With the average cost of full coverage car insurance increasing 26 percent over last year, you may be shopping around for a new policy. Looking at average rates in your region can give you a starting point for comparing quotes. Explore the interactive map below to see the true cost of auto insurance in all 50 states and the top 26 metro statistical areas (MSAs).
To determine the true cost of car insurance, Bankrate’s insurance editorial team analyzed the average total percentage of household income spent on car insurance. Next, we assigned a true cost ranking to each state and 26 metros in the country. The higher the ranking, the higher the true cost of car insurance.
The true cost of auto insurance in 2024 by state
Louisiana drivers have the highest true cost rank of 50, shelling out an average of 6.53 percent of their income toward car insurance. Historically, Florida consistently has higher insurance costs than most states and has the second-highest true cost ranking, with drivers spending a whopping 5.69 percent of their income on car insurance on average. Florida and Louisiana both experience frequent catastrophic claims from extreme weather. Since insurance rates are determined with risk and historical data in mind, the high financial risk insurance companies and reinsurance companies take on in both states is likely a driving factor of these high premiums.
After analyzing 26 major metro areas, our research found that drivers in Detroit pay the highest net average cost of car insurance and highest true cost of car insurance, with a staggering 7.98 percent of income spent on auto coverage. Florida is also home to three of the six MSAs with the highest true cost of insurance: Miami, Tampa and Orlando.
Massachusetts has the lowest true cost rank of 1, with drivers spending 1.76 percent of their income on car insurance. While the average rate of car insurance increased this year for Washingtonians by 32 percent, that is still much lower than the national average rate increase of 26 percent. Hawaii drivers spend only slightly more on car insurance at 1.79 percent.
In terms of the lowest percentage of income spent on car insurance for MSAs, Seattle takes first place with a True Cost score of 1.65. Boston and Washington, D.C., are not far behind with True Cost score of 2.01 and 2.07, respectively. All three of these metros have median household incomes over $100,000 per year. New York stands out as the MSA with the highest median household income at $136,405 per year, but its high average full coverage cost of $4,198 per year puts it in the middle of the pack in terms of true cost ranking.
From population density to weather patterns, your car insurance rate is strongly influenced by where you live. However, insurance is multifaceted. Several other rating factors, such as driving experience and life events, are assessed to assemble an insurance premium based on your unique driving characteristics.
How much have auto insurance rates increased?
Nationally, the average cost of full coverage car insurance increased by 26 percent in 2024, but some states saw larger rate hikes. Missouri saw a massive 44 percent increase in the average annual cost of full coverage car insurance, from $1,943 in 2023 to $2,801 in 2024 — the biggest increase in any state. Florida has the highest average rate of full coverage car insurance at $3,945 per year, an increase of $762 from the year before.
Looking at MSAs, Philadelphia and Detroit saw some of the largest jumps in average full coverage premium costs from 2023 to 2024. Average rates in Philadelphia increased 154 percent from $1,872 to $4,753, while average rates in Detroit increased 85 percent from $3,067 to $5,687.
When it comes to rising auto insurance costs, drivers in Wyoming seem to have caught a break. The average cost of full coverage car insurance in the Equality State dropped by $1 from 2023 to 2024 — resting at $1,581.
The national average of full coverage car insurance is currently $2,543, a $529 increase over last year. In 2021, the average cost of full coverage car insurance was $1,674, meaning a 52 percent increase in just three years.
Whether your insurance premium is higher or lower than the national average, understanding how car insurance companies evaluate risk and calculate your premium can help you find ways to save money.
Several factors influence your rate, and some you can’t control. These include state-mandated car insurance requirements, population density and driving habits of others living in your state or ZIP code. Inflation and extreme weather, which are both significant influencers for rates in 2024, are also beyond your control. However, driving history, vehicle type, coverage limits and — for drivers in most states — credit history are all variables you can control to positively influence your premium.
Adding a teen driver
Driving is a skill learned over time, and teen drivers tend to pay more for car insurance until they earn enough experience on the road to move into a more standard risk group. According to teen driving statistics, the fatality crash rate for 16- to 19-year-olds is nearly three times the rate for drivers ages 20 and over due to factors such as speeding, distracted driving and lack of seat belt usage.
Adding a teen driver to your car insurance policy can be expensive. Insuring a teen driver on their parents’ policy costs an average of $5,421 per year, $2,878 more than a policy without a young driver. The 2024 cost to insure a teen driver is 23 percent higher than last year’s average annual premium of $4,392.
Hawaii and Massachusetts are the two states that prohibit the use of age as a rating factor. However, Massachusetts does allow insurers to use a driver’s years of driving experience as a rating factor. Generally, insurance companies consider any driver under the age of 25 a youthful operator. Fortunately, many carriers offer discounts specifically geared towards this age to help offset the increased insurance cost.
Standout statistics:
- Michigan showed the biggest jump in premium when adding a 16-year old to a full coverage insurance policy with an average premium of $7,942 — an increase of $4,586.
- In South Dakota, parents adding a 16-year-old driver to their policy see the lowest rate increase at just $1,363. This is only a 70 percent increase, much lower than the national average increase of 113 percent.
What vehicle you choose
No matter how level-headed we try to be, buying a car tends to be an emotional decision. If you are financing a car, the loan amount and interest rate are likely your primary concern. While the year, make and model of the vehicle you drive can significantly impact your premium, how the rates of various policy coverage types are impacted is complex. Getting a car insurance quote for your new vehicle before signing on the dotted line can help you understand how certain vehicles and features may increase your rate.
Typically, vehicles that cost more to repair or replace will cost more to insure. Luxury vehicles usually cost more to insure than more standard vehicles. A BMW 330i has an average annual full coverage premium of $899 more than that of a Honda Odyssey, for example. This is likely because BMWs have more expensive parts and can require a special technician for repairs.
Some features may make a vehicle more expensive overall, but could lower the cost of other coverage types. For example, advanced safety technology like blind spot detection may add to the cost to repair or replace a vehicle but could also make collisions much less likely. In this scenario, you may notice that you pay less for your liability coverage — which pays for the damages you cause to others — but more for your collision coverage. A vehicle with advanced anti-theft features may also see that the cost of the comprehensive coverage is reduced, but again, the cost of collision may be higher due to the expense of the technology.
Lastly, the risk factor associated with the driver’s behavior behind certain vehicles makes a difference. Vehicles designed to be fast, like muscle cars with high horsepower, tend to attract drivers who want to drive fast, which indicates risky behavior.
