Average auto insurance cost by state in 2026 — full ranking
Michigan drivers pay $2,900/yr while Vermont pays $980/yr for the same car. Here's the full state-by-state breakdown of average auto insurance premiums.
State laws are the primary driver of auto insurance cost variation. Michigan's unlimited no-fault medical benefit mandate, Florida's high rate of uninsured drivers (20%+), and Louisiana's litigation environment push those states to the top of the list. Vermont, Idaho, and Wyoming benefit from low population density and minimal no-fault requirements.
The cheapest states for full coverage are: Vermont ($980/yr), Idaho ($1,020/yr), Wyoming ($1,050/yr), Maine ($1,050/yr), and Iowa ($1,070/yr). The spread between the most and least expensive state is nearly $1,920/yr for equivalent coverage — more than many car payments.
Urban vs rural is a major within-state driver. Brooklyn, NY residents can pay $3,500–$5,000/yr while upstate New York drivers pay $1,200–$1,500/yr. The bar chart shows state averages; actual urban rates skew significantly higher.
Last updated 2026-04-01 · NAIC Auto Insurance Report 2023
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FAQ
Why is Florida auto insurance so expensive?
Florida has one of the highest rates of uninsured drivers (roughly 20%) and a significant rate of insurance fraud. Its no-fault PIP requirement adds cost, and high litigation rates drive up claim settlement costs.
What are the cheapest states for car insurance?
Vermont, Idaho, Wyoming, Maine, and Iowa consistently rank as the cheapest states. Low traffic density, fewer uninsured motorists, and minimal no-fault mandates keep rates down.
Does moving to a cheaper state lower my insurance?
Yes, immediately — insurance is priced by garaging address. Moving from New York to Vermont with the same vehicle and driving record would reduce a typical full-coverage premium by 40–55%.
Are state minimum coverage requirements enough?
Rarely. State minimums are often $25,000/$50,000 for bodily injury — far below actual costs of a serious accident. A single hospitalization can exceed $100,000. Financial advisors generally recommend 100/300/100 limits for anyone with meaningful assets.
Sources
For general guidance only — individual results vary. Not financial, legal, or tax advice.