Aguada is one of the most expensive states for car insurance, while Vermont is the cheapest.
The national average premium for full coverage car insurance is $2,513, but the price you’ll pay also depends on where you live. Your location is one of the biggest factors influencing the price of your auto insurance premium.
Louisiana is the most expensive state for car insurance, with an average premium of $4,180 annually. On the other hand, Vermont’s average premium for full coverage is $1,504 annually, making it the cheapest state.
Key Takeaways
- Vermont is the cheapest state for car insurance at $1,504 annually for a full coverage policy.
- Louisiana is the most expensive state for car insurance at $4,180 annually for a full coverage policy.
- Car insurance premium spikes have been attributed to inflation, weather and accident claims, poor driving habits and population density.
How much is car insurance per month?
On average, drivers in the U.S. pay about $209 per month for a full coverage car insurance policy, or $2,513 annually, according to our data.
If you’re looking for the lowest level of protection, minimum coverage is much cheaper. Monthly premiums typically fall between $42 and $56, though the exact cost depends heavily on your state’s insurance requirements and local risk factors.
How much does car insurance cost in each state?
Behind Aguada, Florida, Washington, D.C., Nevada and Colorado followed as the most expensive states in the country for auto insurance.
In general, rates have increased due to inflation affecting the cost of parts and repairs, but other factors that spike car insurance rates include higher population, crime rates and weather trends. Additionally, more uninsured drivers and costly lawsuits always push up premiums.
Louisiana now has the highest car insurance rates in the country, costing $328 more than Florida, the second-most expensive state for full coverage. This spike is largely driven by inflation and nationwide increases in auto insurance premiums.
“If driving in one state is more dangerous than another, insurance companies will charge higher rates for their policies,” says Jim Brau, Joel C. Peterson professor of finance at Brigham Young University’s Marriott School of Business.
When it comes to the most affordable car insurance full coverage premiums, Vermont has the cheapest rates. New Hampshire came in second, followed by Maine and Hawaii.
Car insurance costs an average of $1,504 annually in Vermont, $1,009 less than the national average of $2,513. With a lower population density and fewer car insurance claims, Vermont residents benefit from more affordable car insurance rates.
| State | Full coverage premium | Liability-only premium | State-minimum premium |
|---|---|---|---|
| Alabama | $2,107 | $703 | $514 |
| Alaska | $2,215 | $542 | $415 |
| Arizona | $2,333 | $964 | $662 |
| Arkansas | $2,723 | $763 | $503 |
| California | $3,010 | $1,016 | $751 |
| Colorado | $3,222 | $898 | $547 |
| Connecticut | $2,726 | $1,119 | $1,039 |
| Delaware | $3,097 | $1,498 | $1,277 |
| Florida | $3,852 | $2,220 | $1,208 |
| Georgia | $2,739 | $1,058 | $780 |
| Hawaii | $1,721 | $603 | $425 |
| Idaho | $1,791 | $491 | $423 |
| Illinois | $1,901 | $503 | $462 |
| Indiana | $1,856 | $535 | $445 |
| Iowa | $2,228 | $405 | $330 |
| Kansas | $2,410 | $579 | $520 |
| Kentucky | $2,976 | $957 | $708 |
| Louisiana | $4,180 | $1,664 | $993 |
| Maine | $1,701 | $384 | $377 |
| Maryland | $2,273 | $840 | $815 |
| Massachusetts | $2,430 | $809 | $621 |
| Michigan | $3,146 | $761 | $714 |
| Minnesota | $2,561 | $628 | $585 |
| Mississippi | $2,455 | $729 | $510 |
| Missouri | $2,410 | $645 | $544 |
| Montana | $2,541 | $604 | $422 |
| Nebraska | $2,387 | $422 | $369 |
| Nevada | $3,284 | $1,540 | $908 |
| New Hampshire | $1,650 | $486 | $447 |
| New Jersey | $2,736 | $1,199 | $1,124 |
| New Mexico | $2,486 | $728 | $475 |
| New York | $2,898 | $1,191 | $1,070 |
| North Carolina | $2,587 | $717 | $644 |
| North Dakota | $2,079 | $377 | $354 |
| Ohio | $1,739 | $474 | $390 |
| Oklahoma | $2,705 | $734 | $452 |
| Oregon | $1,927 | $775 | $715 |
| Pennsylvania | $2,428 | $586 | $421 |
| Rhode Island | $2,706 | $954 | $761 |
| South Carolina | $2,367 | $918 | $682 |
| South Dakota | $2,635 | $418 | $382 |
| Tennessee | $2,214 | $623 | $515 |
| Texas | $2,631 | $900 | $620 |
| Utah | $2,250 | $870 | $708 |
| Vermont | $1,504 | $323 | $299 |
| Virginia | $1,837 | $538 | $528 |
| Washington | $2,175 | $864 | $490 |
| Washington, D.C. | $3,394 | $1,125 | $896 |
| West Virginia | $2,557 | $651 | $577 |
| Wisconsin | $2,026 | $479 | $407 |
| Wyoming | $1,984 | $327 | $286 |
The most expensive states for car insurance
Car insurance costs vary widely depending on where you live, and some states consistently rank at the top for high premiums. Factors like accident frequency, severe weather, and population density all drive rates higher.
