The 10 most expensive states for car insurance
The national average rate for full-coverage insurance increased to $2,019 per year in 2023, up from $1,633 in 2022. However, drivers in some states pay up to 67% more than the U.S. average for full coverage. Insurify analyzed all 50 states and Washington, D.C., to determine the most expensive places in the country to buy car insurance.
1. New York
Average annual full-coverage rate: $3,374
Percent higher than the U.S. average: 67%
New York drivers pay the highest full-coverage car insurance rates in the U.S., at an average of $281 per month. The Empire State is tied with Florida in paying the second-highest percentage of income toward car insurance (4.3%). New York is the seventh most densely populated state in the country, which can drive up rates due to a greater chance of claims.
Recent legislation may also be contributing to higher auto insurance costs. New York’s new supplemental spousal liability law went into effect on Aug. 1, 2023. Spousal liability covers medical costs for the insured passenger if their spouse causes an accident that injures them. Drivers are automatically enrolled despite their marital status, adding an estimated $20 to $84 to annual premiums unless drivers opt out in writing.[1]
2. Nevada
Average annual full-coverage rate: $2,975
Percent higher than the U.S. average: 47%
Nevada drivers pay an average of $248 monthly for full coverage. The cost represents 4% of the median Nevada household income — over double the national average of 2.6%.
In a Nov. 1 public webinar forum on auto insurance rates in Nevada, Todd Rich, chief deputy commissioner of the Nevada Division of Insurance, described the state’s auto insurance market as “very healthy,” with more than 125 companies in operation.
However, Rich cited a perfect storm of factors causing Nevada rates to skyrocket, including an increase in severe accidents, expensive repairs for high-tech features, rising vehicle transaction prices, surging medical costs, parts and labor shortages, and fraud.
3. Florida
Average annual full-coverage rate: $2,917
Percent higher than the U.S. average: 44%
The average full-coverage insurance rate in Florida is $243 per month, influenced by severe weather events that strain the state’s insurers. In 2022, Hurricane Ian caused $109.5 billion worth of damage in Florida, making it the costliest hurricane in the state’s history, according to the NOAA.[2]
Already strapped insurance companies have struggled to stay profitable in the aftermath. The state now faces an insurance crisis, with multiple insurers increasing rates or halting new policies in the state. Among the companies that pulled back, Farmers exited Florida, affecting approximately 100,000 customers, and AAA declined certain policy renewals.
Rampant insurance fraud also drove up Florida rates in 2023. In March, Gov. Ron DeSantis signed into law HB 837, designed to reduce frivolous lawsuits and fraud under Florida’s no-fault system. The state legislature passed a bill in May to reduce auto glass fraud, which surged by 4,000% between 2011 and 2021, according to the National Insurance Crime Bureau (NICB).[3]
4. Delaware
Average annual full-coverage rate: $2,806
Percent higher than the U.S. average: 39%
Delaware drivers pay an average of just under $234 per month for full coverage. The state has the sixth-highest population density in the U.S., which could influence Delaware’s insurance rates. The odds of accidents and claims increase when more drivers pack onto busy roadways.
A major factor behind rising rates is debilitating loss ratios for insurers, according to Trinidad Navarro, insurance commissioner with the Delaware Department of Insurance. “Their loss ratio was an excess of 100%, meaning that they paid out more than they actually [collected] in premiums in Delaware,” Navarro told Delaware Public Media.[4]
5. Louisiana
Average annual full-coverage rate: $2,792
Percent higher than the U.S. average: 38%
Full-coverage insurance rates in Louisiana rose to an average of nearly $233 per month in 2023. Auto insurance costs represent 4.7% of the state’s $59,905 median household income, meaning Louisiana drivers pay the highest cost relative to earnings in the country. Like Florida, Louisiana has tropical storms and hurricanes, increasing the number of claims.
