There are many factors that can impact the cost of auto insurance, and your location is one of the biggest. Car insurance premiums are different in every state, and some places have more expensive rates than others.Â
Location-specific factors like severe weather, vehicle theft rates, and the number of uninsured drivers can all contribute to car insurance rates in your location. To find the most affordable policy in your state, it’s a good idea to compare quotes from several insurers.Â
In this guide, we’ll look at the most expensive states for car insurance and explain why certain states have higher average rates than others.Â
Our rates are based on public rate filings obtained by analytics company First Interpreter. While we may partner with some of the carriers you see on our site, we maintain editorial independence and it does not affect the rates you see. Read more about our rating methodology or see our rigorous editorial policy.Â
The top three states with the most expensive car insurance rates are New York, Louisiana, and Florida. These states have much higher rates than the U.S. national average premium, which is $1,824 per year for a full coverage policy. Â
If you live in a state that has an expensive average car insurance premium, it’s important to compare quotes from multiple companies. Getting rate quotes from more than one insurer will help you find the cheapest car insurance for your location and personal situation.Â
You can compare insurance rates near you using our comparison tool. Â
Based on our recent rate data, New York is the most expensive state for car insurance in the U.S. The average full coverage car insurance premium in New York is 50% higher than the U.S. national average rate of $1,824 per year. Â
One of the reasons why New York drivers pay the highest rates for car insurance is because of New York’s insurance laws. Drivers in New York are required to carry liability insurance with coverage limits of at least 25/50/10, as well as uninsured motorist bodily injury liability insurance and personal injury protection (PIP).Â
While minimum coverage car insurance in New York offers decent protection in the event of an accident, the requirements are much higher than in other states. The more car insurance coverage you are required to carry, the higher the premium will be. Â
If you’re in the market for car insurance, it can be helpful to understand what you might pay based on your location. Below, you can see the top 10 most expensive car insurance states and their average annual premiums:Â
The main reason why car insurance is so expensive in New York is because of the car insurance laws. Drivers must carry higher amounts of coverage than in many other states.Â
Additionally, New York is one of the most densely populated states, and it has some of the most densely populated counties. With so many drivers on the road at any given moment, the risk of an accident is increased, which can contribute to higher insurance rates. Â
Keep in mind that your car insurance premium will also depend on your city and ZIP code. So, for example, drivers living in New York City could pay higher rates than drivers who live in more rural parts of the state.Â
Louisiana is the second most expensive state for car insurance, with Louisiana drivers paying 32% more for car insurance than the average American driver.Â
One of the biggest reasons why car insurance premiums in Louisiana are among the most expensive is because of the severe weather risks in the state. Louisiana experiences hurricanes and other strong storms that can cause significant physical damage to vehicles. Â
The average car insurance premium in Florida is about 24% higher than the U.S. national average. Car insurance rates in Florida are expensive for a few reasons. Like Louisiana, Florida gets hit with strong storms that can cause damage to cars. Additionally, Florida has one of the highest vehicle theft rates in the country, which means insurers may charge more expensive rates for coverage.Â
There are a variety of location-specific factors that can contribute to the average cost of car insurance in certain states. Some of the biggest factors include:Â
The most expensive state for car insurance in the U.S. is New York. The average car insurance premium in New York is about 50% higher than the national average rate. Other states that have expensive car insurance include Louisiana, Florida, New Jersey, and Delaware.Â
Vermont is the least expensive state for car insurance in the country. The average Vermont driver pays more than 50% less than the national average rate. Other states with below-average car insurance rates include Idaho, Maine, and Ohio. Â
It’s difficult to say which states have the highest car ownership costs. However, owning a car is generally more expensive in states with high car insurance premiums. Some of the other factors that can impact the cost of owning a car include the cost of gas, the cost of car repairs, and the cost of registration in your state.Â
There are a variety of ways to save money on car insurance. Many auto insurance companies offer discounts which can reduce your premium. You can also get a lower rate by raising your deductibles, lowering your coverage limits, bundling your policies, taking a defensive driving course, maintaining a clean driving record, and avoiding insurance claims. Â
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