Cheapest (and Most Expensive) Cities & States for Car Insurance

Full coverage car insurance is, on average, more expensive than minimum coverage because it provides a higher level of financial protection. The cheapest state in the country for car insurance is Vermont, with an average annual premium of $1,478. That’s 37 percent cheaper than the national average of $2,356 annually. The next-cheapest states are Maine and Idaho.

Three Midwestern states and three New England states make the list. In addition, four of the 10 cheapest states for car insurance are also in the top 10 states with the smallest populations, which makes sense, as lower population density generally means a lower risk of accidents, and therefore less risk to insurers.

Minimum coverage is the least amount of coverage required by state law. It’s also the cheapest option, but it offers minimal protection. The cheapest state for minimum coverage car insurance is Wyoming, with an average premium of only $329 per year, followed by Idaho and Iowa. Wyoming’s premium is 54 percent cheaper than the national average for minimum coverage.

Most Expensive States for Minimum Coverage Car Insurance

Florida is also the most expensive state for minimum coverage, with an average annual premium 88 percent higher than the national average. Nevada and New Jersey rank as the second and third-most expensive, respectively.

Many of the cheapest cities for car insurance correlate to the cheapest states, with some exceptions. Burlington, VT, is the cheapest city in our data, with an average full coverage premium of $1,408 per year or $117 per month.

Two other cities in Vermont make the top five, along with Boise, ID, and Green Bay, WI. Wisconsin is the only state represented on this list (with Green Bay and Appleton) that is not also in the top 10 cheapest states.

Most Expensive Cities for Full Coverage Car Insurance

New Orleans ranks as the most expensive city in the U.S. for car insurance, according to our data. Its high rates can largely be attributed to severe weather risks and high litigation rates in the city.

Detroit, NYC, Miami, and Tampa round out the top five, with average annual premiums far above the national average. Again, most cities on this list are in one of the top 10 most expensive states.

Car insurance rates can vary widely even within a state. The states with the biggest variance are Michigan, New York, and Louisiana, which are also home to the most expensive cities. The cheapest cities in these states have average rates over $2,000 cheaper per year than the most expensive.

Keep in mind that even the cheapest city will likely have higher average rates than more rural areas in each state.

On average, teens pay a whopping 157 percent more than the national average because of their lack of driving experience and the higher risk they pose to insurers. Adding a teen to family policy can save you thousands of dollars a year.

The state with the cheapest teen car insurance is Hawaii, with an average premium significantly below any other state at only $1,652 per year. Idaho is the next-cheapest at $3,313 per year, which is still 45 percent cheaper than the national average of $6,054 per year.

Having a violation on your record will likely cause your auto insurance rates to increase. Drivers with a DUI, for example, pay an average of 89 percent more than drivers with clean records. The state with the cheapest average car insurance rates for high-risk drivers is New Hampshire at $2,483 per year, followed by Maine and Alaska.

Insurance rates tend to increase year-over-year, but some areas have experienced a greater-than-average change in full coverage car insurance rates between 2025 and 2026. Three of the five cities that saw the biggest change are in Connecticut, with Hartford ranking first.

Where you live plays a major role in how much you’ll pay for car insurance. Drivers in rural states with lower population densities, like Vermont and Maine, often pay far less than those in high-density, high-risk states like Florida and Louisiana.

At the city level, the gap can be even more pronounced, as urban areas such as New York City and Detroit tend to drive up premiums due to higher accident rates, theft, and repair costs. Of course, you can’t always control your location, but understanding geographical differences in car insurance rates, as well as actively comparing quotes, adjusting coverage, and using discounts can help you minimize costs no matter where you live.

We analyzed aggregated pricing data from Autoinsurance.com to compile this report.