Car Insurance Rates by State: 2024 Comparison
The average cost of car insurance ranges from $29 per month in South Dakota to $154 per month in Michigan for minimum coverage.
That's a difference of about $125 per month, or $1,499 per year, depending on the state where you live. Car insurance rates vary by location because of state regulations, weather and road risks of different places.
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Average cost of auto insurance by state
Nationally, car insurance rates for minimum coverage average $64 per month.
Michigan has the highest rates in the country for auto insurance, with drivers paying an average of $154 a month for minimum coverage. South Dakota has the cheapest auto insurance — drivers pay just $29 a month on average for minimum coverage.
Average monthly car insurance rates by state
State | Full coverage | Liability only |
|---|---|---|
| Michigan | $386 | $154 |
| Nevada | $247 | $114 |
| Delaware | $207 | $107 |
| Florida | $249 | $101 |
| Rhode Island | $220 | $101 |
In addition to where you live, car insurance rates are also affected by factors such as your age and driving history. For example, if you have a speeding ticket or were in a car accident, you'll usually pay more than someone who has a clean driving record.
Which states have the cheapest car insurance?
South Dakota, Wyoming, Idaho, Vermont and Iowa have the cheapest car insurance rates in the country.
South Dakota: South Dakota's rural landscape and low number of uninsured drivers result in the cheapest minimum car insurance rates in the country. South Dakota car insurance quotes average $29 per month for minimum coverage. That's 55% lower than the national average. The cheapest quotes in South Dakota are from Auto-Owners, American Family and State Farm.
Wyoming: Wyoming drivers pay 52% less than the national average for car insurance, making it one of the cheapest states for coverage. Quotes for minimum coverage average $31 per month. State Farm and Geico have the cheapest policies. Low population, limited traffic and a small number of uninsured motorists help keep rates affordable in Wyoming.
Idaho: A minimum coverage policy in Idaho costs just $34 each month. That's 47% cheaper than the national average. The cheapest quotes in Idaho are from State Farm, Auto-Owners and Geico.
Vermont: The average cost of car insurance in Vermont is only $35 per month, making it 45% cheaper than average. State Farm, Progressive and Allstate offer the cheapest minimum coverage rates to Vermont drivers.
Iowa: With an average monthly rate of just $37 for minimum coverage, Iowa has some of the cheapest car insurance coverage in the U.S. Quotes are 42% cheaper than the national average. State Farm, Auto-Owners and Farm Bureau sell the cheapest minimum coverage auto insurance in the state.
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Car insurance rates by city
Car insurance rates also vary within states. Typically, cities with more people have higher insurance rates. Busier roads mean you're more likely to get into an accident, which means higher prices for car insurance.
For example, in Texas, full coverage car insurance costs about $32 more per month in a massive city like Houston than in a smaller and less traffic-heavy city like Corpus Christi.
Auto insurance cost by city
City | Population | Monthly rate |
|---|---|---|
| Houston | 2,345,606 | $178 |
| San Antonio | 1,456,069 | $162 |
| Dallas | 1,325,691 | $179 |
| Austin | 996,147 | $152 |
| Fort Worth | 954,457 | $153 |
Rates are for full coverage. Population data based on 2020 census.
Compare car insurance rates for cities in your state
When estimating car insurance rates, don't rely only on state averages. Find out how much car insurance costs in the city where you live.
Car insurance rates by ZIP code
Car insurance rates also vary between neighborhoods. The ZIP code where you live within a city can affect rates considerably.
For example, in Houston, minimum coverage car insurance costs an average of $79 per month in the ZIP code 77072, on the western side of the city. But it costs an average of $65 per month in ZIP code 77062, a Houston neighborhood near the NASA Space Center. That's a difference of $171 per year.
Don't be worried if your auto insurance rates change when you move across town. Compare quotes for the cheapest car insurance companies to find the best deal in your new ZIP code.
Which states have the most expensive car insurance rates?
Michigan, Nevada, Delaware, Florida and Rhode Island have the highest car insurance rates.
Michigan: Michigan has by far the most expensive car insurance rates in the country. Drivers in Michigan pay an average of $154 a month for minimum coverage. That's more than double the national average.
After recent changes to Michigan car insurance requirements, drivers now need $250,000 in personal injury protection (PIP) insurance, a considerable drop from previous requirements, and those with Medicare can opt out altogether. This has helped to lower costs, even though rates are still expensive. Auto-Owners, Progressive and AAA have the best rates for minimum coverage car insurance in Michigan.
Nevada: With residents paying an average of $114 per month for minimum coverage, Nevada has the second-highest car insurance rates in the country. Traffic congestion is high around cities such as Las Vegas and Reno, where much of the state's population lives. That causes insurance companies to charge rates 78% higher than the national average for all drivers in the state. Nevada drivers can get the most affordable rates from State Farm, Geico and Travelers.
Delaware: As a no-fault state, Delaware has car insurance laws that require drivers to carry PIP insurance. Delaware drivers pay about $107 per month for minimum coverage, which is 67% above the national average. Travelers and State Farm have the cheapest liability-only coverage for most Delaware drivers.
Florida: Florida is one of the most expensive states for car insurance, averaging $101 per month for a minimum coverage policy. High rates are because of both the large percentage of uninsured drivers and the risk of weather damage. Geico has the most affordable quotes for drivers looking to save on minimum coverage in Florida.
Rhode Island: Rhode Island ties with Florida as the fourth-most expensive state for auto insurance, with rates averaging $101 per month for minimum coverage. That's 57% higher than the national average. Travelers, Amica and Progressive have the cheapest minimum coverage rates for Rhode Island drivers.
