Best Car Insurance in Your State (2023)

If you’re on the hunt for car insurance in your state, you may have realized that where you live significantly affects how much you’ll pay for car insurance coverage. Your location is one of the factors car insurance companies consider when determining how much you’ll pay in monthly or annual rates.

Your state may have relatively low minimum coverage requirements, or you may have to purchase higher levels of coverage because of where you live. Therefore, the more coverage you need in your state, the higher your car insurance rates will be. In addition, car insurance rates by state often vary because of each state’s liability-only coverage requirements.

Knowing the average cost of car insurance in each state is helpful, but remember that your state’s average may differ from the quotes you receive when you search for coverage. In addition, your ZIP code can impact how much you pay for coverage in your state. For example, some areas have denser traffic and more accidents, and these areas typically have higher monthly or annual car insurance rates.

Ultimately, you’ll need to find and compare car insurance quotes from several companies in your area to determine the best car insurance for your state. As you compare quotes from different companies, you’ll learn which offers the coverage you want at a rate that works with your budget. 

How much does car insurance cost by state?

If you’re curious about which states require car insurance, you may be disappointed to learn most states in the U.S. require drivers to carry car insurance coverage. New Hampshire and Virginia are the only states that allow drivers to drive without car insurance. 

The amount you’ll pay for car insurance in your state depends on several factors. For example, age, gender, marital status, driving history, car make and model, credit score, and coverage type can impact how much you will pay in monthly or annual car insurance rates.

The table below shows the average cost of car insurance in each state in the U.S. Keep in mind that New Hampshire and Virginia have different laws for car insurance which allow residents to prove financial responsibility rather than having to purchase car insurance.

The table also shows rates for minimum coverage and full coverage policies. While minimum coverage car insurance is cheaper, you should consider purchasing full coverage car insurance if you can, as a full coverage policy offers drivers more protection and peace of mind.

As you can see from the table, each state has average costs for car insurance, so if you live in a state that requires coverage in addition to liability, you’ll probably pay more for your car insurance policy because of it. 

What types of car insurance do states require?

Each state requires that drivers prove financial responsibility in case they’re ever in an accident. In states aside from New Hampshire and Virginia, financial responsibility is the same as car insurance. At the very least, your state requires liability insurance:

• Bodily injury liability: Bodily injury liability helps if you cause an accident and someone is hurt. 
• Property damage liability: Property damage liability helps if you cause an accident and damage someone’s car or personal property.

In addition to liability insurance, some states require one or more of the following coverages:

• Personal injury protection (PIP): With PIP, your insurance company will pay for medical bills, lost wages, and funeral costs associated with a covered accident.
• Medical Payments (MedPay): MedPay insurance covers medical bills like hospital stays and visits to the doctor.
• Uninsured/underinsured motorist coverage: With uninsured or underinsured motorist coverage, your car insurance company pays for repairs to your vehicle if someone else damaged it in an accident but did not carry the proper car insurance in your state. 

Take a look at the table below to see your state’s minimum coverage requirements.

You can check with your state’s department of motor vehicles to learn which types car insurance coverage are required in your state. You can also speak with a representative from any car insurance company you’re considering to ensure you would have the right coverage if you were ever in an accident. 

Does my state require full coverage?

States do not require full coverage car insurance. Still, you may want to purchase a full coverage policy to ensure you have adequate protection. 

A full coverage policy includes collision and comprehensive car insurance. Collision coverage helps if you cause an accident and damage your vehicle. Comprehensive coverage kicks in if inclement weather, wild animals, theft, or vandalism damage your car. You would otherwise have to pay for repairs to your vehicle out of pocket.

If you have a loan or lease on your vehicle, you may need a full coverage policy to meet the demands of your contract. Even if you own your car outright and do not make payments, you should consider full coverage if your car is relatively new or expensive. On the other hand, some people who own an older vehicle with a low actual cash value (ACV) do not need a full coverage policy. 

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Why do car insurance rates vary by state? 

As stated earlier, where you live significantly impacts how much you’ll pay for car insurance coverage. States create individual requirements for coverage, and if your state requires higher levels of coverage, you’ll pay more for your car insurance policy. 

Additionally, even if you live in a state with a low average for car insurance coverage, you could pay more for insurance if you live in an area with more traffic, more congestion, or higher levels of crime. Finally, your ZIP code impacts how much you’ll pay for coverage within your state.

The cost of living in your state is another factor that impacts your state’s average cost for coverage. For example, if you live in a state like New York or California with a higher cost of living, you’ll likely pay more for coverage than you would in a state with a lower cost of living. 

What factors impact car insurance rates by state?

