Car insurance can be a significant expense for many drivers, and the cost varies dramatically from state to state. An analysis reveals that 16 states have average premiums exceeding the national average of $1,517.
Factors such as population density, weather conditions, and the prevalence of uninsured drivers contribute to these rising costs.
Among the most expensive states for car insurance, Louisiana stands out with an average annual premium of $2,883—almost $1,000 above the national average.
Other states like Florida and Michigan also grapple with high rates due to similar challenges, including severe weather and a high number of claims.
Understanding the reasons behind these costs can help drivers navigate their insurance options more effectively.
1. Louisiana
Louisiana stands out as the most expensive state for car insurance in the U.S. The average yearly rate hits $2,883 for a 40-year-old driving a Honda Accord LX.
Recent data shows that premiums increased by 14% from 2021 to 2023, costing residents an additional $348 in 2023 compared to 2022.
Factors like high rates of uninsured drivers and challenging weather conditions contribute to these soaring costs.
2. Florida
Florida ranks as the second-worst state for car insurance, with 40-year-olds driving a Honda Accord LX paying an average of $2,694 per year.
Premiums have surged 24% in 2024 compared to the previous year, intensified by extreme weather and severe accidents, which contribute to the state’s high insurance costs.
3. California
California ranks as the third most expensive state for car insurance, with annual premiums averaging $2,416 for a 40-year-old male driving a Honda Accord LX. This reflects a $306 increase from 2022 to 2023.
Experts like Karl Susman attribute the rising costs to increased accident claims and higher repair expenses due to modern vehicle technology.
4: Colorado
Colorado ranks as the fourth-most expensive state for car insurance, with an average premium of $2,337. Colorado’s premiums surged 29% between 2021 and 2023, largely due to having the worst auto theft rate in the U.S.
High incidences of auto theft contribute to increased payouts for comprehensive coverage, impacting all drivers financially.
5: South Dakota
South Dakota ranks as the fifth most expensive state for car insurance, with an annual premium averaging $2,280 for a 40-year-old driving a Honda Accord LX.
Premiums surged 47% from the previous year, driven by a rising number of accidents and claims due to increased driving.
Additionally, escalating healthcare costs affect insurance companies’ payouts, further complicating affordability for South Dakotans.
6: Michigan
Michigan ranks as the sixth most expensive state for car insurance, with an average premium of $2,266 for a 40-year-old driving a Honda Accord LX. Michigan’s premiums rose by 5% from 2021 to 2023, influencing overall expenses.
One primary factor is the state’s unlimited lifetime coverage for catastrophic injuries, ensuring victims receive essential medical treatment for life.
7: Kentucky
Kentucky residents face high insurance costs, averaging $2,228 for a 40-year-old driving a Honda Accord LX in 2023.
That’s $359 more than the previous year. Personal injury protection coverage is mandatory, adding to premium expenses. Additionally, Kentucky’s relatively high car theft rates significantly influence the overall cost of insurance.
8: Montana
Montana ranks as the eighth most expensive state for car insurance, with average premiums around $2,193 annually for a 40-year-old driving a Honda Accord LX. This figure marks a significant increase from $1,751 in 2022.
Montana also struggles with high traffic fatalities, averaging nearly 20 deaths per 100,000 residents, which drives up insurance costs.
9: Washington, DC
Washington, D.C., has high auto insurance premiums, averaging $2,157 for a 40-year-old driving a Honda Accord LX.
High population density in D.C. contributes to this cost, as busy streets increase the likelihood of collisions. This urban environment drives up the risk, leading to higher insurance rates for residents.
10: Oklahoma
Oklahoma’s car insurance premiums average $2,138 for a 40-year-old driving a Honda Accord LX, reflecting a 26% increase from 2022.
Many Oklahomans spend significant time on the road, leading to a higher accident risk due to the state’s lower population density and widely spread locations.
11: Delaware
Delaware’s auto insurance rates are notably high, averaging $2,063 for a 40-year-old driving a Honda Accord LX in 2023.
Although rates dropped 3% from 2022, the state’s dense population and expensive repair costs contribute to above-average premiums. Understanding these influences is crucial for Delaware drivers.
12: Rhode Island
Rhode Island ranks as the twelfth most expensive state for car insurance, with average premiums reaching $2,061 for 40-year-olds driving Honda Accord LXs in 2023. Premiums have surged by 20% since 2022, reflecting a $344 increase.
A dense urban population and high highway density contribute significantly to these elevated insurance costs.
13: Nevada
Nevada ranks among the most expensive states for car insurance, with average premiums of about $2,061 for a 40-year-old driving a Honda Accord LX. Premiums have seen a moderate increase of around 4% in 2023.
Factors like the bustling nightlife in Las Vegas, high population density, and relaxed alcohol laws contribute significantly to the state’s steep insurance costs.
14: New Mexico
New Mexico ranks as the 14th most expensive state for car insurance. In 2023, New Mexicans aged 40 with Honda Accord LXs paid an average of $2,049, reflecting a 35% increase from $1,516 in 2022.
A high percentage of uninsured drivers, alongside lax laws for those caught without insurance, contributes significantly to these rising premiums.
15: Texas
Texas ranks as the fifteenth most expensive state for car insurance, with an average premium of $2,043 for a 40-year-old driving a Honda Accord LX. Insurance rates in Texas increased by about 14% from 2022 to 2023.
High population density, especially in major cities like Houston and Dallas, contributes significantly to these elevated costs.
Alicia Richards