Car Insurance Costs by State: Cheapest & Most Expensive
Your state can more than double your car insurance premium. Here's the full breakdown.
Car insurance rates vary by as much as 3x between the cheapest and most expensive states. The difference isn't just about your driving record — your ZIP code is the single biggest factor.
Cheapest
Ohio ~$900/yr
Most Expensive
Michigan ~$2,600/yr
National Average
~$1,500/yr
Insurance Rates by State
| State | Avg Annual Premium | vs US Average |
|---|---|---|
| Michigan | $2,600 | +73% |
| New York | $1,950 | +30% |
| Florida | $1,875 | +25% |
| California | $1,725 | +15% |
| Illinois | $1,500 | ±0% |
| Texas | $1,470 | -2% |
| Pennsylvania | $1,400 | -7% |
| Georgia | $1,380 | -8% |
| Arizona | $1,300 | -13% |
| Ohio | $900 | -40% |
Why Insurance Costs Vary by State
- State insurance laws — Michigan requires unlimited PIP medical coverage, making it the most expensive state
- Population density — More cars = more accidents = higher premiums
- Weather risk — Florida and Texas have high rates due to hurricane/flood damage claims
- Uninsured drivers — States with more uninsured drivers spread costs to insured drivers
- Litigation environment — Some states have more lawsuits per accident, driving up costs