Car Insurance Rates by State for 2023
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Your driving history isn’t the sole factor determining the cost of your car insurance. While insurance companies look at several factors when determining rates, one you might not consider is the state you live in.
Car insurance rates vary significantly from one state to the next. Location-related factors such as a state’s minimum-coverage requirements, crime, theft, severe weather, and the number of claims filed all influence the price you pay in your state.
That’s why comparing multiple quotes is crucial to get the best rate. Read on to learn about average car insurance rates by state.
- Vermont has the lowest average monthly rates for liability coverage, at $35 per month, while Louisiana has the highest, at $203 per month.
- Maine has the lowest rates for full coverage, at $93 per month, while New York has the highest, at $410 per month.
- Car insurance rates depend on many factors, including whether you live in an at-fault or no-fault state and the minimum coverage required to drive legally in your state.
Average Car Insurance Rates by State
The state you live in can affect your auto insurance rates for a number of reasons. Each state has unique risk factors related to its population density, crime and theft rates, weather trends, insurance claims volume, and percentage of uninsured drivers.
In addition, states have different laws around minimum car insurance requirements.
|State||Liability Coverage||Full Coverage|
Vermont, Iowa, and South Dakota have the cheapest rates for liability coverage: $35 and $36 per month. Louisiana and New York have the highest monthly rates, at $203 and $202.
Vermont’s relatively small population may lead to lower rates well below the national average. Louisiana’s weather patterns and number of uninsured drivers may play a role in its higher rates. As of 2019, 11.7% of Louisiana drivers were uninsured, according to the Insurance Information Institute (Triple-I).
Maine and Vermont’s full-coverage car insurance is the most affordable, at $93 and $95 per month, respectively. But New York’s rates are the highest, at $410 per month — more than double the national average.
A relatively low crime rate may help keep insurance rates low for Maine. New York’s high population density contributes to significantly higher rates.
Below, we take a closer look at the cheapest car insurance rates by state and the states with the highest rates.
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Get the Best Quotes in Your State
Which States Have the Cheapest Car Insurance Rates?
Although some states have more affordable car insurance coverage than others, there are only slight differences when comparing liability and full coverage.
For instance: Vermont has the lowest monthly rates for liability coverage, but its average rate is just $1 less than the next cheapest state, South Dakota. And Maine has the lowest monthly rates for full coverage — but its average rate is only a couple of dollars less than Vermont’s.
These states likely pay less in premiums due to smaller populations and potentially lower crime rates. Smaller populations can reduce risk levels because fewer drivers are on the road. Below are the least expensive states for car insurance.
Cheapest states for liability coverage:
- Vermont: $35 per month
- South Dakota: $36 per month
- Iowa: $36 per month
- Wyoming: $40 per month
- Maine: $41 per month
Cheapest states for full coverage:
- Maine: $93 per month
- Vermont: $95 per month
- New Hampshire: $109 per month
- Hawaii: $114 per month
- Idaho: $114 per month
- North Carolina: $114 per month
Which States Have the Highest Car Insurance Rates?
Louisiana, New York, Florida, and New Jersey all have the highest rates for both liability and full-coverage insurance.
Out of the five most expensive states for car insurance, there are two outliers. Maryland takes the fifth spot for most expensive liability coverage, with an average of $125 per month, and Michigan holds the fifth spot for full coverage, with an average cost of $272 per month.
These states likely have higher rates due to population density, weather events, and a higher percentage of uninsured drivers.
Most expensive states for liability coverage:
- Louisiana: $203 per month
- New York: $202 per month
- Florida: $196 per month
- New Jersey: $173 per month
- Maryland: $125 per month
Most expensive states for full coverage:
- New York: $410 per month
- Louisiana: $330 per month
- Florida: $292 per month
- New Jersey: $274 per month
- Michigan: $272 per month
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Find Cheaper Car Insurance Rates in Minutes
4 Ways Your State Affects Your Insurance Costs
Overall, car insurance costs can fluctuate based on your city, state, ZIP code, and the risk factors unique to your area.
Some location-based factors that insurance companies consider are weather trends, population density, crime and theft rates, and more. Here are four additional ways the state you live in affects how much you pay for car insurance coverage.
1. State minimum-coverage requirements
States have different laws regarding the minimum amount of coverage drivers must obtain to drive legally. This type of insurance coverage is typically referred to as liability insurance and consists of two parts: bodily injury liability and property damage liability.
