10 Cheapest and Most Expensive States for Car Insurance

Have you ever wondered why you seem to be paying more than the quoted ‘National Average’ for auto insurance? Or maybe you have realized, ‘my insurance is cheap!’ Either of these sentiments might be supported if you live in one of the twenty states listed below as being in the most expensive and cheapest states for auto insurance. Yet, no matter if you live in the cheapest state, there is always even more ways to save on car insurance. One of the proven ways is to make auto insurance price and coverage comparisons across multiple companies.

The Statistics

This article will focus on the latest report by the National Association of Insurance Commissioners (NAIC). Its most recent report covered the latest available data for 2013. Although there are other ‘more current’ reports produced by Insurance Agents, Online Insurance Brokers and Insurers themselves, it seems the best and most accurate data will be from this national regulatory organization.

In the United States of America, the NAIC is the standard setting and regulating body that was created and currently governed by the chief regulators from all 50 states, the District of Columbia and all five U.S. territories. In other words, it is the organization that all insurance companies, brokers and agents eventually report to. While other reports may provide an interesting look into ‘specific statistics’, the Auto Insurance Database Report is simply the most accurate data compiled by a third-party organization.

10 Most Expensive States for Auto Insurance

Here you will find two lists of states and their corresponding average premiums across all users. The first list comprises the average premium per state for just Liability Coverage; the coverage that is mandatory in every state. The second list is for the average total expenditure for auto insurance premiums by drivers. This way you can compare between a basic coverage and an average user’s coverage.

Liability Only Auto Insurance Coverage (National Average $518.49):

  1. New Jersey, $882.10
  2. Florida, $860.43
  3. New York, $791.14
  4. Delaware, $783.30
  5. Michigan, $742.31
  6. Louisiana, $723.93
  7. Rhode Island, $719.53
  8. Nevada, $648.19
  9. Connecticut, $635.62
  10. District of Columbia, $634.70

Total combined average car insurance premiums paid (National Average: $954.30):

  1. New Jersey, $1,368.27
  2. District of Columbia, $1,316.48
  3. Louisiana, $1,307.72
  4. New York, $1,301.48
  5. Michigan, $1,264.21
  6. Rhode Island, $1,210.54
  7. Florida, $1,209.74
  8. Delaware, $1,187.18
  9. Connecticut, $1,109.03
  10. Massachusetts, $1,080.48

10 Cheapest States for Car Insurance

Again the first list will include just Liability coverage, which is mandatory in every state, and the second will include total expenditures on automobile insurance by drivers.

Liability Only Car Insurance Coverage (National Average $518.49):

  1. North Dakota, $284.03
  2. South Dakota, $290.24
  3. Iowa, $291.24
  4. Wyoming, $323.34
  5. Maine, $333.69
  6. Idaho, $339.50
  7. Kansas, $342.20
  8. Vermont, $343.85
  9. Nebraska, $347.57
  10. Wisconsin, $354.56

Total combined average auto insurance premiums paid (National Average: $954.30):

  1. Idaho, $650.57
  2. Iowa, $668.09
  3. Maine, $674.94
  4. Wisconsin, $689.76
  5. Indiana, $704.48
  6. South Dakota, $718.57
  7. Vermont, $734.82
  8. North Dakota, $738.47
  9. Ohio, $738.68
  10. North Carolina, $738.97

It seems like these lists follow a pattern of the more rural the state, the cheaper the insurance costs. Whether this is reflective of rural drivers not purchasing ‘optional’ coverages or claims in these states simply make their insurance coverages cheaper is unknown. However, Ohio, North Carolina, and Indiana all replace rural states in combined average insurance premiums paid; being the only three more densely populated states to do so. If you want to know how much is average car insurance in your state you can follow the link, especially if your state isn’t listed above.

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