The most costly state for automotive insurance coverage — plus what it prices in each state

One survey from NerdWallet finds that switching automotive insurance coverage may save good drivers about $417 a yr.

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There is not any doubt that automotive insurance coverage is dear — NerdWallet reveals that the common price of automotive insurance coverage is $1,630 per yr — and one survey from the corporate finds that switching may save good drivers about $417 a yr. (See the bottom automotive insurance coverage charges you may qualify for right here.)

However the excessive price of automotive insurance coverage can depend upon the state you reside in (see the chart beneath for common premiums by state), with Maine usually being the most cost effective and Louisiana the costliest. Louisiana’s excessive charges are largely because of its greater crime price, frequent excessive climate and rising site visitors density, whereas Maine, a state with low inhabitants density, has the bottom quantity of uninsured drivers and a decrease danger of accidents, says Andrew Hurst, auto insurance coverage skilled at Policygenius.

Typically, states with cheaper automotive insurance coverage might have decrease ranges of required automotive insurance coverage, extra insurance coverage firm competitors, decrease crime charges, decrease charges of uninsured drivers, fewer whole claims from drivers, drivers who total drive fewer miles and/or much less excessive climate . “A rural state with little crime, many automotive insurers and never a lot excessive climate will possible pay lower than a largely city state with many automotive insurance coverage claims, few insurers and plenty of weather-related claims for flooding and hail,” says Les Masterson, insurance coverage analyst with Carinsurance.com. (See the bottom automotive insurance coverage charges you may qualify for right here.)

It is also necessary to contemplate whether or not you might be in a no-fault state: “No-fault states (there are 12) — [this] implies that insurance coverage corporations cowl their members’ accidents and damages as an alternative of getting the at-fault driver’s protection pay — usually result in greater charges,” says Masterson. These embrace Florida, Michigan, New Jersey, New York, Pennsylvania, Hawaii, Kentucky, Massachusetts, Minnesota, North Dakota and Utah. Litigious states additionally get handed greater charges, as insurers worth towards litigation. “If a policyholder makes a declare and is not glad with it, they might take their insurance coverage firm to courtroom. This course of may be costly, creating the potential for greater bills and losses for insurance coverage corporations,” says Hurst. In locations the place price setters have judged the inhabitants to be extra litigious, charges could also be greater.

The variety of uninsured drivers will also be an enormous driver in charges, consultants say. Certainly, Louisiana and Florida, which incessantly land close to the highest of lists of the costliest states to insure your automotive, have quite a lot of uninsured drivers, which creates a suggestions loop: when there’s numerous uninsured drivers, different drivers are extra Prone to carry extra types of insurance coverage towards them, Hurst explains: “This will increase the chance of a single insurer paying extra settlements, which means that insurer will file for greater charges to cowl anticipated losses,” says Hurst. Insurers additionally worth towards litigation and if a policyholder makes a declare and is not glad with it, they might take their insurance coverage firm to courtroom. “This course of may be costly, creating the potential for greater bills and losses for insurance coverage corporations. In locations the place price setters have judged the inhabitants to be extra litigious, charges could also be greater,” says Hurst. Michigan, one other state that has excessive charges, additionally faces this downside, Hurst says, and it “requires excessive private harm safety protection that usually ends in excessive settlements for insurance coverage suppliers,” he provides, when explaining its excessive charges. (See the bottom automotive insurance coverage charges you may qualify for right here.)

Common automotive insurance coverage premiums, by state

1	Louisiana	$2,839
2	Michigan	$2,112
3	Florida	$2,082
4	California	$1,966
5	Missouri	$1,895
6	DC	$1,881
7	Rhode Island	$1,801
eighth	Wyoming	$1,768
9	Texas	$1,710
10	Georgia	$1,705
11	Montana	$1,627
12	Connecticut	$1,580
13	South Dakota	$1,575
14	Colorado	$1,574
15	Arkansas	$1,462
16	Kansas	$1,454
17	Delaware	$1,443
18	Arizona	$1,417
19	Maryland	$1,410
20	South Carolina	$1,409
21	Minnesota	$1,407
22	Oklahoma	$1,393
23	NewMexico	$1,391
24	Nebraska	$1,383
25	Nevada	$1,380
26	Mississippi	$1,378
27	Alabama	$1,358
28	North Carolina	$1,326
29	Kentucky	$1,321
30	New Jersey	$1,319
31	Massachusetts	$1,314
32	West Virginia	$1,299
33	Washington	$1,298
34	Hawaii	$1,254
35	Utah	$1,250
36	North Dakota	$1,234
37	Oregon	$1,229
38	Tennessee	$1,206
39	Illinois	$1,205
40	Indiana	$1,189
41	Alaska	$1,175
42	new York	$1,163
43	Vermont	$1,151
44	Virginia	$1,033
45	Iowa	$1,032
46	Pennsylvania	$1,028
47	Ohio	$992
48	Idaho	$985
49	Wisconsin	$938
50	New Hampshire	$885
51	Maine	$858