10 States with the Most Expensive Car Insurance
According to insurance-comparison marketplace Insurify, the national average cost of full coverage car insurance is $2,244 per year, while liability-only coverage averages $1,176 per year. But drivers in some states are paying thousands of dollars more than that national average to keep their car insured.
While there’s not much you can do if you live in one of the 10 states below — aside from moving to another state with cheaper car insurance — it helps to know how your state compares to the average.
If you know you’re in a more expensive state, you can be even more diligent about the rate-influencing factors that are in your control. For example, make your next car one of the cheaper models to insure or take a defensive driving class to earn a discount on premiums.
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The 10 states that pay the most for car insurance
Based on the latest data fromInsurify, the 10 states that paid the most for car insurance in August are largely concentrated along the east coast, from Connecticut stretching down to Florida.
| Row 0 – Cell 0 |
Full Coverage |
Liability Only |
|
Maryland |
$3,624 |
$2,304 |
|
Rhode Island |
$3,600 |
$2,124 |
|
Delaware |
$3,144 |
$1,992 |
|
Georgia |
$3,108 |
$1,872 |
|
Washington D.C. |
$3,096 |
$1,788 |
|
New Jersey |
$3,072 |
$2,184 |
|
Nevada |
$3,072 |
$1,944 |
|
South Carolina |
$3,072 |
$1,920 |
|
Florida |
$2,844 |
$1,692 |
|
Michigan |
$2,724 |
$1,548 |
|
New York |
$2,712 |
$1,776 |
|
Connecticut |
$2,676 |
$1,944 |
Whether you live in one of the most expensive states are not, the best way to keep your premiums under control is to shop around ahead of every renewal to see if you can find a better deal elsewhere.
Start that process using the Bankrate-powered car insurance shopping tool below:
What makes car insurance more expensive in some states?
(Image credit: Getty Images)
You might already know that things like your driving history or your car’s make and model influence your car insurance premium. But why would the state you’re driving in matter to an insurance company? There are many reasons, but here are a few of the most common state-level factors that drive your premium up:
- Population density: Many of the most expensive states are also among the more densely populated. When you’ve got a lot of drivers packed into a smaller area, accidents become more likely compared to drivers cruising on the wide, open roads of, say, the Midwest (which is underrepresented on the top 10 list). Insurers see more densely populated areas as more prone to auto theft as well.
- Weather and natural disasters: Just as home insurance rates go up in more disaster-prone areas, so too, do car insurance rates. This will primarily affect your comprehensive car insurance as that’s what you’d file a claim against if your car was damaged in a weather-related event. But it can also spike rates on the rest of your coverage as accidents become more likely in bad weather.
- Coverage requirements: Some states require higher levels of coverage than others. This can make even minimum coverage policies in one state pricier than full coverage in another state.
- Rates of uninsured or underinsured drivers: The share of drivers without adequate insurance can also affect insurance costs. Florida, for example, has one of the nation’s higher rates of uninsured motorists. When an at-fault driver has no insurance or doesn’t have enough liability coverage to pay for your injuries, uninsured or underinsured motorist coverage can help cover the difference. Higher rates of uninsured drivers can contribute to insurers’ claims costs and, in turn, put upward pressure on premiums. Some states require drivers to carry uninsured or underinsured motorist coverage, while others allow drivers to decline it.
- Legal costs: If you file a lawsuit against the at-fault driver or their insurance company after a serious accident, you may receive a higher payout than you would through the initial claims process. In states where costly lawsuits are more common, insurers may spend more on legal fees and claim payouts. Many insurers pass those costs on to consumers in the form of higher premiums.
- Cost of living: Housing and groceries aren’t the only expenses that tend to be higher in states with a high cost of living. Auto repair costs can also be more expensive, in part because of higher labor costs. When insurers have to pay more to repair vehicles after covered accidents, those higher claim costs can contribute to higher car insurance premiums.
While car insurance rates shouldn’t be your main criteria for choosing which state you want to move to, they can be a useful way to narrow down your options or balance quality of life with cost of living.
Say you want to retire on the coast of Florida, for example. Since both home insurance and car insurance are significantly more expensive there, you might be able to enjoy a similar quality of life at a fraction of the price by heading to the gulf coast of Alabama instead.
The average rates can also vary substantially from one area of the state to the next. If you don’t want to trade Florida for Alabama, moving to a less populated area within Florida could result in car insurance rates below the state average, for example.
Finally, you can use average rates as an indicator of what driving might be like in a state. If it’s more expensive, that’s because insurance companies expect to handle more frequent or more expensive claims. As a driver, that means you might need to be even more cautious than usual when you’re behind the wheel to avoid an accident.