You may wonder which factors, other than your location, impact how much you’ll pay for car insurance in your state. Some of the most common ways insurance companies determine your premiums include:

• Age: Younger drivers pay more for coverage due to their lack of experience. Insurance companies often assume that teens and young adults pose more of a risk behind the wheel. 
• Gender: On average, females pay a bit less for car insurance than males. Men file more claims, and men are statistically more likely to cause an accident due to reckless driving. 
• Marital status: Married people pay less for car insurance than single individuals. More single people make claims than people who are married. 
• Driving history: If you have a clean driving history, you’re more likely to get affordable car insurance than if you have an accident or speeding ticket on your record. 
• Car make and model: On average, older cars cost less to insure than newer cars, and sports cars or luxury vehicles often come with higher monthly or annual car insurance rates.
• Credit score: Low credit scores mean higher car insurance rates with many companies. Statistically, people with poor credit are more likely to file insurance claims than those with higher credit scores.
• Coverage type: If you purchase a minimum coverage policy, you’ll pay less for car insurance than a full coverage policy. Additional coverage on your policy costs more money. 

Some people can find affordable rates in their state even if the factors don’t necessarily work in their favor. Most of the time, these people search for car insurance quotes from companies in their area. Comparing free car insurance quotes can help you save on your monthly or annual car insurance rates.

What is a tort state? 

Most states in the U.S. operate under a tort system. In a tort state, you are legally and financially responsible for any medical expenses or property damage associated with an accident you caused.

If you live in a tort state and are at fault in a car accident, your car insurance policy will pay for the damages and injuries associated with a car accident. However, you may have to pay out of pocket if you live in a tort state and cause a car accident but don’t have the proper car insurance coverage to pay for damage or injuries.

Car insurance coverage in a tort state varies depending on where you live. Still, you can choose higher levels of coverage for your liability insurance if you believe your state’s requirements are insufficient to cover potential costs if you’re in a serious accident. 

What is a no-fault state?

If you live in a no-fault state, your car insurance company will pay for certain damages regardless of who is at fault in an accident. No-fault states mandate that car insurance cover certain things — typically bodily injuries — without regard for who caused the accident. 

No-fault states in the U.S. include:

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

If you live in a no-fault state, you must carry liability insurance. You can check with your state’s department of motor vehicles for more information.

What is a no-pay, no-play state?

If you live in a no-pay, no-play state, you could be in big trouble if you’re involved in a car accident without proper car insurance. 

Most U.S. states have strict penalties for drivers who do not carry the proper car insurance coverage. Still, if you live in a no-pay, no-play state, you will not be reimbursed for damages in an accident, even if you were not the person at fault.

For example, if someone runs into your parked car and damages it, you will not be reimbursed by that person’s car insurance provider if you do not carry your state’s minimum levels of car insurance.

No-pay, no-play states include:

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

You must carry proper car insurance coverage that meets your state’s requirements, even if you don’t live in a no-pay, no-play state. Without the right types and amounts of car insurance, you could be in a lot of trouble if you’re ever involved in an accident. 

Which states have the most expensive car insurance rates in the U.S.?

The following states have the highest car insurance rates on average in the U.S.:

• Florida: $2,560 annually or $213 per month
• Louisiana: $2,546 annually or $212 per month
• Delaware: $2,137 annually or $178 per month
• Michigan: $2,133 annually or $178 per month
• California: $2,115 annually or $176 per month
• Kentucky: $2,105 annually or $175 per month
• Missouri: $2,104 annually or $175 per month
• Nevada: $2,023 annually or $168 per month
• New York: $2,020 annually or $168 per month
• Nebraska: $2,018 annually or $168 per month

On average, other states and areas with higher car insurance rates include Colorado, New Jersey, South Carolina, Texas, and Washington, D.C.

If you live in one of the states listed above, you may be able to find cheaper car insurance quotes by comparing quotes from several companies in your area. Comparing quotes helps you determine which companies near you offer the coverage you want at an affordable price. 

Which states have the highest possible car insurance rates?

While the states listed above have the highest car insurance rates on average, there are some states in the U.S. where drivers could pay the highest possible car insurance rates in the nation. While policyholders will still pay lower car insurance rates on average, the states with the most expensive car insurance rates in the U.S. include:

• Michigan: $16,397 annually or $1,366 per month
• New York: $15,851 annually or $1,321 per month
• Missouri: $10,332 annually or $861 per month
• Illinois: $10,121 annually or $843 per month
• Nebraska: $8,922 annually or $744 per month

Car insurance rates in the states above could be higher if you live in a large city, like New York City, or an area with significantly high levels of traffic and crime. Still, you may find more affordable rates by shopping online and comparing quotes.

