Car Insurance Rates by State: 2023 Comparison

That's a difference of $168 per month, or $2,016 per year, depending on the state where you live. Car insurance rates vary by location because of state regulations and road risks of different places.

Average cost of auto insurance by state

Nationally, average car insurance rates are $58 per month for minimum coverage.

Michigan has the highest rates in the country for auto insurance, with drivers paying an average of $196 a month for minimum coverage. South Dakota has the cheapest auto insurance — drivers pay just $28 a month on average for minimum coverage.

In addition to where you live, car insurance rates are also affected by factors like age and driving history. For example, if you have a speeding ticket or were in a car accident, you'll usually pay more than someone who has a clean driving record.

Which states have the cheapest car insurance?

South Dakota: South Dakota's rural landscape and low number of uninsured drivers result in the cheapest minimum car insurance rates in the country. South Dakota car insurance quotes average $28 per month for minimum coverage. That's 52% lower than the national average. The cheapest quotes in South Dakota are from Auto-Owners, American Family and State Farm.

Wyoming: Wyoming drivers pay 47% less than the national average for car insurance, making it one of the cheapest states. Quotes for minimum coverage average $31 per month. State Farm and Geico have the cheapest policies. Low population, limited traffic and a small number of uninsured motorists help keep rates affordable in Wyoming.

Vermont: The average cost of car insurance in Vermont is only $32 per month, making it 45% cheaper than average. State Farm, Concord and Geico offer the cheapest minimum coverage rates to Vermont drivers.

Iowa: With an average monthly rate of just $34 for minimum coverage, Iowa has some of the cheapest car insurance coverage in the U.S. Quotes are 41% cheaper than the national average. State Farm, Auto-Owners and Farm Bureau sell the cheapest minimum-coverage auto insurance in the state.

North Dakota A minimum-coverage policy in North Dakota costs just $34 each month. That's 41% cheaper than the national average. The cheapest quotes in North Dakota are from American Family, State Farm and Auto-Owners.

Car insurance rates by city

Car insurance rates also vary within states. Typically, cities with more people have higher insurance rates. Busier roads mean you're more likely to get into an accident. The heightened risk means higher prices for car insurance.

For example, in Texas, car insurance costs $30 more in a big city like Houston than in a smaller city like El Paso.

Compare car insurance rates for cities in your state

When estimating car insurance rates, don't rely only on state averages. Find out how much car insurance costs in the city where you live.

Car insurance rates by ZIP code

Car insurance rates also vary between neighborhoods. The ZIP code where you live within a city can affect rates by more than a third.

Don't be worried if your auto insurance rates change when you move across town. Compare quotes for the cheapest car insurance companies to find the best deal in your new ZIP code.

Which states have the most expensive car insurance rates?

Michigan: Michigan has by far the most expensive car insurance rates in the country. Drivers in Michigan pay an average of $196 a month for minimum coverage. That's more than triple the national average.

After recent changes to Michigan car insurance requirements, drivers now only need $250,000 in PIP insurance, and those with Medicare can opt out altogether. This has helped to lower costs, even though rates are still expensive. Progressive, Auto-Owners and USAA have the best rates for minimum coverage car insurance in Michigan.

Rhode Island: Rhode Island is the second-most expensive state for auto insurance, with rates averaging $100 per month for minimum coverage. That's 72% higher than the national average. Travelers, Amica and Geico typically have the cheapest minimum coverage rates for Rhode Island drivers.

Nevada: With residents paying an average of $97 per month for minimum coverage, Nevada has the third-highest car insurance rates in the country. Traffic congestion is high around cities such as Las Vegas and Reno, which account for much of the state's population. That causes insurance companies to charge rates 67% higher than the national average for all drivers in the state. Nevada drivers can get the most affordable rates from State Farm and Geico.

Florida: Florida is one of the most expensive states for car insurance, averaging $91 per month for a minimum coverage policy. High rates are due to both the large percent of uninsured drivers and the risk of weather damage. Geico and State Farm have the most affordable quotes for drivers looking to save on minimum coverage in Florida.

New Jersey: As a no-fault state, New Jersey car insurance laws require drivers to carry PIP insurance. New Jersey drivers pay about $86 per month for minimum coverage, which is 48% above the national average. Geico has the cheapest liability-only coverage for most New Jersey drivers.

How do state coverage requirements affect car insurance costs?

Each state has different car insurance laws. The car insurance requirements affects car insurance rates.

States usually require bodily injury and property damage liability insurance, and sometimes uninsured motorist and PIP coverages.

Most states require drivers to have auto insurance. All states except Florida require drivers to have bodily injury liability, and all 50 states and the District of Columbia require property damage liability. About half of all states require uninsured or underinsured coverage, and 16 states require PIP.

Is full coverage required in my state?

Full coverage car insurance is not required by any state. However, it's usually required if you have a car loan or lease.

Full coverage gives you more protection than a minimum coverage policy. It includes collision and comprehensive coverages to pay for nearly any damage to your own car if you cause an accident. Full coverage also has higher liability limits beyond what your state requires.

The rule of thumb is that you should drop full coverage if your car's value is less than $5,000, or if it's more than 10 years old.

Of the major national companies, State Farm is the cheapest company for full coverage. But you may find a better deal with a small local or regional company, so get car insurance quotes from multiple companies before purchasing a policy.

No-fault state vs. fault states

Car insurance can be expensive in states where no-fault car insurance is required. This means drivers need to have PIP insurance to cover their own medical bills after an accident, and a driver's right to sue after an accident is limited.

Of the 12 no-fault states, three appear in the top five for the highest auto insurance rates.

The 12 no-fault states

In fault states, the person who causes the car accident must use their liability insurance to pay for the other driver's injuries.

Some states, like Delaware, Maine and Oregon, require PIP, even though they are not no-fault states.

What other factors besides location affect auto insurance rates?

In addition to local factors like ZIP code and crime and theft rates, insurance companies also consider personal details when setting insurance rates. This includes your age, driving record and credit score.

Every company has its own unique formula for developing rates, with some companies considering certain factors more than others. That's why it's so important to compare quotes to maximize your chance of getting the best rate.

How moving states can impact your car insurance rates

Moving across state lines will likely impact your auto insurance rates. As a general rule, if the state you're moving to has higher requirements for minimum coverage, you'll pay higher rates. If it has lower requirements, you could pay less for car insurance.

Comparing the requirements can help you start estimating your car insurance to see how your bills might change after a move.

The driving conditions of your new state may also affect your rates. For example, minimum coverage car insurance in Pennsylvania costs an average of 53% less than in New Jersey. Both states have identical minimum coverage requirements and are both no-fault states. But New Jersey has more people and more traffic.

You may also need to factor in the cost to change your registration and license with your new state DMV.

Methodology

We collected quotes from 37 top insurance companies across all available ZIP codes in all 50 states and Washington, D.C. Quotes are for a 30-year-old man with a 2015 Honda Civic EX and good credit.

Full coverage policies include coverage limits above minimum requirements.

ValuePenguin's analysis used insurance rate data from Quadrant Information Services. These rates were publicly sourced from insurer filings and should be used for comparative purposes only. Your own quotes may be different.