How do state coverage requirements affect car insurance costs?
Higher coverage requirements usually lead to higher car insurance rates. Each state has different car insurance laws. The car insurance requirements usually require bodily injury and property damage liability insurance, which pay for damage you cause in an accident. Some states also require uninsured motorist coverage. PIP coverage is required primarily in no-fault states.
- Bodily injury liability (BI)
- Property damage liability (PD)
- Uninsured or underinsured bodily injury (UIM)
- Uninsured or underinsured property damage (UIM)
- Personal injury protection (PIP)
Most states require drivers to have auto insurance. All states except Florida require drivers to have bodily injury liability, and all 50 states and the District of Columbia require property damage liability. About half of all states require uninsured or underinsured coverage, and 16 states require PIP.
Is full coverage required in my state?
Full coverage car insurance is not required by any state. However, it's usually required if you have a car loan or lease.
Full coverage gives you more protection than a minimum coverage policy. It includes collision and comprehensive coverages to pay for nearly any damage to your own car if you cause an accident. Full coverage also has higher liability limits beyond what your state requires.
Full coverage car insurance costs about $100 more per month than a minimum coverage policy. The smallest price difference is in Maine, where full coverage costs only $50 more per month than minimum coverage.
The rule of thumb is that you should drop full coverage if your car's value is less than $5,000, or if it's more than 10 years old.
Of the major national companies, State Farm is the cheapest company for full coverage. But you may find a better deal with a small local or regional company, so get car insurance quotes from multiple companies before purchasing a policy.
No-fault states vs. fault states
Car insurance can be expensive in states where no-fault car insurance is required. This means drivers need to have PIP insurance to cover their own medical bills after an accident, and a driver's right to sue after an accident is limited.
Of the 12 no-fault states, four are in the top seven for the highest auto insurance rates.
The 12 no-fault states
- Florida
- Hawaii
- Kansas
- Kentucky
- Massachusetts
- Michigan
- Minnesota
- New Jersey
- New York
- North Dakota
- Pennsylvania
- Utah
In fault states, the person who causes the car accident must use their liability insurance to pay for the other driver's injuries.
A few states, including New Jersey and Pennsylvania, let drivers pay more to opt out of the no-fault system. This lets them sue for pain and suffering.
Some states, such as Delaware, Maine and Oregon, require PIP even though they are not no-fault states.
What other factors besides location affect auto insurance rates?
Your age, driving record and credit score will likely have a big impact on the rates you pay for car insurance. That's in addition to the place you live, as your ZIP code matters when it comes to factors such as crime rates, especially for theft.
- Driving record. If you've gotten speeding tickets or been in accidents in the past, companies assume you are a high-risk driver and typically raise your rates.
- Age. Young drivers pay much more for car insurance. Rates drop quickly between ages 16 and 25. After leveling off in middle age, rates slowly start to rise again after age 60.
- Credit score. Usually, a good or excellent credit score gets you a lower rate on car insurance. A poor or bad credit score means you'll probably pay more. However, several states, including Michigan, Hawaii and California, have banned the use of credit scores to set rates.
- Car. The more expensive your car is to repair, the more you'll usually pay for insurance. Expect to pay more if you have a luxury car, sports car or electric car.
- Gender. Men typically spend more time on the road and get into more accidents than women, especially when they're young. With the exception of a few states, insurance companies generally charge men higher rates than women to reflect this increased risk.
- Lapse in coverage. Any gap in insurance coverage means your insurance rates will likely be higher. A gap of more than a month could increase your rates by 8%.
Every company has its own unique formula for setting rates, with some companies considering certain factors more than others. That's why it's so important to compare quotes so you can maximize your chance of getting the best rate.
How moving states can impact your car insurance rates
Moving across state lines will likely impact your auto insurance rates. As a general rule, if the state you're moving to has higher requirements for minimum coverage, you'll pay higher rates. If it has lower requirements, you could pay less for car insurance.
Comparing the requirements can help you start estimating your car insurance to see how your bills might change after a move.
For example, drivers who move from Pennsylvania to Texas will likely pay more for car insurance after the move.
Texas drivers pay 16% more, on average, for minimum coverage than Pennsylvania drivers. This is partly because Texas has higher minimum coverage requirements than Pennsylvania.
The driving conditions of your new state may also affect your rates. For example, minimum coverage car insurance in Pennsylvania costs an average of 46% less than coverage in New Jersey. Both states have identical minimum coverage requirements and are no-fault states. But New Jersey has more people and more traffic.
You may also need to factor in the cost to change your registration and license with your new state DMV.
Methodology
We collected quotes from 37 top insurance companies across all available ZIP codes in all 50 states and Washington, D.C. Quotes are for a 30-year-old man with a 2015 Honda Civic EX and good credit.
Full coverage policies include coverage limits above minimum requirements.
- Bodily injury liability: $50,000 per person and $100,000 per accident
- Property damage liability: $25,000 per accident
- Uninsured or underinsured motorist BI: $50,000 per person and $100,000 per accident
- Comprehensive and collision: $500 deductible
- Personal injury protection: Minimum, when required by state
ValuePenguin's analysis used insurance rate data from Quadrant Information Services. These rates were publicly sourced from insurer filings and should be used for comparative purposes
Editorial Note: The content of this article is based on the author's opinions and recommendations alone. It has not been previewed, commissioned or otherwise endorsed by any of our network partners.
