Melanie is a blogger, author, and speaker specializing in personal finance and debt management. She’s also the author of the blog and book “Dear Debt.”
7+ years in business and financial services content
Chris is a seasoned writer/editor with past experience across myriad industries, including insurance, SAS, finance, Medicare, logistics, marketing/advertising, and many more.
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*Quotes generated for Insurify users within the last 10 days. Last updated on April 25, 2024
Rates shown are real-time Insurify user quotes from 100+ insurance companies and Quadrant Information Services data. Insurify’s algorithm excludes anomalous quotes and anonymizes personal details, then displays refined quotes by price, date, and insurer popularity up to 10 days ago from April 25, 2024. Actual quotes may vary based on the policy buyer’s unique driver profile.
*Quotes generated for Insurify users within the last 10 days. Last updated on April 25, 2024
Rates shown are real-time Insurify user quotes from 100+ insurance companies and Quadrant Information Services data. Insurify’s algorithm excludes anomalous quotes and anonymizes personal details, then displays refined quotes by price, date, and insurer popularity up to 10 days ago from April 25, 2024. Actual quotes may vary based on the policy buyer’s unique driver profile.
The ZIP code system launched in 1963, and today, the U.S. has 41,704 different ZIP codes.[1]This set of numbers isn’t used just by postal service workers but by car insurance companies as well. Insurers use your ZIP code to assess risks related to your location, like crime rates, population density, and accident probability.
So, living in a busy urban area where accidents are common could lead to higher rates due to greater risk and statistical probability of losses. Read on to learn more about car insurance rates by ZIP code and to see how where you live will affect what you pay.
Quick Facts
ZIP codes are one factor insurers use to determine rates in most states.
Population density, crime, theft, and accidents vary by ZIP code, which affects rates.
California and Michigan have banned the use of ZIP codes for auto insurance.
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How ZIP code affects car insurance rates
Car insurance underwriters use many risk factors when determining rates for drivers. In many cases, one of those factors is your ZIP code.
It should be noted that some consumer advocates believe that the use of ZIP codes adversely affects low-income populations and people of color, based on information from the Consumer Federation of America, while others in the insurance industry dispute this fact due to potential data inaccuracies.
A particular ZIP code can shed light on higher risk factors, including:
Number of accidents in that ZIP code
Likelihood of weather events (such as flooding, tornadoes, and hurricanes)
Population density
Crime rates
Vandalism
Theft
Road conditions
All these factors can change dramatically from one ZIP code to the next, and auto insurance companies use ZIP codes to assess levels of risk in a specific area. This, in turn, determines rates.
Below, you’ll see how different factors interact with ZIP codes.
ZIP code and accident rates
If the data shows there are more accidents in a certain ZIP code, it could mean that drivers there have a higher likelihood of being in an accident.[2] Rates then will usually be higher because of the increased risk.
Population density refers to the number of people in a given area, typically one square mile. In the U.S., the population density is about 90 people per square mile, based on Census data. However, that number can be significantly higher for big metropolitan areas and urban cities.
For example, it’s estimated that the city of Los Angeles had 8,304 people per square mile as of 2020.[4] It’s estimated that Andover, MA, had 1,187 people per square mile as of 2020.[5]
The more people living within a small area increases the likelihood of things like accidents and crime. Insurers look at both of those factors when setting rates.
If you take the same route every day with poor road conditions, you might start to notice that one particular street has more potholes or dips. You might also be familiar with certain intersections that are more hectic than others, potentially with poor signage, no traffic lights, or confusing patterns.
All of these road conditions can elevate the risk of an accident, and insurance companies may raise your rates to hedge their bets against such an event.
ZIP code and weather risks
Though weather is out of your control, some ZIP codes have a higher likelihood of certain weather events that could lead to damage or a loss. Flooding, hurricanes, and tornadoes can increase the risk of damage, especially if your vehicle isn’t in a garage. Insurance companies take these risk factors into consideration, and living in an area where any of these weather patterns are common could increase your rates.
For example, people in a hurricane-prone area may file claims more often, which may drive up rates in that ZIP code. Currently, residents in Florida are experiencing rate increases of up to 30%, and some insurance companies are no longer operating in the state.[6]
Other factors that affect car insurance rates
Aside from ZIP code, insurance companies generally use these other factors when setting rates.
Age
Teen drivers generally pay higher rates because of limited driving experience and an increased propensity for risky behavior. Senior drivers (older than 75) can also pay increased rates due to reduced faculties.
Credit score
As part of assessing risk, insurers review credit scores. Having a low credit score can mean higher rates.
