Image: A young woman in a red jacket driving a car by Ivan Radic is licensed with CC BY 2.0

Car insurance can be expensive, and that expense varies widely from state to state. Depending on factors like state laws, uninsured drivers on the roads, the cost of car repairs, and inclement weather, some states have much higher average insurance premiums when compared to their neighbors. Keep in mind that insurance premiums change and that the same driver will qualify for different rates based on the insurance company, the type of vehicle, and the area of residence. Here are ten states with the most expensive car insurance and why drivers in these areas pay more.

Woman driving a car.
A young woman in a rad jacket driving a car by Ivan Radic is licensed with CC BY 2.0

New York

The reason New York has some of the most expensive insurance is because of the state’s no-fault insurance law. If you’re in an accident in New York, even if the accident was someone else’s fault, your insurance company will need to cover your injuries and any damage to your vehicle. That means insuring even the safest drivers carries additional risk. The state requires drivers to have coverage for uninsured motorists and property damage, too. Combine this with the fact that the state is home to New York City, and the state’s average premium is higher than many others.

Michigan

In 2020, Michigan recently changed its no-fault insurance laws to give drivers more freedom with their personal injury protection coverage. However, even a reduced amount of personal injury protection is high. A Michigan resident on Medicaid has to have at least $50,000 of coverage, and a resident on Medicare parts A and B can opt out entirely. The lowest anyone else can go is $250,000 with medical exclusions if they have qualified health insurance coverage. This means car insurance premiums in Michigan are still some of the highest in the nation, even with the changes to the law.

Louisiana

Louisiana is known as a “litigious state,” meaning that the state’s residents file claims for personal injury more frequently than residents of other states. If a driver is unhappy with the amount an insurance company offers after an accident, they may decide to engage the company in legal proceedings. This is expensive for insurance companies, and to help cover those costs, premiums in litigious states are often higher. Louisiana is also known to have poor road conditions, which adds to the overall risk of insuring drivers there.

Florida

In Florida, a combination of dangerous factors causes insurance rates to be high. Over 20% of drivers in Florida do not have insurance, according to the Orlando Sentinel. The drivers who are insured pay the price for those uninsured drivers on the roads by paying higher premiums. The state is also home to many older drivers and a lot of college students. Add to that the number of tourists who drive into and out of the state every year, plus the threat of hurricanes, and insurance providers have to weigh a lot of risks.

Georgia

In Georgia, insurance providers don’t need the permission of the insurance commissioner before raising rates, which makes it much easier for insurance companies to charge high rates here. Georgia is known for having dangerous highways where you’re more likely to have an accident. Car burglary and theft are also common in Georgia. Those who file insurance claims in Georgia are more likely to engage the services of a lawyer than in other states. Healthcare costs are high in Georgia as well.

Rhode Island

The smallest state in the nation happens to have very expensive auto repairs, which causes insurance premiums to go up. The Auto Body Association of Rhode Island has been responsible for backing legislation that improves the quality of repairs but also increases the prices of those repairs. Additionally, Rhode Island has its fair share of uninsured drivers and a high population density, meaning the insurance companies take on more risk when insuring Rhode Island drivers.

New Jersey

This no-fault state also has a high cost of living and is the most densely populated state in the United States. Both of these factors contribute to higher insurance premiums when compared with other states. New Jersey houses a lot of cities and is neighbors with states that are home to other extremely large cities, like New York City. The density of drivers and the resulting higher amount of traffic push the cost of insurance up.

Maryland

Maryland has its fair share of uninsured drivers, and insured drivers have to deal with some pretty hefty minimums to make up for it. Like several other states on this list, the cost of repairing a car in Maryland is climbing. Additionally, this coastal state is at risk for hurricanes, flooding, and severe winter storms, all of which cause more accidents and therefore higher insurance premiums.

Delaware

Though Delaware isn’t as small as Rhode Island, it’s still a tiny state with a high population density. Healthcare and the cost of car repairs have been getting more expensive in Delaware each year. The state also has a high rate of uninsured drivers on the road. You may not think of Delaware as a hub for severe weather, but severe winter storms also contribute to higher insurance rates here.

Nevada

Since Nevada is home to Las Vegas, it shouldn’t be a surprise that car insurance is more expensive in this state. Nevada does not require bars and other places selling alcohol to close at any specific time, meaning the roads at night can be more dangerous. Like other states on this list, Nevada has a high percentage of uninsured drivers, rising medical costs, and a growing population, all of which contribute to the risk an insurance company takes on when insuring drivers.

After reading about these states, you’ll be relieved to know that Illinois does not make the list. Though premiums will be higher if you live in or near Chicago, you can find affordable Illinois car insurance with the coverage you want at American Auto Insurance. We provide cheap insurance with a low monthly payment, starting at $14 for non-owner policies, and instant proof of insurance. Don’t take the risk of driving in Illinois without being insured. With an A+ rating from the BBB, we offer great customer service and transparency with our rates. Contact us today to get coverage.


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