Car prices surged during the pandemic, but have you noticed car insurance has too?
Sixty-three percent of Americans said they’re most concerned with their ability to pay for their car insurance, according to researcher doxoINSIGHTS, based on data from bill payment platform doxo of more than 8 million paying consumers across 97% of U.S. ZIP codes. That was tied with internet and cable and second only to utilities, which 73% of consumers were most worried about being able to pay, it said.
All isn’t equal though. Auto insurance is much more expensive in some states than others, but that doesn’t mean you can snooze if you live in a lower-cost state. Some lower-cost car insurance states are expected to see sharp increases in coming years that will boost rates to among the highest in the nation.
Here’s the breakdown of which states have the highest rates now and where they’re expected to be in 10 years, according to German-based car subscription service Finn using data from insurance company Insure. Some may surprise you.
Which states have the highest auto insurance rates now?
1. Florida’s average annual premium: $2,560
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The Sunshine State “is so expensive as Florida has the highest proportion of uninsured drivers,” Finn said in its report. “20% of drivers lack even minimum liability insurance, pushing costs onto insured drivers through higher premiums.”
2. Louisiana’s average annual premium: $2,546
“Like Florida, Louisiana also has a large proportion of uninsured drivers at slightly more than 10%, pushing up premiums,” Finn said. “Even drivers with insurance often only have minimum coverage, which won’t protect them from anything more than minor accidents. Drivers in the Pelican State are also highly litigious, with more vehicle-related lawsuits than any other region contributing to higher premiums.”
3. Delaware’s average annual premium: $2,137
Delaware’s small but crowded, “meaning more accidents and higher repair costs pushing up premiums,” Finn said. “The state’s large coastline also increases costs as drivers are more at risk of severe weather causing accidents and damage to vehicles.”
Which states pay the least for car insurance?
1. Ohio’s average annual premium: $1,023
A saturated and highly competitive insurance market helps keep rates low, as well as an abundance of safe drivers, Finn said. Ohioans can pay $625 less than the national average of $1,023.
2. Maine’s average annual premium: $1,116
Low population density makes accidents less likely, and a very low rate of vehicle thefts and a small proportion of uninsured drivers help keep insurance rates low.
3. Idaho’s average annual premium: $1,121
An abundance of rural roads and a sparse population decrease the likelihood of accidents. The closer you get to larger cities like Boise and Caldwell, though, the higher the average rate, Finn said.
Which states are expected to see the highest insurance rates in 10 years?
1. Florida’s estimated average 2033 annual premium: $4,813.
That will be more than $2,500 than the predicted national average if current trends continue, Finn said.
“Car insurance costs in the state will increase as climate change causes increasingly severe weather events, increasing the risk of damage to vehicles and pushing up premiums,” it said.
2. Nevada’s estimated average annual premium: $3,055
If premiums continue to rise at the current rate of 51%, the Silver State takes second place in 2033.
3. New York’s estimated average annual premium: $2,990
Car insurance premiums are set to rise by 48% over the next 10 years, Finn said.
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Are there any places where auto insurance rates are falling?
If you’re lucky enough to have lived in Georgia, Hawaii, or Michigan over the last decade, your annual costs dropped.
1. Georgia’s car insurance rates fell by 24% between December 2013 ($2,155) and 2023 ($1,647)
Beginning July 1, auto insurance carriers in Georgia could be barred from increasing rates at their discretion if an insurance reform bill passed by the General Assembly receives Gov. Brian Kemp’s signature. The law was passed after some car insurance companies, through a loophole, bypassed regulators and increased rates by as much as 40% in a single calendar year.
2. Hawaii’s annual premium fell 17% to $1,306 in 2023 from $1,583 in 2013.
“Rates have dropped in the Aloha State as insurance companies in Hawaii are no longer allowed to provide policies that take into account non-driving factors like age and credit score,” Finn said.
3. Michigan’s rates shed 15% to $2,133 this year from $2,520 a decade ago.
In 2020, lawmakers signed a bill limiting the circumstances drivers can sue each other for damages. Fewer lawsuits helped cut premium costs, Finn said.
Where can I see where my state ranks for car insurance costs?
You can check Finn’s full report here to see what your state pays.
Medora Lee is a money, markets, and personal finance reporter at USA TODAY. You can reach her at mjlee@usatoday.com and subscribe to our free Daily Money newsletter for personal finance tips and business news every Monday through Friday morning.