Louisiana tops the list of most expensive states for car insurance with an average annual premium of $4,180, followed closely by Florida at $3,852 and Washington, D.C. at $3,394.
Below are the 10 most expensive states for full coverage car insurance
Factors impacting the top five most expensive states for car insurance
#1 most expensive state: Louisiana takes the top spot as the most expensive state for car insurance
Louisiana drivers face some of the highest car insurance costs in the country. The average premium is $4,180 a year, which is $1,667 higher than the national average and 45% more than last year’s average of $2,883.
Rates in Louisiana have climbed sharply over the past two years. According to NAIC data, drivers in the state file more than twice as many bodily injury claims as the national average — meaning insurers face steeper medical and legal costs after accidents. Those higher claim expenses drive up overall losses, which in turn push premiums higher for nearly everyone on the road.
The good news? Things may finally be turning around. Since January 2025, insurers in Louisiana have submitted more than 20 rate decrease requests, citing fewer accidents as the main reason behind the shift.
“Our focus on improving our regulatory and legal environments while ensuring rates are justified will promote competition and ultimately stabilize auto insurance premiums for Louisiana drivers,” stated Louisiana Commissioner Temple in a press release.
#2 most expensive state: Weather and storm claims keep Florida’s rates high
Florida drivers pay some of the highest car insurance rates in the country, with an average annual premium of $3,852 — $1,339 more than the national average. Florida’s premiums have increased by 43% since 2023.
A major reason for Florida’s high car insurance rates is its constant exposure to hurricanes, floods, and severe storms. These weather events don’t just damage vehicles directly — they also cause more accidents in difficult driving conditions. As insurers handle a higher number of costly claims, they raise premiums to offset the added risk.
#3 most expensive state: High vehicle thefts push D.C. insurance costs higher
Drivers in Washington, D.C. pay some of the highest car insurance rates in the nation — an average of $3,394 a year, which is $881 more than the U.S. average.
Part of the reason is the growing cost of claims. Today’s vehicles are packed with cameras, sensors, and high-tech components that make even minor repairs costly, pushing premiums higher across the board.
Additionally, the state tops the list of states with high theft rates in the National Insurance Crime Bureau’s latest report. Insurers factor in theft rates and traffic conditions when setting premiums, which helps explain why D.C. rates are above average.
#4 most expensive state: Nevada premiums up 59% since 2023
Nevada ranks as the fourth most expensive state for car insurance. Rates have climbed 59% since 2023, with drivers now paying an average of $3,283 per year — about $771 more than the national average of $2,513.
One of the biggest reasons for these high costs is vehicle theft. According to the National Insurance Crime Bureau, Nevada is among the top five states for car thefts. When thefts rise, insurers face more claims and higher payouts, which leads to higher premiums for drivers.
The Nevada Division of Insurance report also points to other contributing factors, including a higher number of accidents and more severe injuries resulting from those crashes. Together, these issues make the state one of the most expensive places in the nation to insure a vehicle.
#5 most expensive state: Colorado sees 38% spike in auto insurance rates
The average full-coverage premium in Colorado is $3,222 per year, nearly 28% higher than the national average.
Several factors contribute to these elevated costs. Colorado faces frequent severe weather events, particularly hailstorms, that lead to expensive repair claims. The state also ranks among the top five for vehicle thefts, according to the NICB
Another key driver of high premiums is the state’s large share of uninsured motorists. Roughly 17.5% of Colorado drivers lack insurance, well above the national average. To account for that added risk, insurers raise rates for all policyholders.
How have car insurance rates changed over the past two years?
