Auto Insurance Cost By State

Is Texas Considered A No

State Auto Insurance Rates Rise due to Weather

No, Texas is not a no-fault insurance state. This means that the driver who caused an accident is also responsible for paying the cost of damages.

For this reason, drivers in Texas should strongly consider coverages such as personal injury protection and uninsured motorist coverage. These two coverages give you some financial protection if you are involved in an accident with an underinsured or uninsured driver. While these are technically optional coverages, they are highly recommended and must be opted out of in writing when buying your car insurance policy.

Ohio: Cheap Minimum Coverage

Ohio becoming the cheapest state for car insurance was another surprise in the 2022 report because the Buckeye state shares such a large border with Michigan, always one of the most expensive states for car insurance.

However, the average annual premium for Ohio drivers actually increased from 2021 to 2022 by 3% to $1,023. Amongst the cheaper states for car insurance, it appears rates are just increasing much more slowly in Ohio than elsewhere. Car insurance in Ohio is about 40% cheaper than the national average.

While car insurance is required in Ohio, many opt for minimum liability insurance, which is extremely inexpensive but doesnt cover drivers or their vehicles in an at-fault accident situation. Full coverage car insurance is a much better solution.

Why Some Cars Cost More To Insure

Certain cars cost more to insure than others because carriers use crash and theft statistics to help set rates for each model separately. So if the car you choose tends to be stolen or crashed more, chances are youll pay more for insurance. For example, the reason sports cars cost more to cover is because theyre more likely to be driven fast and crashed hard by their owners.

Here are some specific vehicle characteristics that affect auto insurance costs:

  • Retail price. Generally, the pricier the car, the more expensive it will be to insure. If you buy comprehensive and collision coverage, the insurance company will be on the hook to pay out the cars market value if the vehicle is stolen or wrecked beyond repair.

  • Cost of parts. High-end models often use parts made from carbon fiber and other specialized materials that are expensive to repair. This drives up the cost of damage claims.

  • Safety. Over time, cars that do a good job of protecting drivers and their passengers bring down insurance costs. Fewer injuries mean fewer claims for medical payments and personal injury protection.

» MORE:Ranking the cheapest cars to insure

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Which States Have The Cheapest Car Insurance

South Dakota, Wyoming, Vermont, Iowa and North Dakota are the cheapest states for minimum car insurance.

South Dakota. South Dakota’s rural landscape and low number of uninsured drivers result in the cheapest minimum car insurance rates in the country: The average monthly policy in the state costs $28, which is 52% lower than the national average. South Dakota drivers should get quotes from Auto-Owners, American Family or State Farm because they offer the lowest rates for minimum car insurance coverage in the state.

Wyoming. As one of the cheapest states to have auto insurance, Wyoming drivers pay 47% less than the national average. Car insurance in Wyoming costs just $31 per month, with State Farm and Geico offering the most affordable minimum coverage policies. Limited traffic on rural roads, a low population and a small number of uninsured motorists help insurance companies keep rates affordable.

Vermont. The average annual rate in Vermont is only $32 per month, making it 45% cheaper than average. State Farm, Concord and Geico offer the cheapest rates for minimum coverage for Vermont drivers.

Iowa. With an average monthly rate of just $34 for minimum coverage, Iowa has some of the nation’s cheapest car insurance coverage 41% cheaper than the national average. Iowa drivers should consider getting quotes from State Farm, Auto-Owners and Farm Bureau, as they offer the cheapest minimum coverage auto insurance in the state.

Find Cheap Auto Insurance Quotes in Your Area

Will My State Have Car Insurance Rate Increases Next Year

Highest Auto Insurance Rates By State : Who Has the Cheapest Auto ...

Inflation and higher repair costs are a couple of reasons car insurance premiums are on the rise, so you will likely see an increase in your car insurance costs next year.

Car insurance companies have been filing paperwork with state insurance regulators to raise rates due to issues like higher claim costs.

Some states higher car insurance costs may also be due to natural disasters, which causes insurance companies to pay out a higher number of claims in a short period of time. Paying claims due to weather can cause auto insurance companies to raise prices for all drivers in that state.

If your car insurance company raises rates next year, youll see the increase at your next renewal period. If youre notified about higher premiums, you can shop around to find out if your current company offers the best rates or if you can save by switching car insurance companies.

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Car Insurance Cost: Conclusion

After conducting in-depth industry research, our team found that the average full coverage policy costs $1,730 per month on average. This is higher than minimum liability coverage because it incorporates liability, comprehensive and collision insurance.

