Car Insurance by State Directory

Drivers in the U.S. pay about $2,646 per year, on average, for car insurance. But you'll find a huge variance in premiums for auto insurance by state. Below, we'll look at why and where you may want to begin your search for the cheapest car insurance in your state.

Why do car insurance costs vary from state to state?

Insurance companies assign drivers premium costs based on their perceived risk. They look at individual factors, like the person's age, driving record, and even their credit score. But there are also local, state, and regional factors that affect how much drivers pay for auto insurance by state.

States that see frequent legal battles over car accidents usually have higher premiums because insurers know there's a risk they could be forced to pay out a large settlement in court. Areas that experience frequent weather, accident, theft, or vandalism claims also tend to have higher car insurance costs.

What are the cheapest states for car insurance?

The five states with the cheapest auto insurance are all pretty spread out across the country. They're listed in order below, along with their average annual premium:

1. Hawaii ($1,096)
2. Ohio ($1,567)
3. North Carolina ($1,595)
4. Iowa ($1,728)
5. Alaska ($1,758)

What are the most expensive states for car insurance?

The five states with the most expensive average annual auto insurance premiums are concentrated in the eastern half of the country. They are:

1. Michigan ($4,894)
2. Louisiana ($4,312)
3. Florida ($3,997)
4. New York ($3,909)
5. New Jersey ($3,720)

What's the best car insurance in my state?

Even within a single state, drivers pay a variety of rates. The guides below can help drivers find the cheapest auto insurance by state.