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.

Location Matters

When it comes to car insurance, no question can be fully answered until the where is determined. It’s shocking how much car insurance prices and laws vary from state to state. The states that make up the United States of America are far from united when it comes to how they govern their drivers.

For this very reason, our team of researchers created complete guides on each state and even major cities within them (links below).

These essential area-specific guides are packed full of everything from the minimum coverage drivers are required to carry to how long commuters are stuck in traffic on their way to work.

In our comprehensive guides will find car insurance rates by zip code, provider, and how they vary by unique driver profiles. You can even find out what you would be expected to pay after one ticket or accident in that specific location.

Rates by State

Before you are wowed by one of our state or city guides, take a look at the two charts below to see how drastically insurance prices vary across America. Check out the ten least and most expensive states for car insurance with their average rates broken down by type of coverage.

You think that’s interesting? Just wait until you scroll through one of our guides.

The 10 States with the Cheapest Car Insurance

Even when just looking at the ten cheapest states for auto insurance, Maine and South Dakota’s rates for comprehensive vary by over $150. And, while Idaho has the cheapest full coverage in the U.S., other states have cheaper prices in the specific lines of coverage.

Car insurance prices are sneaky like that. You have to pay close attention to all the minor details—they sure add up fast.

The 10 States with the Most Expensive Car Insurance

You’d be hard-pressed to find an insurance provider in any of the above ten states that will offer you full auto coverage for under one thousand dollars a year. If you live in one of these most expensive states, you can expect to pay $800 or more for liability coverage alone.

Again, you’ll find quite the variance in rates . . . an average $131 difference between collision coverage in Florida and its neighbor, Louisiana. And, a $264 price difference on liability coverage between New Jersey and Massachusetts.

When comparing car insurance rates across the country, you’ll quickly come to an alarming realization: residents in the cheapest states are paying over $700 less each year for their car insurance coverage than residents in the most expensive states.

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.

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.

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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