Car Insurance Rates by State

What are the different car insurance rates by state?

Did you know that where you live can significantly impact car insurance rates when it comes to car insurance? The difference in car insurance rates by state – for the same coverage – can be downright shocking (and seem quite unfair). Part of it can be explained by state laws, but part comes down to risk. You’re more likely to be hit by another driver in New York City than you would be in Wyoming due to volume of drivers on the road and time in traffic. So the average rates for drivers in these two states would be wildly different. 

It may not surprise you to learn that some addresses in the U.S. have more than a $8,141 annual price difference between them.

You read that right. Many drivers with identical backgrounds, driving records, credit scores, and personal profiles are required to pay hundreds to thousands more a month just for having different U.S. addresses. When you dig deeper, the differences are even more alarming. Here’s an actual dollar amount example with real-life data:

On average, drivers in Richmond, Virginia are paying $2,219 a year for State Farm, while drivers in Detroit, Michigan are paying an average auto insurance rate of $27,412 a year for coverage from the same company That’s over $2,000 more a month!

Essentially, the extra cost for car insurance in Michigan is enough to cover the monthly cost of buying a brand new BMW (which may not be worth no matter how helpful BMW has been in some cities solving parking problems).

There are many factors that go into determining car insurance rates. Some of those price factors, such as driving record, credit score, etc. can be improved. In turn, drivers can lower their auto insurance policy rates. But one of the biggest factors, regardless of your insurance company, in determining rates is the geographical location of the driver and the chosen provider. Aside from moving, drivers can’t do anything about it.

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What about comparing car insurance rates by state in the U.S.?

Curious which states are home to the least and most expensive auto insurance coverage in the country? Check out the chart below for just a taste of what you’ll find in every one of our state and city car insurance guides:

In February of 2019, State Farm released a statement that they would be lowering their rates by 3.5 percent in Michigan. A price deduction will certainly help, but it won’t be even close to enough to break Michigan free from being the most expensive state for car insurance. Average cost in the foreseeable future will remain high due to factors like crime rates, accidents, road issues, and more.

Can you compare over 200 car insurance companies at once?

According to M Live, drivers across Michigan are paying nearly double the cost for car insurance than drivers in the rest of the country, and they are sick of it. 

Some locals have even been in the media to explain how it’s becoming impossible to afford car insurance on top of all the other bills drivers are facing – especially college students.

Drivers in the ten states with the cheapest car insurance are paying an average of $200 a month, which is much more reasonable. It’s not because they’re objectively better drivers. Identical driving profiles pay substantially more to drive in Michigan.

Please Note: The rates you see in the above and below charts are actual average car insurance costs across the U.S.

These are insurance policies real people are buying and include high-risk drivers like teens that require more expensive car insurance coverage. Accident and claim-free drivers will often be able to pay less than the state or city average – one of the perks of having a clean driving record.

In our comprehensive guides, you will find the average auto insurance rates by zip code based on age, gender, driving record, city, and more.

You should keep in mind that the amount of coverage you have will absolutely affect your rates as well. If you choose to only keep property damage liability and bodily injury liability coverage, you will have a considerable lower bill, but that won’t protect your own vehicle and expenses. If you hit an uninsured driver or cause a wreck where you own vehicle is damaged, you’ll need collision coverage, comprehensive coverage, and uninsured motorist coverage/ underinsured motorist coverage. Make sure you get the right type of auto insurance coverage for your needs.

Why are there some more expensive car insurance rates by state?

There are hundreds of reasons why rates vary from state to state, but here are some of the biggest location statuses that raise rates statewide.

Any number of things from the list above could be going on where you live and cause auto insurance providers to raise their rates.

Unfortunately, each one of those factors make every driver in that area – yes, even the safest ones – much more expensive to insure.

For more location-specific crime rates, hours lost to traffic, population totals, and more, click here to jump to our in-depth state guides.

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How can I compare car insurance rates by zip code?

The big spikes in prices don’t end at the state level. When running a car insurance rate comparison by zip code within each state, you’ll discover some eye-opening results.

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For example, drivers in Brookside, New Jersey are paying $3,160 for their annual car insurance from Progressive, while drivers in Newark, New Jersey are paying over double that: $6,630 a year.

Car insurance rates by zip code can vary. Yes, living in the same state but a different zip code – even only about 20 miles away – can mean paying $290 more a month for car insurance.

Why is there such a big difference when you compare insurance rates by zip code?

Why do nearby cities have such different car insurance? The same reasons car insurance rates vary drastically at the state level – the number of drivers, higher crime rates, traffic congestion, more car crashes, etc. – also apply at the city level and cause the average car insurance rates by zip code to vary from another even two zip codes that are in the same city. While the state minimums are the same, drivers in certain areas may also be likely to carry higher coverage amounts. Some may also be more likely to have a clean driving record due to different traffic patterns and weather.

Even in a small state like Rhode Island, the cost difference for car insurance between two cities is much higher than what would be expected. It has been found that drivers in Providence can be paying $1,064 more a year for their policies than drivers living only about 30 miles away in Newport.

Can traffic & insurance laws also vary by state?

In the auto policy world, the thing that consumers (typically) care the most about have different words – premiums, rates, quotes – that all center around one question:

“What is it going to cost me?”

Don’t worry, our guides will give you tons of rates (and even compare auto insurance rates by zip code) so you know exactly what to expect from the top providers in your area.

However, the laws that govern the roads and insurers where you live are just as important as the coverage price point in some cases more important.

In addition to detailed rates broken down by area and driver profile, our state and city guides will give you all the must-know driver facts including the following:

We even uncover juicy reports on some of the most popular insurers: their financial scores, customer complaints, loss ratio – and that’s just the tip of the iceberg, folks.

For our state guides, click on your state on the car insurance rate map above and click here for city guides.

Are There Complete Guides for Auto Insurance Rates?

As important as it is for you to be in the know when it comes to average car insurance prices, traffic stats, and driving laws, you should also stay current in top news that affect the roads where you and your loved ones drive each day.

Below you will find links to news, rankings, and comparison articles that relate to many U.S. cities. These are both interesting and informative. Although our feature articles about American cities are entertaining, their main purpose is for keeping our readers educated and safe on the roads.

In addition to city news articles, we will be delivering complete guides for the most populated areas across the country.

Our team of experts are currently gathering highly sought after exact-dollar average car coverage rates by age, gender, driving record, and provider plus hard-to-find area-specific laws and facts in top American cities.

Laws and rates by city are often not clear or openly provided to the public, but they are important facts every city resident deserves to know. We are working diligently to bring our readers hundreds of facts and required costs for owning a car and driving in your city.

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