Drivers In These 5 States Pay The Highest Car Insurance Rates

The personal financial information site Bankrate has been crunching consumer and market data for 50 years, and in January 2026 the outlet reported on car insurance costs. The outlet concluded that a full-coverage car insurance policy in the U.S. averaged about $225 a month, while minimum coverage was $68/month. This means that drivers in the U.S. should expect to pay between $816 and $2,700 each year for car insurance. These are national averages, and insurance costs vary widely from state to state. Three of the five states with the lowest car insurance rates are in New England, but where is car insurance the most expensive?

Insurance rates fluctuate based on where within a state you live and your driving record, but there is lots of reliable data out there regarding average cost by state. The average American driver paid 12% more for insurance in 2025 than they did the year before, which can be a significant jump in some places. Some of the states mentioned below are traditionally known for being expensive to insure a car, while others have joined the fray more recently due to sudden large rate increases. We broke down state-by-state averages to compile this list of the most expensive states to insure a car and dug deeper to uncover the factors that lead to drivers paying more for that peace of mind. Here are the most expensive states to insure a car, counting down to number 1.

Michigan has been the home turf of the American auto industry for over a century, and in 2020 the state enacted new legislation with big changes to no-fault auto insurance. One of the main provisions mandated personal injury protection rate decreases of 10-45% for the next eight years, but those changes will have a delayed impact. Bankrate reports an average annual cost of $3,204 ($267 monthly) for full coverage in the state while the minimum required liability coverage comes in at $900 per year or $75/month. These numbers are very close to those reported by the industry research and analytics firm Beinsure: $3,236 annually for full coverage and $903 per year for liability only.

Speeding tickets are one factor that leads to higher insurance costs for many drivers, and Michigan's roadways present some other special hazards. Insurify reports that one in every 1,000 Michigan drivers have been involved in hit-and-run accidents, making it third worst in this respect after Wyoming and Iowa. The legal resource Advisement reports that 19.6% of the state's motorists drive without any insurance, another factor that leads to rate increases. Harsh winter conditions make driving a challenge, and State Farm reports that drivers in Michigan collide with wildlife at a rate of more than twice the national average.

Nevada comes up next on our list as we move up; Bankrate cites an average annual cost of $3,568 ($297.33/month) for full coverage or $1,084 ($90.33 monthly) for minimum coverage. Insurance Business magazine and Insure.com also rank Nevada as the fourth most expensive state for auto insurance at $3,549 and $3,284 per year, respectively. A big contributor here is the frequency of accidents in the state. According to the non-profit organization TRIP (The Road Improvement Program), traffic fatalities in Nevada increased 46% between 2013 and 2023 and the fatality rate by miles traveled rose 30%. 

To address the rise in traffic fatalities, the state has taken measures including allowing for sharp insurance rate increases for Nevada drivers caught speeding. Nevada's high rates are also a product of the state's growing population, severe weather, and frequency of auto theft. The National Insurance Crime Bureau ranked Nevada third in the nation for likelihood of theft behind the District of Columbia and California at 16.68 incidents per 100,000 residents over the first half of 2025.

Bankrate placed Florida as the third most expensive state to insure a car at an annual average of $3,884 ($323.67/mo) for full coverage and $1,056 ($88/month) for the state minumum. Insure.com cites a similar average of $3,852 for a year of full coverage, while Quote.com pegs that cost at $3,840. There are a few solid reasons why Florida sits so high on the list: crowded metro areas, busy highways, and high percentages of both inexperienced and older drivers.

Florida's no-fault insurance system and sometimes severe weather also play a role. The state also hosts an above-average percentage of uninsured drivers, with estimates placing that number between 15 and 20%. Miami is ranked among the cities with the most car thefts in the U.S., and in 2021 Clearsurance ranked Florida ranked as the third-worst state in terms of auto insurance fraud. With all those contributing factors, it's a wonder Florida didn't land even higher on our list.

Bankrate places New York as the second-most expensive state in the U.S to insure a car. Full coverage averages $4,090/year ($340.83/month) and a patriotic $1,776 annually ($147.17/month) for minimum coverage. Insurify cites an average annual cost of $3,935 for full coverage, while Insuranceopedia comes in at $3,844 annually for full coverage and $1,644 for liability only. As is the case with Florida, part of why it's so expensive to insure a car in New York is the state's no-fault insurance policies. 

New York's health care costs are also among the most expensive in the U.S., and that can have a big impact on auto insurance premiums. If you also account for harsh winters, high car crime rates, and one of the highest rates of fraudulent accident claims in the country, it's no surprise to see New York so high on this list. High repair costs after an accident make New York one of the most expensive states to insure a Tesla, and New Yorkers own 86,000 Teslas that account for around half the state's electric vehicles. 

Louisiana might be a surprise atop this list, but the state has seen a steady climb in car insurance costs over the past few years. U.S. News and Bankrate both place Louisiana as the most expensive state to insure a car, a notable consensus. Bankrate reports $4,125 average annual costs ($343.75/month) for full coverage and InsuranceBusiness magazine comes in at $3,618 per year or $301.50/month. 

Louisiana's insurance companies are some of the nation's most profitable, collecting those large premiums while paying out well below the national average in claims. The Louisiana auto insurance market is also plagued by severe weather, an uninsured driver rate of almost 14%, high health care and auto repair costs, and frequent impaired driving. Gas and diesel fuel are also relatively cheap in the state, so Louisiana drivers tend to put lots of miles in behind the wheel. Louisiana is also the state with the most road rage in the U.S., which becomes a cherry on top of the nation's most expensive car insurance sundae.