hands around car with car insurance

What Are The Top Ten States With The Highest Car Insurance Premiums?

Car insurance premiums are the monthly payments you must make to maintain the car insurance that can financially protect you if you are involved in a car accident. Some states require drivers to pay higher auto insurance premiums because of factors such as accident and claim rates, the cost of medical bills, and state insurance regulations.

In this guide from Carolina Payday Loans, Inc., you’ll discover which states have the highest cost for auto insurance and how they compare to the national average. You’ll also learn a few helpful tactics to keep your own insurance costs down and how to pay for car accident costs with a Carolina payday loan.

What Are The Top Ten States With The Highest Car Insurance Premiums?

All states will have different averages for auto insurance premiums due to contextual factors. Some states have larger populations with more drivers, which means there is a higher rate of accidents. States also have different rules and regulations for what kinds of auto insurance drivers must purchase, which can affect the monthly cost of auto insurance premiums.

According to the 2024 Bankrate auto insurance report, US drivers pay $2,543 yearly for auto insurance, making monthly premium payments about $211. Some states far exceed this national average, making them the most expensive states for auto insurance premiums.

The following are the ten most expensive states for car insurance premiums:

1. Florida

Florida has the highest car insurance premiums in the nation, at an average of $3,945. That figure represents a 2.28% difference from the national average. At that amount, auto insurance premiums account for 5.69% of the average income spent on auto insurance.

High car insurance premiums in Florida are due to extreme weather, which can cause many car accidents. Busy roadways in Florida can be hard to navigate while avoiding car accidents entirely. Florida drivers must pay $10,000 worth of Personal Injury Protection (PIP) and Property Damage Liability (PDL).

man protecting automobile with car insurance

2. New York

New York’s car insurance premiums are 1.42% above the national average, costing about $3,840 for a year of full car insurance coverage. New Yorkers must spend about 4.83% of their average income on car insurance.

The Empire State has busy and congested streets where drivers can cause accidents through reckless, distracted, or drunk driving. Medical costs in New York are also higher than in other states, increasing the average cost of car insurance premiums.

3. Louisiana

Louisiana's difference from the national average of 3.12% is slightly smaller than the two mentioned above. That is thanks to the average annual cost of $3,618 for a year’s worth of full-coverage car insurance.

With differences in average earnings, that price tag represents 6.53% of a resident’s income spent on auto insurance. Louisiana faces many severe weather events, such as hurricanes, that can cause many car accidents.

4. Nevada

Nevada's average car insurance cost is $3,549 a year, which is 1.50% higher than the national average. That cost represents an average of 4.91% of a person’s income.

Las Vegas is in Nevada, which is a vacation destination where many visitors can engage in drunk driving. According to a Responsibility.com stat page, 30.3% of driving fatalities occurred because of drunk driving, which was above the national average of 28.1%. High drunk driving rates contribute to the expensive insurance premiums for drivers in the state.

5. Michigan

Over in Michigan, the annual cost for full-coverage car insurance is $3,356 on average. That’s 1.60% above the national average and represents a significant chunk of 5.01% of the average person’s income.

Just like Florida, Michigan requires drivers to pay for PIP auto insurance. The high car insurance premiums also have to do with winter weather accidents that commonly occur in Michigan.

6. Colorado

Car owners in Colorado don’t have it easy, either. On average, they spend 3.25% of their income on car insurance, or $2,902 yearly.

Colorado has expensive auto insurance premiums due to high accident rates. These high accident rates are caused by high traffic density, dangerous driving conditions in the winter, and high DUI rates.

7. Missouri

In Missouri, the average annual full-coverage car insurance is $2,801, or 4.32% of the average income. Missouri car insurance rates are 0.91% above the national average.

Missouri has a high car accident rate, like the states mentioned above. It also has high rates of auto claims for theft and vandalism, which affects the state's expensive auto insurance.

8. Pennsylvania

Pennsylvania is also on this list, with an average cost of $2,790 for auto insurance premiums. That is only slightly higher than the national average by 0.48%, and it takes up 3.89% of the average person’s income.

It is a no-fault state that requires drivers to purchase PIP car insurance. It also has a higher accident rate than the national average, which can contribute to the expensive car insurance rates.

9. California

California's yearly cost for auto insurance is $2,697, slightly lower than the national average by 0.46%. The cost of car insurance takes up only 2.95% of the average income.

There are over 39 million people in California, with tons of drivers that can clog highways and cause car accidents. The high population also contributes to the expensive cost of medical care, which car insurance companies take into account when determining the cost of auto insurance premiums.

10. Rhode Island

The final state is a shocking one: Rhode Island. This state has an average annual auto insurance cost of $2,683, which accounts for 3.28% of the average income for a Rhode Islander.

You may assume that because Rhode Island has a low population compared to larger states, car insurance premiums should be lower. However, it does have a high population density, meaning there are more people in concentrated areas than in other states. This leads to more drivers on the road that can cause accidents, increasing the average cost of insurance premiums.

How Can You Minimize The Cost For Car Insurance Rates?

Car insurance is a necessity, regardless of how expensive it might be. Thankfully, car owners have a few steps they can take to minimize how much they pay for auto insurance premiums.

For example, they can:

  • Compare: The auto insurance industry is competitive, and that’s good for the consumer. Shop around among different providers to ensure that you’re getting the best prices and the best value.
  • Discounts: Providers also offer all sorts of discounts which many people aren’t aware of. Do your research and find the ones you can qualify for, such as good driver, new driver, student, and low mileage discounts.
  • Maintenance: Insurance is about risk, so your overall cost can be lower if you reduce the odds of getting in a car accident. The best way to do that is to keep your car in good shape with regular maintenance and repairs.

Can You Get A Payday Loan To Fund Car Accident Costs?

The reason to have car insurance is to pay the cost of car accidents, which can include auto repairs and medical bills. Even with car insurance, you may not be able to pay for the full cost of your expenses. Carolina Payday Loans, Inc. can help you with emergency cash available for payday loans if you're struggling to pay for these costs.

A Carolina payday loan allows you to borrow money using a recent pay stub as proof of employment. You can receive up to $550 in emergency money to pay for car accident expenses. All you need to get approved is your driver’s license or other state-issued ID, a blank check from an active checking account in your name, and your most recent pay stub.

You can start the process online and receive cash without visiting one of our South Carolina stores. Start the process today to get approved with the help of one of our loan representatives, and receive your fast cash the same or the next business day.

car with umbrella to represent auto insurance

Contact Carolina Payday Loans, Inc. To Receive Emergency Cash Today!

Now that you’ve seen the states with the highest car insurance premiums, you can take the necessary steps to minimize how much you pay. Remember that you can shop around, look for discounts, and fix up your car to reduce your payments.

Carolina Payday Loans, Inc. is just a call away whenever you need it. Contact a store location directly or fill out the short online request form. From there, a friendly representative will call you back soon to discuss the rest of the steps to get approved for a Carolina payday loan.

Note: The content provided in this article is only for informational purposes, and you should contact your financial advisor about your specific financial situation.

Daniel Dewitt

Daniel Dewitt is a lifetime blogger with a finely-honed ability to break down, analyze, and interpret economic trends for the layman. He's fiercely invested in spreading financial literacy and helping everyday people gain the tools they need for their own economic success.