📊 The State-by-State Gap
Cheapest State
Maine: $1,047
per year average
National Average
$2,314
per year
Most Expensive
Michigan: $3,477
per year average
10 Cheapest States for Car Insurance
| Rank | State | Avg. Annual | vs National |
|---|---|---|---|
| 1 | Maine | $1,047 | -55% |
| 2 | Vermont | $1,082 | -53% |
| 3 | New Hampshire | $1,104 | -52% |
| 4 | Idaho | $1,195 | -48% |
| 5 | Ohio | $1,224 | -47% |
| 6 | Wisconsin | $1,256 | -46% |
| 7 | North Carolina | $1,289 | -44% |
| 8 | Iowa | $1,312 | -43% |
| 9 | Virginia | $1,378 | -40% |
| 10 | Indiana | $1,401 | -39% |
10 Most Expensive States for Car Insurance
| Rank | State | Avg. Annual | vs National |
|---|---|---|---|
| 1 | Michigan | $3,477 | +50% |
| 2 | Florida | $3,244 | +40% |
| 3 | Louisiana | $3,198 | +38% |
| 4 | California | $2,856 | +23% |
| 5 | New York | $2,789 | +21% |
| 6 | Nevada | $2,712 | +17% |
| 7 | Texas | $2,678 | +16% |
| 8 | Georgia | $2,645 | +14% |
| 9 | New Jersey | $2,598 | +12% |
| 10 | Arizona | $2,534 | +10% |
Why Rates Vary So Much by State
⚖️ State Insurance Laws
No-fault states (Michigan, Florida) have higher rates. Minimum coverage requirements vary wildly.
👨⚖️ Lawsuit Climate
States with more lawsuits and higher jury awards have higher premiums (Louisiana, Florida).
🚗 Uninsured Drivers
States with high uninsured rates (Mississippi 29%, Florida 20%) pass costs to insured drivers.
🌆 Population Density
More cars = more accidents. Urban states cost more than rural states.
The Bottom Line
Your state is the biggest factor in your car insurance cost—even more than your driving record. If you live in an expensive state, shop aggressively and maximize discounts. If you're moving, factor insurance costs into your decision. The difference between Maine and Michigan is $2,430/year.