These Are The Most And Least Expensive States To Insure A Car

U.S. drivers are paying a premium to own a car, and insurance prices are among the bills with the most impact. According to data from Bankrate, the average car insurance cost in the U.S. is a huge $2,671 per annum for a full coverage policy, with minimum coverage averaging $806 each year. However, the actual expense associated with insuring your vehicle will differ greatly depending on, among other things, the type of car you drive, your age and driving experience, driving record, personal circumstances, and location. If you live in a state with many high-risk areas for vehicle theft, your premiums will typically be higher than usual, since there's a good chance you could end up being a victim.

The same applies if you live in a city with high population or adverse weather. With bad weather or more cars on the road, the likelihood of water damage or getting in a car accident and filing an insurance claim is high. That's even before you consider the fact that a higher population means there's a greater chance of theft and other costly incidents happening. All this nudge insurance companies to adjust their rates to cover those risks, leading to increased premiums for customers in affected locations.

Beyond these variables, insurance rates are also often influenced by economic factors such as inflation. When there's a sustained increase in the general price level, it affects the cost of repairing or replacing damaged car parts, as well as the cost of medical care for injured people. Hence, your rates will vary from time to time. Here's a look at the states with the most and least expensive insurance costs, based on Bankrate data.

The latest Bankrate data has revealed that New York is the most expensive state for car insurance in the U.S., with an average annual cost of $4,031 for full coverage or $1,728 for minimum coverage. That's 51% more than the national average for full coverage. Then again, you'll pay more or less than that depending on where you are in the state.

For example, if you live in Sprakers, a low-population hamlet in Root, Montgomery County, your insurance premiums will be way lower than somebody living in a borough like Brooklyn, where population is the largest and premiums are more expensive than the rest of New York. According to Insure.com, car insurance in Brooklyn can be up to $6,426 per year or $535 per month, on average. By comparison, the average 12-month premium in Sprakers costs $1,826.

All this is despite New York being among the U.S. states with the safest drivers. So, naturally, the Empire State's high population density and heavy traffic are often among the factors that drive up insurance premiums, as they contribute to a greater likelihood of accidents and claims. Also, with New York being a no-fault state, instances of insurance fraud are inevitably frequent in the state. You'd bet insurers factor that into their pricing.

The rising costs of insuring a car are screwing drivers nationwide, but those living in Louisiana are feeling the pinch more than most, with a full coverage costing $3,953 a year, while the minimum coverage averages $1,014 per annum. Unsurprisingly, premiums are the highest in New Orleans, where drivers are forced to pay $1,724 more at $5,677. The cheapest car insurance in Louisiana is found in Ruston, a small city north of the Bayou State with a population of around 22,000 people. The typical cost of car insurance in this place is estimated to be $2,956 a year.

In terms of the vehicles themselves, Bankrate data shows the family-hauling Honda Odyssey is the cheapest to insure in Louisiana at $3,730. Despite costing significantly less to repair when compared with the Odyssey, at $4,597 in its first 10 years versus $8,045 for the Odyssey, per CarEdge, the highly acclaimed Toyota Camry is slightly more expensive to insure than the minivan. Owners in Louisiana received an average quote of $3,953 for the sedan. That price means even the Ford F-150 is cheaper to insure than the Camry in Louisiana, given it costs an average of $3,919 to insure. The BMW 330i attracts the highest premium in Louisiana, with insurance carriers charging an average of $4,796 to owners each year.

Florida is yet another state where people pay more insurance premiums than the national average, with a full coverage policy costing $3,874 per year and minimum one averaging $1,056 each year. That's up by 45% compared to the national average of $2,671 for full coverage. Despite the costly rates being quoted across the Sunshine State, many would consider Santa Rosa Beach a driver's haven, as rates fall behind the state average by about $1,184. However, prices are $1,457 higher down south in Palm Beach given its annual average of $5,331.

Bad weather is among the main drivers behind the high premiums being charged to drivers in Florida. Being a state with many coastal areas, Florida is naturally prone to flooding arising from tides and rising sea levels. Extreme weather events such as storms and hurricanes are also common in the state, all of which often increase insurance claims. 

Florida roads are also among the most congested in the U.S., and this can increase the risk of road traffic accidents and, ultimately, claims. Additionally, with Florida being the tourist hotspot it is, it means there are usually many high-risk drivers in the state who expectedly bring with them an excessive price tag. That's even before you consider the fact that uninsured drivers are also prevalent in the state.

With an average of $1,491 per year for full coverage and $329 for minimum coverage, Vermont is the state with the second-lowest car insurance cost in the U.S. That full coverage is 44% less than the national average. One thing Vermont residents have going for them is that the state is among the least populous in the U.S., with around 650,000 people according to data from the 2020 census. 

The state is also the safest in the country, per WalletHub. These reduce the likelihood of theft and accident risks, which in turn lead to fewer claims. Fair Haven has the highest premiums in Vermont at $1,564 per year, on average, while insurance carriers in Essex Junction offer the least expensive average coverage in Vermont at an accessible $1,393 per year.

It's the usual suspects in contention when it comes to the cheapest cars to insure. Only here, the venerable Ford F-150 nabs the first spot, just ahead of perennial winner Honda Odyssey as the most affordable vehicle to insure. On average, it costs $1,441 to insure, compared with $1,453 for the minivan. The Camry comes next with an annual average cost of $1,491, with the immaculate Toyota Prius and BMW 330i requiring $1,619, and $2,018, respectively, in premiums.

Idaho is the most affordable state to insure a car in the U.S., with full coverage costing a reasonable $1,443 each year. Residents of Porthill, a community in Boundary County, make a significant contribution towards that average, as data shows that they are charged the highest insurance premiums in the Gem State. Full coverage in the location averages $1,625 a year, or $135 each month. The next most expensive place to insure a car in Idaho is Moyie Springs, at $1,621, followed by Naples ($1,619), Ponderay ($1,615), and Bonners Ferry ($1,613).

At the opposite end of the Idaho insurance scale, Garden City has the lowest average rate in the state, given its yearly premium of $1,320. Similarly, the Honda Odyssey minivan is the cheapest vehicle to insure in Idaho, with an average insurance cost of $1,254. Premiums for minivans like odyssey are lower because they're often used by families who are more careful with their driving. 

The Odyssey also comes with a deluge of advanced safety systems, and that works in its favor with insurance carriers. The Ford F-150 follows closely, with a yearly insurance cost of $1,350 for a full coverage policy. Next up is the Toyota Camry ($1,443), then the Toyota Prius ($1,528). The BMW 330i is the most expensive car to insure in Idaho at $1,868.