Highest Car Insurance Rates By State In 2023
Overview of Car Insurance Rates by State
In 2023, the average cost of car insurance in the United States was $1,845. However, this figure varied significantly from state to state. In some states, drivers paid much more than the national average. On the other hand, drivers in some states paid significantly less than the national average. In this article, we look at the states with the highest car insurance rates and discuss why these states have such high rates.
Michigan
Michigan has the highest car insurance rates in the country, with an average cost of $2,693. This is nearly 45% higher than the national average. The high rates are due to the state's unique no-fault insurance laws. In Michigan, drivers are required to purchase unlimited personal injury protection (PIP). This coverage is extremely expensive, and it is the primary reason why Michigan has such high car insurance rates.
Louisiana
Louisiana is the second most expensive state for car insurance, with an average cost of $2,231. Like Michigan, the high rates are due to the state's unique insurance laws. Louisiana requires drivers to purchase bodily injury liability coverage of at least $15,000 per person and $30,000 per accident. This coverage is more expensive than the coverage required in most other states, and it is the primary reason why Louisiana has such high car insurance rates.
Florida
Florida is the third most expensive state for car insurance, with an average cost of $2,081. The high rates are due to the state's no-fault insurance laws. In Florida, drivers are required to purchase personal injury protection (PIP) coverage of at least $10,000 per person. This coverage is more expensive than the coverage required in most other states, and it is the primary reason why Florida has such high car insurance rates.
Rhode Island
Rhode Island is the fourth most expensive state for car insurance, with an average cost of $1,946. The high rates are due to the state's insurance laws. In Rhode Island, drivers are required to purchase uninsured/underinsured motorist coverage of at least $25,000 per person and $50,000 per accident. This coverage is more expensive than the coverage required in most other states, and it is the primary reason why Rhode Island has such high car insurance rates.
Connecticut
Connecticut is the fifth most expensive state for car insurance, with an average cost of $1,925. The high rates are due to the state's insurance laws. In Connecticut, drivers are required to purchase bodily injury liability coverage of at least $20,000 per person and $40,000 per accident. This coverage is more expensive than the coverage required in most other states, and it is the primary reason why Connecticut has such high car insurance rates.
California
California is the sixth most expensive state for car insurance, with an average cost of $1,914. The high rates are due to the state's insurance laws. In California, drivers are required to purchase uninsured/underinsured motorist coverage of at least $15,000 per person and $30,000 per accident. This coverage is more expensive than the coverage required in most other states, and it is the primary reason why California has such high car insurance rates.
New Jersey
New Jersey is the seventh most expensive state for car insurance, with an average cost of $1,876. The high rates are due to the state's insurance laws. In New Jersey, drivers are required to purchase personal injury protection (PIP) coverage of at least $15,000 per person. This coverage is more expensive than the coverage required in most other states, and it is the primary reason why New Jersey has such high car insurance rates.
Washington, D.C.
Washington, D.C. is the eighth most expensive state for car insurance, with an average cost of $1,846. The high rates are due to the district's insurance laws. In Washington, D.C., drivers are required to purchase bodily injury liability coverage of at least $25,000 per person and $50,000 per accident. This coverage is more expensive than the coverage required in most other states, and it is the primary reason why Washington, D.C. has such high car insurance rates.
Conclusion
Car insurance rates can vary significantly from state to state. In 2023, the states with the highest car insurance rates were Michigan, Louisiana, Florida, Rhode Island, Connecticut, California, New Jersey, and Washington, D.C. The primary reason why these states have such high rates is due to their unique insurance laws. Drivers in these states are required to purchase expensive coverage that is not required in most other states.