Guides
The most and least expensive states for car insurance
NAIC data ranks Florida, Louisiana and New York as the costliest states for car insurance in 2023 and North Dakota the cheapest. The top and bottom 10, and why.
According to the National Association of Insurance Commissioners, the most expensive places for car insurance in 2023, measured by what drivers actually spent per insured vehicle, were Florida ($1,864.63), Louisiana ($1,754.03) and New York ($1,752.55), followed by the District of Columbia and New Jersey. The least expensive were North Dakota ($807.77), Maine ($856.28) and Idaho ($863.91). The national average was $1,281.92. These are the latest official state figures, published in February 2026; prices have changed since, but the ranking changes slowly.
The rankings
The figures are average expenditures from the NAIC 2022/2023 Auto Insurance Database Report: total liability, collision and comprehensive premium written in each state divided by the number of insured vehicles. Rankings include the District of Columbia.
Most expensive, 2023
| Rank | State | Average expenditure 2023 | Change from 2022 |
|---|---|---|---|
| 1 | Florida | $1,864.63 | +18.9% |
| 2 | Louisiana | $1,754.03 | +12.6% |
| 3 | New York | $1,752.55 | +13.2% |
| 4 | District of Columbia | $1,676.99 | +11.7% |
| 5 | New Jersey | $1,573.21 | +11.5% |
| 6 | Georgia | $1,555.10 | +15.6% |
| 7 | Rhode Island | $1,539.65 | +8.2% |
| 8 | Maryland | $1,476.78 | +15.3% |
| 9 | Delaware | $1,462.03 | +12.8% |
| 10 | Nevada | $1,461.54 | +13.2% |
Least expensive, 2023
| Rank | State | Average expenditure 2023 | Change from 2022 |
|---|---|---|---|
| 1 | North Dakota | $807.77 | +10.8% |
| 2 | Maine | $856.28 | +11.7% |
| 3 | Idaho | $863.91 | +11.9% |
| 4 | Iowa | $872.61 | +12.4% |
| 5 | Hawaii | $888.07 | +5.2% |
| 6 | Vermont | $893.16 | +12.6% |
| 7 | Wisconsin | $922.41 | +13.8% |
| 8 | North Carolina | $925.08 | +10.2% |
| 9 | Indiana | $926.41 | +13.8% |
| 10 | South Dakota | $936.84 | +13.8% |
Every state got more expensive in 2023; the national average rose 14.0%. The NAIC's other measure, the combined average premium for a policy with liability, collision and comprehensive, was $1,438.60 nationally and ranked the same three states at the top.
Why the expensive states are expensive
The NAIC notes that high-premium states tend to be highly urban, with higher wage and price levels and greater traffic density. Beyond that, each state at the top has its own mix:
- Florida: dense coastal metros, hurricane and flood exposure, a history of heavy claims litigation, and a personal injury protection system. The state's 2023 tort reforms are now pushing rates down; see Why Florida car insurance is so expensive.
- Louisiana: injury claims and litigation that state leaders targeted with 2025 legislation, hurricane exposure, and lower household incomes that make coverage less affordable. See Why Louisiana car insurance is among the priciest.
- New York: $50,000 of required no-fault insurance benefits per person, New York City density, no-fault fraud and high liability claim costs. The 2026 state budget changed several of these rules; see What drives car insurance costs in New York.
- District of Columbia and New Jersey: almost entirely urban. The NAIC cautions that D.C. is 100% urban and that New Jersey insurers have historically paid two to four times the national average in policyholder dividends, which the expenditure figure does not subtract.
Why the cheap states are cheap
The least expensive states are mostly rural or small-town, with less congestion, lower repair and medical costs, and fewer injury lawsuits. That does not mean every coverage is cheap there. North Dakota's average comprehensive premium in 2023 ($309.43) was above the national average ($238.24); comprehensive is the coverage that pays for hail and other weather damage. Hawaii has strict limits on rating factors, including bans on age, sex, marital status and credit (HRS 431:10C-207).
Affordability is a different ranking
Cost is not the same as affordability. The Insurance Research Council compares average expenditure with median household income. In its March 2025 update, covering 2022, U.S. households spent 1.51% of income per vehicle on auto insurance; Louisiana was least affordable at 2.67% and North Dakota most affordable at 0.93%. The IRC projected the national share at about 1.6% for 2023 and 1.7% for 2024. A state with high premiums and high incomes, such as D.C., can rank as more affordable than a state with lower premiums and lower incomes, such as Mississippi.
How rankings shift
Rankings move when laws or markets change. Michigan was the second most expensive state in 2019 at $1,498.59, before its 2019 no-fault reform took effect; by 2023 it ranked 12th at $1,444.01 (see Why Michigan car insurance costs what it does). Florida, sixth in 2020, became the most expensive by 2022 after a surge in claim costs and litigation. Since 2023, CPI data shows national prices rising further and then easing in 2026; see why car insurance got more expensive, and where prices stand in 2026.
How to use this ranking
The NAIC itself warns that "direct comparisons between state results should be treated with a high degree of caution," because state averages reflect different coverage requirements, policyholder choices and vehicle values. Practical guidance:
- Do not use a state average to budget. Your premium depends on your driving record, car, coverage and ZIP code; get real quotes with the car insurance quote comparison worksheet.
- Compare required coverage too. States with no-fault or high minimums require more coverage by law; minimum car insurance requirements by state compares each state's rules.
- Watch uninsured driver rates. Where many drivers go without insurance, uninsured motorist coverage matters more; see uninsured drivers by state.
- If you are moving, quote the new address before you commit; see moving to a new state: how to switch your car insurance.
Key takeaways
- In NAIC data for 2023, Florida, Louisiana and New York had the highest average auto insurance spending; North Dakota, Maine and Idaho the lowest.
- The national average expenditure was $1,281.92 in 2023, up 14.0% in a year.
- Expensive states tend to be urban and dense, with high injury, litigation and weather costs.
- Affordability rankings, which factor in income, put Louisiana last and North Dakota first.
- State averages are a rough guide only; your own quotes are what count.