This Is How Much You Pay On Average For Car Insurance In All 50 States

If you want cheap insurance, you may not want to live in Michigan

2020 Nissan Versa
Cheap and slow is usually the best route if you’re looking for inexpensive insurance.

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, 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
2020 Kia Stinger GTS
Sure, this Kia Stinger may be a fun drifter, but that makes it more expensive to insure. It’s like insurance companies know what we’re going to do with it.

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.

2016 Mazda CX-5
I pay about $1,700 to insure my own car, a Mazda CX-5. If I were in Michigan, though, I’d pay much more.

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!