Which states have the least expensive car insurance rates in the U.S.?

The states with the cheapest car insurance rates in the U.S. on average include:

• Ohio: $1,023 annually or $85 per month
• Maine: $1,116 annually or $93 per month
• Idaho: $1,121 annually or $93 per month
• Vermont: $1,158 annually or $97 per month
• Oregon: $1,244 annually or $104 per month
• Indiana: $1,256 annually or $105 per month
• Hawaii: $1,306 annually or $109 per month
• New Hampshire: $1,307 annually or $109 per month
• Virginia: $1,321 annually or $110 per month
• Iowa: $1,321 annually or $110 per month

Other states with cheap car insurance coverage include Alaska, North Carolina, Washington, Tennessee, and North Dakota.

If you have car insurance rates higher than your state’s average for coverage, speak with a representative from your insurance company to learn how to lower your monthly or annual rates. You may find that comparing quotes allows you to get cheaper rates with a different insurance company.

Which states have the lowest possible car insurance rates?

While the states above have the lowest average car insurance rates, some states in the U.S. have the lowest possible rates. These states include:

• New York: $468 annually or $39 per month
• Massachusetts: $495 annually or $41 per month
• Wisconsin: $505 annually or $42 per month
• Ohio: $516 annually or $43 per month
• Indiana: $521 annually or $43 per month

Certain areas in these states may offer the lowest possible rates because of their rural nature. In addition, living in a small, rural area can help you save money on monthly or annual rates since you’ll be less likely to get in an accident with another driver.

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Are car insurance rates increasing throughout the U.S.?

Car insurance rates tend to increase in virtually every state. Because of this, your car insurance rates may increase even if you have a clean driving record and good credit.

Most companies cite an increase in claims when explaining why car insurance rates increase. As individuals and companies make more claims — whether for car, home, or business insurance — companies often charge higher rates to offset the additional costs.

Natural Disasters and Insurance Costs

One major reason for an increase in insurance claims is natural disasters. Financial and economic losses from natural disasters have cost insurance companies a lot. In turn, the companies charge higher coverage rates for all insurance products. In addition, economic losses are expected to increase due to climate change, so insurance costs may continue to increase.

If you live in an area prone to natural disasters, like floods, hurricanes, or fires, your car insurance rates will likely increase in the months and years to come. Still, you can shop online and compare quotes to get the coverage you want from one of the best insurance companies in your state. 

Will my car insurance rates change if I move to a new state?

Moving to a new state can impact your car insurance rates. For example, if you move to a state with higher required coverage, you’ll pay more for car insurance. Additionally, if the state you live in has higher crime rates or a larger population, you’ll pay more for coverage.

In some cases, you could pay less in your new state than you did in your old residence. In a new state, if the minimum requirements are fairly low, you may find that your monthly or annual premiums are lower than they were before. Ultimately, it depends on where you move and whether your car insurance rates will increase or decrease.

If you believe your car insurance rates are too high where you live, you may be able to lower your rates in a few different ways.

Ask About Discounts

Car insurance discounts help policyholders save as much as 25% on their car insurance coverage. If you’re in the market for lower rates, see if you’re eligible for discounts to help you save. Some of the most common car insurance discounts include:

• Accident-free discount
• Defensive driving discount
• Safe driver discount
• Good student discount
• Military discount
• Senior discount
• Bundling discount
• Safety device discount
• New car discount
• Usage-based car insurance discount

As you search for car insurance, see if any companies you’re considering offer discounts that could help you save on your policy.

Increase Your Deductible

Another way to save money on car insurance in your state is to raising your car insurance deductible. You can choose a higher deductible to pay less in monthly or annual rates. However, remember that you’ll have to pay more before your car insurance company helps with a claim if you increase your deductible.

Choose a Lower Level of Coverage

Lastly, you can choose a lower level of car insurance coverage to lower your monthly or annual car insurance rates. If you choose lower levels of coverage, you’ll pay less because you have less protection.

Unfortunately, choosing a lower level of coverage can be harmful if you end up in a car accident and need help paying for repairs to your vehicle. Therefore, lowering your deductible and choosing a lower level of coverage are not recommended unless you have to lower your car insurance rates.

Car Insurance by State: The Bottom Line

Your car insurance rates will vary depending on where you live. If you live in a state with higher minimum coverage requirements or more traffic, you will pay more for car insurance. Still, if you live in a state with lower car insurance coverage requirements, you may be pleasantly surprised by how low your monthly or annual rates are.

Even if your car insurance rates are lower than expected, it’s important to shop online and compare quotes from several car insurance companies in your area. Comparing quotes is the only way to ensure you do not pay too much for car insurance coverage.

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