Car insurance is a legal requirement in almost every U.S. state, but not everyone pays the same amount. In fact, your location can play a big role in how much money you have to spend on car insurance every year.
Insure.com used data from Quadrant Information Services to find out which states had the highest car insurance rates in 2023. For this study, they used a standard case: a 40-year-old driver with a clean record, driving a Honda Accord LX with 10,000 miles per year.
They looked at over 51 million insurance records from 167 companies and 34,588 ZIP codes to find out which states are the most expensive for car insurance. Here’s what they found.
1. Louisiana – $2,883 per year
Louisiana tops the list as the most expensive state for car insurance. In 2023, drivers paid an average of $2,883, which is $348 more than they paid in 2022. This state has always had high insurance costs, but prices are rising even faster now.
2. Florida – $2,694 per year
Florida comes in second, with an average cost of $2,694. That’s a 24% increase compared to 2022. Bad weather, like hurricanes, and serious road accidents make insurance companies charge more here.
3. California – $2,416 per year
California drivers paid $2,416 on average. That’s $306 more than the previous year. High-tech cars that are expensive to repair and a rise in accident claims are pushing up prices in the Golden State.
4. Colorado – $2,337 per year
In Colorado, drivers saw a huge 29% jump in car insurance premiums. The average is now $2,337 per year. The biggest reason? Colorado has the highest car theft rate in the U.S., and theft claims drive up insurance costs for everyone.
5. South Dakota – $2,280 per year
South Dakota may seem cheaper than other states, but it had the biggest price jump—47% in just one year. More drivers on the road and higher health care costs are two reasons for the sharp rise in rates.
6. Michigan – $2,266 per year
Michigan offers unlimited lifetime coverage for people injured in major car accidents, which makes insurance more expensive. The average cost in 2023 was $2,266, which is still high even though the increase was only 5% from previous years.
7. Kentucky – $2,228 per year
Drivers in Kentucky pay more because of required personal injury protection (PIP) and high car theft rates. The average rate went up by $359 from 2022, reaching $2,228 in 2023.
8. Montana – $2,193 per year
Montana drivers now pay $2,193 a year for car insurance—up from $1,751 in 2022. That’s a 25% jump. One major reason is Montana’s high rate of fatal accidents, which leads to more claims and higher costs.
9. Washington, D.C. – $2,157 per year
Although it’s not a state, Washington, D.C., made the list because drivers here pay much more than those in nearby states. With lots of people and busy roads, the risk of accidents is high. This pushes the average insurance cost to $2,157.
10. Oklahoma – $2,138 per year
Oklahoma may not have a high population, but its drivers spend a lot of time on the road. More time driving means a higher chance of accidents. This led to a 26% increase in rates, with the average now at $2,138.
11. Delaware – $2,063 per year
Delaware is the only state on this list where car insurance costs dropped—by 3%. Even with the decrease, the average yearly cost in 2023 was still high at $2,063. Dense traffic and costly repairs keep the prices up.
Car insurance is something every driver needs, but what you pay depends a lot on where you live. Weather conditions, accident rates, theft, and even healthcare costs can all influence how much insurance companies charge.
States like Louisiana, Florida, and California are the most expensive, while Delaware, despite its slight price drop, still has high average rates. If you’re moving or buying a car, it’s smart to check the local insurance rates first so you’re not caught by surprise.
