How much car insurance costs in all 50 states

Brian Pascus
  • Car insurance rates can be one of the most important factors shoppers consider when purchasing a new vehicle.

  • Premiums are an amount owners pay for an insurance policy which protects them against accidents, damages, stolen vehicles and other incidents.

  • The insurance information website Insure.com recently published an analysis on which states have the highest and lowest annual car insurance rates.

  • According to the study, the national average for annual premiums is $1,365, but the variance among states is starker than one would assume.

  • Michigan, Louisiana, and Florida had the highest average annual insurance rates in the country while Vermont,Ohio, and Idaho had some of the lowest.

Car insurance rates are among the most important factors buyers consider when purchasing a new vehicle. A premium is the rate motorists pay for a car insurance policy which protects them against accidents, damages, stolen vehicles and other incidents.

But car insurance rates for the same car can vary greatly from state to state.

For example, data from the insurance information website, Insure.com, shows Vermont's average annual premium is $932, while Michigan's is $2,239. A recent Insure.com study found the national average to be $1,365.

Insure.com points out that Michigan uses "no-fault" car insurance that is believed to be the cause of driving up rates. According to the website, "no-fault" insurance un-caps medical benefits for injuries sustained while driving.

There are other factors at play that lower premiums in other states.

Vermont has a small population, so this leads to fewer accidents and fewer claims, both of which help drive down premiums. This is the reason why Idaho and Iowa have some of the least expensive car insurance in the country.

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In a statement to Business Insider, Insure.com's insurance expert Penny Gusner said, "On the flip side, the states with cheaper car insurance tend to be more rural states that have a good competitive car insurance marketplace. Vermont is sparsely populated which helps keep the accident rate down, compared to Michigan that has big cities, such as Detroit."

Ohio and Virginia are each relatively highly-populated states that have low insurance rates, but Insure.com cites the vast number of insurance carriers in each state—almost 250 for Ohio and over 300 for Virginia—and the competition which results as the main reason their insurance premiums are so low.

Variance in state laws account for the changes among auto premiums, but weather differences, crime rates, and the percentage of uninsured drivers in each state all play into the creating price differences.

Insure.com' study notes that there are multiple risk factors at play that affect car insurance no matter what state you live in. These factors include age, gender, location, and the type of vehicle insured, and the driving record of the vehicle owner.

With this information in mind, take a look below at the average annual car insurance premium in all 50 states and the District of Columbia, using data provided by Insure.com.

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