Car insurance costs vary drastically across the U.S., and in 2025, some states are facing record-high premiums.
If you’re wondering where drivers are paying the most, this list of the 15 states with the most expensive car insurance in America reveals the surprising truth.
From Louisiana’s sky-high rates to rising premiums in Texas and Florida, various factors like extreme weather, theft, and healthcare costs are driving up expenses.
Whether you’re planning a move or just curious about your state’s ranking, understanding these trends can help you make smarter financial and coverage decisions.
1. Louisiana
Louisiana is home to the most expensive car insurance in the entire country, with an average yearly rate of $2,883 for a 40-year-old driving a Honda Accord LX.
The Bayou State has a historical trend of high car insurance premiums. Residents recently experienced a significant 14% increase in costs just between 2021 and 2023.
This increase meant that drivers paid an average of $348 more in 2023 than they did in 2022. This consistent trend and recent surge underscore why Louisiana tops the list for car insurance expenses.
2. Florida
Florida, often called the Sunshine State, ranks as the second-worst state in the U.S. for high car insurance costs.
Forty-year-olds behind the wheel of a Honda Accord LX in Florida pay an average of $2,694 per year for their insurance.
Unfortunately for Floridians, 2024 is not showing any relief, with residents facing an average 24% increase in insurance premiums this year compared to last.
The primary factors contributing to Florida’s elevated insurance costs are its vulnerability to extreme weather events and the occurrence of more severe accidents.
3. California
Californians are required to pay a considerable amount to operate a vehicle, with annual premiums for a 40-year-old Honda Accord LX-driving male averaging $2,416.
This represents a significant $306 increase in rates between 2022 and 2023. According to insurance expert Karl Susman, a key reason for this surge is the significant rise in accident claims across California.
Furthermore, modern vehicles are equipped with technology that is expensive to repair, and auto insurance companies are passing these increased costs onto consumers through higher premiums.
4. Colorado
Coloradans find themselves in the unenviable position of residing in the fourth-most expensive state for car insurance, with average rates reaching $2,337.
Even more impactful for many households is the substantial 29% increase in premiums observed between 2021 and 2023.
A major contributing factor to Colorado’s rapidly escalating insurance premiums is the fact that the Centennial State has the worst auto theft rate in the United States.
When there are high incidences of auto theft, drivers with comprehensive coverage receive payouts, which ultimately leads to increased rates for everyone.
5. South Dakota
For a 40-year-old American driving a Honda Accord LX in South Dakota, the annual car insurance premium averages $2,280.
While this might appear relatively lower than the top states, it represents a shocking financial hit for residents: just one year prior, the same coverage cost $1,553, marking an immense 47% increase.
This sharp rise is attributed to several factors, including an increasing number of accidents and claims as more people drive.
Additionally, the rising cost of healthcare in South Dakota impacts car insurance companies’ profitability when paying out medical bill claims.
6. Michigan
Michigan’s average car insurance premium for a 40-year-old Honda Accord LX driver is $2,266. While residents of the Great Lake State experienced a relatively modest 5% increase in insurance premiums between 2021 and 2023, the underlying reason for Michigan’s high auto insurance costs is quite unique.
A major factor is that the state’s auto insurance policies mandate unlimited lifetime coverage for catastrophic injuries.
This means that individuals who are victims of life-altering crashes receive unlimited medical coverage for the entire duration of their lives, a significant commitment for insurers.
7. Kentucky
In 2023, 40-year-old Kentuckians driving Honda Accord LXs faced an average auto insurance cost of $2,228.
This figure represented a notable increase of $359 compared to rates in 2022. Several factors contribute to Kentucky’s elevated premiums.
A key requirement is that all resident drivers must carry personal injury protection coverage, which inherently adds to the cost of a standard premium.
Furthermore, Kentucky also contends with a relatively high rate of car thefts, which is another significant factor pushing insurance costs upwards for its residents.
8. Montana
Maintaining auto insurance for a 40-year-old Montana driver with a Honda Accord LX costs an average of $2,193 annually.
This amount is particularly painful given that the cost was considerably lower, at $1,751, just in 2022. A primary reason cited for Montana’s high insurance rates is its relatively high rate of traffic fatalities.
According to InsureOne, approximately 20 people per 100,000 residents die from crashes in the state. This elevated risk of fatal accidents significantly influences the premiums that insurance companies charge.
9. Washington, D.C.
Although Washington, D.C., is a district and not a state, Insure chose to include the nation’s capital on this list due to its significantly higher auto insurance costs compared to neighboring Maryland and Virginia.
Forty-year-old residents of Washington, D.C., pay an average of $2,157 for auto insurance when owning a Honda Accord LX.
A major “driving” factor for these elevated premiums is the high population density within Washington, D.C..
Densely populated areas inherently present a greater risk of collisions on busy streets, leading to higher insurance rates.
10. Oklahoma
Oklahoma residents experienced a substantial increase in car insurance premiums, paying about 26% more in 2023 than in 2022.
This translated to an average annual premium of $2,138 for a 40-year-old driving a Honda Accord LX. Unlike Washington, D.C., Oklahoma’s population density is not particularly high.
However, because the Sooner State is geographically spread out, many residents spend a significant amount of time on the road.
The more time a driver spends on the road, the greater the chance of an accident occurring, thereby increasing insurance costs.
11. Delaware
Delaware saw a rare 3% drop in insurance rates between 2022 and 2023, with a 40-year-old Honda Accord LX driver paying an average of $2,063 in 2023, down from $2,135 in 2022.
Despite the drop, auto insurance costs remain above average, largely due to Delaware’s dense population and expensive repair prices.
12. Rhode Island
Forty-year-old Rhode Islanders driving Honda Accord LXs paid an average of $2,061 for auto insurance in 2023, marking a 20% increase ($344) from 2022. A dense urban population and highway density are among the reasons for these high costs.
13. Nevada
Nevada’s average annual auto insurance for a 40-year-old Honda Accord LX driver is $2,060, just $1 less than Rhode Island.
While they didn’t experience the dramatic increase seen in Rhode Island (only about a 4% increase), factors like partiers in Las Vegas and relaxed alcohol laws contribute to high auto insurance rates.
14. New Mexico
New Mexicans driving Honda Accord LXs experienced a massive 35% increase in annual auto insurance from $1,516 in 2022 to an average of $2,049 in 2023.
A significant factor contributing to these expensive premiums is a high percentage of uninsured drivers on New Mexico’s roads, a situation unlikely to change soon due to relatively lax laws for driving without insurance.
15. Texas
Texas’ annual auto insurance policy averages $2,043 for a 40-year-old driving a Honda Accord LX, which is still much higher than the majority of states.
Texans saw around a 14% increase in premiums between 2022 and 2023. Population density is a key factor, as Texas includes three of the ten largest cities in America and many other growing smaller cities.
Alicia Richards