You probably know that your driving record and the make and model of your vehicle can affect car insurance premiums. However, where you live also has a significant impact on how much you pay for auto coverage. While insurance requirements vary by state, higher risk factors in certain areas will likely drive those rates up.
Check out the top 10 most expensive states for car insurance and what causes these high premiums.
Which States Have the Highest Auto Insurance Premiums in 2024?
Based on the average car insurance premiums for full coverage that includes $50,000 in bodily injury liability per person, up to $100,000 per accident, here are the 2024 most expensive auto insurance states:
| Rank | State | Average Monthly Premium |
|---|---|---|
| 1 | New York | $299 |
| 2 | Michigan | $276 |
| 3 | Louisiana | $275 |
| 4 | Florida | $235 |
| 5 | Montana | $233 |
| 6 | Connecticut | $227 |
| 7 | Delaware | $227 |
| 8 | New Jersey | $219 |
| 9 | Nevada | $214 |
| 10 | Rhode Island | $212 |
| Avg. premiums are weighted by zip code population sizes. Data accurate as of August 1, 2024 | ||
Auto insurance premiums in these states range from $212 to $299 per month, which adds up to annual insurance costs of $2,542 to $3,586 annually.
What Factors Contribute to High Car Insurance Costs in These States?
Car insurance premiums are determined by several factors that vary from state to state. Here’s why some states have higher insurance costs than others.
State Crime Rates
Many states have larger cities with high theft and crime rates. If you live in one of these states, there’s a higher risk of vehicle break-ins, vandalism, and damage. As a result, insurance policy premiums tend to be higher.
Traffic Density
When there is a lot of vehicle traffic in a state, it usually means there is a higher rate of auto accidents. When people are stressed or distracted during rush hour traffic, it could lead to a car crash and more insurance claims. The higher the traffic density, the more you can expect for auto insurance premiums.
Risk of Natural Disasters
If you live in a state that is prone to natural disasters, such as hurricanes or tornadoes, there is an increased risk of property and vehicle damage. States like Louisiana and Florida have some of the highest auto insurance premiums in the nation due — in part — to severe weather in those states.
Claims History in the State
Areas with a higher-than-average number of insurance claims tend to charge more for auto insurance coverage. Insurance companies will increase rates for current policyholders to cover the cost of claims and payouts for that state.
A history of increasing claims may also indicate that people are driving more in the area, which can lead to an upward trend of more accidents and insurance claims going forward. Higher auto premiums are a way for insurance companies to offset those payouts.
Lack of Insurance Carrier Competition
Some states lack insurance carrier competition, which can drive premium rates up. When drivers have very few options, those insurance companies can charge more for their coverage. On the other hand, states with more insurance carriers and driver choices will have lower rates due to increased competition.
High Percentage of Uninsured Drivers
When more people choose to drive without auto insurance, it can make premiums more expensive for everyone else in the state. This happens because fewer people are paying into the premium pool, causing insurers to raise prices to stay in business.
State Insurance Requirements
Each state has insurance requirements for all drivers. Depending on the state in which you live, you may have to purchase additional coverage or meet certain minimums before you can legally drive your vehicle.
How Do State Regulations Impact Auto Insurance Prices?
Every state has its own auto insurance regulations and laws. While some states only require drivers to carry the minimum liability insurance, others make different types of coverage mandatory.
For example, nearly half of all states require policyholders to purchase uninsured/underinsured motorist coverage. Also, drivers living in no-fault states may need personal injury protection (PIP) to cover the cost of medical bills after an accident. This additional insurance coverage will increase the cost of auto insurance.
Additionally, strict regulations can make it difficult for some insurers to operate in that state. Fewer insurers means less carrier competition, which can drive insurance premiums up.
What Can Drivers in Expensive States Do to Lower Their Insurance Premiums?
At a time when every dollar counts, high-cost auto insurance can really take a toll on a person’s income. Fortunately, there are things you can do to keep your insurance premiums as low as possible if you live in the 10 most expensive states for car insurance.
Shop Around and Compare Rates
Auto insurance prices shift all the time. The best way to get the right coverage for your needs at the right price is to compare and shop often — especially in high-cost states. Getting a custom comparison is fast, painless, and always free with EverQuote.
Maintain Good Credit
A good credit history shows insurers that you know how to manage your finances, pay your bills on time, and keep your debt in check. Insurance companies typically use your credit details when quoting auto insurance coverage, so good credit can help you get the lowest price.
Consider Reducing Coverage
While this is not always an option, some drivers may qualify to reduce coverage on older vehicles to lower their premiums. Consider dropping collision coverage or other add-on coverages and only carry the minimum required by your state. However, this will mean more out-of-pocket expenses if you’re involved in an accident.
Bundle Different Insurance Coverages for Discounts
Many insurance providers offer discounts to people who purchase different types of policies through their company. Bundling your auto insurance with home or life insurance from your carrier can help you save money.
See if You Qualify for Other Auto Insurance Discounts
There are several auto insurance discounts available that you may not know about — especially if you’ve been with the same company for a while. Ask your insurance provider about these popular types of discounts to see if you qualify:
- Low-mileage discounts
- Safe driver discounts
- Good student discounts
- Discounts for taking defensive driving courses
- Discounts for college students away from home
- Long-time customer discounts
- Multiple vehicle discounts
Taking advantage of these discounts can help lower your monthly insurance premium and make payments more affordable in your state.