Louisiana? Unfortunately, Louisiana car insurance faces a high number of lawsuits regarding car accidents, which leads to higher payouts. Louisiana insurance companies increase rates for all local drivers to cover this risk.

Texas is the only expensive state with average monthly rates of less than $140 (less than $1,300 annually). Most drivers in these states pay closer to $160 per month for full coverage, which is on par with the national average but still much higher than in other states.

The most expensive state for car insurance is Michigan, with average monthly costs of around $253. This huge discrepancy is mostly due to the state’s extremely high no-fault insurance minimums. Use our state insurance guide to compare Michigan car insurance rates.

Fortunately, Michigan Governor Gretchen Whitmer signed a bill decreasing the required limits. The bill also forbids insurance companies from using non-driving factors like gender and credit score to determine rates, so local drivers might see their rates start to decline in the coming years.

Which states have the cheapest car insurance rates?

How much car insurance rates vary by state is nearly 100%. For example, Delaware, Louisiana, and Michigan drivers pay twice as much for coverage than those in cheaper states like Maine or Ohio.

This table shows the states with the cheapest car insurance rates:

This is good news for drivers in Idaho and Washington State, as you pay the cheapest rates in the country — less than $85 monthly for full coverage. State Farm and Geico are the cheapest car insurance companies in Idaho, while State Farm and Progressive have the best rates in Washington.

However, our rate data is based on good drivers in their 40s. Your rates will be significantly higher in these states if you are a teen driver or have tickets or accidents on your record. Learn about high-risk car insurance and how much it costs in your state.

Are car insurance rates going up in all states?

Insurance companies increase their rates every year in response to the number of claims filed as well as the increasing price of new vehicles and replacement parts. No matter which state you live in, you can expect your car insurance rates to go up at your next renewal. 

One reason why car insurance rates change is based on how many claims were filed in your area. For example, if a hurricane tears through the Carolinas, resulting in more home and car insurance claims than the previous year, your insurance company might raise its rates on all policies everywhere to alleviate the increased claim payouts.

The good news is the increase may not be as high as you think. According to the U.S. Bureau of Labor Statistics, private passenger car insurance only increased by $10 year-over-year in the Mid-Atlantic region, which includes expensive car insurance states like New Jersey and Delaware.

Which car insurance companies have the cheapest rates by state?

The two largest insurance companies in the country are Geico and State Farm, but do they offer the cheapest car insurance rates in your state? 

Find your state in the table below to compare rates from the top ten car insurance companies in the U.S.:

Geico and State Farm consistently offer the lowest rates to most drivers in most states, but where you live will influence which is actually the cheapest. 

For example, State Farm might sell the cheapest car insurance in Tennessee, but Travelers is the cheapest insurance company in Delaware, charging $10 less per month than Geico and over $30 less than State Farm. Similarly, Nationwide is cheaper in Missouri, charging $20 less per month than either company.

If you are a military member or the immediate family member of someone in the military, USAA will offer the lowest rates in all states. 

Monthly USAA car insurance rates average around $60 nationally, around $109 in Michigan (the most expensive state), and only $40 in Idaho (the cheapest state for insurance). Compare our USAA car insurance review to other companies on this list to see which offers the best rates for your unique situation.

Insurance companies also consider the city or town you live in, so it’s important to compare car insurance rates by ZIP code to find the best insurer for you. Use our car insurance comparison chart to find the right insurer, or enter your ZIP code into our free comparison tool below to find the most affordable car insurance company near you.

Why do car insurance rates vary by state?

There are many reasons why car insurance rates vary by state, but the following factors will have the biggest impact on how much you pay for insurance:

• Population density: Drivers in big cities pay higher rates than drivers living in less-populated areas.
• Insurance laws: No-pay, no-play, and no-fault car insurance states will have very different rates.
• Liability minimums: States require different levels of liability insurance, and higher limits will lead to higher rates. 
• Number of claims: If there was an increased number of claims in your state over the past year, expect your rates to go up at renewal.
• Environmental risk: Increased risk of natural disasters, such as hurricanes, tornadoes, and forest fires, will raise your average rates.
• Car theft rates: Higher theft rates in your city will raise your insurance costs. 

According to the Insurance Information Institute (III), California drivers pay so much partly because more vehicles are stolen there than in other states. It also contributes to Louisiana’s high insurance costs, as more vehicles are stolen per 100,000 people in the Bayou State than anywhere else.

You can lower your car insurance rates by parking your car in a garage or installing additional safety features. Many insurance companies will also offer a discount if you etch the VIN number into the window glass, as this deters most thieves. 

