Is Car Insurance Cheaper in Texas Than California

Several factors impact your car insurance premium, including your driving history, age and vehicle type. One variable that affects your auto insurance rates quite significantly is where you live, even in states where ZIP codes cannot be used as a factor in determining your rates. Each state approaches auto insurance laws differently, and these differing laws affect the cost of car insurance. Car insurance rates by state can vary a lot, often by hundreds or even thousands of dollars.

Bankrate has gathered average 2021 car insurance premiums from Quadrant Information Services and researched the insurance requirements for each state to give you all the information you need about your state as you get started in your insurance shopping journey.

Car insurance rates by state

Being aware of your state's insurance laws can help you understand how claims will be handled. While you may find it helpful to know your state's minimum car insurance limits, there's no need to memorize them, because you will not be able to purchase a car insurance policy with limits lower than your state's minimum.

The table below lists the average car insurance rates in each state for both the state's minimum coverage levels and full coverage car insurance, which includes comprehensive and collision coverage. Each state's minimum liability car insurance limits are listed as three numbers separated by a slash, indicating the state's liability coverage requirements for: bodily injury per person/bodily injury per accident/property damage per accident.

State	Minimum liability coverage requirements (in thousands)	Average annual cost of minimum coverage	Average annual cost of full coverage
Alabama	25/50/25	$469	$1,623
Alaska	50/100/25	$373	$1,559
Arizona	25/50/15	$555	$1,547
Arkansas	25/50/25	$470	$1,914
California	15/30/5	$733	$2,065
Colorado	25/50/15	$518	$2,016
Connecticut	25/50/25	$794	$1,845
Delaware	25/50/10	$787	$1,775
Florida	40471	$1,101	$2,364
Georgia	25/50/25	$756	$1,982
Hawaii	20/40/10	$354	$1,127
Idaho	25/50/15	$307	$1,045
Illinois	25/50/20	$442	$1,485
Indiana	25/50/25	$367	$1,254
Iowa	20/40/15	$252	$1,260
Kansas	25/50/25	$410	$1,698
Kentucky	25/50/25	$748	$2,128
Louisiana	15/30/25	$975	$2,724
Maine	50/100/25	$294	965
Maryland	30/60/15	$767	$1,877
Massachusetts	20/40/5	$510	$1,223
Michigan	50/100/10	$948	$2,309
Minnesota	30/60/10	$537	$1,643
Mississippi	25/50/25	$492	$1,782
Missouri	25/50/25	$468	$1,661
Montana	25/50/20	$342	$1,737
Nebraska	25/50/25	$335	$1,531
Nevada	25/50/20	$860	$2,245
New Hampshire	25/50/25	$389	$1,275
New Jersey	15/30/5	$847	$1,757
New Mexico	25/50/10	$385	$1,419
New York	25/50/10	$1,062	$2,321
North Carolina	30/60/25	$413	$1,325
North Dakota	25/50/25	$285	$1,264
Ohio	25/50/25	$328	$1,034
Oklahoma	25/50/25	$423	$1,873
Oregon	25/50/20	$610	$1,346
Pennsylvania	15/30/5	$427	$1,476
Rhode Island	25/50/25	$749	$2,018
South Carolina	25/50/25	$558	$1,512
South Dakota	25/50/25	$275	$1,642
Tennessee	25/50/15	$371	$1,338
$Texas	30/60/25	$524	$1,823
$Utah	25/65/15	$528	$1,306
$Vermont	25/50/10	$292	$1,207
$Virginia	25/50/20	$441	$1,304
Washington	25/50/10	$463	$1,176
Washington, D.C.	25/50/10	$704	$1,855
West Virginia	25/50/25	$458	$1,499
Wisconsin	25/50/10	$332	$1,186
Wyoming	25/50/20	$271	$1,495

Alabama

Alabama car insurance costs around the same as the national average. The state's highway system ranks in the middle of the pack at nineteenth, according to the Reason Foundation's Annual Highway Report. While Alabama is one of the most dangerous states for extreme weather and crime, its low cost of living helps to moderate car insurance costs.

