Data Work By Karim Noorani
Nearly every state requires drivers to carry car insurance, but the laws vary, and many factors affect the cost of car insurance.
Some are controllable, at least to degrees: the type of car you have and your credit history. Some are not: your age and gender. Your marital status, place of residence, and claims history are among the other variables that go into insurance for cars.
Across the United States, insurance premiums are soaring, rising 20% year over year and increasing six times faster than consumer prices overall as of December 2023, CBS reported. Last September, CNN noted that car insurance rates jumped more in the previous year than they had since 1976.
CBS pointed to many potential reasons for these increases in vehicle insurance prices. Coronavirus pandemic-era issues have made buying, fixing, and replacing vehicles costlier. Extreme weather events caused by climate change also damage more vehicles, while car insurance companies are increasing their business costs. Severe and more frequent crashes are to blame as well, CNN reported.
On top of these, local factors such as population density, the number of uninsured drivers, and the frequency of car insurance claims all affect premiums, which can lead motorists to change or switch their automobile insurance, use other modes of transportation, or even alter decisions about when to buy a vehicle or what to look for.
To see how geography affects cost, Cheap Insurance mapped the states where people pay the most in car insurance premiums using MarketWatch data. Premium estimates were based on full coverage car insurance for a 35-year-old driver with good credit and a clean driving record. Data accurate as of February 2024.
Americans pay $167 per month on average for full-coverage Car insurance
There are common denominators among the five states where it’s most expensive to have car insurance: Michigan, Florida, Louisiana, Nevada, and Kentucky. Washington D.C. is another pricey locale, ranking #4 overall.
Three of these six are no-fault jurisdictions and require additional auto insurance coverage beyond coverage to pay for medical costs. Michigan notably calls for $250,000 in personal injury protection (though people with Medicaid and Medicare may qualify for lower limits), $1 million in personal property insurance for damage done by your car in Michigan, and residual bodily injury and property damage liability that starts at $250,000 for a person harmed in an accident.
Other commonalities between these states include high urban population densities. At least 9 in 10 people in Nevada, Florida, and Washington D.C. live in cities and urban areas, which leads to more crashes and thefts and high rates of uninsured drivers and lawsuits. Additionally, Louisiana, Florida, and Kentucky rank #5, #8, and #10, respectively, in motor vehicle crash deaths per 100 million vehicle miles traveled in 2021 based on Department of Transportation data analyzed by the Insurance Institute for Highway Safety.
#5. Kentucky
– Monthly full-coverage car insurance: $210
– Monthly liability car insurance: $57
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#4. Nevada
– Monthly full-coverage auto insurance: $232
– Monthly liability auto insurance: $107
#3. Louisiana
– Monthly full-coverage automobile insurance: $253
– Monthly liability automobile insurance: $77
#2. Florida
– Monthly full-coverage vehicle insurance: $270
– Monthly liability vehicle insurance: $115
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#1. Michigan
– Monthly full-coverage car insurance: $304
– Monthly liability car insurance: $113
Story editing by Carren Jao. Copy editing by Paris Close. Photo selection by Lacy Kerrick.
