These 5 States Have The Highest Car Insurance

January 27, 2025

There are a number of things that have an effect on how much you pay for car insurance, including your vehicle type, driving history, and age. Your location has a significant impact on your car insurance rates too. Certain states consistently top the charts for having some of the highest car insurance costs in the United States. This is due to a number of reasons like accident rates, state laws, and weather. So, if you are planning to move or you are wondering why your car insurance is so high, here’s a look at five states with some of the highest rates in the country.

1. Florida

It probably comes as no surprise to see Florida top the list. The Sunshine State is notorious for high car insurance rates and is the most expensive state in the U.S. to insure a vehicle. There are several factors to this. First, the weather can be rather unpredictable and Florida is heavily impacted during hurricane season, which can lead to more claims. Another factor is the state’s no-fault insurance law, which requires drivers to carry Personal Injury Protection (PIP) coverage. Florida also experiences a high number of uninsured drivers, which drives up premiums for insured motorists. On top of that, more populated areas like Miami see steep increases due to the sheer traffic numbers.

2. New York

New York’s car insurance rates are among the highest, especially for those living in New York City. The state’s no-fault insurance laws require drivers to carry PIP coverage, which adds to the expense. Urban congestion and high accident rates in densely populated areas drive up premiums even further. Additionally, New York has some of the highest litigation rates for car accident claims, adding legal costs to the mix. Winter weather conditions, like snow and ice, also contribute to more frequent accidents.

3. Louisiana

Louisiana ranks as one of the most expensive states for car insurance due to a combination of factors. The state has a high number of uninsured drivers, forcing insured motorists to pay more. Louisiana also has some of the nation’s highest rates of car accident litigation, leading to costly settlements and higher premiums. The state’s unpredictable weather, including hurricanes and flooding, increases risks and drives up comprehensive coverage rates. Cities like New Orleans and Baton Rouge have dense traffic, further contributing to elevated costs.

4. Nevada

Nevada’s car insurance rates are significantly higher than the national average, with Las Vegas being a major hotspot for expensive premiums. The city’s heavy traffic, high accident rates, and frequent claims make it a costly place to insure a vehicle. Nevada also experiences extreme weather, like intense heat and occasional flash floods, increasing the risk of damage. The state’s growing population and increasing number of vehicles on the road exacerbate the issue. Additionally, Nevada’s insurance laws require higher liability limits, which can increase policy costs.

5. Michigan

Michigan has long held the title of the most expensive state for car insurance in the U.S. The primary driver of high premiums is its unique no-fault insurance system, which provides unlimited lifetime medical benefits for car accident victims. While this system ensures comprehensive care, it also leads to significantly higher costs for insurers and policyholders. Michigan also has a high number of uninsured drivers, contributing to elevated premiums. Urban areas like Detroit see the highest rates due to high crime rates and frequent claims.

High Costs, Unique Challenges

Your car insurance premiums can be influenced by a number of factors. Of course, your driving history, age, and the type of vehicle you have each impact the overall cost. However, your location plays a huge role in your rate as well. Living in any of these five states might cost you hundreds of dollars a year when it comes to insuring your car. So, keep this in mind if you are relocating or renewing your insurance. Having a good understanding of what drives premiums up can help you make an informed decision.

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Drew Blankenship

Drew Blankenship is a former Porsche technician who writes and develops content full-time. He lives in North Carolina, where he enjoys spending time with his wife and two children. While Drew no longer gets his hands dirty modifying Porsches, he still loves motorsport and avidly watches Formula 1.