The cost of your auto insurance is affected by both the state you live in and the type of area you live in (city, suburban, or rural). In general, car insurance costs more in cities versus suburban/rural areas due to higher rates of vandalism and theft. People in cities are statistically more likely to be involved in an accident that may require an insurance claim, which can lead to a higher premium.
On top of that, every state has varying auto insurance minimum requirements. While some states like Florida have relatively sparse auto insurance legislation, requiring only $10,000 of coverage for property damage and personal injury protection,1 other states like Michigan have more coverage requirements and higher limits. That’s why car insurance is so expensive in Michigan. That state requires:
- $50,000 of bodily injury liability per person
- $100,000 of bodily injury liability per accident
- $1 million of property damage liability for accidents within Michigan
- $10,000 of property damage liability for accidents outside of Michigan2
More coverages and higher limits mean higher premiums. Learn about the auto insurance requirements in your state in our guide to auto insurance.