States with the Lowest and Highest Car Insurance Rates in 2021
Car insurance is one of those annoying things that you both need and hate to spend money on. It might seem silly to spend money each month on something you’ll only use if you’re involved in an accident or other incident, but not having insurance will leave you in a pickle if your car is damaged in a collision. Plus, car insurance is required in all but two states: New Hampshire and Virginia. But even those states require you to pay for damages if you’re in an accident, and if you can’t pay you may lose your license, making car insurance a smart purchase no matter where you live.
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The cost of car insurance varies depending on several factors, including your age, gender, location, credit score, and vehicle. While age and gender often get the most attention as factors that can increase your premiums, your location is a big one as well. And it’s not just the state you call home; you’ll also see higher premiums if you live in a high-crime neighborhood, if you live in an area prone to severe weather, and if your area has a high concentration of car insurance claims.
However, car insurance premiums do vary from state to state, with some requiring more (and therefore higher cost) coverage than others. Here are the most and least expensive states to insure a car in 2021.
States with the lowest and highest insurance costs
Every year, Insure.com reviews quotes from around the nation to determine which states have the highest and lowest annual auto insurance premiums. For 2021, here are the states where it’s most and least expensive to insure a car.
No. 1: For the last few years, it’s been a toss-up between Michigan and Louisiana claiming the top spot as the most expensive state for car insurance. This year, Louisiana is the lucky (or not-so-lucky) state where residents pay the most for auto insurance. The average annual premium in that state is a whopping $2,839. That is 99 percent higher than the national average, meaning Louisianans pay almost double what the average American driver pays in car insurance premiums. It’s also an increase of 19 percent from 2020.
No. 2: Hot on the heels of its expensive insurance rival is Michigan, where residents pay an average annual premium of $2,112. That’s 48 percent higher than the national average, though it’s actually a 27-percent decrease from 2020.
Now on to the states with the lowest annual car insurance premiums.
No. 50: With an average annual premium of $885, New Hampshire is one of the cheapest states in which to insure a car. That figure is 38 percent lower than the national average and 10 percent lower than the average 2020 premiums in that state.
No. 51: Coming in at the bottom of the list, Maine is officially the cheapest state to insure a car in. With an average premium of $858, it just beats out its New England neighbor. Maine’s average auto insurance premium is 40 percent lower than the national average, and 6 percent lower for that state compared to 2020.
Catherine Hiles (she/her) is a native Brit living and working in Dayton, Ohio. Cat has written about a variety of subjects, including finance, cars, and parenting. She is a frequent contributor to Dayton Mom Collective, The Penny Hoarder, and WDW Magazine.
Cat lives with her husband, their two kids, and their energetic pitbull mix. She counts running, lifting weights, walking, and reading among her hobbies. See more articles by Cat.