Having car insurance is a legal requirement in almost every U.S. state. But depending on where you live, the amount you pay for your policy can change a lot.
According to a recent study by Insure.com, drivers in some states are paying hundreds—or even thousands—more per year for their car insurance than others. Sadly, if you’re living in Louisiana, Florida, or California, you’re likely feeling the pinch.
How Was the Study Done?
Insure.com analyzed millions of records using data from Quadrant Information Services, covering:
- 51 million records
- 167 insurance companies
- Over 34,000 ZIP codes
They based their comparison on a 40-year-old driver with a clean record driving a Honda Accord LX, covering 10,000 miles per year.
The Top 15 States With the Highest Car Insurance Rates
1. Louisiana
- Average annual premium: $2,883
- Increase from 2022 to 2023: $348 (14%)
- Why so high? Frequent severe weather, high accident rates
2. Florida
- Average annual premium: $2,694
- Increase: 24% in just one year
- Why? Hurricanes, costly accidents, high repair bills
3. California
- Average premium: $2,416
- Increase: $306 in one year
- Why? Expensive car repairs and a rise in accident claims
4. Colorado
- Average premium: $2,337
- Increase since 2021: 29%
- Why? Worst auto theft rate in the country
5. South Dakota
- Average premium: $2,280
- Increase in one year: 47%
- Why? More drivers, more accidents, higher healthcare costs
6. Michigan
- Average premium: $2,266
- Increase: Only 5%
- Why? Lifetime medical coverage for crash victims
7. Kentucky
- Average premium: $2,228
- Increase: $359 in a year
- Why? Personal injury protection required, high theft rate
8. Montana
- Average premium: $2,193
- Increase from 2022: $442
- Why? High traffic death rates (20 deaths per 100,000 people)
9. Washington, D.C.
- Average premium: $2,157
- Why? High population density and more chance of accidents
10. Oklahoma
- Average premium: $2,138
- Increase: 26%
- Why? People drive long distances, increasing risk
Honorable Mentions
11. Delaware
- Average premium: $2,063
- Good news: A rare 3% decrease in rates
- Still high due to dense population and repair costs
12. Rhode Island
- Average premium: $2,061
- Increase: 20%
- Why? Urban congestion and high traffic volume
13. Nevada
- Average premium: $2,060
- Increase: Just 4%
- Why? Vegas nightlife, loose alcohol laws increase crash risk
14. New Mexico
- Average premium: $2,049
- Huge jump: 35% in one year
- Why? Many uninsured drivers and weak enforcement
15. Texas
- Average premium: $2,043
- Increase: 14%
- Why? High population density and rapid city growth
Auto Insurance Is Getting Costlier in Many U.S. States
If you live in Louisiana, Florida, or California, you’re likely paying far more than the national average for car insurance. Even in places like South Dakota, prices have surged dramatically in just one year.
Factors like weather conditions, accident rates, car theft, population growth, and healthcare costs are all affecting what drivers pay. This is why it’s more important than ever to compare insurance rates and review coverage options annually.