To find the best car insurance price, we recommend shopping around and comparing car insurance rates from reputable insurance providers.

Finding An Affordable Car Insurance Plan

You cant change some of the factors above overnight, but that doesnt mean youll be stuck paying an absurdly high rate. You have options that can save you money today. Here are a few ways you can get a plan you love at a price you can afford.

  • Consider the Coverage You Need: While you definitely want to meet your state’s minimum coverage requirements, you might not want additional coverage depending on your situation. For example, if you have two vehicles and one is much older or not driven very much, you might choose to only meet liability requirements on the older vehicle.
  • Adjust Your Deductible: Typically, a higher deductible means your premium will be lower. This sounds like an enticing way to save you money, but remember, if you get in an accident, you’ll be paying the deductible before your insurance kicks in. So make sure to weigh how much you want to save with how much you could pay upfront for repairs.
  • Look for Discounts: At Direct Auto Insurance, we want everyone to have an affordable car insurance plan, regardless of their history. One of the main ways we keep costs down is by offering a wide range of discounts. When you start evaluating different car insurance plans, check to see if they offer safe driving discounts, good student discounts, mileage discounts, and more.

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How Do Car Insurance Companies Pay Out Claims

In case of an accident, you can file a claim with your insurance company by calling the claims department. Major insurance companies have mobile apps that allow you to file a claim quickly and upload all the necessary documents in one place.

Car insurance companies pay out claims after investigating and reviewing all related documents. Be sure to consult your policy for any limitations regarding your coverage.

Usaa: Best For Military Families

Ranking the expense of state auto insurance

Average car insurance cost: $1,054 per year

Better Business Bureau rating: A+

AM Best financial strength rating: A++

Turn to USAA if youre in the military, a veteran, or in the family of a service member. The company offers the lowest average cost of car insurance among all providers and is known for outstanding service. Motorists with DUIs may be better served by a different company though, as USAA only ranks average for costs with those drivers.

For more about the company, read our USAA auto insurance review.

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How Much Does State Farm Car Insurance Cost Per Month

Coverage Type
Minimum coverage $52

While State Farm gives new policyholders the option to pay off their entire policy upfront with one payment , most drivers pay for their coverage monthly.

Depending on your individual needs, State Farm usually provides coverage on a six-month or a twelve-month basis. Twelve-month plans are typically a bit more affordable since the insurer benefits from having you locked into a contract, while six-month plans may be slightly more expensive .

So, assuming that you’re a 25-year-old with a typical $1,450 per year policy and a twelve-month coverage plan, then your monthly payments would be around $121 per month. When you first sign up, you’ll likely put this amount as a down payment and then make recurring monthly payments every 30 days.

That being said, however, this is just an average rate. Your personal rate may differ considerably, depending on your age, credit score, driving record, the type of car you’re driving, and the city and state you receive coverage in.

Why Does The Cost Of Auto Insurance Vary By State

The cost of car insurance varies by state for a few reasons. Some of the most straightforward reasons are state-specific laws that dictate required insurance coverages or minimums that vehicle owners need to meet.

Some of the lesser-known reasons car insurance cost may vary from one state to another include severe weather-related risks, a states claims-to-litigation ratio, or that a state prohibits insurance companies from using specific driver information, such as age or gender, as a factor to determine rates.

Some common coverage disparities that you might see from state to state include Personal Injury Protection coverage limits and uninsured motorist coverage.

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What Is The Average Cost Of Car Insurance In Texas

The average cost of car insurance in Texas is $1,500 per year according to Thats around the national average. Of course, your auto insurance cost will depend on many different factors including your age, where you live, and your driving history.

Some people get the bare minimum coverage, while others prefer the comfort and security of more protection. Liberty Mutual customizes your Texas auto insurance, so you only pay for what you need.

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15 Shocking Car Insurance Claim Statistics (2021 Results)

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Most Expensive States For Car Insurance

$2,489 $207

New Yorks average car insurance cost of $4,769 is 125% higher than the average national price of $2,118.

