Car insurance is required in nearly every U.S. state, but the price you pay for coverage can vary a lot depending on where you live. For some Americans, the cost of staying insured is climbing fast—and in some states, it’s downright painful.
A recent study by Insure.com analyzed over 51 million records from 167 insurance companies across 34,588 ZIP codes. Using a Honda Accord LX and a 40-year-old driver with a clean record as their standard model, they ranked the top 10 most expensive states for car insurance in 2024. Here’s what they found.
1. Louisiana
Average Premium: $2,883
The Bayou State tops the list. Rates are rising fast here, with a 14% increase in just two years. High accident rates and legal costs contribute to the hefty premiums.
2. Florida
Average Premium: $2,694
Florida drivers are seeing a 24% jump in rates. Frequent hurricanes, severe crashes, and costly claims are behind the steep prices.
3. California
Average Premium: $2,416
Modern vehicles mean expensive repairs, and increased accident claims across California are pushing rates up—$306 more than the year before.
4. Colorado
Average Premium: $2,337
Colorado has the worst auto theft rate in the country. Premiums are up 29% since 2021. More thefts mean more payouts, which means higher premiums for everyone.
5. South Dakota
Average Premium: $2,280
This state saw a 47% surge in rates in just one year. Rising accidents and costly healthcare are driving up premiums sharply.
6. Michigan
Average Premium: $2,266
Michigan has unique coverage laws that include lifetime medical benefits for crash victims. Even though increases are modest, the baseline cost is still high.
7. Kentucky
Average Premium: $2,228
Drivers in Kentucky are required to have personal injury protection (PIP). Combined with high theft rates, it’s no wonder premiums jumped $359 in one year.
8. Montana
Average Premium: $2,193
Montana has one of the highest traffic fatality rates in the U.S. Premiums rose from $1,751 to $2,193 in a single year.
9. Washington, D.C.
Average Premium: $2,157
Though it’s not a state, D.C. drivers still pay more than those in nearby Maryland or Virginia. High traffic and dense populations increase the risk of accidents.
10. Oklahoma
Average Premium: $2,138
Oklahoma isn’t densely populated, but longer driving times increase exposure to crashes. Rates rose 26% from 2022 to 2023.
Summary Table
| Rank | State / District | Avg. Annual Premium | Notable Reason |
|---|---|---|---|
| 1 | Louisiana | $2,883 | Rising claims & legal costs |
| 2 | Florida | $2,694 | Weather & severe crashes |
| 3 | California | $2,416 | Costly vehicle tech repairs |
| 4 | Colorado | $2,337 | High auto theft rate |
| 5 | South Dakota | $2,280 | Big rate spike in 1 year |
| 6 | Michigan | $2,266 | Lifetime medical coverage |
| 7 | Kentucky | $2,228 | Mandatory PIP, car thefts |
| 8 | Montana | $2,193 | High fatal crash rate |
| 9 | Washington, D.C. | $2,157 | Dense traffic areas |
| 10 | Oklahoma | $2,138 | Long daily commutes |
Car insurance costs are climbing across the U.S., but drivers in certain states are hit much harder than others. Factors like theft, crash rates, medical coverage rules, and even weather events all impact how much you’ll pay.
So, if you’re planning to move or shop for new coverage, it’s smart to compare rates and understand how your state stacks up. Where you live really does make a difference in what you’ll pay behind the wheel.
