The highest 10 costliest states for automotive insurance coverage

Some states are extra susceptible to automotive insurance coverage claims than others. In reality, the place you reside is likely one of the largest elements influencing how a lot it is advisable pay in auto premiums.

To present you an image of the place protection prices are the best, Insurance coverage Enterprise highlights the ten costliest states for automotive insurance coverage on this information. We are going to break down the figures and present how different key metrics can have an effect on auto insurance coverage charges.

If you wish to discover out the place your state ranks when it comes to premiums, you’ve come to the appropriate place. Learn on as we checklist the highest 10 states with the best automotive insurance coverage charges.

The nationwide common price of full protection automotive insurance coverage is $2,543 based mostly on Bankrate’s newest annual report. This determine represents a 26% rise from final 12 months.

The buyer monetary providers agency expects the speed hikes to proceed all year long. The approval of the premium will increase petitioned by automotive insurance coverage firms over the previous few years are predicted to drive up protection prices.

The report notes that “automotive insurance coverage charges usually don’t decline however can stabilize.” One thing that will occur in 2025.

“Auto insurance coverage charges have been rising at a breakneck tempo,” explains Greg McBride, chief monetary analyst for Bankrate. “And although the tempo of will increase will finally gradual, that doesn’t imply premiums are coming down.”

The true price of automotive insurance coverage

The report states that the true price of automotive insurance coverage isn’t mirrored within the quantity of premiums you pay every year. Quite, the true price is proven by the share of revenue you spend on protection.

The report used this metric to investigate auto insurance coverage charges in all zip codes and insurers throughout all 50 states. That is to higher display the impression of premiums on a driver’s general finances.

In keeping with the research, the typical price of automotive insurance coverage within the US takes up 3.41% of an individual’s yearly revenue. Relying on the state you reside in, chances are you’ll spend a a lot greater or decrease share than common.

To learn how a lot automotive insurance coverage prices in every state, Bankrate gathered information from Quadrant Info Providers and used this in its evaluation. In addition to residence, the report exhibits how completely different life occasions can impression premiums.

The quoted charges within the rankings are based mostly on full protection automotive insurance coverage for a 40-year-old driver of a 2022 Toyota Camry who covers 12,000 miles every year. The imaginary motorist additionally boasts a clear driving report and good credit score rating.

Listed below are the ten costliest states for automotive insurance coverage, in line with Bankrate’s True Value of Automobile Insurance coverage report.

1. Florida

Common annual full-coverage automotive insurance coverage: $3,945

Proportion of revenue spent on automotive insurance coverage: 5.69%

Proportion distinction from nationwide common: 2.28%

Most costly states for automotive insurance coverage – Florida elements affecting insurance coverage premiums

Florida is the most costly state for automotive insurance coverage. That is because of the excessive variety of catastrophic claims caused by excessive climate. The Sunshine State ranks second in true price, with motorists spending nearly 6% of their revenue on auto protection.

Florida is house to 3 metropolitan areas with the best true price of automotive insurance coverage. These are Miami, Tampa, and Orlando.

2. New York

Common annual full-coverage automotive insurance coverage: $3,840

Proportion of revenue spent on automotive insurance coverage: 4.83%

Proportion distinction from nationwide common: 1.42%

 Costliest states for automotive insurance coverage – New York elements affecting insurance coverage premiums

New York is the least forgiving state to drivers with low credit. Having a poor credit score rating can add nearly $4,200 to full automotive insurance coverage protection. This will elevate premiums to nearly $8,000, nearly double these for motorists with good credit score. The portion of revenue New Yorkers allocate for auto premiums dropped by 0.22%. Nonetheless, the state has the fifth highest true price of automotive insurance coverage.

3. Louisiana

Common annual full-coverage automotive insurance coverage: $3,618

Proportion of revenue spent on automotive insurance coverage: 6.53%

Proportion distinction from nationwide common: 3.12%

Costliest states for automotive insurance coverage – Louisiana elements affecting insurance coverage premiums

Louisiana is available in third on our checklist of the most costly states for automotive insurance coverage. Drivers there, nevertheless, rank first with regards to the share of revenue spent on auto protection. Louisiana motorists put aside about 7% of their revenue to pay for premiums, nearly 2% extra in comparison with final 12 months. The Bayou State can also be susceptible to excessive climate, resulting in many insurance coverage claims.

4. Nevada

Common annual full-coverage automotive insurance coverage: $3,549

Proportion of revenue spent on automotive insurance coverage: 4.91%

Proportion distinction from nationwide common: 1.50%

Photograph alt textual content: Costliest states for automotive insurance coverage – Nevada elements affecting insurance coverage premiums

Nevada ranks fourth each in auto premiums and the portion of revenue drivers spend on automotive insurance coverage. The state can also be among the many prime 5 states with the best enhance in full protection automotive insurance coverage price. It joins Florida, Michigan, Missouri, and Colorado on the checklist. Nevada’s relaxed alcohol legal guidelines and the excessive variety of Las Vegas partygoers drive up auto insurance coverage prices.

5. Michigan

Common annual full-coverage automotive insurance coverage: $3,356

Proportion of revenue spent on automotive insurance coverage: 5.01%

Proportion distinction from nationwide common: 1.60%

Costliest states for automotive insurance coverage – Michigan elements affecting insurance coverage premiums

Michigan residents expertise the largest leap in premiums following an at-fault accident at round $1,706. Additionally they obtain the best price hikes after including a 16-year-old driver to their coverage at nearly $4,690.