If you get into an auto accident, liability insurance protects you and pays for any injuries or damages to the other driver. The state you live in will typically have minimum amounts of liability insurance coverage that you’re required to have.
It’s a good idea to go beyond your state’s minimum liability coverage requirements to protect yourself from accident-related expenses that exceed your coverage limits. Additionally, it’s important to note that liability insurance doesn’t cover any of your own damages or injuries, only the other party.
2. No-fault states vs. at-fault states
States either follow an at-fault or no-fault insurance system. “At fault” means that a driver can be assigned fault and will cover the costs of any injuries for the other party.
No-fault states require drivers to purchase personal injury protection (PIP) coverage. So, if you get into an accident, your own PIP coverage will pay for medical costs.
Currently, there are 12 no-fault states (plus Washington, D.C.), according to the Triple-I. These states include:
- New Jersey
- New York
- North Dakota
The other 38 states are considered at-fault states. This is sometimes referred to as a “tort” system.
3. Frequency of car insurance claims
Car insurance companies look at lots of data points to evaluate levels of risk in a particular area. A state’s claim frequency is one consideration.
When a state has a higher number of claims, this drives up insurance premiums. More claims filed means more accidents or other types of incidents are happening, which statistically can mean higher levels of risk for drivers in the state.
Additionally, more claims mean more payouts by insurance companies for repair or medical costs. At a certain point, insurers pass this cost to drivers through rate increases due to the higher probability of filing a claim.
4. Frequency of lawsuits
The number and frequency of accident-related lawsuits filed in a state can also affect car insurance rates. Some car accidents can lead to litigation in which a driver may sue another driver. One example is personal injury lawsuits — which can be costly for auto insurance companies.
Insurers may pass these rising costs on to drivers in the form of higher rates. In other words, the more litigious your state, the higher your car insurance premiums.
FAQs About Car Insurance Rates by State
If you have questions about car insurance rates by state and what determines costs, we’ve answered the most frequently asked questions.
How do auto insurance companies determine premiums?
Auto insurance companies look at various factors, including your age, gender, credit and driving history, and location — ZIP code, city, and state — when determining rates. Premiums can also vary by insurer.
How do you know if car insurance is required in your state?
Car insurance is mandatory in nearly all states. Most states require drivers to have liability insurance, which includes bodily injury and property damage liability coverage in specific amounts to meet the state’s minimum requirements.
You can check with your state’s local department of insurance and your car insurance company for required minimums and coverage types.
Which state pays the highest insurance rates?
New York has the highest insurance rates in the U.S., with an average monthly premium of $410, according to Compare.com data.
What is a “tort” state?
Tort states are considered at-fault states. That means that the at-fault driver is financially responsible for paying for the other party’s injuries or damages after an accident.
Does car insurance decrease if there are no accidents or claims on your record?
It’s possible, if not likely. If you have no accidents or claims on your driving record, you may qualify for lower car insurance premiums. Some insurers offer safe or good driver discounts if you keep a clean driving record.
But if you’ve had previous accidents or claims, they may stay on your record for an average of three years before your premiums start to decrease.
Data scientists at Compare.com analyzed more than 50 million real-time auto insurance rates from more than 75 partner insurance providers in order to compile the quotes and statistics seen in this article. Compare.com’s auto insurance data includes coverage analysis and details on drivers’ vehicles, driving records, insurance histories, and demographic information. All quotes listed in this article have been gathered from a combination of real Compare.com quotes and external insurance rate data gathered in collaboration with Quadrant Information Services. Compare.com uses these observations to provide drivers with insight into how auto insurance companies determine their premiums.
- Insurance Information Institute, “Background on: No-fault auto insurance,” Accessed October 14, 2023.
- Missouri Department of Revenue, “Insurance Information,” Accessed October 14, 2023.
- The Business Council of New York State, Inc., “Report Shows That Increase In Lawsuits Is The Key Factor In Increasing Costs Of Auto Insurance,” Accessed October 14, 2023.
- California Department of Insurance, “So You’ve Had an Accident, What’s Next?,” Accessed October 14, 2023.
- United States Census Bureau, “QuickFacts Vermont,” Accessed October 14, 2023.
- Insurance Information Institute, “Facts + Statistics: Uninsured motorists,” Accessed October 14, 2023.
- Department of Public Safety, Maine State Police, State of Maine, “Crime continues to decrease in Maine for 9th consecutive year,” Accessed October 14, 2023.
- United States Census Bureau, “QuickFacts New York,” Accessed October 14, 2023.
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