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Average Cost for Auto Insurance in Each State: How Does Your State Compare?

What states have the highest average insurance premiums? Which states have the lowest? 

According to the Insurance Information Institute (III), the average U.S. driver pays $850 for auto insurance (per car) per year.  Many factors go into what will determine your specific auto insurance rate: level of coverage, deductibles, your location, your driving history, your car, your age, etc. But, as you can see below, the full ranking of the average auto insurance premiums paid in each state reveals significant variance at a state-by-state level. The most expensive state (district) for auto insurance is Washington DC with an average annual expenditure of $1,126. The cheapest state for auto insurance is North Dakota with an average annual expenditure of $503 - less than half that of Washington DC.

Why such large differences? Average auto insurance costs are affected by the legal minimum coverages required of and purchased by drivers in a given state, as well as other factors. For example, in states where the economy is vibrant, drivers are more likely to purchase new autos than drivers in more economically depressed regions. Since new car owners are more likely to purchase collision and comprehensive coverages, these states will have a higher average expenditures by car.

The National Association of Insurance Commissioners (NAIC) notes that urban population and traffic density also have a significant impact on premiums on a state-by-state level; many of the high cost states are highly urban (e.g., District of Columbia & New York), and have higher wages, price levels, and traffic density. Tort liability and other state-specific automotive laws and regulations, labor costs, coverage requirements, auto theft rates and other factors can also affect auto insurance prices.

Average Auto Insurance Cost by State (Ranked from the Most to Least Expensive)

  1. Washington D.C. $1,126
  2. Louisiana $1,105
  3. New Jersey $1,081
  4. Florida $1,055
  5. New York $1,044
  6. Delaware $1,007
  7. Rhode Island $986
  8. Nevada $970
  9. Connecticut $950
  10. Maryland $922
  11. Michigan $907
  12. Alaska $904
  13. Massachusetts $903
  14. Arizona $858
  15. Texas $854
  16. Washington $840
  17. Pennsylvania $817
  18. Hawaii $816
  19. West Virginia $808
  20. California $776
  21. Georgia $765
  22. South Carolina $751
  23. Colorado $729
  24. New Mexico $728
  25. New Hampshire $727
  26. Oregon $727
  27. Illinois $720
  28. Utah $709
  29. Kentucky $699
  30. Minnesota $698
  31. Alabama $667
  32. Montana $667
  33. Oklahoma $663
  34. Virginia $663
  35. Missouri $657
  36. Mississippi $654
  37. Arkansas $653
  38. Vermont $653
  39. Tennessee $641
  40. Wyoming $632
  41. Ohio $617
  42. Indiana $612
  43. Maine $600
  44. North Carolina $595
  45. Wisconsin $581
  46. Kansas $576
  47. Idaho $562
  48. Nebraska $547
  49. South Dakota $520
  50. Iowa $519
  51. North Dakota $503

Source: National Association of Insurance Commissioners (2008 data)