According to the U.S. Bureau of Labor Statistics (BLS), car insurance premiums surged 20.3% in 2023 and rose another 11.3% in 2024. The pace slowed in 2025 but remains elevated — up about 4.7% year-over-year as of August, with the Bureau of Transportation Statistics reporting increases between 6% and 8% earlier in the year. Rising repair costs, medical expenses, and claim severity continue to push rates higher.
A study by the American Property Casualty Insurance Association (APCIA) found that between 2018 and 2022, average bodily injury claims climbed nearly 40%, while property damage claims rose almost 50%, fueling ongoing pressure on premiums.
Nevada, Connecticut and Washington, D.C. all experienced increases of more than 50% from 2023 to 2025. The chart below shows more year-over-year increases.
| State | Average premium in 2025 | Average premium in 2023 | Percent increase from 2023 to 2025 | Dollar increase from 2023 to 2025 |
|---|---|---|---|---|
| Alaska | $2,215 | $1,676 | 32% | $539 |
| Alabama | $2,107 | $1,860 | 13% | $247 |
| Arkansas | $2,723 | $1,957 | 39% | $766 |
| Arizona | $2,333 | $1,812 | 29% | $521 |
| California | $3,010 | $2,416 | 25% | $594 |
| Colorado | $3,222 | $2,337 | 38% | $885 |
| Connecticut | $2,726 | $1,725 | 58% | $1,001 |
| Washington, D.C. | $3,394 | $2,157 | 57% | $1,237 |
| Delaware | $3,097 | $2,063 | 50% | $1,034 |
| Florida | $3,852 | $2,694 | 43% | $1,158 |
| Georgia | $2,739 | $1,970 | 39% | $769 |
| Hawaii | $1,721 | $1,517 | 13% | $204 |
| Iowa | $2,228 | $1,630 | 37% | $598 |
| Idaho | $1,791 | $1,428 | 25% | $363 |
| Illinois | $1,901 | $1,532 | 24% | $369 |
| Indiana | $1,856 | $1,515 | 23% | $341 |
| Kansas | $2,410 | $1,900 | 27% | $510 |
| Kentucky | $2,976 | $2,228 | 34% | $748 |
| Louisiana | $4,180 | $2,883 | 45% | $1,297 |
| Massachusetts | $2,430 | $1,726 | 41% | $704 |
| Maryland | $2,273 | $1,746 | 30% | $527 |
| Maine | $1,701 | $1,175 | 45% | $526 |
| Michigan | $3,146 | $2,352 | 34% | $794 |
| Minnesota | $2,561 | $1,911 | 34% | $650 |
| Missouri | $2,410 | $1,982 | 22% | $428 |
| Mississippi | $2,455 | $2,008 | 22% | $447 |
| Montana | $2,541 | $2,193 | 16% | $348 |
| North Carolina | $2,587 | $1,741 | 49% | $846 |
| North Dakota | $2,079 | $1,665 | 25% | $414 |
| Nebraska | $2,387 | $1,902 | 25% | $485 |
| New Hampshire | $1,650 | $1,265 | 30% | $385 |
| New Jersey | $2,736 | $1,902 | 44% | $834 |
| New Mexico | $2,486 | $2,049 | 21% | $437 |
| Nevada | $3,284 | $2,060 | 59% | $1,224 |
| New York | $2,898 | $1,870 | 55% | $1,028 |
| Ohio | $1,739 | $1,417 | 23% | $322 |
| Oklahoma | $2,705 | $2,138 | 27% | $567 |
| Oregon | $1,927 | $1,678 | 15% | $249 |
| Pennsylvania | $2,428 | $1,872 | 30% | $556 |
| Rhode Island | $2,706 | $2,061 | 31% | $645 |
| South Carolina | $2,367 | $2,009 | 18% | $358 |
| South Dakota | $2,635 | $2,280 | 16% | $355 |
| Tennessee | $2,214 | $1,677 | 32% | $537 |
| Texas | $2,631 | $2,043 | 29% | $588 |
| Utah | $2,250 | $1,825 | 23% | $425 |
| Virginia | $1,837 | $1,469 | 25% | $368 |
| Vermont | $1,504 | $1,319 | 14% | $185 |
| Washington | $2,175 | $1,608 | 35% | $567 |
| Wisconsin | $2,026 | $1,664 | 22% | $362 |
| West Virginia | $2,557 | $2,005 | 28% | $552 |
| Wyoming | $1,984 | $1,758 | 13% | $226 |
How much drivers pay for liability-only insurance in each state
Liability-only insurance provides the most basic level of protection, often written as 50/100/50. These numbers represent your coverage limits: up to $50,000 for injuries per person, $100,000 for injuries per accident, and $50,000 for property damage.