Alabama auto insurance resources:

Alaska

Alaska drivers pay slightly less for their auto insurance on average than the typical American driver. On average, drivers in Alaska spent only 7.2 hours in congestion in 2019 – the fifth-least of any U.S. state. While Alaska is known for having sub-par infrastructure, its low cost of living and low population density help keep car insurance costs relatively low.

Alaska auto insurance resources:

Arizona

Arizona drivers typically pay around $100 less per year for full coverage auto insurance than the national average. Arizona's roadways rank middle-of-the-road, and the state's cost of living is average. Arizona drivers spend an average of 30.1 hours in traffic due to congestion, which is about average for the U.S. Together, these factors likely contribute to Arizona's car insurance rates being on par with the national average.

Arizona auto insurance resources:

Arkansas

Average Arkansas full coverage car insurance rates are $240 more per year than the national average, which could be due, in part, to Arkansas ranking fourth for the highest crime rate in the country, according to USA Today. In addition, the Natural State ranks fifth for states with worst weather. One factor that may be preventing Arkansas car insurance levels from skyrocketing is that the state has the second-lowest cost of living.

Arkansas auto insurance resources:

California

Full coverage car insurance in California typically costs $418 more per year than the national average. High insurance costs in the Golden State could be due to California's sky-high cost of living and the state's low-ranking infrastructure. In addition, two of the four metropolitan areas with the worst congestion are located in California, according to a USA Today analysis.

California auto insurance resources:

Colorado

Colorado's full coverage car insurance rates are, on average, $342 higher per year than the rest of the country. High insurance costs in the state could be related to the state's poor road conditions. In addition, Coloradans spend an average of 37 hours in congestion per year, which is six hours more than the national average.

Colorado auto insurance resources:

Connecticut

Car insurance in Connecticut costs $171 more per year for full coverage than the rest of the country, on average. Connecticut ranks in the top five states with the highest population density. In addition, Connecticut drivers spend an average of 38 hours per year in urbanized area traffic congestion. While the state has a low crime rate, Connecticut has the eighth-highest cost of living in the country, which contributes to high insurance rates.

Connecticut auto insurance resources:

Delaware

Delaware's average annual full coverage car insurance rates are $100 more than the national average. Delaware drivers spend over 100 hours in urbanized traffic congestion per year – the most of any state. The cost of living in Delaware is also slightly higher than the national average cost of living. Delaware also has the sixth-highest population density of any state. Together, these characteristics contribute to the higher cost of insurance.

Delaware auto insurance resources:

Florida

Florida has one of the highest average annual full coverage car insurance rates in the country, clocking in at $690 higher than the national average. High premiums could be due to diverse factors in this region. For instance, Floridians spend 40.4 hours in congestion per year, which is around 10 hours more than average. Florida also ranks eighth in highest population density, which can contribute to crowded roads and accidents, according to Statista. The state also ranks third for the most deadly car accidents.

Florida auto insurance resources:

Georgia

Georgia full coverage car insurance costs about $308 more than the national average per year. High car insurance rates in Georgia could be due in part to the poor condition of infrastructure in the state. Georgians also spend 42 hours in urbanized area traffic per year, which is around 10 hours more than average and can lead to traffic accidents. Georgia has the fourth most fatal car accidents of any state, according to World Population Review.

Georgia auto insurance resources:

Hawaii

Despite Hawaii having the highest cost of living of any state, car insurance in the state is relatively cheap. Full coverage car insurance in the Aloha State costs $547 less than the national average per year. Hawaiian drivers spend the fourth-fewest hours in urbanized area commuter traffic per year, according to a Reason Foundation study. Honolulu, Hawaii is also known for its efficient public transit system, which allows residents to travel without using their cars. Hawaii also has fewer licensed drivers than 42 other states, according to Statista, which could contribute to lower car insurance rates.

Hawaii auto insurance resources:

Idaho

Idaho's average annual full coverage car insurance rates are some of the cheapest in the country, coming in $629 cheaper than the national average. Car insurance rates in Idaho remain low due to the state's low population density, low number of licensed drivers and highly-ranked infrastructure. Of any state in the U.S., Idaho drivers also spend the fewest hours in urbanized traffic congestion, which could contribute to low car insurance rates.

