In virtually all U.S. states, motorists are legally obligated to purchase bodily injury liability and property damage liability. A handful of states also require drivers to purchase extras, such as uninsured & underinsured motorist coverage and personal injury protection (PIP). Penalties for non-compliance range from small fines to suspension of license and/or registration, vehicle impoundment, and in some cases imprisonment.

Thirty-eight states are what is known as “fault” insurance states, whereby the driver who is at fault in an accident is legally responsible to cover damages through their bodily-injury and property-damage liability coverage.

The remaining 12 states are “no-fault” states, whereby policyholders claim losses from their own insurance provider – regardless of which driver was at fault (see New Trends that Will Disrupt US Auto Insurance Market).

Car Insurance in United States 

Car Insurance in United States 

The best auto insurance companies in each state provide liability, comprehensive, collision, PIP, and uninsured & underinsured motorist coverage, plus a range of paid add-ons.

Car insurance is a neccessary expense that comes with being a driver in the United States, but it doesn’t have to be complicated or overpriced. It’s essential that you choose a reliable insurer that you know will pay your claim if you ever need it, and comparing multiple insurers means that you will get the best rate possible for your driving needs.

How much is car insurance in the U.S.?

Car Insurance in United States

The average cost of car insurance in July 2024 is $1,895, but how much you’ll pay depends largely on where you live. The state you reside in is one of the biggest factors influencing the price of your auto insurance premium

But because auto insurance premiums are based on more than a dozen individual rating factors, the actual cost will differ for every driver (see U.S. Auto Insurance Performance & Underwriting Results).

  • Maine is the cheapest state for car insurance at $1,175 annually, or $97 monthly, for a full coverage policy.
  • Louisiana is the most expensive state for car insurance at $2,883 annually for a full coverage policy. 
  • Car insurance premium spikes in 2023 were attributed to inflation, weather and accident claims, poor driving habits and population density. 
  • USAA, Geico and Erie offer some of the cheapest full coverage car insurance, but are not all available to all drivers.
  • Having a severe infraction like a DUI on your motor vehicle record could increase your car insurance premium by 93% on average.
  • Teen male drivers may pay $807 more for car insurance on average compared to teen female drivers.

How much does car insurance cost by state?

How much does car insurance cost by state?

However, when determining “how much does car insurance cost” in a specific area, the answer can vary depending on a variety of factors. The state where you live, individual rating factors, accident and claim reporting frequency, and even cost of labor and parts can cause one city or state to be more expensive than others.

Average car insurance cost by state in 2024

Car Insurance in United States
Source: Quadrant Information Services
StateAverage annual rate full coverageAverage annual rate liability
Alaska$1,676 $508 
Alabama$1,860 $639 
Arkansas$1,957 $589 
Arizona$1,812 $764 
California$2,416 $864 
Colorado$2,337 $717 
Connecticut$1,725 $783 
Washington, D.C.$2,157 $785 
Delaware$2,063 $1,022 
Florida$2,694 $1,629 
Georgia$1,970 $789 
Hawaii$1,517 $572 
Iowa$1,630 $320 
Idaho$1,428 $440 
Illinois$1,532 $471 
Indiana$1,515 $498 
Kansas$1,900 $471 
Kentucky$2,228 $810 
Louisiana$2,883 $1,266 
Massachusetts$1,726 $655 
Maryland$1,746 $756 
Maine$1,175 $341 
Michigan$2,266 $645 
Minnesota$1,911 $512 
Missouri$1,982 $582 
Mississippi$2,008 $637 
Montana$2,193 $540 
North Carolina$1,741 $523 
North Dakota$1,665 $370 
Nebraska$1,902 $373 
New Hampshire$1,265 $416 
New Jersey$1,902 $915 
New Mexico$2,049 $658 
Nevada$2,060 $1,042 
New York$1,870 $827 
Ohio$1,417 $446 
Oklahoma$2,138 $657 
Oregon$1,678 $710 
Pennsylvania$1,872 $504 
Rhode Island$2,061 $808 
South Carolina$2,009 $925 
South Dakota$2,280 $338 
Tennessee$1,677 $547 
Texas$2,043 $774 
Utah$1,825 $756 
Virginia$1,469 $477 
Vermont$1,319 $324 
Washington$1,608 $731 
Wisconsin$1,664 $425 
West Virginia$2,005 $585 
Wyoming$1,758 $331 

Top 5 cheapest states for car insurance

Drivers in Maine, Vermont, Idaho, New Hampshire and Ohio pay the cheapest annual full coverage car insurance rates in the nation, on average. Factors like cheaper cost of living, lower probability of accidents and claims, and less traffic congestion could be contributing to these states’ lower average premiums (see Global Auto Insurance Market Outlook).

Maine: $1,175
New Hampshire: $1,265
Vermont: $1,319
Ohio: $1,417
Idaho: $1,428

Top 5 most expensive states for car insurance

Based on our research, drivers in New York, Louisiana, Florida, Nevada and Michigan have the highest average annual cost of full coverage car insurance. This could be due in part to frequent claims for common losses in these states, making drivers riskier to insure overall.

Louisiana: $2,883
Florida: $2,694
California: $2,416
Colorado: $2,337
South Dakota: $2,280

How much does car insurance cost by age and gender?

Car Insurance in United States

Insurers typically consider age as a significant factor in setting auto insurance rates, with young drivers paying the highest premiums on average based on 2022 rates.

Auto insurers use actuarial data to determine that teens and young adult drivers — as well as the elderly — are more likely to get in an accident, so the car insurance costs that these drivers pay are typically higher to compensate for the greater risk.

Note that your age will not affect your premium if you live in Hawaii or Massachusetts, as state regulations prohibit auto insurers from using age as a rating factor (see Who Should Be Listed on Car Insurance Policy?).

Additionally, gender impacts your premium in most states. Men typically cost more to insure than women. This is because men generally engage in riskier driving behaviors than women and have a higher rate of accident severity, according to the Insurance Information Institute (Triple-I).

However, not all states allow gender to be a factor in rates. If you live in California, Hawaii, Massachusetts, Michigan, North Carolina or Pennsylvania, your gender does not affect how much you pay for car insurance because of state regulations prohibiting this rating factor.

Insurance cost by age and gender

AgeMaleFemaleDifferencePercent difference between rates
16 year old$4,004$3,669$3358.7%
17 year old$3,740$3,420$3208.9%
18 year old$5,694$4,946$74814.1%
19 year old$4,440$3,819$62115.0%
20 year old$4,060$3,504$55614.7%
21 year old$3,188$2,822$36612.2%
22 year old$2,931$2,627$30410.9%
23 year old$2,759$2,491$26810.2%
24 year old$2,614$2,374$2409.6%
25 year old$2,196$2,059$1376.4%
30 year old$1,888$1,854$341.8%
40 year old$1,778$1,764$140.8%
50 year old$1,661$1,652$90.5%
60 year old$1,612$1,597$150.9%
70 year old$1,755$1,729$261.5%
Source: Quadrant Information Services *16- and 17-year-old rates reflect the total cost of the teen driver added to their parent’s policy with student discounts applied. **18- through 25-year-old rates reflect renters (not homeowners) calculated on their own policy.

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AUTHORS: Mark Friedlander – Director of corporate communications at Insurance Information Institute, June Sham – Insurance Writer and Mariah Posey – Insurance Editor at Bankrate

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