Louisiana also has a much higher fatal crash rate than average, at 22.2 deaths per 100,000 residents, compared to 14.2 nationwide, according to the National Safety Council (NSC). In 2023, the Louisiana Department of Insurance approved steep rate hikes for the state’s top five auto insurers, ranging from 10.4% for Progressive to 33.8% for USAA.[5]
6. Washington, D.C.
Average annual full-coverage rate: $2,756
Percent higher than the U.S. average: 37%
Washington, D.C., residents pay an average of just under $230 per month for full coverage. Car thefts in the district surged in 2023, which factors into insurer risk models. Police statistics from December 2023 show an 87% increase in vehicle thefts year over year, from 3,558 stolen cars at the same time last year to 6,666 in 2023.[6]
Washington, D.C., also has a higher population density than any U.S. state, and busy city streets add to the risk of car accidents. Fatal car accidents in Washington, D.C., increased by 49%, with 52 deaths in 2023 compared to 35 fatalities in 2022.[7]
7. South Carolina
Average annual full-coverage rate: $2,680
Percent higher than the U.S. average: 33%
The average monthly full-coverage rate increased to more than $233 in South Carolina. Residents pay approximately 4.2% of the state’s median annual household income of $64,055 toward coverage. South Carolina’s fatal crash rate is nearly 67% higher than the national average, NSC data shows.
Insurance fraud also contributes to South Carolina’s high rates. The state ranks 13th in the nation for questionable vehicle-related insurance claims, according to the NICB.[8] The South Carolina Department of Insurance estimates the average family pays up to $700 more per year in premiums (including auto and homeowners insurance) due to fraud.
8. Maryland
Average annual full-coverage rate: $2,645
Percent higher than the U.S. average: 31%
Maryland drivers pay an average of about $220 monthly for full coverage. Car insurance costs make up 2.4% of the state’s median household income of $110,580, but drivers pay an average of 2.6% nationwide. Maryland is the fifth most densely populated state in the U.S., increasing the risk of car accidents and claims.
A jump in car thefts could also account for Maryland’s surging insurance rates. Vehicle thefts increased by 229% in Baltimore in 2023, influenced by a viral TikTok challenge urging viewers to steal Kia and Hyundai cars. The “Kia Challenge” caused a 55% increase in insurance rates for targeted models, a 2023 Insurify investigation revealed.
9. Michigan
Average annual full-coverage rate: $2,640
Percent higher than the U.S. average: 31%
Michigan consistently ranks among the most expensive states for car insurance. Rates for full coverage now average $220 per month. Michigan has a no-fault system designed to speed up claims processing. However, critics of the system say no-fault laws contribute to fraud and drive up premiums.
The Michigan Catastrophic Claims Association (MCCA) raised its annual pre-vehicle assessment fees to address a deficit in the statewide fund. Fee hikes kicked in on July 1. Under the new structure, drivers with unlimited personal injury protection (PIP) pay $122, up from $86. Drivers with any other PIP option previously paid no fees but are now charged $48.
In a bipartisan vote, the Michigan Senate repealed cost controls for auto insurance medical care coverage in October. The two-bill package increases reimbursement rates for medical providers and lifts the 56-hour-per-week cap on payments for care provided by families of injured motorists.[9] However, Gov. Gretchen Whitmer, who opposed the plan, warns the legislation will raise rates.
10. Rhode Island
Average annual full-coverage rate: $2,452
Percent higher than the U.S. average: 21%
The average monthly full-coverage rate in Rhode Island is $204, which means drivers spend 3% of the state’s median household income of $80,408. Rhode Island saw a summer of severe weather in 2023, with tornadoes and heavy winds, followed by Pawtuxet River flooding in December. An increase in weather damage claims under comprehensive coverage could be contributing to higher rates.
Rhode Island is also the second most densely populated state in the country, which increases the odds of an accident. The state has a lower fatal accident rate than the national average but saw traffic-related deaths surge in 2023. The number of fatal accidents increased by 56% year over year as of October 2023, according to the Rhode Island Department of Transportation.