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Auto Insurance Rates By State; Least & Most Expensive to Insure

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Most think it’s quite unfair for a driver to pay twice the amount for a car insurance premium in one state verses another.

How is this happening?

While most drivers know your age and driving history determines how much you pay for car insurance.

Another chief factor is the state you reside in.

Average car insurance rates vary by state based on regulations while insurance companies give you a price quote based on those differences.

And one state may have higher instances of claims while another doesn’t.

Most and least expensive state to buy an auto policy illustrated.Note: States at the top of the graph have an average car insurance premium of $2,000+ for a full coverage policy. The bottom states have an average policy price of $1,000. If you live in Michigan, Louisiana or Florida you will pay more than double for an auto insurance policy compared to residing in Maine, Iowa or Ohio.

This, too will affect how much you will pay for your car insurance premium.

Below we have laid out the average car insurance by state.

Read on so you have an idea what you are going to pay for an auto insurance premium in the area of country you reside.

Least Expensive States for Car Insurance

The states with the cheapest auto insurance rates for 2020 are Maine, Iowa, Idaho and Ohio.

Year over year premiums for each state is going up.

However, each of the 4 states have an average annual premium around $950.

Which is nearly 35% lower than a nationwide average of nearly $1,400.

Below is a list of the least expensive states:

Cheapest StatesTotal PremiumLiabilityCollisionComprehensive
Maine$910$569$206$135
Iowa$955$580$230$145
Idaho$1,020$596$274$150
Ohio$1,024$603$269$152
Wisconsin$1,050$628$262$160
Vermont$1,065$638$262$165
Virginia$1,121$687$265$169
North Carolina$1,158$700$272$186
Hawaii$1,265$735$334$196
New Hampshire$1,348$789$358$201

Maine

The average car insurance premium for Maine is $910 per year.

One of the primary reasons is Maine has a low amount of uninsured drivers.

Further, there are less people which means less congestion and less likelihood for drivers to file claims.

If you have a good driving record and live in Maine, you will pay less for a premium than other drivers throughout the U.S.

Below are insurers offering quotes for a 30 and 45-year-old driver.

Company30 Year Old45 Year Old
Patriot$1,188$723
Progressive$1,243$764
Vermont Mutual$1,265$801

Iowa

Drivers in Iowa are going to pay approximately 30% less for car insurance than the average national premium.

Iowa drivers, with a good driving history, can pay $955 per year for full coverage.

The biggest contributing factor for low premiums in Iowa is the large rural to urban ratio.

At the end of the day, if you have less drivers driving on congested roads you have less accidents.

And you will have less drivers filing claims which means lower premiums.

Company30 Year Old45 Year Old
Western National$1,188$732
Progressive$1,217$770
Hastings Mutual$1,243$824

Idaho

Idaho’s average premium is approximately $1,020 per year.

Or nearly 28% lower than the national average.

Idaho benefits from low premiums since the uninsured motorist rate is only 8%.

And, according to research, a large percentage of drivers in Idaho are 55 and up.

In the largest city, Boise, a car insurance premium is going to be slightly higher.

On the other hand, drivers in Boise have shorter commutes which means they drive less, which means lower premiums.

Below are quotes for drivers residing in Boise. 

Company30 Year Old45 Year Old
American National$1,231$754
Progressive$1,268$798
Mutual Enumclaw$1,312$821

Ohio

Ohio’s average premium is $1,024 and unusually low compared to the rest of the U.S.

One the contributing factors is Ohio’s tort-based insurance system.

A tort system is the opposite of a no-fault state where one driver is found at fault and their insurer pays the medical fees.

Essentially there is a lack of a safety net.

And because of this, auto insurance rates are lower in Ohio.

Below are sample quotes for drivers with a clean record:

Company30 Year Old45 Year Old
Erie$1,188$711
The Cincinnati$1,265$746
Westfield$1,349$789

Wisconsin

Wisconsin auto insurance rates are lower than average with an average premium of $1,050.

The rural areas of Wisconsin bring down the average rate and the competitive market.

States with the lowest annual auto premium. Maine, Iowa, Idaho and Ohio.Note: States with the least expensive policies cluster at or near $1,000. Or over 30% lower than the nationwide average premium price of $1,386.

While cities, such as Milwaukee, are seeing an increase in premiums.

Only liability coverage is require with uninsured motorist protection.

If you reside in the rural areas of the state, you will pay low premiums.

And if you live in or near big cities, such as Milwaukee, you’ll get much higher premiums.

