The average American driver will pay $1,682 for full-coverage auto insurance in 2023, according to a recent study from an insurance data company. However, the same study found that the cost of car insurance varies significantly across the country.
Depending on the state, average car insurance premiums can range from as little as $1,023 to as much as $2,560.
Using data from insure.com, 24/7 Wall St. identified the average cost of car insurance in each state. We also reviewed supplementary 2021 data on fatal crashes from the Department of Transportation and car theft rates from the National Insurance Crime Bureau.
Several factors contribute to variations in car insurance premiums. First and foremost is the state’s regulatory environment, as different states have different insurance laws and requirements.
Another significant factor is the driving history of individual drivers. Insurance companies typically consider an individual’s driving record, including any previous accidents or traffic violations. A driver with a history of accidents or tickets is more likely to pay higher premiums. Therefore, states with higher accident rates may have higher average premiums. However, it is important to note that this is a general trend and individual circumstances can vary.
Broader factors also come into play. For instance, states with higher rates of car theft often have higher insurance premiums. This is because the risk of vehicle theft affects the overall risk profile of the state, leading to increased premiums. Similarly, states prone to natural disasters, such as hurricanes or wildfires, may have higher insurance costs due to the increased risk of vehicle damage. (Here is a look at the cities with the most car theft.)
Other, more personal, factors can include a driver’s age, gender, credit history, type of vehicle, and even the coverage options chosen. Insurance companies use complex algorithms and actuarial data to assess risk and calculate premiums accurately. (Here is a look at the least reliable new cars in America.)
Click here to see the states with the most expensive car insurance.
Click here to read our detailed methodology.
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