How Much Does Car Insurance Cost by State?

The average cost of car insurance by state can vary by thousands of dollars per year because every state has different insurance laws, accident rates, weather risks, repair costs, medical expenses, and legal environments. Where you live is one of the most important factors insurers use when calculating your premium.

Comparing quotes remains one of the best ways to find affordable coverage. Luva makes it easy to compare multiple insurance rates based on where you live.

The table below compares average annual car insurance costs for every state using both full coverage and minimum coverage policies.

Although statewide averages provide a useful benchmark, your own premium may be higher or lower depending on factors such as your driving record, vehicle, age, claims history, coverage limits, deductible, and where you live within the state. Insurance companies evaluate many different rating factors when determining premiums.²

The following states have the lowest and highest average full coverage premiums based on the data provided in this guide.

Higher-priced states often experience a combination of more severe accidents, expensive medical care, higher repair costs, greater population density, more uninsured drivers, frequent severe weather, or insurance laws that increase claim costs.

Lower-cost states generally have fewer costly claims and lower overall insurance losses.

Car insurance is regulated primarily at the state level, so every state has its own insurance laws, minimum coverage requirements, legal system, and claims environment. Those differences directly influence how much insurers expect to pay in claims and, ultimately, what drivers pay for coverage.¹

Several factors contribute to state-by-state price differences, including:

• State insurance laws

• Population density

• Traffic congestion

• Accident frequency

• Vehicle theft and vandalism

• Repair and labor costs

• Medical expenses

• Weather-related losses

• Insurance fraud

• Litigation and lawsuit costs

For example, states that experience frequent hurricanes, hailstorms, or wildfires generally produce more insurance claims than states with fewer weather-related losses. Likewise, densely populated urban areas typically have more accidents than rural regions, increasing claim frequency and repair costs.²

What other factors affect car insurance rates?

Your state is only one part of the pricing equation. Insurance companies also evaluate individual characteristics when calculating your premium.¹

Common rating factors include:

• Driving record

• Claims history

• Age and driving experience

• Vehicle make and model

• Annual mileage

• ZIP code

• Coverage limits

• Deductible amount

• Previous insurance history

• Credit history, where permitted by state law

This is why two drivers living in the same city can receive very different quotes for similar coverage. Comparing rates through Luva can help you identify insurers that price your unique driver profile competitively.

No-fault insurance requires drivers to file injury claims with their own insurer regardless of who caused the accident. In contrast, traditional tort states generally require the at-fault driver's liability insurance to pay for injuries and property damage.¹

No-fault systems typically require drivers to carry Personal Injury Protection (PIP), which pays for medical expenses, lost wages, and certain related costs after an accident. Because insurers are responsible for paying these first-party benefits, claim costs can be higher, contributing to higher average premiums in many no-fault states.³

However, no-fault laws are only one factor affecting premiums. Population density, repair costs, fraud, litigation, weather-related losses, and accident frequency also influence what drivers pay.

Yes. If you move permanently to another state, you'll generally need to purchase a new auto insurance policy that complies with your new state's insurance laws and minimum coverage requirements. Your previous policy may not satisfy your new state's legal requirements.

Moving can either increase or decrease your premium depending on factors such as:

• State insurance laws

• Local accident rates

• Population density

• Vehicle theft rates

• Weather risks

• Medical and repair costs

• Your new ZIP code

Even moving within the same state can change your premium because insurers often price policies by ZIP code.

Every state except New Hampshire requires drivers to carry at least some form of auto insurance. Most states require bodily injury liability and property damage liability coverage, while some also require Personal Injury Protection (PIP), uninsured motorist (UM), or underinsured motorist (UIM) coverage.¹

Common required coverages include:

• Liability insurance: Pays for injuries or property damage you cause to others.

• Personal Injury Protection (PIP): Covers your own medical expenses and related costs after an accident, regardless of fault.

• Uninsured/Underinsured Motorist (UM/UIM): Helps pay your expenses if you're hit by a driver with little or no insurance.

The following table shows the required coverages for each state:

Because state minimums are designed to meet legal requirements, not necessarily provide complete financial protection. Many drivers choose higher liability limits and optional coverages such as collision and comprehensive insurance.

Although you can't control where you live, there are several ways to reduce your car insurance costs:

• Compare quotes from multiple insurers.

• Maintain a clean driving record.

• Increase your deductible if you can comfortably afford a higher out-of-pocket expense.

• Bundle your auto and home insurance when discounts are available.

• Ask about available discounts, such as good driver, multi-vehicle, paperless billing, or telematics programs.

• Review your coverage annually to ensure it still meets your needs.

Shopping around remains one of the most effective ways to save because each insurer weighs rating factors differently.

Luva’s research shows that more than half of insured drivers shopping for car insurance have held continuous coverage for at least four years — often long enough to sit at a higher rate as prices shift.⁴ Comparing quotes through Luva can help you identify competitive rates available in your state.