The reasons why these car insurance rates by state are high vary, but some factors affecting the costs in these states include:

  • Large urban areas. Congested areas result in higher rates of car accidents and claims. For population density, Rhode Island ranks 3rd, Maryland ranks 7th, New York 9th, Florida 10th, and Pennsylvania 11th, according to the U.S. Census.
  • No-fault laws and fraud. Florida, Michigan, New York and Pennsylvania have no-fault laws in place, and unfortunately, no-fault states tend to have higher rates of fraud, which pushes the cost of car insurance up in these states.
  • Lots of lawsuits. Louisiana is a litigious state with a higher-than-average number of car insurance lawsuits. New York also is known for being highly litigious. Claims dealt with in court can have bigger settlements, and thus insurance costs for all drivers in the state rise.
  • Severe weather. Florida and Louisiana are especially prone to bad weather, including hurricanes that can cause substantial damage to cars. Paying out a lot of claims in a short period after a severe weather event can result in car insurance companies raising car insurance costs.

Average Car Insurance Costs By Gender

On average, car insurance costs differ little by gender compared with differences we see by company, state, credit score and driving history. That doesnt mean that a cost difference due to your gender would be insignificant, however, just that its not a pricing factor well-illustrated by national statistics. Gender-based pricing is banned by law in seven states: California, Hawaii, Massachusetts, Michigan, Montana, North Carolina and Pennsylvania.

In general, young adults have a much wider price discrepancy based on gender than older drivers. Men pay more than women across all age groups we analyzed.

For example, in states where the practice is allowed, we averaged full coverage insurance rates for men and women separately and found that on average:

  • At age 20, men pay about $434 more than women per year.

  • At age 30, men pay around $30 more than women per year.

  • At age 35, men pay about $13 more than men per year.

Note: In this article, NerdWallet uses the term gender. We recognize that this is different than sex. Gender is how you identify within society, while sex refers to certain biological attributes.

Some insurers dont recognize this distinction and use the terms interchangeably. This means when applying for car insurance, they may ask for your gender, when they really mean sex.

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How To Get Cheap Car Insurance

But you can still find cheap car insurance by shopping around for rates every year and every time something major happens in your life, including marriage, a new job, moving or buying a new car. Additionally, if youve had a recent at-fault accident, DUI or other traffic violation, be sure to shop in the month after the third and fifth anniversaries of the incident.

If youre ready to shop, you can check out the cheapest companies in your own state for several driver profiles.

Car insurance costs $136 per month on average, according to NerdWallets rates analysis. However, your rate will vary depending on factors such as where you live, the vehicle you drive and your driving history. Compare car insurance rates to find the cheapest car insurance for you.

On average, full coverage insurance costs about $136 a month compared to $47 a month for minimum coverage. However, unlike minimum coverage, full coverage insurance pays out if your car is stolen or you need repairs after an accident. Minimum insurance covers damages to another person or vehicle only in an at-fault accident. It does not cover your own repairs or injuries.

Its hard to say exactly who pays the most for car insurance since there are so many factors that affect your auto insurance rates. In general, teen drivers, drivers with a recent DUI and drivers with poor credit pay some of the highest car insurance rates on average.

Cheapest States For Car Insurance

Michigan on verge of showdown over high car insurance rates
$1,454 $121

Idahos car insurance cost of $1,021 is 52% cheaper than the national average car insurance cost of $2,118.

The reason these states have the cheapest auto insurance has a lot to do with the makeup of the state. The cheapest states often have a large number of rural areas, which helps keep car insurance costs down compared to states with several congested metropolitan areas.

For population density, Vermont ranks 33rd, Iowa is 38th, Maine is 40th, Idaho is 44th, North Dakota is 49th and Wyoming comes in 51st, the least populous state, according to the U.S. Census.

The weather is mild in most of these states, especially compared to states like Florida and Louisiana, which experience severe weather and are two of the most expensive states for car insurance. Many of the cheapest states also have competitive car insurance markets, allowing drivers to compare car insurance quotes from multiple companies.

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Speeding And Traffic Tickets

If it’s your first speeding ticket in three years, you may not get an increase at all. But, if you get two or more tickets in a three-year period, you’ll likely get an increase. The good news is that the increase won’t be permanent, and speeding tickets typically fall off your motor vehicle record after a few years.

Learn more about how speeding tickets impact your insurance rate.

Car Insurance Rates By Zip Code

Insurance companies price car insurance by ZIP code as well as by city. If you compare one ZIP code with another, you’ll find that average car insurance rates can vary by more than a third even within the same city.

Take Houston as an example: If a 30-year-old driver with a clean driving record lives in ZIP code 77036, he will pay $816 per year on average for minimum coverage auto insurance on his Honda Civic EX. By contrast, if he lives in ZIP code 77339, he will pay just $659 per year a $157 difference.

Don’t be alarmed if your auto insurance rates change when you move across town. Shop around for the cheapest auto insurance rates in your new ZIP code to ensure you’re getting the best deal.

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