Car Insurance Rates By State For 2025

The state where you live plays a significant role in determining your car insurance costs. Factors such as mandatory coverage types, vehicle repair costs, medical expenses and more contribute to the differences in car insurance rates by state.

The national average cost for car insurance is $2,126 per year, according to our analysis of full coverage car insurance rates. Louisiana is the most expensive state for car insurance and Vermont is the cheapest.

Car Insurance Rates by State

It’s great if your state has a competitive auto insurance market where many national and regional car insurance companies are competing for your businesses. You can shop around for the best car insurance at the most budget-friendly price.

Average Car Insurance Costs by State

State	Average annual cost for full coverage	Average annual cost for minimum coverage
Alabama	$1,836	$462
Alaska	$2,217	$461
Arizona	$2,257	$634
Arkansas	$2,321	$504
California	$2,848	$724
Colorado	$2,315	$489
Connecticut	$2,310	$856
Delaware	$2,500	$1,012
Florida	$3,536	$1,295
Georgia	$2,410	$792
Hawaii	$1,655	$428
Idaho	$1,339	$369
Illinois	$2,004	$571
Indiana	$1,668	$453
Iowa	$1,683	$313
Kansas	$2,171	$549
Kentucky	$2,807	$852
Louisiana	$3,718	$872
Maine	$1,408	$455
Maryland	$2,290	$964
Massachusetts	$1,777	$525
Michigan	$2,859	$1,309
Minnesota	$2,021	$618
Mississippi	$2,008	$506
Missouri	$2,326	$623
Montana	$2,048	$388
Nebraska	$1,839	$392
Nevada	$2,535	$816
New Hampshire	$1,480	$454
New Jersey	$2,687	$1,284
New Mexico	$1,921	$450
New York	$2,898	$1,142
North Carolina	$1,412	$486
North Dakota	$1,825	$432
Ohio	$1,422	$365
Oklahoma	$2,576	$479
Oregon	$1,857	$781
Pennsylvania	$2,334	$499
Rhode Island	$2,414	$780
South Carolina	$2,407	$783
South Dakota	$2,150	$329
Tennessee	$1,787	$487
Texas	$2,260	$624
Utah	$2,002	$661
Vermont	$1,237	$291
Virginia	$1,776	$580
Washington	$1,519	$477
West Virginia	$2,135	$569
Wisconsin	$1,750	$424
Wyoming	$1,720	$284

Averages are based on coverage with $100,000 for injuries to one person, $300,000 for injuries per accident and $100,000 for property damage (known as 100/300/100), uninsured motorist coverage, and collision and comprehensive insurance with a $500 deductible.
Source: Quadrant Information Services.

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Why Does Location Affect the Cost of Insurance?

Location affects car insurance rates based on the risk of your location. For example, high levels of car theft and vandalism and frequent severe weather will increase car insurance costs for everyone in the area.

Here are some of the most common factors affecting car insurance rates in each state.

	Minimum State Car Insurance Coverage and Limits Some states require only liability insurance that pays for others you harm in an accident, while others require you to buy extra coverage such as uninsured motorist coverage or personal injury protection (PIP). States that mandate more coverage or higher liability limits often have higher auto insurance costs.
	No-Fault States Personal injury protection is required in 12 states as part of “no-fault insurance” laws. It requires you to place claims for auto accident injuries with your car insurance’s PIP insurance and also covers lost wages and replacement services. This extensive coverage can push your rates up.
	Number of Auto Insurance Claims in Your State An insurer passes on costs to you when it pays out more claims in your state than in other states. Insurers review the frequency of severe weather claims and the rate of claims for vandalism and car theft. Also, if you live in a congested city expect to pay more than if living in a rural area.
	Repair Bills Underlying claim costs affect how much you’ll pay for insurance, especially car repair costs. Higher prices for car parts and labor in your area will be reflected in insurance costs.
	Medical Bills Living in a state where medical care is expensive will result in bigger auto insurance bills, even if you’ve never made a car insurance claim.
	Frequency of Lawsuits in Your State States with more litigious drivers often have higher car insurance costs due to insurers paying out increased claim settlements and legal fees. This gets passed on to everyone’s insurance bills. For instance, Louisiana drivers are very litigious and the state has the most expensive average annual car insurance rates, according to our analysis.

Which States Have the Most Expensive Car Insurance?

Louisiana, Florida, New York, Michigan and California have the most expensive car insurance, according to our analysis of car insurance rates by state. If you live in one of these states, you’ll see some of the country’s highest car insurance costs.

Most Expensive States for Car Insurance

Rank	State	Average annual car insurance cost	Average monthly car insurance cost
1	Louisiana	$3,718	$310
2	Florida	$3,536	$295
3	New York	$2,898	$242
4	Michigan	$2,859	$238
5	California	$2,848	$237
6	Kentucky	$2,807	$234
7	New Jersey	$2,687	$224
8	Oklahoma	$2,576	$215
9	Nevada	$2,535	$211
10	Delaware	$2,500	$208

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Louisiana’s average car insurance cost of $3,718 is 75% higher than the average national price of $2,126.

