The States Where Motorists Pay the Most for Auto Insurance
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A new report also looks at the places where rates are the highest compared to income.
New York drivers pay the nation’s highest average auto insurance premiums—more than three times what motorists pay in Maine, the state with the lowest rates, according to a new report.
In New York, the average, full annual premium for auto insurance is $2,996 and in Maine it is $876, says the report, which is from the financial services firm Bankrate.
Following New York, the states where residents pay the most for auto insurance are:
| Rank | State | Average Annual Premium |
| 2 | Louisiana | $2,864 |
| 3 | Florida | $2,762 |
| 4 | Nevada | $2,426 |
| 5 | Michigan | $2,345 |
| 6 | California | $2,190 |
| 7 | Colorado | $2,019 |
| 8 | Pennsylvania | $2,002 |
| 9 | Georgia | $1,985 |
| 10 | Delaware | $1,963 |
Following Maine, the states where residents pay the least are:
| Rank | State | Average Annual Premium |
| 2 | Vermont | $1,000 |
| 3 | Idaho | $1,065 |
| 4 | New Hampshire | $1,182 |
| 5 | Ohio | $1,200 |
| 6 | Hawaii | $1,206 |
| 7 | North Dakota | $1,225 |
| 8 | Indiana | $1,242 |
| 9 | Wisconsin | $1,249 |
| 10 | Iowa | $1,254 |
The report also includes a ranking of the “true cost” of car insurance in each state. This metric refers to the average share of their income drivers spend on auto coverage. States with high premiums and lower incomes would rank highest on this list, with drivers facing the greatest proportional cost burdens to keep their vehicles insured.
Nationally, drivers spend an average of about $1,771 per year on car insurance, or about 2.57% of the average U.S residents’ annual income.
The state that ranked the highest in the report based on the true cost metric was Louisiana, where average annual premiums were $2,864, or 5.26% of income, on average. Hawaii was the lowest on the true cost list with average annual premiums around $1,200.
The report notes that factors like frequent natural disasters, including floods and hurricanes, can drive up insurance rates in a state. For individuals, credit scores, driving records, age and the type of vehicle a person drives also play a part in determining costs.
The report relied on data from Quadrant Information Services to analyze 2022 rates.
For more information from the report click here.
Andre Claudio is an assistant editor at Route Fifty.
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