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 by 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. It is important to review various car insurance rates in your region before buying the best-suited. 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 auto insurance is $2,014 per year for full coverage and $622 per year for minimum coverage in the United States. 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 Cost By 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:
- Liability coverage requirements for bodily injury liability per person in different states.
- Bodily injury liability per accident.
- Property damage liability per accident.
| State | Minimum liability coverage limits (in thousands) | Average annual cost of full coverage | Average annual cost of minimum coverage |
| Alabama | 25/50/25 | $1,843 | $441 |
| Alaska | 50/100/25 | $1,946 | $421 |
| Arizona | 25/50/15 | $1,810 | $587 |
| Arkansas | 25/50/25 | $1,907 | $443 |
| California | 15/30/5 | $2,291 | $636 |
| Colorado | 25/50/15 | $2,121 | $500 |
| Connecticut | 25/50/25 | $1,553 | $620 |
| Delaware | 25/50/10 | $2,103 | $801 |
| Florida | 10/20/10 | $3,183 | $1,128 |
| Georgia | 25/50/25 | $2,085 | $639 |
| Hawaii | 20/40/10 | $1,275 | $344 |
| Idaho | 25/50/15 | $1,133 | $267 |
| Illinois | 25/50/20 | $1,806 | $552 |
| Indiana | 25/50/25 | $1,295 | $327 |
| Iowa | 20/40/15 | $1,315 | $223 |
| Kansas | 25/50/25 | $1,878 | $416 |
| Kentucky | 25/50/25 | $2,124 | $678 |
| Louisiana | 15/30/25 | $2,909 | $805 |
| Maine | 50/100/25 | $941 | $225 |
| Maryland | 30/60/15 | $1,971 | $815 |
| Massachusetts | 20/40/5 | $1,262 | $429 |
| Michigan | 50/100/10 | $2,691 | $1,104 |
| Minnesota | 30/60/10 | $1,760 | $585 |
| Mississippi | 25/50/25 | $1,771 | $446 |
| Missouri | 25/50/25 | $1,943 | $490 |
| Montana | 25/50/20 | $1,889 | $310 |
| Nebraska | 25/50/25 | $1,624 | $359 |
| Nevada | 25/50/20 | $2,779 | $973 |
| New Hampshire | 25/50/25 | $1,262 | $319 |
| New Jersey | 25/50/25 | $1,754 | $782 |
| New Mexico | 25/50/10 | $1,591 | $346 |
| New York | 25/50/10 | $3,139 | $1,371 |
| North Carolina | 30/60/25 | $1,446 | $432 |
| North Dakota | 25/50/25 | $1,302 | $269 |
| Ohio | 25/50/25 | $1,266 | $338 |
| Oklahoma | 25/50/25 | $1,998 | $406 |
| Oregon | 25/50/20 | $1,415 | $616 |
| Pennsylvania | 15/30/5 | $2,040 | $428 |
| Rhode Island | 25/50/25 | $1,886 | $551 |
| South Carolina | 25/50/25 | $1,532 | $524 |
| South Dakota | 25/50/25 | $1,553 | $276 |
| Tennessee | 25/50/25 | $1,429 | $371 |
| Texas | 30/60/25 | $2,019 | $565 |
| Utah | 25/65/15 | $1,510 | $539 |
| Vermont | 25/50/10 | $1,061 | $238 |
| Virginia | 30/60/20 | $1,439 | $494 |
| Washington | 25/50/10 | $1,410 | $515 |
| Washington, D.C. | 25/50/10 | $2,072 | $607 |
| West Virginia | 25/50/25 | $1,580 | $421 |
| Wisconsin | 25/50/10 | $1,292 | $358 |
| Wyoming | 25/50/20 | $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.
