The State Insurance Report

The cost of living crisis is impacting every aspect of our daily lives; with rapid inflation pushing up the prices of everything from food to rent and heating, even car insurance premiums are rising, with rates varying wildly from state to state. Although, with the rise of car subscriptions, the only thing you’ll have to worry about is the price of gas. 

But where are drivers currently paying the most for their car insurance? Which state has seen the biggest increases and what could the market look like in 10 years’ time if current trends continue? We’ve dived into the data to find out.  

1. Florida

Estimated average annual premium: $4,813  

The Sunshine State will see the highest average premiums in 2033, with an estimated annual cost of $4,813, more than $2,500 than the predicted national average if current trends continue. 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.   

2. Nevada

Estimated average annual premium: $3,055

Nobody likes to see their insurance premium go up, but this will be an unfortunate reality for drivers in Nevada over the next 10 years. The Silver State takes second place if premiums continue to rise at the current rate of 51%, meaning drivers will have to pay an average of $3,055 annually in 2033. 

3. New York 

Estimated average annual premium: $2,990

As increased repair costs, supply chain shortages, and a lack of labor continue to push up insurance premiums, drivers will be forced to shop around for a better deal on their car insurance. This looks like it will be the case in New York State, with car insurance premiums set to rise by 48% over the next 10 years, resulting in an annual average of $2,990 for drivers.

1. Florida

Average annual premium: $2,560

The Sunshine State has the highest insurance premiums, with the average driver paying $2,560 annually for full coverage. Insurance in the state is so expensive as Florida has the highest proportion of uninsured drivers. 20% of drivers lack even minimum liability insurance, pushing costs onto insured drivers through higher premiums.  

2. Louisiana

Average annual premium: $2,546

Like Florida, Louisiana also has a large proportion of uninsured drivers at slightly more than 10%, pushing up premiums. 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

Average annual premium: $2,137

Thanks to its small size Delaware has a high population density, meaning more accidents and higher repair costs pushing up premiums. The state’s large coastline also increases costs as drivers are more at risk of severe weather causing accidents and damage to vehicles. Drivers in the state pay an average of $2,137 annually.

1. Ohio

Average annual premium: $1,023

Car insurance premiums in Ohio are the lowest in the nation and drivers here can expect low costs thanks to a saturated and highly-competitive insurance market, and it’s also a very safe state to drive in. Drivers in Ohio can expect to pay an average of $1,023 annually for full coverage, $625 less than the national average. 

2. Maine

Average annual premium: $1,116

With its low population density making accidents less likely, car insurance premiums in the Pine Tree State average $1,116 a year making it the second cheapest state. Maine also has a very low rate of vehicle thefts and a small proportion of uninsured drivers to push up insurance rates. 

3. Idaho

Average annual premium: $1,121

Thanks to the abundance of rural roads and a sparse population decreasing the likelihood of accidents, Idaho takes third place. Drivers in The Gem State pay an average of $1,121 annually for full coverage, with higher average rates in larger cities like Boise and Caldwell.

1. Florida

2013 annual premium: $1,364

2023 annual premium: $2,560

Increase 2013-2023: 88% 

The Sunshine State takes the top spot as the state with the biggest increase in insurance premiums over the last 10 years, rising by 88% since 2013. Car insurance premiums have risen in Florida as the state deals with rising inflation pushing up the price of replacement parts and an increase in car-related crimes like insurance fraud and catalytic converter thefts.    

2. Colorado

2013 annual premium: $1,271

2023 annual premium: $1,940 

Increase 2013-2023: 53%

Up next is Colorado, with drivers experiencing a 53% increase in their insurance premiums since 2013. Rates have risen in The Centennial State thanks to the increase in extreme weather conditions, with residents experiencing everything from floods to blizzards, tornados, and hailstorms. These disasters have increased the number of claims dramatically, pushing up premiums.

3. Nevada

2013 annual premium: $1,341

2023 annual premium: $2,023

Increase 2013-2023: 51% 

The Silver State has seen the third-highest increase in insurance premiums over the last ten years. Rates have risen rapidly in Nevada thanks to the high rate of vehicle thefts, especially in larger cities like Las Vegas, and the increasing rate of luxury vehicle ownership in the state with claims for costlier repairs driving up premiums.  

1. Georgia

2013 annual premium: $2,155

2023 annual premium: $1,647

Decrease 2013-2023: 24%

The Peach State takes the top spot as the location with the biggest drop in insurance premiums over the last 10 years, falling by 24% since 2013. This is surprising as lawmakers in the state recently proposed legislation to prevent insurance companies from hiking prices without state approval after rates leapt up by 40% since 2023. 

2. Hawaii

2013 annual premium: $1,583

2023 annual premium: $1,306

Decrease 2013-2023: 17%

Hawaii takes second place, with insurance premiums in the state decreasing by 17% over the last 10 years to an average of $1,306 in 2023. 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.  

3. Michigan

2013 annual premium: $2,520

2023 annual premium: $2,133

Decrease 2013-2023: 15%

Taking third place is Michigan, with drivers in the state benefitting from proactive legislation to lower car insurance costs. In 2020 lawmakers signed a bill limiting the circumstances drivers can sue each other for damages. This lack of litigation dropped premium prices, contributing to the 15% decrease over the last 10 years.    

• Average annual premiums for each state in 2023 were taken from Insure. 

• Internet Archive’s WayBack Machine was used to find average annual rates in 2013 according to Insure.  

• Changes in premium prices over 10 years were calculated by dividing 2023 data by 2013 data to find the percentage change.  

• Projected insurance premiums in 2023 were calculated using the percentage change in price between 2013 and 2023.