Below are car insurance quotes from local and national companies in Wisconsin.

Company30 Year Old45 Year Old
Progressive$1,012$689
Partners Mutual$1,089$715
Pekin$1,165$765

For illustrative purposes, here are quotes for a 30 and 45-year-old driver in Milwaukee:

Company30 Year Old45 Year Old
Progressive$1,365$845
Partners Mutual$1,450$923
Pekin$1,523$1,004

The difference between urban is rural areas of Wisconsin is approximately 30%. 

Most Expensive States

The states with the highest auto insurance rates are Michigan, Louisiana, Florida and Rhode Island.

Michigan is a no-fault state which means each driver can recover damages or injuries via their own insurer.

Louisiana has a high number of uninsured drivers and the tendency to get damage from floods and hurricanes.

Florida is expensive since there are more than 20% of drivers drive uninsured.

Below is a table with the average car insurance premium and the breakdown of each coverage. 

Expensive StatesTotal PremiumLiabilityCollisionComprehensive
Michigan$2,610$1,787$558$265
Louisiana$2,287$1,479$548$260
Florida$2,054$1,296$518$240
Rhode Island$1,975$1,211$556$208
Nevada$1,853$1,094$547$212
Kentucky$1,811$1,090$521$200
Texas$1,765$1,054$512$199
New York$1,690$1,002$495$193
Delaware$1,672$1,053$429$190
California$1,648$985$467$196

Michigan

Michigan has the highest premiums in the nation with an average price over $2,600 per year.

Depending on where you live, your premium can vary drastically in Michigan.

For example, average monthly premiums in Detroit are nearly $500 while in Marquette the average monthly premium is $130.

The primary driver for Michigan’s high premiums is the no-fault status.

This means each driver can recover losses from their own insurer no matter who is at fault.

Plus, each driver is required to have personal injury protection or PIP.

Most expensive states for an auto policy. Michigan, Louisiana, Florida and Nevada.Note: Illustrated above are the most expensive states to buy a policy with an average car insurance premium at $2,000+. When compared to the nationwide average premium of $1,386, Nevada is 50% more and Michigan is nearly double or 100% higher.

Statistically, drivers in rural areas are paying far less, while drivers in urban cities, such as Detroit, are paying exorbitantly high car insurance premiums.

Below are quotes for a 30 and 45-year-old driver:

Company30 Year Old45 Year Old
MetLife$2,890$1,879
Hastings Mutual$3,045$1,963
Chubb$3,169$2,148

Louisiana

The average premium Louisiana is $2,287 which is almost double the national average.

There are a high number of uninsured drivers amounting to almost 20%.

In turn, this drives up premiums for legal drivers.

According to Nola.com, 40% of drivers in Louisiana carry minimum coverage.

Another factor driving up premiums is the tendency for hurricanes and floods in the region.

Below are sample quotes from the cheapest companies in Louisiana: 

Company30 Year Old45 Year Old
Southern Farm Bureau$1,900$1,123
Progressive$2,098$1,239
State Auto$2,251$1,452

Florida

Florida is another state with an uninsured driver issue.

According to Autolist, 25% of drivers in Florida drive uninsured.

Depending where you live, the Sunshine State is congested in many regions.

In Miami and Coral Gables you will pay $220 per month for a premium, while in Bonifay a premium is only $60 per month.

If you live in urban areas your premium can be nearly three times the cost in rural areas of Florida. 

Another factor driving up premiums is the inclement weather from hurricanes and flooding.

In the table below are sample quotes of the least expensive insurers in Florida: 

Company30 Year Old45 Year Old
Florida Farm Bureau$1,840$1,068
USAA$1,985$1,154
Travelers$2,125$1,312

Rhode Island

Rhode Island is ranked #4 in the nation when it comes to expensive car insurance premiums.

The main driver in Rhode Island’s rising insurance costs is the high number of claims.

Also, there are “body shop” laws passed which are increasing the cost of premiums.

Listed below are sample quotes from insurers:

Company30 Year Old45 Year Old
USAA$1,724$935
Travelers$1,869$1,054
Liberty Mutual$1,978$1,150

Premiums in Rhode Island are increasing by 8% per year.

Nevada

Nevada has exorbitantly high premiums with an average cost at $1,853.

According to studies, the reason is the high amount of luxury vehicles and claims.

Another factor is the cost of settlements.

Attorney’s litigate in Nevada and get high settlements; this, in turn, increases premiums.

And if you live in or near Las Vegas expect your average premium to skyrocket to $2,300 per year.

