What Is Car Insurance Rate by State?

Your car insurance is important to provide financial protection in case of an accident. We have compiled a list of average car insurance rates in each state for both minimum and full coverage.
average car insurance
What Is Car Insurance Rate by State?
Car insurance rates can depend on varied factors including the state you live in and the car you drive. Here's a list of average annual premiums for full and minimum coverage auto insurance divided by state.

In this article

Almost every state legally requires drivers to have car insurance coverage for their vehicles. Insurance is important as it protects you financially via coverage in case of an unprecedented crash.

There are different kinds of auto insurance policies and the benefits depend on the type of policy you buy. Beem, America’s first Al-powered Smart Wallet App, can help you understand what’s the average car insurance cost in your state. Liability coverage is required for payment of losses related to the other party, including medical expenses and vehicle damages.

Why Car Insurance Is Important?

Car insurance is important to protect your finances so that you don’t have to pay the amount to cover the damage out of your pocket. The coverage can also help in paying medical and legal fees, depending on the policy you choose. 

In case of no insurance coverage, you may be liable to pay all costs out of your pocket. This can be pretty stressful if you don’t have enough funds in your emergency savings. 

Interestingly, car insurance protects anyone who drives your car, subject to the coverage you choose. You also get additional protection such as roadside assistance and offers on safety features for your car in a number of coverages.

Getting The Best Car Insurance Rates

You can get the cheapest and best car insurance rates suitable to your needs by comparing policies. Review all the car insurance rates in your area. It is important to assess multiple quotes for the same coverage. Later, you can dig deeper to find the best-suited policy and company for your requirement.

A number of insurance companies offer discounts to drivers, allowing them to save money on their policies.

What Is No-Fault Insurance?

A major factor affecting your car insurance rate is your state’s regulations regarding a vehicular accident. In the US, some states are considered no-fault, while others are known as at-fault or tort states. 

There may be some confusion regarding what no-fault insurance is and how it works. No-fault insurance is also called Personal Injury Protection insurance (PIP). It helps in covering medical expenses and loss of income for you (the driver) and your passengers in the event of a covered accident, no matter whose fault it was. No-fault insurance is mandatory in 18 states.

In a no-fault state, every party is required to first file a claim with their own car insurance to cover the medical expenses after an accident. Drivers are mandated to carry some amount of personal injury protection (PIP) to cover the costs. Some no-fault states include Florida, Hawaii, Kansas, Kentucky, Massachusetts, Michigan and New York.

In at-fault (tort) states, the driver who causes the crash compensates passengers for their losses, including bodily injury and property damage. The other driver or ‘not-at-fault’ driver may not be required to file a claim for medical expenses with their own car insurer.

What is Average Car Insurance Rate?

The average cost of car insurance in the United States is $2,014 per year for full coverage and $622 per year for minimum coverage. It brings your average car insurance rate to about $179 every month.

It is important to note that these rates provide full coverage insurance, including collision, liability and comprehensive insurance required by every state for drivers. However, your individual car insurance rate can depend on other factors such as location, car model and your driving history.

How Much Does Car Insurance Cost In My State?

The state you live in significantly impacts the car insurance rate, considering that each state has different rules and regulations regarding coverage.

For instance, Maine is among the cheapest states to offer full coverage car insurance with an annual average rate of $1,323. Florida, on the other hand, offers one of the most expensive full-coverage auto insurance plans at $3,605 per year on average.

Average Car Insurance Rate In Each State

The table given below talks about the average car insurance rates in each state for both full and minimum coverage levels. Full coverage insurance includes coverage for comprehensive and collision damages. 

The three numbers separated by slashes in each state’s minimum liability car insurance indicate: 

  1. The state’s liability coverage requirements for bodily injury liability per person.
  2. Bodily injury liability per accident.
  3. Property damage liability per accident. 