Driving record
Accidents, speeding tickets, DUI/DWI, and other moving violations can increase your rates dramatically or even get you dropped by your insurer altogether.
Number of miles driven
The more miles you drive statistically increases your chances of being involved in an accident, and your insurer may raise your rates to guard against this outcome.
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ZIP codes with the cheapest car insurance rates
The ZIP code with the cheapest car insurance rates is 28214 in Charlotte, North Carolina. The area doesn’t have a high population density, with only 1,060 people per square mile. Other affordable ZIP codes include Burlington, Vermont; Williams, Arizona; Fremont, Ohio; and Greenville, North Carolina. Here are the five ZIP codes with the cheapest car insurance quotes for liability and full-coverage insurance.
ZIP Code
City
Average Quote: Liability Only
Average Quote: Full Coverage
28214
Charlotte, NC
$39
$82
05401
Burlington, VT
$41
$138
86046
Williams, AZ
$44
$74
43420
Fremont, OH
$45
$97
27858
Greenville, NC
$46
$72
Disclaimer: Table data sourced from real-time quotes from Insurify's 50-plus partner insurance providers. Actual quotes may vary based on the policy buyer's unique driver profile.
ZIP codes with the highest car insurance rates
When looking at car insurance rates by ZIP code, Brooklyn, NY — the Flatbush neighborhood specifically — has the highest rates in the country. The population density in the neighborhood is high, with 78,775 people per square mile. In addition to Brooklyn, here are the top five ZIP codes with the highest car insurance quotes in the country.
ZIP Code
City
Average Quote: Liability Only
Average Quote: Full Coverage
11226
Brooklyn, NY
$519
$653
33150
Miami, FL
$428
$540
32808
Orlando, FL
$414
$486
33619
Tampa, FL
$402
$547
33033
Homestead, FL
$370
$434
Disclaimer: Table data sourced from real-time quotes from Insurify's 50-plus partner insurance providers. Actual quotes may vary based on the policy buyer's unique driver profile.
Auto insurance costs in ZIP codes with the most accidents
Certain ZIP codes have more accidents than others. That can be for a number of reasons, including population size and density, driving behaviors, infrastructure, and more. Here are car insurance rates by ZIP codes with the most accidents, based on Insurify data.
ZIP Code
City
Average Quote: Liability Only
Average Quote: Full Coverage
02745
New Bedford, MA
$71
$123
01905
Lynn, MA
$75
$167
44107
Lakewood, OH
$71
$142
22406
Fredericksburg, VA
$139
$184
29412
Charleston, SC
$122
$169
Disclaimer: Table data sourced from real-time quotes from Insurify's 50-plus partner insurance providers. Actual quotes may vary based on the policy buyer's unique driver profile.
Car insurance in ZIP codes with the biggest populations
Population density can also increase your car insurance rates. The more people in a given area, the higher risk of accidents, as well as the potential for crime. Below, you’ll see the ZIP codes with the largest populations alongside average quotes for liability and full-coverage insurance in those areas.
ZIP Code
City
Average Quote: Liability Only
Average Quote: Full Coverage
60629
Chicago, IL
$87
$167
79936
El Paso, TX
$108
$148
90011
Los Angeles, CA
$114
$263
11385
Ridgewood, NY
$317
$342
90650
Norwalk, CA
$82
$145
Disclaimer: Table data sourced from real-time quotes from Insurify's 50-plus partner insurance providers. Actual quotes may vary based on the policy buyer's unique driver profile.
Average car insurance costs
Car insurance rates can vary by ZIP code, as they include hyper-local factors that influence how high or low premiums might be. Additionally, rates vary from state to state due to unique factors like weather, minimum coverage levels, local laws, and more.
The national average for car insurance is $104 per month for liability insurance and $213 per month for full-coverage insurance, according to a recent Insurify report. What you pay for car insurance may be higher or lower, depending on your state, ZIP code, and driving history.
Average auto insurance rates by state
A state covers a sometimes very large area encompassing many different ZIP codes, all of which have differing rates. This can affect the average auto insurance rates from state to state. Below, you can see the average monthly quotes for full-coverage and liability-only coverage in each state.
Disclaimer: Table data sourced from real-time quotes from Insurify's 50-plus partner insurance providers. Actual quotes may vary based on the policy buyer's unique driver profile.
Average car insurance rates by coverage type
Car insurance rates also depend on the coverage type you get. The main types of auto insurance include:
Liability coverage: Most states require you to get liability insurance with a minimum amount of coverage. As the name suggests, it covers your liability when you cause an accident but doesn’t include any protection to your vehicle or you if you’re injured. The national average for liability insurance is $104 per month.
Full coverage: Getting full-coverage car insurance helps cover you and other drivers in various situations. Through this coverage, you generally get a combination of three insurance types: liability, comprehensive, and collision. This meets state requirements and offers you protection if your vehicle is damaged in a crash or by external factors like weather or vandalism. The national monthly average for full coverage is $213.
Cheapest car insurance companies by state
Though car insurance rates fluctuate by ZIP code, you can check out which insurance companies provide the cheapest car insurance in your state. This can help you find affordable coverage in your area.
Disclaimer: Table data sourced from real-time quotes from Insurify's 50-plus partner insurance providers and quote estimates from Quadrant Information Services. Actual quotes may vary based on the policy buyer's unique driver profile.
Where insurance rates are rising the fastest
Car insurance premiums went up 17% in the first half of 2023 due to economic factors, such as inflation and higher labor costs, according to a recent Insurify report. Some states’ car insurance rates are going up faster than others.
These are the top five states where rates are going up the fastest.
New Mexico
Nevada
New Jersey
Michigan
Indiana
How to cut car insurance costs
As car insurance rates continue to go up and budgets get smaller, it’s important to cut costs where you can. To lower your car insurance rates, follow these tips:
Getting an auto policy and adding a homeowners policy or other type of insurance can offer significant discounts.
Be a responsible driver
Stay focused on the road, avoid distractions, make sure you have safety features for your car, stick to the speed limit, and always drive sober. Good drivers tend to qualify for the best rates.
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Rates by ZIP code FAQs
Have questions about car insurance rates by ZIP code? Here are some frequently asked questions.
Is it legal for insurance companies to use ZIP code as a rating factor?
It’s legal in most states to use ZIP codes as a rating factor for auto insurance premiums. Where you live can determine risk levels based on population density, crime, and claims filed. However, the states of Michigan and California don’t allow insurance companies to use ZIP codes for auto insurance rates.
Can you lie about your ZIP code to get a cheaper rate?
Your ZIP code is a factor that insurance companies use to assess levels of risk. Answering honestly is part of that. If you lie to your insurance company about your ZIP code to get a lower rate, it’s considered insurance fraud. To avoid the consequences of insurance fraud, be forthright and honest with the details on your application, including your ZIP code.
Rural or urban areas: Which has cheaper car insurance?
Rural areas typically have cheaper car insurance because of a lower population density and reduced crime rate. Urban areas have a higher population density, which can lead to more accidents and crime, resulting in higher premiums.
What states have the cheapest car insurance rates?
Car insurance premiums fluctuate based on where you live. The states with the cheapest car insurance rates include Hawaii, Idaho, Ohio, Minnesota, and Wyoming, according to a recent Insurify report.
Which company has the cheapest car insurance rates?
Different insurers offer the cheapest rates in different states and communities. However, State Farm and USAA consistently rank among the cheapest auto insurance companies in the United States. You can find the most affordable insurers in your state with Insurify’s Car Insurance Rates by State.
Methodology
Insurify data scientists analyzed more than 90 million quotes served to car insurance applicants in Insurify’s proprietary database to calculate the premium averages displayed on this page. These premiums are real quotes that come directly from Insurify’s 50+ partner insurance companies in all 50 states and Washington, D.C. Quote averages represent the median price for a quote across the given coverage level, driver subset, and geographic area.
Unless otherwise specified, quoted rates reflect the average cost for drivers between 20 and 70 years old with a clean driving record and average or better credit (a credit score of 600 or higher).
Liability-only premium averages correspond to policies with the following coverage limits:
Bodily injury limits between state-minimum rates and $50,000 per person, $100,000 per accident
Property damage limits between $10,000 and $50,000
No additional coverage
Full-coverage premium averages correspond to the same bodily injury and property damage limits in addition to:
Comprehensive coverage with a $1,000 deductible
Collision coverage with a $1,000 deductible
Quotes for Allstate, Farmers, GEICO, State Farm, and USAA are estimates based on Quadrant Information Services’ database of auto insurance rates.
Melanie Lockert is the founder of the blog and author of the book, "Dear Debt." Through her blog, she chronicled her journey out of $81,000 in student loan debt. Her work has appeared on Allure, Business Insider, Credit Karma, Fortune, and more. She is also the co-founder of the Lola Retreat and host of the Mental Health and Wealth show podcast. She lives in Los Angeles and enjoys jazz music, traveling, coffee, and spending time with her two cats and partner.
7+ years in business and financial services content
Chris is a seasoned writer/editor with past experience across myriad industries, including insurance, SAS, finance, Medicare, logistics, marketing/advertising, and many more.
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