Below are auto insurance rates from the least expensive insurers in Nevada: 

Company30 Year Old45 Year Old
Allied$1,456$989
Progressive$1,590$1,080
Capital$1,625$1,158

And if you live in Las Vegas expect to pay over 30% more for a premium.

As per the quotes below:

Company30 Year Old45 Year Old
Allied$1,800$1,255
Progressive$1,965$1,312
Capital$2,053$1,387

Average Cost of Car Insurance

The average cost of a premium in the U.S. is approximately $1,400 per year.

Included in the table below are all states with the average cost for a driver with a clean driving history.

A primary factor for insurers to decide your rate is your location.

As you may have read, a premium in Michigan is nearly double the average price of $1,400 in the U.S.

Below you find each state from the most to least expensive: 

StateAverage PremiumStateAverage Premium
Michigan$2,610Oregon$1,501
Louisiana$2,287New Mexico$1,487
Florida$2,054Kansas$1,480
Rhode Island$1,975West Virginia$1,476
Nevada$1,853Wyoming$1,476
Kentucky$1,811Alabama$1,463
Texas$1,765Nebraska$1,459
New York$1,690Pennsylvania$1,450
Delaware$1,672South Carolina$1,441
California$1,648North Dakota$1,430
Colorado$1,620Massachusetts$1,411
New Jersey$1,618Tennessee$1,402
Arizona$1,600Washington$1,379
Oklahoma$1,586Alaska$1,351
Connecticut$1,570Indiana$1,349
Georgia$1,550New Hampshire$1,348
Missouri$1,543Hawaii$1,265
Utah$1,540North Carolina$1,158
Montana$1,540Virginia$1,121
Maryland$1,539Vermont$1,065
South Dakota$1,530Wisconsin$1,050
Illinois$1,519Ohio$1,024
Minnesota$1,511Idaho$1,020
Arkansas$1,509Iowa$955
Mississippi$1,508Maine$910

Your auto insurance rate is going to be decided by many other factors such as your age and the type of vehicle you drive.

If you want cheap auto insurance it is important to take advantage of factors insurers use to lower your overall premium. 

Vehicle Type

Though you may live in an expensive or cheaper state, the type of vehicle you drive can make a substantial impact on your car insurance premium.

For example, if you live in Michigan, the cost to insure a Honda Civic is $3,094 while a BMW 640i cost over $4,100.

Below are sample quotes of each vehicle for a driver in Michigan:

 Honda Civic EXBMW 640iGMC Yukon
30 Year Old$3,046$4,180$2,674
45 Year Old$2,278$3,287$1,895

As you can see, if you switch from driving a BMW to Chevy Yukon you can save over $1,500 per year in Michigan.

Let’s take a look at Maine, the cheapest state.

If we use the exact vehicle the premium drops substantially.

However, the difference in price among cars isn’t as significant either.

Take a look at the sample quotes below: 

 Honda Civic EXBMW 640iGMC Yukon
30 Year Old$954$1,596$1,111
45 Year Old$629$952$703

In Maine you have more financial freedom to drive the car you want.

In Michigan, unless you are wealthy, you will choose a vehicle based on its features plus the cost to insure it.

Coverage by State

Of course you want to get a premium which is lower than the average price.

On the other hand, the insurer you choose to get a policy from is going to determine how much you pay for car insurance premium in each state.

Below we have itemized the least expensive companies by state.

The insurance companies listed are ones we found offering coverage lower than the average premium.

Your premium is going to be determined by many factors. 