StateMinimum liability coverage limits (in thousands)Average annual cost of full coverageAverage annual cost of minimum coverage
Alabama25/50/25$1,843$441
Alaska50/100/25$1,946$421
Arizona25/50/15$1,810$587
Arkansas25/50/25$1,907$443
California15/30/5$2,291$636
Colorado25/50/15$2,121$500
Connecticut25/50/25$1,553$620
Delaware25/50/10$2,103$801
Florida10/20/10$3,183$1,128
Georgia25/50/25$2,085$639
Hawaii20/40/10$1,275$344
Idaho25/50/15$1,133$267
Illinois25/50/20$1,806$552
Indiana25/50/25$1,295$327
Iowa20/40/15$1,315$223
Kansas25/50/25$1,878$416
Kentucky25/50/25$2,124$678
Louisiana15/30/25$2,909$805
Maine50/100/25$941$225
Maryland30/60/15$1,971$815
Massachusetts20/40/5$1,262$429
Michigan50/100/10$2,691$1,104
Minnesota30/60/10$1,760$585
Mississippi25/50/25$1,771$446
Missouri25/50/25$1,943$490
Montana25/50/20$1,889$310
Nebraska25/50/25$1,624$359
Nevada25/50/20$2,779$973
New Hampshire25/50/25$1,262$319
New Jersey25/50/25$1,754$782
New Mexico25/50/10$1,591$346
New York25/50/10$3,139$1,371
North Carolina30/60/25$1,446$432
North Dakota25/50/25$1,302$269
Ohio25/50/25$1,266$338
Oklahoma25/50/25$1,998$406
Oregon25/50/20$1,415$616
Pennsylvania15/30/5$2,040$428
Rhode Island25/50/25$1,886$551
South Carolina25/50/25$1,532$524
South Dakota25/50/25$1,553$276
Tennessee25/50/25$1,429$371
Texas30/60/25$2,019$565
Utah25/65/15$1,510$539
Vermont25/50/10$1,061$238
Virginia30/60/20$1,439$494
Washington25/50/10$1,410$515
Washington, D.C.25/50/10$2,072$607
West Virginia25/50/25$1,580$421
Wisconsin25/50/10$1,292$358
Wyoming25/50/20$1,582$263

Conclusion

A car insurance company also decides the rates on the basis of numerous factors. These include your driving history, location, car model, demographics and credit score. Every insurer will carefully review these factors before offering the best insurance coverage that fits your budget. 

If you have poor credit, an insurer can increase the cost by 30% for the same policy which is 10% cheaper for you. Such a vast diversification in factors results in varied rates in different states, by different insurers.

Was this helpful?

Did you like the post or would you like to give some feedback? Let us know your opinion by clicking one of the buttons below!

👍👎
Monica Aggarwal

Monica Aggarwal

A journalist by profession, Monica stays on her toes 24x7 and continuously seeks growth and development across all fronts. She loves beaches and enjoys a good book by the sea. Her family and friends are her biggest support system.

This page is purely informational. Beem does not provide financial, legal or accounting advice. This article has been prepared for informational purposes only. It is not intended to provide financial, legal or accounting advice and should not be relied on for the same. Please consult your own financial, legal and accounting advisors before engaging in any transactions.

Related Posts

Cheapest car insurance in Georgia

Cheapest Car Insurance in Georgia – September 2023

The cost of car insurance in Georgia can vary widely based on several factors, including your age, driving history, location, and the type of coverage you need. Here's how you can find the best and cheapest auto insurance in Georgia.
Cheapest Car Insurance in Florida

Cheapest Car Insurance in Florida – September 2023

Navigating Florida's exceptional car insurance terrain proves to be a formidable endeavor. It necessitates a nuanced comprehension of the state's distinct driving conditions, diverse population, and diverse insurance prerequisites. Therefore, we have compiled a guide to help you uncover the best and cheapest car insurance in Florida.
Cheapest car insurance in Texas

Cheapest Car Insurance in Texas – September 2023

Explore the most budget-friendly car insurance options tailored to diverse age groups and driving backgrounds in Texas. We'll also uncover the state's mandatory minimum liability insurance requirements.
cheapest car insurance in Michigan

Cheapest Car Insurance in Michigan — September 2023

In this blog, we’ll delve into the factors influencing the cheapest car insurance in Michigan and help you uncover the best deals tailored to your age, credit history, driving record, and more.
Cheapest car insurance in California

Cheapest Car Insurance in California – September 2023

For Californians, pursuing affordable car insurance isn't just about pinching pennies — it's a pivotal part of responsible financial planning, providing a safety net against the unexpected mishaps life throws our way. Let's understand the best ways to navigate the best and cheapest car insurance policies across California.
car insurance fraud and scams

How to Deal With Car Insurance Fraud and Scams: Best Tips

While insurance against damage and theft is critical for financial security, fraud and scams could be a potential threat. So, how to deal with car insurance fraud and scams? Let's find out!

Save big on auto insurance - compare quotes now!

Zip Code:
Zip Code: