Car Insurance Rates by State (2023)

When signing up for car insurance, you can often save money by shopping around for the best deal. But unfortunately, several factors that are hard to control, like the state you live in, affect your car insurance rates.

While the national average cost of car insurance is $148 a month, car insurance rates can vary from one state to another based on factors like the number of accidents, the weather, the rate of uninsured drivers, and more.

Some states, including New Hampshire and North Carolina, offer car insurance rates that are much lower than the national average. On the other hand, states like Michigan and New York have expensive car insurance rates.

Average car insurance rates in all 50 states

Car insurance rates vary significantly among states. You can find average rates as low as $106 in New Hampshire or ones that exceed $460 in Michigan and New York.

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10 states with the cheapest car insurance

1. New Hampshire

New Hampshire has the cheapest car insurance rates in the country. Drivers in the state pay an average insurance rate of $96, which is 35% lower than the national average of $148.

One of the major reasons for New Hampshire’s cheap car insurance is its minimum insurance requirements. The state is unique in that it’s just one of two that don’t require all drivers to have liability insurance. Instead, drivers can choose to buy liability insurance or demonstrate financial responsibility.

If you choose not to buy insurance, you must prove you have enough money to meet the state’s minimum financial responsibility requirements.^[1]

If you can’t or don’t want to demonstrate financial responsibility, you must have at least $25,000 per person and $50,000 per accident of bodily injury liability coverage and at least $25,000 of property damage liability insurance.^[1]

New Hampshire’s insurance requirements aren’t the only reason premiums in the state are so low. New Hampshire has one of the lowest estimated rates of uninsured drivers.^[2] Additionally, New Hampshire has one of the lowest rates of car accident fatalities.^[3]

2. North Carolina

North Carolina drivers pay an average monthly car insurance premium of $108, which is 27% lower than the national average.

Though it doesn’t have the lowest insurance requirements — drivers must have uninsured and underinsured motorist insurance in addition to their liability coverage — drivers in the state still enjoy some of the lowest rates.^[4]

3. Idaho

The average cost of full-coverage car insurance is $115 in Idaho, which is 22% lower than the national average.

Relatively speaking, Idaho’s minimum insurance requirements are about average. However, the state is one of the least populated, with around 2 million people.^[5] And fewer people on the road could contribute to lower insurance premiums.

4. Hawaii

Hawaiians pay the fourth-lowest insurance rates in the country, with an average premium of $122, which is 18% lower than the national average. Hawaii may have affordable car insurance for a couple reasons. First, Hawaii ranks fourth in the nation for the lowest rate of accident fatalities.^[3]

Hawaii also has relatively low liability coverage requirements. While it’s a no-fault state, meaning it requires personal injury protection, it also only requires $20,000 per person and $40,000 per accident of bodily injury liability and $10,000 of property damage liability coverage.^[6]

5. Iowa

Drivers in Iowa pay an average insurance premium of $128 per month, which is 14% lower than the national average of $148.

One reason for the state’s low insurance rates could be its insurance requirements. Iowa only requires $20,000 per person and $40,000 per accident of bodily injury liability and only $15,000 per accident of property damage liability coverage.^[7]

While Iowa’s average monthly insurance cost is $128, USAA offers an average rate as low as $57 a month.

6. Maine

Maine drivers are in the unique situation of having some of the cheapest insurance rates while also having some of the steepest insurance requirements. The average premium is $138, which is 7% lower than the national average.

Drivers in Maine need $50,000 per person and $100,000 per accident of bodily injury liability and $25,000 per accident of property damage liability coverage. Drivers must also carry uninsured/underinsured motorist coverage and medical payments coverage.^[8]

However, Maine has one of the lowest rates of uninsured drivers in the country.^[2] Additionally, the state’s population is lower than many other states, which can help keep premiums low.^[5]

7. Ohio

The average car insurance premium in Ohio is $138 per month, which is 7% lower than the national average. Ohio ranks among the better half of states for accident fatalities (which may contribute to its lower rates) and has about-average insurance requirements.^[3] Ohio drivers must carry at least $25,000 per person and $50,000 per accident in bodily injury liability and $25,000 in property damage liability.^[9]

Ohioans pay very low insurance rates compared to other states. Depending on the insurance company you choose, you could find quotes around just $50 per month.

8. Indiana

Drivers in Indiana pay an average of $144 per month for car insurance, which is 3% lower than the national average. There’s no obvious reason why Indiana has cheap insurance rates. It has an above-average rate of accident fatalities, more uninsured drivers than most states, and minimum insurance requirements similar to its neighbors.^{[2] [3] [10]}

Despite that, Indiana still has average insurance rates similar to the national average. And while the state’s average monthly premium is $144, drivers may see rates as low as $50.

9. Wisconsin

Wisconsin drivers pay an average car insurance premium of $148 per month, which is the national average.

The state’s bodily injury liability requirements are roughly average compared to other states — $25,000 per person and $50,000 per accident of bodily injury liability coverage. But its property damage liability requirement is lower than most states, at just $10,000 per accident.^[11] Wisconsin also ranks better than the national average for the rate of accident fatalities.^[3]

Wisconsin average car insurance quotes may be as low as $50 per month.

10. Tennessee

Tennessee has the 10th-lowest insurance rates in the country. Drivers there pay an average of $156 per month, which is 5% more than the national average.

Tennessee’s insurance requirements are on par with many other state requirements. Drivers must have $25,000 per person and $50,000 per accident of bodily injury liability and $15,000 per accident of property damage liability.^[12]

Tennessee’s low insurance rates come in spite of having one of the highest rates of uninsured drivers and one of the highest rates of accident fatalities.^{[2] [3]} Drivers in the state can still get insurance for as low as $72 per month.

