Car Insurance Rates by State: All 50 States Ranked From Cheapest to Most Expensive

Car insurance costs vary dramatically by state. The cheapest state (Maine, $900/year average) costs nearly 5 times less than the most expensive (Michigan, $4,500/year average). Your state accounts for 20% to 40% of your total premium. Below is a comprehensive breakdown of all 50 states with average annual premiums for both full and minimum-only coverage.

Updated 30 March 2026

5 Cheapest States

Maine

Lowest in nation: rural, low fraud, good roads

$900/yr

Vermont

Second cheapest: rural, low fraud, few claims

$950/yr

Idaho

Rural state, low traffic density

$1,000/yr

Ohio

Competitive market, moderate density

$1,100/yr

Hawaii

No-fault state but low speeds and short distances

$1,150/yr

These states share common traits: low population density, few uninsured drivers, minimal fraud, and tort-based (not no-fault) insurance systems. Maine and Vermont consistently rank lowest due to rural driving conditions, well-maintained roads, and small insured populations with low claim frequency.

5 Most Expensive States

Michigan

Highest in nation: unlimited PIP until 2019 reforms

$4,500/yr

Florida

No-fault state, 20%+ uninsured, fraud hotspot

$2,800/yr

Louisiana

Lawsuit-friendly courts, high UM claims

$2,700/yr

New York

No-fault, NYC drives massive cost variation

$2,500/yr

New Jersey

Dense population, no-fault, high litigation

$1,900/yr

Michigan is in a category of its own. Until 2019 reforms, Michigan required unlimited lifetime personal injury protection (PIP), driving average premiums above $5,000 in some ZIP codes. Florida and Louisiana follow due to high uninsured driver rates (20% and 15% respectively), lawsuit-friendly legal environments, and fraud. New York's costs are driven primarily by New York City, where density, theft, and accident rates push premiums well above $3,000 annually.

All 50 States: Average Annual Car Insurance Rates

Rates shown are for a 35-year-old driver with a clean record. Full coverage uses 100/300/100 liability with $1,000 deductibles. Minimum-only uses state-required minimums.

Low (under $1,400)Medium ($1,400 to $1,700)High ($1,700 to $2,000)Very High ($2,000+)

#	State	Full Coverage	Minimum Only	Key Factor
1	Maine	$900	$320	Lowest in nation: rural, low fraud, good roads
2	Vermont	$950	$330	Second cheapest: rural, low fraud, few claims
3	Idaho	$1,000	$350	Rural state, low traffic density
4	Ohio	$1,100	$380	Competitive market, moderate density
5	Hawaii	$1,150	$400	No-fault state but low speeds and short distances
6	New Hampshire	$1,150	$380	No mandatory insurance (one of two states)
7	North Dakota	$1,150	$380	No-fault state, very rural
8	Iowa	$1,200	$400	Low population density, moderate weather claims
9	North Carolina	$1,200	$400	Regulated market keeps rates low
10	South Dakota	$1,200	$400	Rural state, low claim frequency
11	Wisconsin	$1,200	$400	Moderate rates, competitive insurer market
12	Montana	$1,250	$420	Very rural, long distances but low traffic
13	Wyoming	$1,250	$420	Very rural, low traffic density
14	Indiana	$1,300	$430	Low cost of living, moderate traffic
15	Alaska	$1,350	$450	Low population density reduces accident frequency
16	Kansas	$1,350	$440	Rural state, but severe weather increases comprehensive
17	Minnesota	$1,350	$440	No-fault state, moderate rates
18	Nebraska	$1,350	$440	Moderate rates, severe weather hail risk
19	Utah	$1,350	$440	No-fault state, growing population
20	Virginia	$1,350	$440	Allows uninsured driving with $500 fee (not recommended)
21	Oregon	$1,400	$460	No credit scoring allowed
22	Arkansas	$1,500	$480	High uninsured rate (16%), rural accident severity
23	Missouri	$1,500	$480	Tornado damage, moderate density
24	Tennessee	$1,500	$480	Growing population in Nashville and Memphis
25	Washington	$1,500	$480	Seattle congestion, growing population
26	Illinois	$1,550	$500	Chicago drives up state average significantly
27	Pennsylvania	$1,550	$500	Choice no-fault system, urban/rural split
28	Arizona	$1,600	$500	Growing population, increasing congestion in Phoenix
29	Massachusetts	$1,600	$500	No credit scoring, but low uninsured rate
30	Mississippi	$1,600	$500	High uninsured rate (23%), low income state
31	New Mexico	$1,600	$500	High uninsured driver rate (21%)
32	Oklahoma	$1,600	$500	Severe weather, tornado and hail claims
33	West Virginia	$1,600	$500	Mountainous terrain, higher accident severity
34	Alabama	$1,650	$550	High uninsured driver rate (18%)
35	Colorado	$1,700	$520	Severe hail damage drives comprehensive claims
36	South Carolina	$1,700	$530	High uninsured rate (17%), growing population
37	Connecticut	$1,750	$540	High cost of living, expensive medical costs
38	Georgia	$1,750	$520	Atlanta congestion, high theft rates
39	Kentucky	$1,750	$540	No-fault state, high medical costs
40	Texas	$1,750	$540	Large state, high uninsured rate, severe weather
41	Delaware	$1,800	$560	Small state, high traffic density
42	Maryland	$1,800	$560	Dense suburbs, high theft in Baltimore
43	Nevada	$1,800	$560	Las Vegas congestion, high uninsured rate
44	Rhode Island	$1,800	$560	Small, dense state with high medical costs
45	California	$1,850	$550	No credit scoring allowed, high repair costs
46	New Jersey	$1,900	$600	Dense population, no-fault, high litigation
47	New York	$2,500	$650	No-fault, NYC drives massive cost variation
48	Louisiana	$2,700	$700	Lawsuit-friendly courts, high UM claims
49	Florida	$2,800	$750	No-fault state, 20%+ uninsured, fraud hotspot
50	Michigan	$4,500	$1,200	Highest in nation: unlimited PIP until 2019 reforms