Michigan prohibits using credit-based insurance coverage scores to find out insurance coverage premiums. Automobile insurers, nevertheless, can use info that contributes to the credit standing.

6. Colorado

Common annual full-coverage automotive insurance coverage: $2,902

Proportion of revenue spent on automotive insurance coverage: 3.25%

Proportion distinction from nationwide common: -0.16%

Costliest states for automotive insurance coverage – Colorado elements affecting insurance coverage premiums

Colorado ranks among the many costliest states for auto insurance coverage. The portion of revenue resident drivers spend on automotive protection is barely beneath the nationwide common. Colorado is anticipated to register among the many highest enhance in automotive insurance coverage charges this 12 months. The state’s densely populated cities make it extra susceptible to vehicular accidents, driving up auto premiums.

7. Missouri

Common annual full-coverage automotive insurance coverage: $2,801

Proportion of revenue spent on automotive insurance coverage: 4.32%

Proportion distinction from nationwide common: 0.91%

Costliest states for automotive insurance coverage – Missouri elements affecting insurance coverage premiums

Missouri registered the biggest enhance in common auto insurance coverage price amongst all states. Annual full protection automotive insurance coverage premiums rose 44% from $1,943 in 2023 to $2,801 this 12 months. Missouri ranks sixth with regards to true price, with motorists spending greater than 4% of their revenue on auto protection.

8. Pennsylvania

Common annual full-coverage automotive insurance coverage: $2,790

Proportion of revenue spent on automotive insurance coverage: 3.89%

Proportion distinction from nationwide common: 0.48%

Costliest states for automotive insurance coverage – Pennsylvania elements affecting insurance coverage premiums

Pennsylvania is likely one of the states with the best auto insurance coverage primarily due to its no-fault state legal guidelines and huge driving inhabitants. Philadelphia ranks among the many prime 5 metro areas registering the best leap in premiums. Between 2023 and 2024, annual full protection automotive insurance coverage charges within the metropolis elevated from $3,938 to $4,753.

9. California

Common annual full-coverage automotive insurance coverage: $2,697

Proportion of revenue spent on automotive insurance coverage: 2.95%

Proportion distinction from nationwide common: -0.46%

 Costliest states for automotive insurance coverage – California elements affecting insurance coverage premiums

California has one of the vital costly automotive insurance coverage premiums within the nation largely as a result of weather-related dangers. It additionally prohibits using credit score scores in insurance coverage pricing. Drivers within the Golden State see the biggest common enhance following an at-fault accident at 56%. The state, nevertheless, ranked twenty seventh general with regards to the true price of automotive insurance coverage. Which means residents there spend the least of their incomes on auto protection in comparison with their counterparts on our prime 10 checklist.

10. Rhode Island

Common annual full-coverage automotive insurance coverage: $2,683

Proportion of revenue spent on automotive insurance coverage: 3.28%

Proportion distinction from nationwide common: -0.13%

Costliest states for automotive insurance coverage – Rhode Island elements affecting insurance coverage premiums

Rhode Island’s massive city inhabitants and excessive restore prices make it among the many costliest states for automotive insurance coverage. The portion of revenue that drivers spend on auto protection is barely beneath the nationwide common. The state ranks thirty first on Bankrate’s true price of automotive insurance coverage rankings.

If you happen to’re looking for a coverage that matches your finances and protection wants, this automotive insurance coverage guidelines might help.

Automobile insurance coverage firms use completely different metrics to find out how a lot threat a driver poses to them. Listed below are some frequent elements auto insurers take into account when calculating premiums.

• Residence: Drivers dwelling in safer areas will probably pay cheaper premiums than those that reside in areas susceptible to excessive climate, vehicular accidents, and automotive theft.
• Age: As a result of age is linked to driving expertise and accident threat, younger drivers usually pay the most costly automotive insurance coverage charges. This information to low cost automotive insurance coverage for brand new drivers might help you discover a whole lot.
• Gender: Male drivers are statistically extra more likely to get entangled in accidents than feminine motorists. That is why males pay greater premiums.
• Driving report: A poor driving report exhibits that you just’re extra more likely to file a declare sooner or later. Due to this, at-fault accidents can drive up charges considerably.
• Mileage: The much less you drive, the decrease the probability that you’re going to get into an accident. This helps decrease your automotive insurance coverage premiums.
• Car kind: How a lot your automotive prices, how costly it’s to restore, and the way inclined it’s to theft are among the many elements that have an effect on your automotive insurance coverage charges.
• Credit standing: Most states permit using credit-based insurance coverage scores to find out automotive premiums. Insurers imagine that drivers with poor credit score are inclined to file extra claims than these with strong credit score scores. This raises the premiums they should pay. 
• Stage of protection: Minimal protection insurance policies require decrease premiums than full protection plans however supply restricted safety.

Discover out the various kinds of automotive insurance coverage insurance policies you should purchase within the US on this information.

Automobile insurance coverage is likely one of the largest prices related to proudly owning and working a car. On the subject of buying a coverage, it may be tempting to go along with the most cost effective choice. However there’s a catch: you threat dropping extra, particularly if the extent of safety these cheaper insurance policies present is insufficient.

To get essentially the most out of your automotive insurance coverage, it is advisable perceive the completely different choices obtainable and the standard of protection these insurance policies supply. A method to do that is by conserving updated with the most recent developments. Go to and bookmark our Motor & Fleet Information Part so that you don’t get unnoticed of the most recent business developments.

Do you reside in one of the vital costly states for automotive insurance coverage? What do you do to maintain your automotive insurance coverage prices manageable? Be happy to share your ideas beneath.