These 15 States Have the Most Expensive Car Insurance (Is Yours on the List?)

NEWS & TRENDING - INSURANCE NEWS
Plan on paying more for car insurance if you live in one of these states.
Updated May 8, 2024
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When evaluating how expensive it is to live in a certain city or state, you have to consider more than the cost of housing, groceries, utilities, and gas. You also need to check car insurance rates.

If you live in an area with low rates, you could be in for a nasty shock when you move and start shopping for auto insurance in your new home.

The following 15 states have the highest full-coverage car insurance rates in the U.S. If you’re considering moving to one of these locations, make sure you shop around so you can save money on car insurance.

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15. Texas

Ryan Conine/Adobe Houston Texas

Everything’s bigger in Texas — including its car insurance rates. Premiums cost Texas residents an average of $2,043 per year, which can make it difficult to save money.

14. New Mexico

SeanPavonePhoto/Adobe skyline of albuquerque

The Land of Enchantment is home to breathtaking desert landscapes, top-notch Southwestern cuisine, and a fascinating cultural heritage that stretches back centuries.

Less enchanting, however, is the state’s high auto insurance rate: The average resident spends $2,049 a year for car insurance.

13. Nevada

John/Adobe reno skyline during sunset

As a Nevada resident, you might be happy to try your luck at one of the state’s renowned casinos every once in a while.

But unless you want to roll the dice by getting inadequate car insurance coverage, you can expect to pay an average of $2,060 for full insurance coverage.

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12. Rhode Island

SeanPavonePhoto/Adobe providence skylines at night

The smallest U.S. state doesn’t have tiny auto insurance prices. Instead, those living in the Ocean State pay an average of $2,061 a year for coverage.

11. Delaware

spiritofamerica/Adobe welcome to delaware sign

The First State doesn’t take the top spot in terms of expensive car insurance. However, Delaware still has the 11th most expensive car insurance in the country. Residents pay an average rate of $2,063 for full coverage.

10. Oklahoma

SeanPavonePhoto/Adobe oklahoma city skyline during day time

Per Rodgers and Hammerstein, Oklahoma is a land with “plenty of air and plenty of room,” as well as “plenty of heart and plenty of hope.”

But the two famous composers couldn’t have known that Oklahoma would also require residents to spend plenty of money on car insurance — to the tune of $2,138 a year.

9. Washington, D.C.

lazyllama/Adobe capitol buildings dome

The nation’s capital — which is technically not a state — has the second-worst traffic in the country, putting it after New York City and just ahead of San Francisco, according to an analysis by geolocation technology specialist TomTom.

Drivers in the metro also face expensive car insurance: The average annual rate to insure a car in the area is $2,157.

8. Montana

Ai/Adobe cityscape in bozeman

Montana is a land of clear skies, mountain vistas, and sparse population density. But that peaceful landscape doesn’t translate into affordable car prices.

Instead, residents of the beautiful Big Sky State can expect to pay $2,193 a year for full auto coverage.

7. Kentucky

SeanPavonePhoto/Adobe louisville kentucky skyline on ohio river

Kentucky is home to some of the fastest horses, the world’s longest cave system, and the best bourbon. In fact, the state is responsible for 95% of the world’s bourbon production.

Unfortunately, at an average of $2,228 per person, it’s also home to some of the highest annual rates for car insurance.

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6. Michigan

f11photo/Adobe downtown detroit

Michigan residents enjoy the 11,000 lakes scattered across this gorgeous state, but they’ll pay a pretty penny if they want to drive to one.

Along with high gas prices — which jumped by a whopping 19 cents in Detroit in March alone — Michigan residents pay an average of $2,266 to insure their cars.

5. South Dakota

Naya Na/Adobe south dakota big sioux river park

South Dakota might be the fifth-least populated state in the country, but it also has the fifth-highest car insurance rates. On average, South Dakota residents can expect to pay $2,280 a year for full auto insurance coverage.

4. Colorado

Kevin Ruck/Adobe vail colorado

The majestic Rocky Mountains aren’t the only reason to call Denver the “Mile-High City.” At an average of $2,337 per year, Colorado takes fourth place in terms of sky-high auto insurance costs.

3. California

SeanPavonePhoto/Adobe downtown los angeles california cityscapes

Everyone knows the cost of living in California can be high. So, whether you live in the Golden State or not, you probably aren’t surprised to hear that it has the third-highest car insurance rates in the country.

Expect to pay around $2,416 for a year of full automobile coverage.

2. Florida

SeanPavonePhoto/Adobe beautiful tampa florida skyline at sunset

Floridians enjoy sunny skies and white-sand beaches. But clouds have gathered as more insurance companies leave the state and it becomes harder for residents to find affordable coverage.

Rates in Florida have long been higher than in other places thanks to factors such as higher litigation and severe weather. Today, you can expect to pay an average of $2,694 per year for coverage.

1. Louisiana

Kevin Ruck/Adobe new orleans louisiana downtown skyline

Generally speaking, states in the South have a pretty low cost of living. For the most part, Louisiana isn’t an exception.

But when it comes to car insurance, Louisianans pay more than anyone else in the country, at an average of $2,883 per year for full coverage.

Bottom line

luckybusiness/Adobe attractive man in business suit driving car

If you live in a state with above-average car insurance rates, you aren’t entirely out of luck. It’s possible that you just haven’t found the right insurance company for your needs.

Instead of settling for high premiums, shop around and compare rates. Doing so is the best way to cut car insurance costs and keep more cash in your wallet.

  • You could save up to $500 with some companies
  • Compare dozens of providers in under 5 minutes
  • Fast, free and easy way to shop for insurance
  • Quickly find the perfect rate for you

Author Details

Michelle Smith Michelle Smith has spent a decade writing for and about small businesses. She specializes in all things finance and has written for publications like G2 and SmallBizDaily. When she's not writing for work at her desk, you can usually find her writing for pleasure near large bodies of water.

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