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The 10 Least and 10 Most Expensive States for Car Insurance

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Free Wheeling

Despite tightening restrictions around the coronavirus in some areas of the country, many people are returning to some semblance of normalcy. Maybe you’re back to commuting to work or finally taking that long-awaited road trip. As traffic patterns shift back toward pre-pandemic levels, you may wonder what that means for car insurance — but to start with you need to know where insurance is already the most and least expensive. These average insurance premiums were obtained by WalletHub.


Related: 19 Car Insurance Discounts You Didn't Know About

Traffic Jam Assist
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Most Expensive States

Car insurance prices vary based on a number of factors, including a driver’s age, gender, and driving history. Regardless of these factors, you’re still likely to pay more in certain states — places that tend to have a few commonalities. Many have a higher cost of living overall, which affects health care and auto repair costs, and higher population densities that make accidents more likely. Having more uninsured drivers on the road drives up costs as well; companies have to pay out or require higher amounts of uninsured motorist coverage that makes for higher bills for insured drivers. Finally, some states are considered “no-fault,” which means drivers must file with their own insurance company even if not at fault in an accident. Many no-fault states also require drivers to carry personal injury protection to cover medical bills sustained in a car accident.


Related: The Best and Worst Cities in America for Driving

Michigan
pawel.gaul/istockphoto

Most Expensive State: Michigan

Average yearly premium: $1,908

Why insurance is so expensive:

  • No-fault state

  • Harsh winter weather and poor road conditions  

  • High rates of uninsured drivers and fraudulent insurance claims


Related: 21 Things to Keep in Your Car For Safe Winter Driving

New York City
Ingus Kruklitis/istockphoto

49. New York

Average yearly premium: $1,828

Why insurance is so expensive:

  • No-fault state

  • More severe weather-related claims

  • High rates of uninsured drivers and fraudulent insurance claims

  • Rising health care costs

  • Expensive repairs

  • High overall cost of living

  • High population density

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Jersey City, New Jersey
Ultima_Gaina / istockphoto

48. New Jersey

Average yearly premium: $1,287

Why insurance is so expensive:

  • Rising repair costs, more drivers, higher health care costs, and more uninsured drivers on the road 

  • Higher minimum insurance requirements than many other states 

  • High overall cost of living

  • One of the highest population densities in the country 

Related: How to Stay Safe From Road Rage, Including Your Own

Louisiana
Sean Pavone/istockphoto

47. Louisiana

Average yearly premium: $1,263

Why insurance is so expensive:

  • High number of uninsured or underinsured drivers

  • Low minimum insurance requirements 

  • Increases in adverse weather such as flooding

  • Ranks among the worst drivers based on Friend, Levinson, & Turner data looking at such factors as DUIs, collision fatalities per capita, and percent of uninsured drivers

Delaware
DenisTangneyJr/istockphoto

46. Delaware

Average yearly premium: $1,133

Why insurance is so expensive:

  • Rising costs for health care, auto repairs, and more drivers on the road 

  • Ranks among the worst drivers based on Friend, Levinson, and Turner data 

  • High population density


Related: 16 Ways Driving Has Changed in the Past 50 Years

Nevada
lucky-photographer/istockphoto

45. Nevada

Average yearly premium: $1,108

Why insurance is so expensive:

  • Relaxed alcohol laws and Las Vegas partyers 

  • High rates of uninsured drivers coupled with more people on the road

  • Rising repair and health care costs 

Georgia
SeanPavonePhoto
Baltimore
Sean Pavone/istockphoto

43. Maryland

Average yearly premium: $1,069

Why insurance is so expensive:

  • High overall cost of living

  • High minimum liability coverage requirements

  • Uninsured driver and personal injury protection required 

  • Rising cost of repairs and health care

  • More severe weather events 

New Haven, Connecticut

42. Connecticut

Average yearly premium: $1,027

Why insurance is so expensive:

  • Many expensive vehicles on the road mean higher coverage levels needed

  • High rates of uninsured drivers and more people on the road

  • Higher health care and repair costs 

  • More likely to be affected by bad weather

  • Among the highest population densities


Related: 15 Popular Cars for Drivers Over 50

Virginia
Sean Pavone/istockphoto

41. Virginia

Average yearly premium: $931

Why insurance is so expensive:

  • High rates of uninsured drivers

  • Rising costs for health care and repairs

  • Likelihood of more extreme weather events 

Madison, Wisconsin
Sean Pavone / istockphoto

Least Expensive States

In general, you can expect to see lower insurance premiums in states that are less populated. Fewer drivers on the road typically mean fewer accidents. Despite sometimes extreme winter driving conditions, many Midwestern states also rank among the cheapest due to their lower overall cost of living. Competitive insurance markets can also help drive down costs for consumers, as can high rates of insured drivers.

  

Related: Cool Gifts for People Who Love Cars

New Hampshire
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Omaha, Nebraska
Matt Bills / iStock

9. Nebraska

Average yearly premium: $427

Why insurance is so cheap:

  • Rural state with low population density 

  • Low numbers of uninsured drivers

  • Low repair costs 

Wisconsin
Davel5957/istockphoto
Ohio
Davel5957/istockphoto

7. Ohio

Average yearly premium: $414

Why insurance is so cheap:

  • Safe drivers

  • Competitive insurance market 

Idaho
vkbhat/istockphoto
Badlands, North Dakota
Tammi Mild/istockphoto

5. North Dakota

Average yearly premium: $370

Why insurance is so cheap:

  • Low population density and many rural areas

  • Low rate of uninsured drivers

Vermont
Sean Pavone/istockphoto
Iowa
felixmizioznikov/istockphoto

3. Iowa

Average yearly premium: $326

Why insurance is so cheap:

  • Low population density

  • Minimal requirements for insurance

  • Competitive insurance market

South Dakota
RiverNorthPhotography

2. South Dakota

Average yearly premium: $326

Why insurance is so cheap:

  • Many rural areas

  • Moderate-to-low population density


Related: The Best Cheap All-Season Tires

Wyoming
AnujSahaiPhotography

Least Expensive State: Wyoming

Average yearly premium: $274

Why insurance is so cheap:

  • One of the lowest population densities in the country

  • Well below-average transportation costs overall

Rates are surprisingly low considering the state’s sometimes severe winter weather, high rates of traffic fatalities, low rates of seat belt use; and dangerous, rural roads.


Related: Most Remote States in the U.S.