Why Do Car Insurance Rates Vary So Much by State?

Six primary factors drive the massive state-to-state variation in car insurance costs:

1. Tort vs No-Fault System

No-fault states (Florida, Michigan, New York, and 9 others) require each driver's insurer to pay their own medical bills regardless of fault. This adds Personal Injury Protection (PIP) cost to every policy. Tort states let the at-fault driver's insurer pay, which typically results in lower premiums. Michigan's formerly unlimited PIP is the extreme example of how no-fault drives costs upward.

2. Uninsured Driver Rate

Nationally, 13% of drivers carry no insurance. In Mississippi (23%), New Mexico (21%), and Florida (20%), the rate is much higher. Insured drivers in these states pay more because insurers build in the cost of uninsured motorist claims. States with low uninsured rates (Maine at 4%, Massachusetts at 6%) have correspondingly lower premiums.

3. Population Density and Traffic

Dense urban areas have 2x to 3x the accident rate of rural areas. States like New Jersey (most densely populated) and Maryland (high suburban density around DC and Baltimore) pay more simply because drivers encounter more traffic, intersections, and parking lot incidents daily. Idaho and Wyoming benefit from sparse population.

4. Weather and Natural Disasters

States in tornado alleys (Oklahoma, Kansas, Texas) and hurricane zones (Florida, Louisiana, Texas Gulf Coast) see higher comprehensive claims. Colorado's severe hail storms damage thousands of vehicles annually. Winter states have higher accident rates during ice and snow months but lower overall costs because claim frequency is seasonal.

5. Legal Environment

States with plaintiff-friendly courts (Louisiana, Florida) see higher lawsuit payouts for accidents, which drives up insurer costs and premiums. Louisiana's "judicial hellholes" produce some of the highest bodily injury payouts in the nation. States with tort reform caps (Texas, Ohio) tend to have lower liability costs.

6. State Regulation

California, Hawaii, and Massachusetts prohibit credit-based insurance scoring, which changes pricing dynamics. North Carolina has a regulated market where the state approves rates, keeping them lower. Some states mandate specific coverage types (PIP, uninsured motorist) that add cost. Virginia and New Hampshire allow driving without insurance (with a fee), which is an unusual approach.

Find Your Best Rate

State averages are a starting point, but your actual rate depends on your specific profile. Use our profile-based comparison tool to see which insurers are cheapest for your age, driving record, and coverage needs. If you are a young driver, see our specialized guide at bestcarinsuranceforyoungdrivers.com. New York residents can find state-specific tips at carinsuranceinnewyork.com.