Insurance premiums can wildly increase depending on where you live.
Car insurance is one of those expenses we all have to live with. It’s something we shell out hundreds, if not thousands, of dollars each year to maintain, just in case the worst happens. Of course, it’s also compulsory in nearly every state, so it’s a necessary cost.
To that end, Insure.com compiled a list of how much it costs, on average, to insure a car in every U.S. state. As of 2019, the national average is $1,457 per year, a $92 increase from last year’s $1,365 figure. Depending on where you live, you may end up paying way more — or way less — than that. Here’s the breakdown for every U.S. state, from most to least expensive:
| Rank | State | Average Annual Premium |
| 1 | Michigan | $2,611 |
| 2 | Louisiana | $2,298 |
| 3 | Florida | $2,219 |
| 4 | Oklahoma | $1,966 |
| 5 | DC | $1,876 |
| 6 | California | $1,846 |
| 7 | Rhode Island | $1,834 |
| 8 | Delaware | $1,828 |
| 9 | New York | $1,789 |
| 10 | Texas | $1,779 |
| 11 | Georgia | $1,777 |
| 12 | Colorado | $1,761 |
| 13 | Connecticut | $1,640 |
| 14 | Wyoming | $1,602 |
| 15 | Montana | $1,600 |
| 16 | Kentucky | $1,594 |
| 17 | Arkansas | $1,566 |
| 18 | Maryland | $1,546 |
| 19 | Nevada | $1,525 |
| 20 | New Jersey | $1,520 |
| 21 | West Virginia | $1,472 |
| 22 | Arizona | $1,449 |
| 23 | South Carolina | $1,433 |
| 24 | Mississippi | $1,409 |
| 25 | Washington | $1,401 |
| 26 | Kansas | $1,398 |
| 27 | New Mexico | $1,382 |
| 28 | Minnesota | $1,362 |
| 29 | Tennessee | $1,297 |
| 30 | Illinois | $1,296 |
| 31 | Nebraska | $1,291 |
| 32 | Alabama | $1,287 |
| 33 | Oregon | $1,286 |
| 34 | Hawaii | $1,275 |
| 35 | Missouri | $1,272 |
| 36 | South Dakota | $1,262 |
| 37 | Massachusetts | $1,245 |
| 38 | Utah | $1,206 |
| 39 | Pennsylvania | $1,187 |
| 40 | Alaska | $1,183 |
| 41 | Indiana | $1,181 |
| 42 | Ohio | $1,175 |
| 43 | North Dakota | $1,164 |
| 44 | Vermont | $1,100 |
| 45 | North Carolina | $1,095 |
| 46 | New Hampshire | $1,087 |
| 47 | Virginia | $1,063 |
| 48 | Iowa | $1,047 |
| 49 | Idaho | $1,040 |
| 50 | Wisconsin | $951 |
| 51 | Maine | $845 |
Several factors determine your premiums
While some states cost way more than others, there are a variety of factors that go into factoring your insurance rates. For instance, age and gender are two huge factors. Teenage drivers pay the most for insurance, as statistics support the assumption that younger drivers are responsible for more accidents. Although, older people may also pay more, as they experience a risk for more severe injuries, according to Kevin Foley with PFT&K insurance brokers.
It also stands to reason that the more expensive and powerful car you drive, the more it costs to insure. Drive something like a Toyota Corolla, and you’ll pay way less than if you drive a Ford Mustang.
Personal factors like your credit score can also impact your insurance rates. Ironically, this is one of the factors that can make your car insurance more expensive if you have bad credit, like it can lead to higher interest rates on car loans. Your driving record is another major risk factor, and insurers tend to charge more if you have a history of tickets or at-fault accidents.
Your neighborhood can also determine your rates. Insurers look at crime rates, insurance claim rates, and weather patterns to determine your risk. Insurers also tend to offer lower rates if you keep your car in a secure location like a garage, rather than parking it on the street.
Insurance laws, the rate of uninsured drivers, and accident or crime rates in each state can also impact the amount we’re all asked to pay for our insurance. Since I’m in Colorado, I’m asked to pay twice what I would if I lived in Maine, since Colorado is more densely populated and has a higher accident rate.
Why is Michigan so expensive?
Let’s assume for a moment that the drivers are the same in every state. I know, we’ll all argue that isn’t true (and no, I’m not going to name names), but let’s just say it is. Then why is Michigan so expensive? The average rate leapt $372 just in the last year, and it’s 79 percent above the national average.
It mainly comes down to the state’s insurance system, according to this report. Michigan has a no-fault car insurance system, and everyone has to carry Personal Injury Projection (PIP) coverage. That covers medical expenses for everyone in the car in the event of an accident. This is not unique to Michigan. However, what is unusual about Michigan is that state law guarantees unlimited, lifetime medical benefits to accident victims.
That dramatically increases insurer’s risk, as well as your premiums. As a result, a huge number of uninsured drivers are also roaming the roads. According to the Insurance Research Council, 1 in 5 Michigan drivers are uninsured. That also drives up rates for everyone else.
How much do you pay for insurance?
While I don’t pay Michigan insurance premiums, I am on the higher side since I live in Colorado. For instance, I pay about $1,700 a year to insure my 2016 Mazda CX-5.
Are your insurance premiums sky high? Let us know what your rate is like in your state in the comments below!