Idaho auto insurance resources:

Illinois

Illinois drivers pay $189 less per year for full coverage car insurance than the national average. Illinois sits in the middle of the pack when it comes to cost of living and crime rate. Illinois residents may save on their car insurance due to the state ranking tenth in best public transportation.

Illinois auto insurance resources:

Indiana

Indiana drivers pay an average of $420 less per year than the national average for full coverage car insurance. Indiana residents may pay less for their car insurance due to the state's low cost of living. Indiana ranks above average in urban highway fatality rate and urban pavement condition, according to a Reason Foundation study.

Indiana auto insurance resources:

Iowa

In Iowa, drivers spend an average of $414 less per year for full coverage insurance than the national average. Low vehicle maintenance costs, a low cost of living and low population density may contribute to low insurance costs. In addition, Iowa drivers spend less time in traffic on their commute than drivers in 48 other states, which may help reduce insurance costs.

Iowa auto insurance resources:

Kansas

Kansas drivers pay only $24 more per year than the national annual average for full coverage car insurance. The state ranks in the middle of the pack for fatality rate, population density and number of licensed drivers – which may be why the state's average rate for car insurance is so close to the national average.

Kansas auto insurance resources:

Kentucky

Kentucky drivers typically spend $454 more per year on their full coverage car insurance than the national average. High car insurance rates in the Bluegrass State may be high due to exceptionally high fatality rates on state roadways in addition to a high crime rate.

Kentucky auto insurance resources:

Louisiana

Louisiana's average annual full coverage car insurance rates are sky-high, coming in at $1,050 higher than the national average. Car insurance in Louisiana may be expensive because of the state's high crime rate, high fatality rate on state roadways, high number of hours spent in urbanized congestion per commuter and dangerous weather patterns.

Louisiana auto insurance resources:

Maine

Full coverage car insurance in Maine costs around $700 less per year than the national average. Cheap car insurance in the Pine Tree State may be due to the state's low population density, low fatality rate on state roadways, low number of licensed drivers and low cost of living.

Maine auto insurance resources:

Maryland

In general, Maryland drivers pay $203 more per year than the national average for their full coverage car insurance. Maryland residents may pay more due to the high rate of traffic congestion in urbanized areas of the state. In addition, Maryland's infrastructure is worse than 40 other states, according to a Reason Foundation study.

Maryland auto insurance resources:

Massachusetts

Despite Massachusetts' high cost of living, structurally deficient infrastructure and high roadway fatality rate, drivers in the Bay State typically pay $451 less per year than the national average for full coverage car insurance. One reason for low insurance costs could be that Massachusetts lays claim to the eighth-best public transit system in the country, which encourages citizens to use public transportation rather than their cars.

Massachusetts auto insurance resources:

Michigan

If you're looking for car insurance in the Great Lakes State, you may have to pay a steep price. Michiganders generally pay $635 more per year for their full coverage car insurance than other U.S. drivers on average. Car insurance rates in Michigan may be especially high due to Michigan's high crime rate and high fatal crash rate. The state also has more stringent car insurance coverage requirements than many other states and precludes car insurance companies from using several standard non-driving rating factors, such as credit rating and ZIP code, when calculating premiums.

Michigan auto insurance resources:

Minnesota

In Minnesota, drivers typically spend around the same amount for full coverage car insurance as the national average. Since Minnesota ranks middle-of-the-road for cost of living, infrastructure quality, population density and number of licensed drivers, state car insurance rates remain average.

Minnesota auto insurance resources:

Mississippi

Despite having the lowest cost of living of any U.S. state, Mississippi drivers typically pay slightly more for their full coverage car insurance per year than the national average. Mississippi has the highest rate of car accident deaths per 100,000 people, which likely contributes to the state's higher than average rates. Mississippi's dangerous weather patterns could also partially account for the spike.

Mississippi auto insurance resources:

Missouri

Missouri's average annual full coverage car insurance rates are only around $15 above the national average. These average rates are no surprise, since the state ranks in the middle of the pack when it comes to fatal crashes, population density, number of licensed drivers and hours spent sitting in traffic.

