A breakdown
Auto insurance is a necessary expense for vehicle owners across the United States, but the cost can vary significantly depending on a range of factors. Understanding these costs can help consumers make informed decisions about their insurance needs and budgets. This post explores the average auto insurance costs in the US, highlighting key statistics and factors that influence premiums.
The numbers referenced are based on a report issued by the National Association of Insurance Commissioners (NAIC) and can be found here.
The combined average premium is the sum of the average premiums for liability, comprehensive, and collision coverages. This figure represents the average cost of a full auto insurance policy in a given state.
Many factors contribute to the differences in average expenditures and premiums between states, including:
Insurance rates are primarily based on the cost of paying claims. Broad state characteristics, such as urban population, miles driven per highway mile, and disposable income per capita are correlated with auto insurance premiums.
| Rank | State | 2022 Combined Average Premium |
|---|---|---|
| 2 | Louisiana | $1,742.87 |
| 1 | Florida | $1,703.09 |
| 4 | New York | $1,676.31 |
| 5 | District of Columbia | $1,628.81 |
| 6 | New Jersey | $1,522.89 |
| 7 | Georgia | $1,513.33 |
| 9 | Texas | $1,470.12 |
| 3 | Michigan | $1,428.65 |
| 8 | Nevada | $1,420.51 |
| 10 | California | $1,249.83 |
| Rank | State | 2022 Average Comprehensive Premium |
|---|---|---|
| 1 | South Dakota | $407.21 |
| 2 | Wyoming | $395.54 |
| 3 | Colorado | $371.73 |
| 4 | Montana | $333.70 |
| 5 | Oklahoma | $297.92 |
| 6 | Louisiana | $281.04 |
| 7 | North Dakota | $279.61 |
| 8 | Arkansas | $259.15 |
| 9 | Minnesota | $255.14 |
| 10 | Michigan | $190.59 |
| Rank | State | 2022 Average Liability Premium |
|---|---|---|
| 1 | Florida | $1,152.02 |
| 2 | Louisiana | $990.58 |
| 3 | New York | $989.32 |
| 4 | New Jersey | $932.65 |
| 5 | Nevada | $926.56 |
| 6 | Georgia | $895.70 |
| 7 | District of Columbia | $805.93 |
| 8 | Michigan | $758.44 |
| 9 | Maryland | $754.16 |
| 10 | Connecticut | $796.41 |
| Rank | State | 2022 Average Collision Premium |
|---|---|---|
| 1 | District of Columbia | $586.01 |
| 2 | Rhode Island | $487.17 |
| 3 | Michigan | $479.62 |
| 4 | Louisiana | $471.25 |
| 5 | Maryland | $450.06 |
| 6 | Massachusetts | $445.31 |
| 7 | New Jersey | $441.78 |
| 8 | Connecticut | $424.27 |
| 9 | Georgia | $419.69 |
| 10 | Florida | $371.15 |
Several variables can explain the state-to-state differences in auto insurance costs:
Auto insurance costs in the US vary widely due to a multitude of factors, including location, driving habits, and economic conditions. Understanding these costs can help consumers better navigate their insurance options and make informed decisions. By considering the key statistics and factors influencing premiums, vehicle owners can better manage their auto insurance expenses.
For more detailed information on auto insurance costs in your state, consult the latest report from the National Association of Insurance Commissioners (NAIC) (Press Release Point).