The 10 most expensive states for car insurance
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Some states with the most expensive full coverage in the U.S., including Maryland and South Carolina, saw legislative changes over the past year that increased insurers’ financial responsibility. These changes could contribute to higher premiums as insurers re-evaluate their rates to meet higher coverage expectations.
Three of the 10 most expensive states for car insurance — Florida, Michigan, and New York — have no-fault systems. In these states, drivers file claims with their own insurance companies to receive compensation for their injuries, no matter which party caused the accident. No-fault systems are supposed to speed up claims but have also provided opportunities for insurance fraud.
Other states with sky-high insurance rates, like Florida, Louisiana, and Nevada, face weather-related damages from hurricanes and wildfires. While climate risk has historically affected homeowners insurance more than auto insurance, insurers factor in the risk of car damage from hail, wind, and falling objects.
Vehicle theft rates, traffic congestion from high population density, and an increase in car accidents contribute to higher rates, too. Insurify analyzed the 10 most expensive states for car insurance to identify the hidden factors affecting policyholders.
| Avg. Annual Full-Coverage Rate (June 2024) ▲▼ | Year-Over-Year Increase, June 2023–June 2024 ▲▼ | Projected Annual Full Coverage Rate (End of 2024) ▲▼ | Projected Increase (2024) ▲▼ |
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Maryland | $3,400 | 43% | $3,748 | 41% |
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South Carolina | $3,336 | 44% | $3,687 | 38% |
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New York | $3,325 | 3% | $3,484 | 4% |
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Nevada | $3,271 | 20% | $3,531 | 20% |
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Florida | $3,201 | 15% | $3,444 | 18% |
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Louisiana | $3,182 | 21% | $3,423 | 23% |
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Delaware | $2,982 | 9% | $3,152 | 13% |
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Washington, D.C. | $2,977 | 17% | $3,190 | 17% |
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Michigan | $2,719 | 4% | $2,853 | 8% |
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Georgia | $2,688 | 21% | $2,893 | 24% |
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1. Maryland
Average annual cost of full coverage: $3,400
Percent higher than the U.S. average: 46%
Projected average rate increase in 2024: 41%
Maryland drivers pay the most for full-coverage car insurance, with an average monthly cost of about $283. The state’s 43% year-over-year rate increase may be partially explained by a spike in traffic fatalities. Maryland saw an 8.2% rise in motor vehicle crash deaths in 2023, while on average the U.S. saw a 3.6% decline, according to the National Highway Traffic Safety Administration (NHTSA).
New Maryland legislation, effective July 1, 2024, requires auto insurers to provide enhanced uninsured motorist coverage (EUIM). The provision allows policyholders to “stack” the at-fault driver’s liability insurance with their personal uninsured or underinsured motorist (UM/UIM) coverage. Insurers account for this increased financial responsibility when setting rates.
2. South Carolina
Average annual cost of full coverage: $3,336
Percent higher than the U.S. average: 43%
Projected average rate increase in 2024: 38%
Full-coverage rates in South Carolina soared 43% year-over-year to $278 per month as of June 2024. South Carolina ranks 13th in the U.S. for questionable vehicle-related insurance claims, according to the National Insurance Crime Bureau (NICB).
Insurers consider fraud risk when setting rates. Weather-related damages from an active 2024 hurricane season are also a risk insurers have to price in.
A 2023 South Carolina Supreme Court decision increased financial responsibility for insurance companies, ruling that auto insurers can’t limit property damage claims to just covered vehicles under UM/UIM coverage. Under the new law, insurers have to effectively cover all properties registered to the policyholder and their family.
3. New York
Average annual cost of full coverage: $3,325
Percent higher than the U.S. average: 43%
Projected average rate increase in 2024: 4%
New York drivers previously had the most expensive full coverage in the country at the end of 2023 but saw a 1% decrease in the first half of 2024 as rates in other states skyrocketed. New York is the ninth most densely populated state in the U.S., which contributes to higher insurance costs due to the greater risk of claims.
New York also has the highest number of stolen cars in the U.S., with 32,715 thefts in 2023, NICB data shows. The higher likelihood of vehicle theft increases the risk of an insurer having to pay out a claim, leading to higher premiums in New York.
4. Nevada
Average annual cost of full coverage: $3,271
Percent higher than the U.S. average: 40%
Projected average rate increase in 2024: 20%
Nevada drivers have seen a 20% increase in full-coverage premiums since June 2023, bringing the average monthly cost to about $273. The state had the third-highest vehicle theft rate in 2023, with 572.7 car thefts per 100,000 residents, according to the NICB, increasing the financial risk of insuring Nevada drivers.
Nevada’s rising climate risk could play a large role in future rate setting. Wildfires burn an average of 450,000 acres in Nevada annually, and the state also sees some damage from hurricanes and tropical storms. These weather events increase the likelihood of fire and flood damage to cars in the state and drive up insurance premiums.