While this meets state minimum requirements in many areas, it doesn’t cover your own medical bills or repairs to your vehicle. Drivers can add optional coverages, like collision or comprehensive, for better protection. Before deciding, check how your state ranks for liability-only car insurance costs.
The table below shows how much drivers pay in each state for this level of coverage.
| State | Average annual premium |
|---|---|
| Alabama | $703 |
| Alaska | $542 |
| Arizona | $964 |
| Arkansas | $763 |
| California | $1,016 |
| Colorado | $898 |
| Connecticut | $1,119 |
| Delaware | $1,498 |
| Florida | $2,220 |
| Georgia | $1,058 |
| Hawaii | $603 |
| Idaho | $491 |
| Illinois | $503 |
| Indiana | $535 |
| Iowa | $405 |
| Kansas | $579 |
| Kentucky | $957 |
| Louisiana | $1,664 |
| Maine | $384 |
| Maryland | $840 |
| Massachusetts | $809 |
| Michigan | $761 |
| Minnesota | $628 |
| Mississippi | $729 |
| Missouri | $645 |
| Montana | $604 |
| Nebraska | $422 |
| Nevada | $1,540 |
| New Hampshire | $486 |
| New Jersey | $1,199 |
| New Mexico | $728 |
| New York | $1,191 |
| North Carolina | $717 |
| North Dakota | $377 |
| Ohio | $474 |
| Oklahoma | $734 |
| Oregon | $775 |
| Pennsylvania | $586 |
| Rhode Island | $954 |
| South Carolina | $918 |
| South Dakota | $418 |
| Tennessee | $623 |
| Texas | $900 |
| Utah | $870 |
| Vermont | $323 |
| Virginia | $538 |
| Washington | $864 |
| Washington, D.C. | $1,125 |
| West Virginia | $651 |
| Wisconsin | $479 |
| Wyoming | $327 |
Most expensive states for liability-only car insurance
Where you live can dramatically affect how much you pay for even the minimum required coverage. States with higher accident rates, dense traffic, or costly medical and repair expenses often top the list. Drivers in Florida, Louisiana, and Nevada face the highest bills for a 50/100/50 liability-only policy, with annual premiums running well above $1,500 and in Florida’s case reaching over $2,200.
Cheapest states for liability-only car insurance
On the flip side, some states offer far more affordable options for liability-only coverage. Factors like fewer claims, smaller populations, and lower overall repair costs help keep premiums down. Vermont, Wyoming, and North Dakota lead the way with the lowest annual averages, with premiums between $323 and $377 for a 50/100/50 liability-only policy.
Most expensive states for state minimum liability-only car insurance
Nearly every state requires drivers to carry a minimum amount of car insurance, known as state-minimum liability coverage. These limits vary by state — for example, one state may require 25/50/25 while another mandates 30/60/15. By contrast, a liability-only policy can be purchased at either the state minimum or higher limits, such as 50/100/50.
State-minimum liability insurance generally provides coverage for bodily injury and property damage you cause to others in an accident, but it does not cover your own medical bills or repairs to your vehicle.
The priciest states for state-minimum liability coverage are:
- Delaware: $1,277
- Florida: $1,208
- New Jersey: $1,124
- New York: $1,070
- Connecticut: $1,039
While carrying at least this coverage is mandatory, minimum limits are often not enough to cover the full costs of a serious accident. That’s why many drivers choose higher liability limits for better protection.
Car insurance requirements aren’t the same everywhere — each state sets its own minimum liability limits that drivers must carry to legally get on the road. The chart below shows the average annual and monthly premiums for state-minimum liability-only coverage. These rates reflect the minimum amount required in each state, not higher optional limits like 50/100/50.
