Auto insurance carriers

Low-cost states
Average monthly price: $137
Total six-month policy average: $817

States included
Idaho, Indiana, Iowa, Kansas, Maine, Minnesota, Montana, New Hampshire, New Mexico, North Carolina, North Dakota, Ohio, Oklahoma, South Dakota, Vermont, Wisconsin, and Wyoming.

Why these are the most affordable states
Favorable weather: Most of these states aren’t coastal, which means you’re not as susceptible to catastrophic weather such as hurricanes. Plus, these are non-desert states, which means chipped/cracked glass claims aren’t as common. Glass claims are usually caused by debris/rocks being kicked up cars, and that happens more frequently in dry, desert states.

Small population density: Fewer drivers leads to less congested roads, lower traffic, and ultimately fewer accidents.

Low crime rates: For vandalism and car thefts, these states generally rank lower than medium and high-cost states.

Lack of dangerous intersections: Insurance companies track data on particularly dangerous intersections, such as five- and six-way stops, really busy intersections, etc. These states tend to have fewer, which means fewer accidents.

Insurance requirements are minimal: So we pass the savings on to drivers.

Medium-cost states
Average monthly price: $167
Total six-month policy average: $999

States included
Alaska, Arizona, Alabama, Arkansas, Hawaii, Illinois, Kentucky, Mississippi, Missouri, Nebraska, Nevada, Oregon, Tennessee, Utah, Virginia, Washington, and West Virginia.

Why these states rank in the middle per cost
Fairly favorable weather: Most states in this group aren’t coastal, so you’re not susceptible to catastrophic weather. But, desert and other dry states may be prone to glass damage from debris/rocks being kicked up by cars.

Fairly populated: These states fall in the middle in terms of population, which means they also fall in the middle for traffic and accidents.

Medium crime rates: For vandalism and car thefts, these states generally rank lower than high-cost states but higher than low-cost states.

Fewer dangerous intersections: Compared to high cost states, most states ranking in the middle per cost don’t have as many risky intersections—which means fewer accidents.

Some insurance requirements by state law: These aren’t the most regulated states, but may have more mandates that could increase insurance prices compared to low-cost states.

High-cost states
Average monthly price: $232
Total six-month policy average: $1,379

States included
California, Colorado, Connecticut, Delaware, District of Columbia, Florida, Georgia, Louisiana, Maryland, Massachusetts, Michigan, Pennsylvania, New Jersey, New York, Rhode Island, South Carolina, and Texas.

Why these are the most expensive states
Dense population: More drivers mean more accidents.

Severe weather issues: Earthquakes, floods, and hurricanes are more common, as many of these states are coastal. Plus, many of these non-coastal states are more prone to hail, which leads to more claims.

Higher crime rates: Theft and vandalism are more common in this group of states than medium- and lower-priced states, which results in more claims.

More dangerous intersections: Busy five- and six-way stops are likely to cause more accidents.

More stringent insurance requirements by state laws: Many of these states have highly regulated insurance laws or more complex coverage requirements. That means higher prices.
Auto insurance premiums are determined, in part, by what coverages you decide to buy. Your state specifies a required limit of liability coverage, and if you still owe money on your auto loan or if you have a lease, many coverages—like comprehensive and collision coverage—are required by your lender or the company that holds your lease.

The limit is the dollar amount up to which your policy will pay for damages for a covered loss. The deductible is the amount of money you must pay out of pocket in the event of a claim before your policy begins to pay for covered losses. You may be able to save money on car insurance premiums by raising your deductibles, but you should consider whether it’s worth the savings. You need to make sure you can afford to pay your deductible in the event of a claim.

If you own your car outright, you are still required by state law to have certain limits of liability coverage, but other coverages, such as collision and comprehensive, become optional. In that case, you have the choice of whether you want to purchase collision and comprehensive coverage. While it may be tempting to save on monthly premiums by not selecting these coverages, you also should consider whether you would be able to afford to repair or replace your car in the event of an accident. If you are concerned about this, consider collision and comprehensive coverage, even if they’re not required.

In addition to the types of coverage, deductibles and limits you have, there are some other factors that can affect the cost of auto insurance.

Where do you live?
Auto insurers often take your geographical location into consideration when setting premiums.

What is your driving record like?
Your driving record and history of accidents may also affect how much you can expect to pay for car insurance. This is one of the reasons why it’s important to periodically obtain a copy of your driving record from your local Department of Motor Vehicles. If you discover any marks on your driving record that should have fallen off or are incorrect, you can address this issue with your DMV. It could make a difference in how much you pay for car insurance.

What kind of car do you drive?
This is another factor that could impact your insurance rates. Most insurance companies charge more for a newer, more expensive car.

These aren’t the only factors that insurance companies look at when determining how much your car insurance is going to cost. There are other factors involved, including everything from your age to what kind of anti-theft devices your vehicle is equipped with.