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10 states with the most expensive car insurance

Each of the states in the table below has insurance rates that are well above the national average of $148.

Michigan tops the list of states for having the highest car insurance premiums. The state is unique because it requires drivers to carry property protection insurance (PPI) of $1 million to pay for damage to other people’s property after an accident. This coverage is the equivalent of the property damage liability insurance required in other states, but Michigan drivers must have $1 million in coverage, which you won’t find in any other state.

Additionally, as a no-fault insurance state, Michigan requires drivers to purchase personal injury protection (PIP), which covers a driver’s medical expenses regardless of who is at fault for an accident. But unlike the property protection insurance coverage, PIP has no coverage limit.^[13]

The next most-expensive state, New York, is also a no-fault insurance state. Drivers must carry PIP and uninsured and underinsured motorist coverage.^[14] New York also has one of the highest populations, which can also contribute to high car insurance rates.^[5]

Finally, both Florida and Louisiana have above-average insurance for several reasons. First, both states have among the highest rates of fatal accidents, and Florida has one of the highest rates of uninsured drivers.^{[2] [3]} Additionally, Florida and Louisiana are among the states with the most flood claims, which can increase insurance rates.^[15]

Why do car insurance rates vary by state?

States set their own minimum insurance requirements for drivers, but they also face different levels of risk that stem from population, the number of uninsured drivers, and accident rates. Here’s why state car insurance rates vary so much.

Minimum car insurance requirements

One of the most important factors that affect a state’s car insurance rates is its insurance requirements, including the type and amount of coverage that drivers are required to have.

Nearly every state in the country — all but New Hampshire and Virginia — requires drivers to have car insurance.^[16] Most states require just two types of coverage: bodily injury and property damage liability insurance.

However, those requirements range widely. For example, Florida requires just $10,000 per accident in bodily injury liability coverage, while Alaska and Maine require $50,000.^{[8] [17] [18]}

In addition to liability coverage, some states require drivers to purchase uninsured and underinsured motorist coverage, which applies when someone is in an accident that a driver without insurance, or not enough insurance, causes.

Finally, a handful of states require drivers to have personal injury protection (PIP) to pay their medical bills if they’re in a car accident, regardless of who is at fault. Most states that require PIP are known as no-fault states, meaning drivers file claims with their own insurance company after an accident, no matter who caused it.^[19]

“States [have high]t rates generally due to unfavorable laws,” says Scott Hammersand, a licensed personal insurance advisor with Overmyer Hall Associates in Columbus, Ohio. “[Drivers in] no-fault states will pay more because it doesn’t matter if you are a good driver when your policy has to pay a part of your medical bills for someone else’s poor driving.”

Traffic conditions

Another reason car insurance rates vary from state to state is that traffic conditions also vary. Generally speaking, drivers pay more for car insurance in urban areas with more people on the road.^[20]

When you’re driving in heavy traffic, insurance companies no longer only have to consider your risk factors and driving history. They must also consider the fact that you’re among many other drivers who could run into you.

Weather events

Local weather events can also affect average car insurance premiums in your state. Car accidents often increase during extreme weather, such as heavy rain or snow. 

And it’s not just cars on the road that are at greater risk of incident. Storms can cause tree branches to fall on your car, hail to crack your windshield, flash flooding to flood your vehicle, and more.

Between the increased risk of car accidents and other damage to vehicles, claims tend to rise, as do the premiums for drivers in that area. For example, Louisiana and Florida are the states with the highest rate of flood claims, and they’re also among the top five states for expensive auto insurance.^[15]

Do you have to change your car insurance when you move states?

Whether you have to change car insurance when you move states depends on your current insurance company and the amount of coverage you have.

“It’s imperative that you update your driver’s license, auto registration, and insurance when you permanently move states,” Hammersand says.

Of course, it’s not just a matter of whether your insurance company provides coverage in your new state. You’ll also have to determine whether your current coverage is sufficient since every state has its own minimum insurance requirements. In some cases, that might require increasing your bodily injury and property damage liability coverages.

Finally, you’ll have to learn if your new state has any additional requirements your former state didn’t have. Several states require uninsured or underinsured motorist coverage. And a handful of states have no-fault insurance laws, which require drivers to carry personal injury protection (PIP).

Your new state may have the same minimum requirements as your old one, in which case you won’t have to update your coverage. But you should still inform your insurance company about the move.

“Insurance can get tricky, as they could have grounds to decline your claim if you failed to notify them of your move,” Hammersand says.

Tips for getting the best car insurance rate in your state

Whether you live in one of the cheapest or most expensive states for car insurance, you can still find ways to save money and reduce your premiums.

• Shop around. Each company uses its own formula to determine car insurance rates, so one driver could get different quotes from different companies.

• Take advantage of discounts. Many insurers offer discounts to help their customers save money. Some of the most common discounts are for bundling your home and auto insurance and for bundling multiple vehicles on one policy. Other common discounts apply for driving a new car, having certain vehicle safety features on your car, paying your policy premium up front, and more. “My other advice is to take advantage of ride-tracking discounts,” Hammersand says. “Most companies will offer some sort of ride-tracking app for your phone, where they will use data similar to Google Maps to see how fast you accelerate, hard you brake, hard you turn, and top speed. Good driving can save you up to 20% for the lifetime of your policy.”

• Update your policy. For example, you could reduce your policy premiums by reducing your coverage limits, as long as they still meet your state’s requirements, or you could increase your deductible.^[21]

• Drive safely and maintain a clean driving record. Having violations on your record can significantly increase your premiums, and drivers who have never filed a claim or gotten a ticket often get the best rates.^[22]

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