Way.com’s research has determined which states have the most expensive and cheapest car insurance in America. Read the full article to find out which states have the most expensive and least expensive car insurance.
In 2022, auto insurance costs the most in Michigan, while it costs the least in West Virginia. In 2022, the national average for full coverage car insurance is $1557, but how much you pay will depend on where you live. One of the biggest things that affect the price of your auto insurance premium is where you live.
According to our 2022 analysis, Michigan has the most expensive car insurance, with average premiums of $7,175 per year, a 23% increase from 2021. Drivers in no-fault states like Florida and Michigan pay more than drivers in other states for car insurance. On the other hand, West Virginia has the cheapest car insurance rates this year, with average premiums of $540 per year. Illinois, Nevada, New York, and Arizona were the next most expensive states for car insurance in the United States.
These states’ sky-high premiums include unique insurance plans, and high population densities are the most common reasons. Also, more drivers who don’t have insurance and expensive lawsuits will always make premiums go up. Still, Michigan has the best rates. There is a $4275 difference between Silver State and Michigan, which is in the first place. Michigan’s rates are very high because of the weather and the fact that there are a lot of teens, older people, and people who don’t have insurance on the road.
(Please note: Our list of most expensive and cheap car insurance rates based on states is based on our internal data. Therefore, the rates will differ for you based on various factors.)
Expensive Car Insurance Rates by State 2022
When it comes to high auto insurance costs, these states are at the top of the list.
| States | Annual Rates |
| Michigan | $7175 |
| Nevada | $2900 |
| New York | $2777 |
| Arizona | $2229 |
| Florida | $2208 |
| Missouri | $2022 |
| Colorado | $2004 |
| Montana | $1986 |
| New Jersey | $1986 |
| Mississippi | $1952 |
Reasons for high premiums include:
- The weather.
- Cities with a lot of people.
- Drivers who don’t have insurance.
- Expensive lawsuits.
Michigan: Uninsured Drivers, Insurance scams, and No-Fault State
Why are car insurance rates in Michigan so high? Unfortunately, the answer is not easy to find. Michigan has the most expensive car insurance premiums. The average premium in the Wolverine State hit $7175, which is a 23% increase from 2021 and makes you scratch your head. There are many reasons why car insurance is so expensive in Michigan. One of the main reasons is that Michigan is a “no-fault” state.
Michigan has always had a problem with uninsured drivers. Nearly 26% of drivers in Michigan don’t have car insurance, which is the second-highest number in the country. That’s about 13% more than the average for the whole country. With uninsured motorist insurance, the other driver’s insurance company pays for damage to property and medical bills caused by a driver who doesn’t have insurance.
Because so many drivers don’t have insurance, insurers have to pass the cost of potential losses on to those who do have insurance. As a result, about 10% of no-fault insurance claims in Michigan are considered fake.
In states with a lot of fraud, premiums go up because insurers pass on their losses to policyholders. For example, auto insurance companies in Michigan are required by law to pay out claims within 30 days, or they will be fined. Unfortunately, because this grace period is so short, insurers often don’t have enough time to check claims carefully, making the overall fraud rate higher. To make up for these losses, insurers in the state have to charge their policyholders higher premiums.
Lawsuits were filed by drivers who sued their insurance companies over no-fault claims. The state’s “no-fault” system lets people file personal injury lawsuits if they are hurt badly.
Nevada: Rise of Premiums due to Inflation
The average premium in Nevada is $2900, which is about 10% less than in 2021. However, compared to the rest of the country, car insurance rates in Nevada are quite high. Depending on your situation, you might even have to pay more. The main reasons car insurance is so expensive in the state are the high number of people living in cities and the number of stolen cars.
94% of the people who live in Nevada do so in cities. If you live in a city, you are more likely to file a claim because cities with more drivers on the road have more car accidents. Insurance companies also charge more to people who live in cities because vandalism and theft are more likely to happen there.
Way.com’s data shows that 365.6 cars are stolen for every 100,000 people in Nevada. Since theft is covered by comprehensive insurance, claims for stolen cars are more expensive for insurance companies.
The average cost of car insurance in Nevada is higher than that across the country. However, your insurance costs might be higher than average because of several things. These factors include age, where you live, credit score, driving record, car type, and the insurance company.
New York: Accidents, Thefts, and Vandalism
In general, car insurance is more expensive in New York because there are more accidents, thefts, and acts of vandalism. State law also requires drivers to have personal injury protection and uninsured/underinsured motorist coverage, raising rates.
The best way to lower your car insurance costs? Check with other insurance companies once or twice a year to see if you can get a better rate. You can do this on your own by calling or filling out forms online. Or, you can have Way.com AI get you quotes quickly and at a good price.
Cheap car insurance rates by States in 2022
Car insurance rates are going up across the country, but for now, people in some states can still get good deals.
In 2022, West Virginia has the lowest prices compared to other states. South Carolina, North Carolina, and New Hampshire came in third, fourth, and fifth, after Arkansas. West Virginia seems to have lower rates than the rest of the country because prices aren’t going up as quickly, and more people choose minimum liability coverage.
| States | Annual Rates |
| West Virginia | $540 |
| Arkansas | $560 |
| South Carolina | $760 |
| North Carolina | $839 |
| New Hampshire | $880 |
| Oregon | $907 |
| Virginia | $1002 |
| Louisiana | $1084 |
| Ohio | $1119 |
| Maine | $1123 |
West Virginia: Very cheap minimum coverage
West Virginia’s auto insurance rates are lower than the national average, which is $540 per year for the state minimum coverage.
Arkansas: Low Uninsured Rural Market
After two years of being the state with the cheapest car insurance, Arkansas dropped to second. This year, the Land of Opportunity’s standard premium increased by 30%. Even so, this is still 34% below the national average. The state of auto insurance in Arkansas is almost unchanged from the previous year. Arkansas’ competitive car insurance market and the state’s historically low auto insurance losses have contributed to low premiums.
Low insurance rates are a result of low population density and a large number of insured drivers. In Arkansas, only approximately 5% of drivers lack insurance. Rates are reduced for everyone due to fewer uninsured motorists on the road.
South Carolina: Rural and sparsely populated
Drivers in South Carolina only pay a few dollars an extra year for average auto insurance than those in Arkansas. South Carolina’s average premium cost climbed by 14%, yet it is still reasonable. Because drivers in South Carolina have the option of very little coverage at very little cost, the state has a low average. Once more, drivers without minimal liability insurance are unprotected in the event of an accident in which they were at fault.
Additionally, South Carolina does not mandate that drivers carry uninsured motorist coverage. Instead, they can agree with their insurers that they do not want to be covered in the event of an accident involving an uninsured at-fault driver.
The typical insurance premiums in Idaho are quite low due to the low standard for minimal coverage; however, choosing the bare minimum options might not be the best course of action. For example, you’ll undoubtedly wish you had more extensive coverage if you collide with an uninsured motorist or are found to be at fault in an accident.
Fortunately, though, South Carolina’s affordable minimum coverage keeps the cost of more comprehensive coverage low.
Bottomline
Our list of the most expensive and cheap car insurance rates by states is not exactly definitive. We have taken various factors to come to this conclusion about the most expensive and cheap car insurance rates.
There is no denying the high cost of auto insurance. Any driver would value this service, so you should expect to pay a fair price. But you can do many things to keep the cost of your auto insurance down, like drive safely, take driving lessons, drive fewer miles per year, and look for offers and discounts.
Unfortunately, you have little or no control over many factors that affect the cost of your auto insurance. The state in which you reside is one of these factors. While some jurisdictions must charge more because of regulations or legislation that contribute to higher rates, others must do so because of the higher likelihood of accidents.
Affordable Car Insurance with Way.com
Your car insurance premiums don’t have to be significantly higher than the national average just because you reside in one of the more expensive states. If you stay in a state with cheap car insurance rates, chances are your premiums will be lower than the national average.
You can use Way.com to find the best car insurance policy for you if you want to reduce the cost of your coverage but don’t want to deal with annoying salespeople or tedious forms.
Even once Way.com finds you fantastic insurance at a low cost, the discounts keep coming. You’ll receive new, competitive quotations before each policy renewal period, ensuring you always have the finest coverage at the lowest cost. Of course, it’s okay if you wish to change policies! Your old policy can be canceled with the assistance of Way.com.
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