Auto insurance is more expensive than ever for most Americans, but you could pay a lot less depending on where you live. Insurance comparison website The Zebra has analyzed more than 73 million rates to deliver a a comprehensive study on the state of the US auto insurance market heading into 2020.
Perhaps unsurprisingly, the report finds that even if you sign on with one of the best auto insurance providers, rates are continuing to rise across the US and have increased by nearly 30% since 2011 – more than double the pace of inflation. The average American will pay $1,548 for their car insurance in 2020, though the country's highest average rate is more than four times that at $6,200. Ouch. Potentially add in the price of the best roadside assistance services for extra motoring peace of mind, and that of the best extended car warranties too, and it becomes ever more important to find the cheapest auto insurance around.
Cheapest states for car insurance in 2020
On a regional basis, New England has the cheapest car insurance with an average rate of $1,305. Contributing to this is the fact that Maine is the cheapest US state to get auto insurance in, with an average price of just $935, while New Hampshire is the fourth cheapest at $1,037.
Massachusetts ranks right in the middle of the pack in 25th place, while Vermont also makes it into the top ten states for cheap car insurance – listed below starting with the cheapest.
- Maine – $935
- North Carolina – $955
- Virginia – $1,005
- New Hampshire – $1,037
- Hawaii – $1,045
- Ohio – $1,047
- Iowa – $1,106
- Vermont – $1,156
- Idaho – $1,164
- Indiana – $1,165
Most expensive states for car insurance in 2020
The most expensive region is the 'Far West', which is defined as California, Nevada, Oregon, Washington State, Alaska and Hawaii. Drivers there will on average pay around $300 more than they would in New England, with an average figure of $1,665.
Nevada and California both rank within the top 10 most expensive states to get car insurance, but the most expensive state in the country for car insurance by far is Michigan.
The Wolverine State has an average rate of $3,096 in 2019 – up by 7.3% compared to 2018 and approximately double the national average. This is due in part to Detroit being the most expensive city in the country at a whopping $6,208 per year – a figure that dwarfs the second most expensive metropolis, New Orleans, at $3,735.
Here are the top 10 most expensive states in the US for auto insurance in 2020.
- Michigan – $3,096
- Lousiana – $2,379
- Florida – $2,309
- Kentucky – $2,208
- Rhode Island – $2,103
- Nevada – $1,974
- California – $1,868
- Delaware – $1,803
- Oklahoma – $1,787
- Colorado – $1,757
A number of factors contribute to the car insurance premium you're likely to be offered, including crime in your area, your age, and the vehicle you drive. But there are a number of clever ways you can increase your chances of being offered cheap car insurance, from installing one of the best car alarms to letting your insurer monitor your driving with an app or piece of hardware.