StateFirst Cheapest PremiumSecond Cheapest Premium
AlabamaALFA$1,345Allstate$1,484
AlaskaUmialik$1,200Nationwide$1,324
ArkansasColumbia$1,348Southern Farm Bureau$1,420
ArizonaAmeriprise$1,154Progressive$1,188
CaliforniaGEICO$1,535Unitrin$1,630
ColoradoColorado Farm Bureau$1,588Grange $1,670
ConnecticutUnitrin$1,490Middlesex$1,558
DelawareGEICO$1,597Grange$1,632
FloridaFarm Bureau$1,87621st Century $1,932
GeorgiaCountry Financial$1,732Allstate$1,793
HawaiiProgressive$1,080Allstate$1,130
IdahoGrange  $890GEICO$915
IllinoisErie$1,388The Cincinnati$1,432
IndianaErie$1,344The Cincinnati$1,400
IowaPekin $811Progressive$840
KansasGEICO$1,257Farm Bureau$1,326
KentuckyThe Cincinnati$1,634Kentucky Farm Bureau$1,688
LouisianaSouthern Farm Bureau$1,980Allstate$2,087
MainePatriot$800Vermont Mutual$823
MarylandErie$1,328Penn National$1,452
MassachusettsPlymouth Rock$1,390GEICO$1,455
MichiganChubb$2,455Hastings Mutual$2,530
MinnesotaFarm Bureau Mutual$1,410Western National$1,532
MississippiALFA$1,376Unitrin$1,380
MissouriFarmers$1,390Auto-Owners$1,425
MontanaProgressive$1,210Esurance$1,245
NebraskaAmerican Family$1,029GEICO$1,086
NevadaAllied$1,788Oregon Mutual$1,790
New HampshireCommerce $1,056Nationwide$1,095
New JerseyPenn National$1,467NJM$1,487
New MexicoGEICO$1,235Allied$1,362
New YorkErie$1,550GEICO$1,575
North CarolinaNationwide$980GEICO$1,010
North DakotaAllied$1,231North Star$1,276
OhioErie$893Grange $915
OklahomaOklahoma Farm Bureau $1,400Shelter$1,455
OregonGrange$1,277Esurance$1,344
PennsylvaniaNJM$1,299Erie$1,342
Rhode IslandEsurance$1,655Grange $1,700
South CarolinaSouthern Farm Bureau$1,233Nationwide$1,276
South DakotaUnitrin$1,365Farmers$1,414
TennesseeErie$1,203Utica National$1,259
TexasTexas Farm Bureau$1,555Esurance$1,598
UtahAllstate$1,376GEICO$1,425
VermontGEICO$890Concord$899
VirginiaChubb$914Nationwide$955
WashingtonCapital$1,125Grange$1,187
West VirginiaPekin$1,076Western National$1,122
WisconsinErie$987Esurance$1,058
WyomingProgressive$1,122Allstate$1,189

The type and amount of coverage will influence your premium.

For example, the difference between full coverage and minimum liability will be significant.

Many states require you to have personal injury protection or PIP and medical payments coverage.

This too will influence your final premium.

Further below we will explain personal injury protection and medical payments coverage.

Personal Injury Protection (PIP)

Personal injury protection, sometimes called PIP, is the portion of your policy that provides medical expenses and work-loss coverage for you and your passengers in the event of a vehicle accident.

PIP covers you no matter who is at fault.

Here are items PIP will cover:

  • Medical bills
  • Surgical fees
  • Lost wages
  • Rehabilitation fees

And if you live in any states below you will be required to carry PIP along with liability coverage:

State PIP Coverage
Florida$10,000
Hawaii$10,000
KansasVaries
Kentucky$10,000
Massachusetts$8,000
MichiganUnlimited
Minnesota$40,000
New Jersey$15,000
New York$50,000
North Dakota$30,000
Pennsylvania$5,000
Utah$3,000

As you can see, many expensive states to insure a vehicle are on the list.

Since you are required to carry PIP in the listed states your overall car insurance premium will be higher than average. 

Basic policy breakdown by coverage type. Bodily injury, property damage, medical payment, and uninsured motorist.Note: Illustrated above is a breakdown of a policy. The area we are referencing too is the “medical payment” part of the policy. Some states require you have medical payment (MedPay) or personal injury protection (PIP). If you are required by your state to carry either coverage it makes up a significant portion of your policy. And in turn raising your car insurance premium.

Next, we will explain medical payments coverage and the slight difference from PIP.

Medical Payments Coverage

Medical payments coverage, sometimes called MedPay, is intended to cover medical costs in the event of any accident no matter who is at fault.

Normally, your health insurance coverage will pay for necessary medical expenses.

MedPay will “fill in the gaps” for cases where there are low limits or high deductibles.

The difference between MedPay and PIP is Personal Injury Protection takes it a step further and covers lost wages where MedPay doesn’t.

MedPay coverage is required in the following states:

  • Pennsylvania
  • Maine
  • New Hampshire

Medical payments cost less the PIP for the same coverage.

To get $10,000 in medical payments coverage you will pay from $4 to approximately $24 per month.

For example, in Maine the minimum medical payments coverage is $2,000 which will cost $8 a month or thereabouts.

PIP coverage normally has higher required limits and will cost more.

In Florida, PIP coverage is $10 to $15 a month depending on the deductible.  

Sources

https://www.michigan.gov/Auto-Insurance-Guide.pdf

http://www.pciaa.net/

https://www.iii.org/article/background-on-no-fault-auto-insurance

https://www.dfs.ny.gov/consumers/