5. Florida
Average annual cost of full coverage: $3,201
Percent higher than the U.S. average: 37%
Projected average rate increase in 2024: 18%
Florida drivers pay about $267 monthly for full coverage. The state’s ongoing insurance crisis, influenced by severe weather events, has pushed some insurers out of the state entirely, while others have declared insolvency. In 2023, Farmers Insurance stopped offering coverage in Florida, and AAA non-renewed certain home and auto insurance policies.
Over the past two years, Florida has seen a flurry of legislative activity aimed at reducing frivolous lawsuits against insurers, lowering consumers’ insurance rates, and mitigating auto insurance fraud. The no-fault state accounts for 74% of questionable auto glass claims in the U.S., according to the NICB.
Despite attempts to reform the state’s insurance regulations, Florida remains a difficult state for insurers to profit in — and, as a result, it has one of the country’s highest average auto insurance rates.
6. Louisiana
Average annual cost of full coverage: $3,182
Percent higher than the U.S. average: 37%
Projected average rate increase in 2024: 23%
Louisiana drivers pay an average of $261 monthly for full coverage. The state’s growing insurance crisis, tied to Louisiana’s high hurricane and tornado risks, has mostly affected home insurance. However, the state’s climate risk is also beginning to impact car insurance rates, as comprehensive coverage — one part of a full-coverage policy — protects against damages sustained in a weather event.
Louisiana also saw a 10% surge in vehicle thefts in 2023, according to NICB data. Both factors increase insurer risk and, therefore, car insurance rates.
Louisiana lawmakers passed a series of auto insurance reforms in 2024. The laws target excessive medical billing in personal injury lawsuits and limit policyholders’ time to file an immovable property claim to two years after the policyholder knows (or should know) about the damage. These reforms, aimed at lowering rates, reduce some insurer responsibility.
7. Delaware
Average annual cost of full coverage: $2,982
Percent higher than the U.S. average: 28%
Projected average rate increase in 2024: 13%
Delaware drivers pay about $249 monthly for full coverage, a 9% increase since June 2023. The state has the seventh-highest population density in the country, according to U.S. Census Bureau data, which can increase the odds of accidents and claims on busy roadways.
In one bright spot for policyholders, the Delaware Department of Insurance adopted a new regulation in January 2024 requiring insurers to promptly refund any unearned auto insurance premiums (meaning payment for the unused days of coverage after a driver cancels their policy).
8. Washington, D.C.
Average annual cost of full coverage: $2,977
Percent higher than the U.S. average: 28%
Projected average rate increase in 2024: 17%
Drivers in the District of Columbia saw a 17% year-over-year increase in full-coverage rates, bringing the average monthly cost to $248.
Washington, D.C., has the highest population density in the nation. The district also saw traffic fatalities increase by more than 40% between 2022 and 2023, according to National Highway Traffic Safety Administration (NHTSA) data. This combination of factors raises the probability of an insurer having to pay out a claim, so companies increase the price of car insurance in response.
Premium increases may soon slow in D.C. The D.C. legislature passed a new law requiring home and auto insurers to file for prior approval to raise rates. Excessive hikes require notice and an opportunity for a hearing. Previously, D.C. had a file-and-use system, meaning insurers could raise rates immediately after filing with the Department of Insurance.[1]
9. Michigan
Average annual cost of full coverage: $2,719
Percent higher than the U.S. average: 17%
Projected average rate increase in 2024: 8%
Michigan adopted a no-fault insurance system in 2019 in an attempt to lessen rate increases. The state saw a 4% increase in full-coverage premiums between June 2023 and June 2024, compared to a 28% rise nationwide, but Michigan still has some of the highest rates in the country, at an average of nearly $227 per month.
The Michigan Department of Insurance and Financial Services Fraud Investigation Unit received 3,789 fraud reports between July 1, 2023, and June 30, 2024. Of those reports, 99% were insurance-related, and 50% involved auto and no-fault claims.[2] Higher fraud rates make the state riskier for insurers to operate in, and they raise rates in response.
10. Georgia
Average annual cost of full coverage: $2,688
Percent higher than the U.S. average: 15%
Projected average rate increase in 2024: 24%
Georgia drivers pay an average of $224 monthly for full coverage. Vehicle thefts might influence the state’s high car insurance costs since insurers factor that risk into rate setting. Georgia drivers reported 28,171 cars as stolen in 2023, the ninth-highest number in the nation, according to NICB data.
On July 1, 2023, House Bill 221 went into effect, ending the state’s file-and-use provision and giving Georgia’s insurance commissioner 60 days to review rate filings before insurers can implement increases. Despite the new legislation, Georgia drivers saw a 21% increase in full-coverage costs between June 2023 and June 2024.