The 10 most expensive states for car insurance

Q: Where is car insurance most expensive in the US?

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.

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.

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.

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.

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States with the most expensive car insurance

The top three states with the most expensive car insurance rates are Louisiana, Nevada and South Carolina. These states have much higher rates than the U.S. national average premium, which is $2,505 per year for a full coverage policy.

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.

You can compare insurance rates near you using our comparison tool.

Which state has the highest insurance rates?

Based on our recent rate data, Louisiana is the most expensive state for car insurance in the U.S. The average full coverage car insurance premium in Louisiana is 81% higher than the U.S. national average rate of $2,505 per year.

One of the reasons why Louisiana drivers pay the highest rates for car insurance is because of Louisiana insurance laws. Drivers in Louisiana are required to carry liability insurance with coverage limits of at least 15/20/35. The more car insurance coverage you are required to carry, the higher the premium will be.

Other reasons rates in Louisiana are higher than in other states may be due to frequency of weather events and the higher than normal accident rates.

The 10 most expensive states for car insurance

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:

	Top 10 Most Expensive States for Car Insurance
1.	Louisiana	$4,538
2.	Nevada	$4,137
3.	South Carolina	$3,505
4.	New Jersey	$3,480
5.	Florida	$3,461
6.	Georgia	$3,457
7.	Texas	$3,344
8.	California	$3,235
9.	New York	$3,193
10.	Michigan	$3,115

Why is car insurance so expensive in Louisiana?

Louisiana is the most expensive state for car insurance, with Louisiana drivers paying 81% more for car insurance than the average American driver according to our data.

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.

Additionally, Louisiana is among the top 10 states for fatal car accidents.

Why is car insurance so expensive in Nevada?

Car insurance is so expensive due to a combination of factors including a high frequency of motor accidents, high cost of repairs, and a higher density of uninsured motorists. All of these factors unite to increase the cost of car insurance in Nevada. That’s why the state is the second-most expensive for auto insurance.

Why is car insurance so expensive in South Carolina?

The average car insurance premium in South Carolina is about 40% higher than the U.S. national average. Car insurance rates in South Carolina are expensive for a few reasons. Like Louisiana, South Carolina gets hit with strong storms that can cause damage to cars. Additionally, South Carolina has one of the highest fatal accident rates in the country, which means insurers may charge more expensive rates for coverage.

Why some states have more expensive insurance than others

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:

Vehicle theft rate
Weather risks
Minimum amount of car insurance required
Population density
Accident rate
Number of claims filed in the area

FAQs

Where is car insurance most expensive in the US?

The most expensive state for car insurance in the U.S. is Louisiana. The average car insurance premium in Louisiana is more than 80% higher than the national average rate. Other states that have expensive car insurance include Florida, New Jersey, and South Carolina.

What is the least expensive state for car insurance?

Vermont is the least expensive state for car insurance in the country. The average Vermont driver pays more than 59% less than the national average rate. Other states with below-average car insurance rates include Maine, New Hampshire, and Arkansas.

In what 3 states is it most expensive to own a car?

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.

How do you save on car insurance?

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.

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