Average Car Insurance Rates By State - Which States Have The Highest Car Insurance Rates

If you have ever visited the northeast corridor of the United States you may have been in Manhattan and tried to get around millions of other cars, drove on the New Jersey Turnpike with all of the other commuters, or battled traffic in Washington D.C. This crowded driving arena offers some of the highest accident rates in the country and you guessed it, they are the ones paying the highest average car insurance rates by state.

The northeast corridor has the six states with the highest insurance rates. The top three are New Jersey, New York, and Washington D.C. followed by Rhode Island and Massachusetts. These states have drivers paying well over a thousand dollars in premiums a year. This is almost double what people pay for their car insurance premiums in states such as Idaho, Maine, and Iowa. It is also almost a third more than the national average for car insurance.

New Jersey: Highest Premiums in the Country

The average price paid for car insurance in New Jersey was $1182.54, the highest in the country. New York and the District of Columbia were not far behind with their drivers paying $1161.27 and $1156.23 respectively.

In comparison the drivers of Iowa paid less than $600, the lowest prices in the country. Maine and Idaho were not much more. Overall, the national average for car insurance premiums is $817.43, which is the price of insurance in New Mexico and Texas.

There are many factors that affect the average car insurance rates by state. States boasting great economies tend to have people driving newer vehicles which are insured at higher prices than older vehicles. Population levels also count towards the prices people pay for their insurance with the lower populated states paying less for car insurance.

Individually your insurance rate may not reflect the national average as your personal driving history affects your rates as well. Deductibles, type of coverage, and your driving record all determine the price you pay for car insurance as well.