July 25, 2024

The states with the most and least expensive car insurance rates in America

It’s common knowledge that your location plays a significant role in determining the cost of your auto insurance. However, did you know that drivers in certain states pay nearly three times more than those in others? A recent study by MarketWatch reveals the stark disparity in insurance rates across different states, showcasing how some individuals are more fortunate than others.

While the affordability of car insurance in certain states can be attributed to factors like driver demographics and insurer preferences, some states rely on specific insurance companies to offer the best rates. For example, Vermont stands out as the least expensive state for car insurance, with an average annual premium of $488, provided by Union Mutual, a company catering exclusively to New England and New York residents.

The 10 most budget-friendly states for car insurance and their respective providers:

  • Vermont: $488 per year / Union Mutual
  • South Carolina: $545 / American National
  • Idaho: $559 / USAA
  • Maine: $588 / Travelers
  • Ohio: $613 / Nationwide
  • North Dakota: $657 / USAA
  • Wyoming: $661 / American National
  • Washington: $712 / USAA
  • New Hampshire: $715 / USAA
  • North Carolina: $729 / Progressive

Although your driving record matters, the prevailing insurance rates in your area largely hinge on the behavior of other motorists. For instance, living in a densely populated and accident-prone location like New York typically translates to higher insurance premiums compared to areas with lower driver volume and risk like Maine or Vermont.

The 10 priciest states for car insurance and their respective providers:

  • New York: $2,169 / Progressive
  • Louisiana: $1,561 / Southern Farm Bureau
  • Michigan: $1,484 / USAA
  • California: $1,406 / Geico
  • Florida: $1,368 / Geico

MarketWatch also highlighted the top affordable insurers, with USAA emerging as the frontrunner. It’s worth noting that several insurance companies have specific eligibility criteria or operate within limited regions. For instance, USAA caters exclusively to military personnel and their immediate families, underscoring the importance of contextualizing their competitive rates in terms of accessibility.


1. How can I lower my car insurance premiums?

2. Are there any discounts available for safe drivers?

3. What factors besides location influence auto insurance rates?

4. Is it possible to switch insurance providers for better rates?

5. Will my credit score impact my car insurance costs?


Ultimately, where you reside can significantly impact the amount you pay for car insurance. By understanding the factors influencing insurance rates and exploring options from diverse providers, you can make informed decisions to secure cost-effective coverage that aligns with your needs and budget.

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