Where you live has more influence on your auto insurance cost than almost any other factor in your control. Nationally, full coverage auto insurance averages about $1,780/year — but the range runs from under $1,000 in the cheapest states to over $2,700 in the most expensive. Here is what drives those differences and what you should expect in your state.
The cheapest states for auto insurance
Vermont, Maine, Idaho, and Ohio consistently rank among the cheapest states for auto insurance, with average annual premiums under $1,200 for full coverage. Low population density, fewer severe weather events, modest litigation rates, and reasonable minimum coverage requirements all contribute.
Midwestern and rural states generally benefit from lower theft rates, less congested roads, and fewer large settlements from accident lawsuits.
The most expensive states
Florida, Louisiana, New York, and California consistently top the most expensive list. Florida combines high litigation rates, a high rate of uninsured drivers, hurricane damage exposure, and a historically problematic no-fault insurance system. Louisiana has the highest per-accident claims costs in the nation. New York and California have dense urban areas with high accident frequency and expensive medical costs.
Michigan has historically been the most expensive state due to its unlimited personal injury protection (PIP) requirement, though 2020 reforms have moderated rates somewhat.
Why your specific location matters more than the state average
State averages are starting points. Your actual rate is also shaped by your specific city and zip code within that state. Urban drivers typically pay 20-40% more than rural drivers in the same state due to higher accident frequency and theft rates.
A driver moving from rural Ohio to Miami, Florida could see their rate nearly triple even though both states' averages are miles apart.
How to find out if you are overpaying
The most reliable way to know if you are overpaying is to get 3 competing quotes at each policy renewal. Loyalty discounts rarely offset the savings available by switching. Use the state comparison tool or our auto insurance calculator to see your state's average and estimate your personalized rate.
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