The reasons why these car insurance rates by state are high vary, but some factors affecting the costs in these states include:

• Large urban areas. Congested areas result in higher rates of car accidents and claims. Some of the most expensive states also have the highest population density. According to the U.S. Census, New Jersey ranks second, Delaware eighth, New York ninth, Florida 10th and California 13th for population density.
• No-fault laws and fraud. Florida, Michigan and New York have no-fault laws in place. No-fault states tend to have higher rates of fraud, which pushes the cost of car insurance up in these states. 
• Lots of lawsuits. Louisiana is a litigious state with a higher-than-average number of car insurance lawsuits. New York is also known for being highly litigious. Claims dealt with in court can result in bigger settlements and drive up costs for all drivers in the state.
• Severe weather. Florida and Louisiana are especially prone to bad weather, including hurricanes that can cause substantial damage to cars. Paying out many claims in a short period after a severe weather event can result in car insurance companies raising car insurance costs.

Which States Have the Cheapest Car Insurance?

Vermont, Idaho, Maine, North Carolina and Ohio have the cheapest car insurance costs for full coverage in the country.

Cheapest States for Car Insurance

Rank	State	Average annual car insurance cost	Average monthly car insurance cost
1	Vermont	$1,237	$103
2	Idaho	$1,339	$112
3	Maine	$1,408	$117
4	North Carolina	$1,412	$118
5	Ohio	$1,422	$119
6	New Hampshire	$1,480	$123
7	Washington	$1,519	$127
8	Hawaii	$1,655	$138
9	Indiana	$1,668	$139
10	Iowa	$1,683	$140

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Vermont’s car insurance cost of $1,237 a year is 42% cheaper than the national average car insurance cost of $2,126.

The cheapest states are often more rural, which helps keep car insurance costs down compared to states with congested metropolitan areas. According to the U.S. Census, Vermont ranks 33rd in population density, Iowa 38th, Maine 40th and Idaho 46th.

The weather is mild in most of these states, especially compared to states like Florida and Louisiana, which experience severe weather and are two of the most expensive states for car insurance. Many of the cheapest states also have competitive car insurance markets, allowing drivers to compare car insurance quotes from multiple companies.

Will My State Have Car Insurance Rate Increases Next Renewal Period?

Inflation, higher repair costs and medical expenses are a few reasons car insurance premiums are on the rise, so there is a good chance you’ll see higher car insurance costs at your next renewal.

Some states’ higher car insurance costs may also be due to natural disasters, which causes insurance companies to pay out a higher number of claims in a short period of time. Paying claims due to weather can cause auto insurers to raise prices for all drivers in that state.

Switching car insurance companies is not hard and is worth considering if you can buy a cheaper auto policy elsewhere.

What Factors Other Than Location Affect Auto Insurance Rates?

Where you live is just one factor that car insurance companies look at when determining your price for auto insurance. Here are the most common factors that affect car insurance rates.

	Age Young drivers under 25 typically pay more due to their immaturity and inexperience. After age 65, senior drivers car insurance rates rise as their reaction time slows.
	Gender How age and gender affect car insurance go hand-in-hand. Young males pay more because they’re more likely to engage in risky driving. Rates are similar for both genders in their 30s through 60s but around age 70 men again pose a greater risk so see higher prices.
	Driving Experience Car insurance costs for new drivers are higher because of their lack of driving experience. As drivers become more experienced behind the wheel, auto insurance rates become cheaper.
	Driving Record A driving record with accidents or traffic violations signals to insurers that you could be a high-risk driver, so they’ll charge you higher rates. Auto insurance companies review the last three to five years of your driving record, depending on your state.
	Car Insurance History You’ll pay lower auto insurance prices if you’ve had continuous car insurance coverage. A gap in coverage makes you riskier to insure.
	Claims History If you have a clear claims history, your car insurance costs will be less. Car insurance costs after an accident go up 50% on average after an accident claim including injuries.
	Car Make and Model Car insurance companies consider past claims for your model when determining your car insurance costs. They also evaluate the repair costs, theft rates and payments made on previous claims to calculate the cost of insuring your car.
	Coverage and Limits Choices You’ll pay more if you buy more coverage and higher limits. You should focus on choosing the coverage types you need and skipping others you may not need. And while lower liability limits may be a bit cheaper, higher limits give you better financial protection.
	Deductible A car insurance deductible is the amount of money deducted from an insurance check you receive for a comprehensive or collision claim. Our analysis found that raising your deductible from $500 to $1,000 can save you 11% a year on average.
	Credit-Based Insurance Score Car insurance costs for drivers with poor credit are often very high because auto insurers say drivers with lower credit scores are more likely to file claims. Using a credit-based insurance score for auto insurance rate calculations is banned in California, Hawaii, Massachusetts and Michigan.

Methodology

We used data from Quadrant Information Services to find the average car insurance rates by state. 

Unless otherwise noted, rates are based on a 40-year-old female driver insuring a new Toyota RAV4 and full coverage of:

• $100,000 for injuries to one person, $300,000 for injuries per accident and $100,000 of property damage (known as 100/300/100).
• Uninsured motorist coverage of 100/300.
• Collision and comprehensive insurance with a $500 deductible.

State minimum coverage rates reflect the minimum amount of auto insurance required in each state.

Car Insurance Rates by State Frequently Asked Questions (FAQs)