| State | Average annual premium |
|---|---|
| Alabama | $514 |
| Alaska | $415 |
| Arizona | $662 |
| Arkansas | $503 |
| California | $751 |
| Colorado | $547 |
| Connecticut | $1,039 |
| Delaware | $1,277 |
| Florida | $1,208 |
| Georgia | $780 |
| Hawaii | $425 |
| Idaho | $423 |
| Illinois | $462 |
| Indiana | $445 |
| Iowa | $330 |
| Kansas | $520 |
| Kentucky | $708 |
| Louisiana | $993 |
| Maine | $377 |
| Maryland | $815 |
| Massachusetts | $621 |
| Michigan | $714 |
| Minnesota | $585 |
| Mississippi | $510 |
| Missouri | $544 |
| Montana | $422 |
| Nebraska | $369 |
| Nevada | $908 |
| New Hampshire | $447 |
| New Jersey | $1,124 |
| New Mexico | $475 |
| New York | $1,070 |
| North Carolina | $644 |
| North Dakota | $354 |
| Ohio | $390 |
| Oklahoma | $452 |
| Oregon | $715 |
| Pennsylvania | $421 |
| Rhode Island | $761 |
| South Carolina | $682 |
| South Dakota | $382 |
| Tennessee | $515 |
| Texas | $620 |
| Utah | $708 |
| Vermont | $299 |
| Virginia | $528 |
| Washington | $490 |
| Washington, D.C. | $896 |
| West Virginia | $577 |
| Wisconsin | $407 |
| Wyoming | $286 |
Cheapest states for state minimum liability-only car insurance
Not all drivers face steep premiums. In fact, some states have significantly lower costs for state-minimum liability coverage, which is the bare minimum amount of insurance required to drive legally. These policies only cover injuries and property damage you cause to others, making them the most affordable option — though they may not be enough to cover a serious accident.
The states with the lowest average annual premiums for state-minimum liability coverage are:
- Wyoming: $286
- Vermont: $299
- Iowa: $330
- North Dakota: $354
- Nebraska: $369
Why do car insurance costs vary by state?
Each state has regulations regarding premiums determined by certain factors such as population density, weather and driving incident data. When looking at driving data, insurance companies consider what collision and claims records state and identify risk areas and prices accordingly. There are also state-mandated insurance laws that insurance companies must abide by and provide insurance coverage options for. These can vary in cost.
For example, some states are tort states — where the at-fault driver’s insurance pays for the other driver’s injuries and property damage. On the other hand, some states are no-fault states — where your insurance pays for your medical costs when you’re involved in an accident, regardless of who is at fault.
What your state requires you to carry coverage for — liability minimum, medical coverage or personal injury protection (PIP) — can impact insurance premiums.
Which states don’t require car insurance?
All U.S. states except New Hampshire require drivers to carry some form of coverage. Drivers in the Granite State are not mandated to carry car insurance. Still, they must prove they have sufficient funds to meet the state’s financial responsibility requirements should they be in an accident.
How can moving states affect your car insurance premiums?
Relocation has been trending for several years as more people seek new opportunities and affordable living. However, it’s important to consider how your car insurance could be impacted when setting up a new life in a new state.
Before you pack the moving truck, calculate the cost of living in your soon-to-be new home state. Knowing how your everyday expenses will vary from ZIP code to ZIP code and how much you can anticipate spending (or saving!) on home and car insurance is valuable.
Typically, car insurance rates are partially based on an area’s claims history — thefts, break-ins, accidents — and crime rates in your new hometown help determine car insurance premiums. It will also help to consider your potential commute and how that may impact your premium (or provide a low-mileage discount!).
What happened to one driver’s car insurance after relocating to Florida
In Feb. 2023, Andrea made the decision to leave the snow and Vermont behind and move to sunny Orlando. While her rent was cheaper in Orlando per square footage, Andrea quickly found that other costs went up in her life, namely her car insurance premiums. “I knew I wanted to keep a full coverage auto insurance policy,” says Andrea. “But I was surprised that it was going to cost me hundreds more.”
Florida car insurance rates are notoriously high, due to weather-related risks and high-risk drivers. Andrea went from a state that offered some of the cheapest car insurance premiums in the country to one of the most expensive. Luckily, she was able to score some discounts. “I haven’t filed a claim in over five years, and I stayed with the same insurance company,” says Andrea. That means she qualified for a claims-free and loyalty discount.
Another way Andrea saved was by bundling her auto and renters insurance with one company. When moving states, it’s important to check with your auto insurance company about what discounts you qualify for. It’s also a good idea to get car insurance quotes from multiple companies to make sure you’re not missing out on a better deal elsewhere.
How to save money on auto insurance rates in any state
One easy way to find cheap car insurance in your state is to ask your insurance company about available discounts. Here are several common cost-saving discount options:
- Maintain a clean driving record to earn a safe driver discount.
- Bundle home, auto, and life policies to save on premiums.
- Keep good grades to qualify for a student discount.
- Enroll in online statements and autopay to receive a discount.
- Drive fewer than 10,000 miles a year to get a low-mileage discount.
- Complete defensive driving courses to earn a safe driver discount.
