120+ moreYour location affects your car insurance rates significantly, but costs have been increasing across the country. Full-coverage premiums rose by 24% in 2023 and have increased by 15% so far in 2024, according to Insurify’s latest report. Insurify’s data science team predicts a 22% total increase by the end of the year.
Insurers continue to record billions in underwriting losses, largely stemming from unprecedented climate catastrophes and the rising costs of repairs and new cars.
Insurify turned to its database of more than 90 million car insurance quotes to find out where coverage is the most and least expensive and which drivers face the largest auto insurance rate increases by state.
Car insurance companies consider local factors when setting rates, so the cost of coverage varies by state and by areas within each state. Insurify’s data scientists determined the average monthly cost of car insurance policies in every state except Alaska, which didn’t have sufficient data.
An area’s vehicle crime and accident rates, population density, severe weather risk, and incidence of insurance fraud can drive up insurance costs. For example, Connecticut’s higher median income could contribute to its higher car insurance rates since residents may have more expensive cars to insure. Severe accidents can result in costly claims that increase insurance costs, and Nevada and Kentucky have high traffic fatality rates.1 2
These are the average monthly liability-only quotes in the 10 most expensive states for car insurance.
North Carolina and Iowa — the two states with the least expensive car insurance rates — have more rural populations as well as state regulations limiting auto coverage costs. North Carolina’s insurance commissioner can approve or deny rate increase requests from insurance companies, which helps keep rates lower. Iowa has lower liability requirements than many states, so without high accident or crime rates, insurers may charge Iowans less since they’re taking on less risk.1 2
These are the average monthly liability-only quotes in the 10 states with the cheapest car insurance costs.
You can check with your state’s insurance department for local requirements or ask your insurer, but here are the basic components of a car insurance policy.
This coverage protects you or family members on your policy if you cause injuries to someone else. If someone sues you, your bodily injury liability insurance may cover the cost of your court defense or a settlement. It also goes toward the injured person’s medical costs. You can buy more coverage than your state minimum to have greater financial protection.
This coverage pays for damage you or someone who’s driving your car with permission causes to someone else’s property, including another vehicle or stationary objects like poles, fences, lampposts, and buildings.
Not every state requires this coverage, but it’s an important protection. Uninsured/underinsured motorist coverage reimburses you if an uninsured or underinsured driver injures you or damages your vehicle. If the at-fault driver doesn’t have enough liability coverage to pay for the damage, this coverage will kick in to make up the difference. This also applies in a hit-and-run accident.
Personal injury protection (PIP) pays for your and your passengers’ medical and non-medical expenses after an accident. It can cover medical bills, lost wages, replacing services the injured people usually perform, and funeral costs.
Every state except New Hampshire requires a certain amount of liability insurance to register and drive a motor vehicle. But New Hampshire drivers must prove financial responsibility by either depositing money with the state treasurer or buying a specific amount of liability coverage.4
Coverage requirements vary, but many states require around $25,000 per person for bodily injury liability, $50,000 per accident for bodily injury liability, and $25,000 per accident for property damage liability, with varying levels of personal injury protection or uninsured/underinsured motorist coverage.
Michigan has the highest liability requirements: $50,000 per person for bodily injury liability, $100,000 per accident for bodily injury liability, $10,000 per accident outside Michigan for property damage liability, and $1 million per accident inside Michigan for property damage liability, with varying levels of personal injury protection.
Florida has the lowest limits, at just $10,000 per accident for property damage liability and $10,000 for personal injury protection.
When you move, you’ll have to change your insurance to meet requirements in your new home state. But whether you have to change car insurance companies will depend on your current company.
If your current insurer provides coverage in your new state, you can stay with the same company. You’ll also have to determine whether your current coverage is sufficient since every state has its own minimum insurance requirements. In some cases, that might require increasing your bodily injury and property damage liability coverages.
Finally, you’ll have to learn if your new state has any additional requirements your former state didn’t have. Several states require uninsured or underinsured motorist coverage. And a handful of states have no-fault insurance laws, which require drivers to carry personal injury protection (PIP).
Your new state may have the same minimum requirements as your old one, in which case you won’t have to change your coverage. But you should still inform your insurance company about the move. Location is an important rating factor in your driver profile, so relocating could change your premium too.
Location — all the way down to your ZIP code in many states — affects your car insurance rates significantly. But it’s just one of many factors auto insurers consider, including: