Car insurance premiums are projected to increase 8.4% for an average of $1,780 across America this year, according to personal finance website ValuePenguin’s State of Auto Insurance in 2023 report.
In this article, we’ll take a look at the states with the most and least expensive car insurance for full coverage based on the report. After that, we’ll share some ways to save on car insurance from money expert Clark Howard.
Which States Have the Most and Least Expensive Car Insurance?
Here are some key findings in the report:
- At $4,788 a year, Michigan motorists pay the most for car insurance, largely because the state has the highest minimum coverage requirements.
- Drivers in Vermont pay $1,104 a year, the cheapest car insurance rates in the country. Next is Maine at $1,116 annually, followed by Idaho ($1,188).
- Forty-five states will see their car insurance premiums jump this year, the report says.
Let’s take a look at the states with the highest car insurance premiums. Then, we’ll cover the states with the lowest car insurance premiums, according to the report.
These States Have the Most Expensive Car Insurance Rates
| State | Average Annual Cost | % Over Average |
|---|---|---|
| Michigan | $4,788 | 168% |
| Florida | $2,856 | 60% |
| Rhode Island | $2,748 | 53% |
| Nevada | $2,592 | 45% |
| Louisiana | $2,376 | 33% |
| Massachusetts | $2,136 | 20% |
| Connecticut | $2,052 | 15% |
| Delaware | $2,052 | 15% |
| Kentucky | $2,040 | 14% |
| Colorado | $2,016 | 13% |
These States Have the Least Expensive Car Insurance Rates
| State | Average Annual Cost | % Over Average |
|---|---|---|
| Vermont | $1,104 | -38% |
| Maine | $1,116 | -37% |
| Idaho | $1,188 | -34% |
| Wisconsin | $1,260 | -30% |
| Indiana | $1,272 | -28% |
| Ohio | $1,296 | -27% |
| North Carolina | $1,308 | -27% |
| Tennessee | $1,356 | -24% |
| Alaska | $1,404 | -21% |
| Virginia | $1,416 | -21% |
How To Lower Your Car Insurance
Even as premiums increase across much of the land, Clark wants you to try to save as much money as you can on what you pay for car insurance. Here are some money-saving tips:
Comparison Shop Insurance Companies
The first step in lowering your car insurance, particularly if you’re open to switching insurers, is identifying companies that have a solid record when it comes to rates and claims.
Check our guide to the Best and Worst Auto Insurance Companies. We’ve combed through the recommendations from both Consumer Reports and J.D. Power for you.
Read our guide on how to shop for car insurance.
Clark says after you’ve identified some insurers that may fit your needs, it’s time to pick up the phone.
“Comparison sites are really just lead generation services,” Clark says. “You have to shop individually with different insurers [by] calling them all.”
Drop Comp and Collision Coverage – If You Can
Another way to lower your car insurance bill is if you drop Comprehensive and Collision coverage from your policy. Of course, this applies only to vehicles you’ve already paid off.
If you’re no longer paying a car note, depending on your vehicle’s value it may make sense for you to go without comp and collision, but not in every case.
According to our Guide on How To Save on Car Insurance, “The general rule is: When the cost of comp and collision exceeds 10% of your old vehicle’s value, that’s the time to dump it and carry only liability coverage. You can determine your vehicle’s value at Edmunds.com, KBB.com or NADA.com.”
When it comes to liability vs. full coverage, we all know that the former is cheaper, but Clark says your state’s minimum requirements may not be good enough. If you have a mortgage, decent savings and other assets, you should strongly consider increasing what you pay for liability coverage.
Pay a Higher Deductible
Clark is a big fan of raising your deductible as a strategy to lower your car insurance payments.
He says you should always opt for a $1,000 deductible for the best savings on your policy. At that level, you’ll pay a lower premium and won’t be tempted to file any claims for small things like a cracked windshield.
Consider Buying a Cheap-To-Insure Vehicle
Although price is a major concern when it comes to buying a new or used vehicle right now, as you know, some cars are more expensive to insure than others. Consider getting a vehicle that is cheaper to insure.
In the latest report on the subject, the Mazda CX-3 Sport was the least expensive car to insure.
Check out the most and least expensive cars to insure.
Raise Your Credit Score
Another way to lower your car insurance bill is to increase your credit score. Car insurance companies routinely use your creditworthiness, among other factors, to determine your rate.
A good credit score can help lower your car insurance premium.
Read our guide on how to raise your credit score 100 points in 30 days.
Final Thoughts
If you’re considering shopping for car insurance, Clark wants you to make price a priority, but not the only concern.
“Sometimes you’re better off paying a little more to be with a quality insurer who will be there when the chips are down,” Clark says.
Read our in-depth guide on best and worst insurance companies.
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