There are more ways to save money on car insurance depending on your company and the insurance laws in your state. Let’s take a closer look at how car insurance laws cause rates to vary by state so you can find the most affordable coverage.

What are tort states?

Most states are tort states, which means at-fault drivers are responsible for costs after an accident or collision. In many cases, each driver will share a portion of the fault, and their insurance companies will cover the damage up to the limits of the policies.

This is where liability car insurance comes in — if you’re found at fault for all or part of an accident, your liability insurance will cover any injuries or property damage you caused. 

Without liability coverage in a tort state, you are responsible for all costs out-of-pocket. Likewise, you will be responsible for paying all of your own medical bills and repair costs if you don’t carry full coverage insurance. Learn more about liability vs. full coverage car insurance to ensure you’re properly covered.

What are no-fault states?

No-fault insurance laws require car insurance companies to pay out on claims regardless of who is at fault. This means that each driver is responsible for their own damages and medical bills and cannot make a claim on the other driver’s insurance policy. 

However, some states will allow drivers to sue if the cost exceeds a certain threshold. Find out how no-fault insurance works.

Only 12 states follow no-fault insurance laws:

• Florida
• Hawaii
• Kansas
• Kentucky
• Massachusetts
• Michigan
• Minnesota
• New Jersey
• New York
• North Dakota
• Pennsylvania
• Utah

If you live in a no-fault state, you are required to carry additional personal injury protection (PIP) insurance to cover your medical bills. High PIP limits often lead to higher rates, which is why drivers pay so much in Michigan.

Hawaii is one of the cheapest states for car insurance, but you might pay more simply because of Hawaii’s no-fault insurance laws. Compare Hawaii car insurance rates here to get the cheapest quotes.

Which states have no-pay, no-play insurance laws?

Driving without insurance is illegal in all states except New Hampshire and Virginia. Even there, drivers have to prove they are otherwise financially capable of covering losses if they want to drive without car insurance. 

No-pay, no-play insurance laws forbid uninsured drivers from suing or collecting compensation after an accident. This means insured drivers often carry higher limits or pay more for uninsured or underinsured motorist coverage to mitigate the increased risk caused by uninsured drivers. 

Ten states have these laws on the books but vary in how they enact them:

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

In each of these states, the law is void if the at-fault driver is intoxicated at the time or fled the scene of the accident. 

However, Louisiana’s no-pay, no-play laws only apply to the first $15,000 in bodily injury and $25,000 in property damage. If damages exceed these amounts, uninsured drivers can still sue at-fault parties. 

On the other hand, no-pay, no-play laws in Kansas only apply to PIP insurance, while Indiana laws won’t allow drivers to sue if they were uninsured at all over the last five years. 

If you live in Iowa, you do not have to worry about no-pay, no-play laws, but you will still lose your right to sue for compensation if you were committing a felony at the time of the accident. Learn more about Iowa car insurance.

What other factors impact car insurance rates?

Along with your state’s insurance laws, liability minimums, population, and theft rates, many other personal factors play a role in determining your car insurance rates. Age, gender, and driving record have the biggest influence on insurance costs, but your credit score and the age of your vehicle could also impact your rates. 

For example, new drivers in a brand new car will pay some of the highest rates regardless of the ZIP code, while older drivers in older vehicles pay less. Older drivers also qualify for discounts for owning a home or being married, which can further reduce rates. 

If you’re looking for the best car insurance, compare quotes from multiple companies in your state to get the cheapest price. We recommend comparing at least three different quotes to see which local insurer can offer you the lowest rates.

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How to Compare Car Insurance Rates by State

All you need to compare car insurance rates by state is your ZIP code, driver’s license number, and phone number or email address. You’ll want to compare multiple companies in your state to ensure you’re getting the best rates possible.

Car insurance rates vary based on the minimum insurance laws and whether or not you live in a tort or no-fault state. Further, states with increased natural disasters and car theft risks — like California and Louisiana — will have much higher rates than states with more rural areas, like Iowa and Idaho. 

Michigan is the most expensive state for car insurance, but you can still get affordable rates with USAA or Travelers Insurance. The cheapest states for car insurance are Idaho, Washington, and Maine.

State Farm and Geico often have the lowest rates in most states, but your personal car insurance quotes will vary based on your age, gender, vehicle make and model, and ZIP code. Compare car insurance quotes by ZIP code today with our free comparison tool below.

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Enter your ZIP code below to view companies that have cheap car insurance rates.

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