Insurance Ain’t Cheap
It seems like every day insurance prices are getting higher and higher. Well, that’s because they are. Luckily, some states still offer some of the cheapest premiums around, while others offer higher than average. Check out where your state lies, and if you need to plan for a move.
1. Maine
Maine is home to some of the most affordable car insurance rates in the nation. In fact, the state has the lowest average annual cost for car insurance in the U.S. at $949. Auto-Owners Insurance offers some of the lowest rates in Maine at an average of just $620 per year.
2. Idaho
Idaho is a relatively inexpensive place to get car insurance, with the average annual rate coming in at $992. There are plenty of Idaho car insurance companies that offer affordable premiums, with State Farm offering Idaho drivers an average of $637 a year.
3. Vermont
Car insurance in Vermont is inexpensive, with an average annual premium of $1,053. USAA offers the cheapest car insurance in Vermont for qualified military members, with average annual rates of $705. Auto-Owners Insurance offers the best rates for the majority of drivers, at an average annual premium of $784.
4. Ohio
Ohio has some of the lowest car insurance rates in the country. Drivers pay an average of $1,083 per year for their coverage. The most affordable Ohio car insurance comes from Grange, with average annual rates of $720. Ohio has other low-cost carriers that allow drivers to maintain adequate coverage without breaking the bank.
5. Wisconsin
Wisconsin has some of the cheapest car insurance in the nation. On average, drivers pay $1,145 per year for car insurance in Wisconsin. The cheapest car insurance in Wisconsin is from USAA, which costs $730 per year.
6. North Carolina
Car insurance in North Carolina is on the low end of the cost scale. The average rate for a policy in North Carolina is $1,165 a year. The most affordable rates in North Carolina are with Erie, which costs drivers just $770 a year on average.
7. Indiana
Car insurance rates in Indiana are quite affordable. The state's average annual premium is $1,190. The best rates for any driver are $677 per year from USAA, but the company only serves military members. Geico has the lowest rates for most drivers, with an average premium of $877 per year.
8. Iowa
Drivers in Iowa enjoy inexpensive car insurance, which costs an average of $1,215 per year. You can purchase some of the cheapest coverage from State Farm, with an average annual cost of $780. Iowa is evidently a good place to buy affordable auto insurance.
9. Hawaii
Drivers in Hawaii can expect to pay an average of $1,241 per year for car insurance. Hawaii is a fairly cheap place to buy auto insurance. Hawaii drivers will pay lower rates with companies such as Geico. The average Geico rate in Hawaii is $862 per year.
10. Tennessee
The state's average annual car insurance rate of $1,264 is near the bottom compared to the rest of the U.S. Most Tennessee drivers can find the lowest auto insurance rates with Auto-Owners Insurance, which averages $999 per year for the cheapest coverage. Military members in Tennessee can get even lower rates with USAA, which averages just $840 a year.
Now that we talked about some of the cheaper options, here are 10 that will make your eyes water with how expensive they are.
1. Florida
Florida drivers pay the highest auto insurance premiums in the country. The Sunshine State's average annual cost for full coverage is $3,945, and Floridians spend nearly 5.7% of their income on car insurance, more than double the national average. Frequent catastrophic losses due to severe weather events and expensive major metropolitan areas like Miami, Tampa, and Orlando drive up the state's auto insurance costs.
2. New York
New York ranks among the most expensive states in which to buy car insurance, with full-coverage car insurance policies running on average $3,840 annually. For drivers with a bad credit score, premiums can nearly double to just under $8,000 annually. In general, New Yorkers pay a very high proportion of their income for auto coverage, ranking fifth nationwide for cost.
3. Louisiana
Louisiana is the third most expensive state for car insurance in the U.S., with drivers paying an average annual cost of $3,618 for full coverage. Auto insurance premiums in the Bayou State represent the largest percentage of a driver's income at about 6.5%, an increase of nearly 2% from last year. Storms in Louisiana happen more frequently than in most states. As a result, the state sees one of the highest numbers of insurance claims, which leads to higher premiums.
4. Nevada
Car insurance in Nevada is the fourth most expensive in the United States. Nevadans pay on average $3,549 annually for full coverage, which is 4.9% of their yearly income on auto insurance, ranking among the top of the nation. Contributing to increasing premiums are the state's lax alcohol policies and the high volume of out-of-town visitors to Las Vegas.
5. Michigan
Michigan ranks among the most expensive states for car insurance. The average annual cost of full coverage runs $3,356. Drivers with at-fault accidents will see average rate increases of approximately $1,706, while adding a 16-year-old can trigger a nearly $4,690 rate hike. While insurers are prohibited from using credit-based insurance scores, they can use related financial information, which contributes to high premiums.
6. Colorado
Colorado is a high insurance state. The average annual full coverage car insurance rate for Colorado drivers was $2,902. Colorado drivers pay 3.25% of their income on car insurance, which is just under the national average. Urban population density is high in the cities of Colorado. High urban density rates increase accident risk, driving up insurance rates.
7. Missouri
Missouri is one of the most expensive states for car insurance. The average Missouri driver pays $2,801 per year for full coverage. Auto insurance in Missouri increased by 44%, from $1,943 in 2023. Missouri drivers pay over 4% of their income on coverage. Missouri has the sixth truest cost for car insurance.
8. Pennsylvania
Pennsylvania is a pricey car insurance state, with average annual full-coverage premiums of $2,790. Drivers in Pennsylvania pay more, in part due to no-fault laws and the state’s large population of drivers. Rates for Philadelphia drivers are up by $815 annually, from $3,938 in 2023 to $4,753 in 2024, landing Philadelphia in the top five metro areas for increased insurance rates.
9. California
California has the second-highest average car insurance premiums in the nation, with a full-coverage rate of $2,697 annually. In addition to weather-related factors, the state has a high cost due to credit score prohibition. However, the Golden State ranks 27th in true cost, so Californians spend a smaller share of their income on auto coverage than in other high-cost states.
10. Rhode Island
Rhode Island is among the most costly states for car insurance, with full coverage averaging $2,683 per year. The steep cost of repairs in the state, as well as its high urban driver population, makes insurance rates expensive. However, because residents there have to pay less of their income on coverage, the state ranks 31st in true cost.
