Do You Live in One of the 5 Most Expensive Auto Insurance States?

Some of us are lucky to live in the cheapest car insurance states, while others must pay much higher premiums for auto coverage. Although prices also vary depending on the driver’s age, the types of coverage you need, your driving record, and other factors, geography plays a major role in the cost of your auto insurance policy. Find out where you can expect to pay much more than the national average annual premium of $1,318 and where you are able to save on this necessary expense in your household budget.


States With the Highest Insurance Costs

Michigan leads the list of the costliest auto insurance states for drivers, with annual premiums of approximately $2,394 — more than double the national average. That is largely because of the state’s no-fault laws, which require personal injury protection coverage with no cap on medical benefits for those injured in an accident. Michigan’s rates are also driven up by insurance fraud rates of 10 percent. An estimated 21 percent of Michigan drivers illegally take the wheel without insurance because of the exorbitant cost, which also contributes to the high premiums.

Auto insurance premiums also soar past the national average in Louisiana ($1,921), Connecticut ($1,897), Rhode Island ($1,848), and Florida ($1,840). Like Michigan, Louisiana has a high percentage of uninsured motorists (14 percent). The state also has many drivers on the road thanks to its cheap gas prices, which results in a greater number of accidents. Connecticut has more vehicles on the road per square mile than any other state and requires drivers to carry full coverage on their vehicles.


Most Affordable Auto Insurance States

States with fewer residents tend to have car insurance premiums lower than the national average. Leading the list is Maine, where drivers pay an average of just $864 per year for car insurance. The state has one of the most competitive insurance markets, which allows drivers to shop around for low rates. In addition, fewer than one in 20 Maine drivers is uninsured, compared to one in eight nationwide.

Next is Ohio, where drivers pay an annual average of $919 a year for auto insurance. As with Maine, competition plays a role in the low premium rates in the Buckeye State. Ohio also has many regulations to ensure drivers are treated fairly by insurance companies.

Idaho drivers pay $942 a year for insurance, which makes it the only state in the western U.S. with average premiums under $1,000. Drivers here benefit from the state’s moderate weather, high level of competition, fair regulation, and low rate of auto accident litigation. Vermont ($948) and North Carolina ($1,010) round out the list of most affordable auto insurance states.


With BOLT, it’s easy to find competitive car insurance prices no matter where you live. Our online comparison tool helps you find the best auto insurance rates in your area. Whether you’re buying a new car or want to pay less to insure your existing vehicle, BOLT Insurance can help you find an auto policy that fits your needs without breaking the bank.