Top 5 States with the Highest Car Insurance Costs in 2024

Driving may be the most convenient way to get from point A to point B, but it comes with a cost: car insurance. Depending on where you reside, you could end up paying hundreds of dollars every month for coverage.

Here are the five states with the highest basic vehicle insurance rates, as well as steps you may do to lessen them.

Five states with the most costly car insurance rates

The average American spent $251 per month for vehicle insurance in 2023. However, if you live in one of the most costly states for vehicle insurance, you could pay anywhere between $104 and $522 each month, depending on how much coverage you purchase.

State	Average Monthly Rate: Minimum Coverage	Average Monthly Rate: Standard Coverage	Average Monthly Rate
Michigan	$151	$522	$481
New Jersey	$120	$390	$360
New York	$113	$380	$350
Florida	$112	$339	$314
Delaware	$104	$339	$313

All but one of these states (Delaware) are no-fault states, which do tend to have higher premiums than states that don’t have that law. No-fault states require drivers to file a claim with their own insurer in the event of an accident, regardless of who was at fault.

And from a regional perspective, most of these states are in the South (Florida) or East (Delaware, New Jersey, and New York) regions of the country.

Factors That Can Help You Get Cheaper Car Insurance Rates

Here are five elements that influence your auto insurance premiums that drivers can control, or at least make progress with:

Driving record: While you can’t change your prior accidents, driving properly and participating in driver safety programs offered by insurers can help you save money on your insurance.

Car make and model: Consider upgrading to a safer automobile or adding safety features to your current vehicle to help cut your premiums.

Coverage type and amount: Minimum coverages are typically less expensive than more extensive coverages. But, whatever you choose, make sure you can pay your deductibles, as they can mean the difference between getting your car serviced immediately and having to wait months.

Credit: Better credit frequently translates into lower vehicle insurance costs. So paying off debt, making timely payments to creditors, and keeping old credit cards open can all help in this situation.

The finest auto insurance is not necessarily the cheapest option, but it should be within your budget. Shopping around for quotes is the greatest first step toward determining how much coverage you can afford.

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