Missouri auto insurance resources:

Montana

Montana residents typically pay about $63 more per year than the average American for their full coverage auto insurance. Montana ranks middle of the road in crime rate, infrastructure, cost of living and fatal car accident statistics. If you're looking for car insurance in Montana, you'll be required to carry at least 25/50/20 to comply with the state's minimum liability requirements.

Montana auto insurance resources:

Nebraska

Despite Nebraska's low cost of living and low population density, the state's drivers pay $571 per year more on average than the rest of the country for their full coverage car insurance. Nebraska's urban roads are in poor condition, which could contribute to high auto insurance rates in the state.

Nebraska auto insurance resources:

Nevada

Nevadans pay nearly $600 more per year on average for their full coverage car insurance than the average American. These high rates could be due in part to Nevada's high cost of living and high rural highway fatality rate. In addition, Nevada ranks third in most dangerous weather patterns.

Nevada auto insurance resources:

New Hampshire

New Hampshire drivers typically pay significantly less for their car insurance than the average American. Low insurance rates could be partially due to the state's low crime rate and good rural and urban road conditions. Keep in mind that New Hampshire does not have minimum liability car insurance requirements.

New Hampshire auto insurance resources:

New Jersey

Drivers in the Garden State sit in traffic congestion in urbanized areas for an average of 40 hours per year. This roadway congestion, paired with a high crime rate and the highest population density of any state make for higher than average car insurance premiums.

New Jersey auto insurance resources:

New Mexico

New Mexico drivers pay around $200 less for their full coverage car insurance per year than the national average. New Mexico has the fifth-lowest cost of living and low population density, which could both contribute to the lower-than-average cost of car insurance in the state.

New Mexico auto insurance resources:

New York

With the second-highest average cost for minimum coverage car insurance in the nation and the third-highest average cost for full coverage, New York drivers typically pay significantly more for car insurance than the average U.S. driver. The state's high insurance rates are largely due to the high number of fraudulent insurance claims made each year, in addition to its over 11 million registered vehicles, causing traffic to be dense with a higher likelihood of collision.

New York auto insurance resources:

North Carolina

North Carolinians typically pay $410 less per year for their full coverage car insurance than the national average. North Carolina's high ranking in urban road condition, mild weather and fairly low cost of living could contribute to these lower-than-average rates.

North Carolina auto insurance resources:

North Dakota

North Dakota typically drivers pay $410 less for their full coverage car insurance per year than the average American driver. North Dakota ranked first in overall highway performance and cost-effectiveness in the Reason Foundation's highway study. The state also has one of the lowest instances of fatal crashes, lowest population densities and lowest number of licensed drivers in the United States.

North Dakota auto insurance resources:

Ohio

Despite having a large driving population and increasing likelihood of motor vehicle accidents and injury, Ohio is actually the second-cheapest state for full coverage car insurance on average, with drivers paying about $1,034 per year. The lower cost of coverage may in part be due to Ohio's mix of rural and suburban roads, helping to break up what may otherwise be a heavy concentration of traffic, which can lead to more road risk.

Ohio auto insurance resources:

Oklahoma

Despite Oklahoma having the second-lowest cost of living in the United States, Oklahoma drivers typically pay nearly $200 more per year for full coverage car insurance than the national average. Car insurance may be more expensive in the Sooner State due to the high crime rate, dangerous weather and high number of structurally-deficient bridges.

Oklahoma auto insurance resources:

Oregon

Despite Oregon's high cost of living, drivers in the state pay an average of $328 less per year than the national average for their full coverage car insurance. Relatively affordable insurance rates in the Beaver State could be due to the state's low population density, mild weather and well-kept rural and urban roads.

Oregon auto insurance resources:

Pennsylvania

Although Pennsylvania has a high rate of traffic fatalities, poor infrastructure and high population density, residents manage to pay almost $200 less per year on average for full coverage car insurance than the national average.

Pennsylvania auto insurance resources:

Rhode Island

Rhode Island residents pay around $344 more per year on average for full coverage car insurance than the rest of the country. The state ranks lower than 45 other states in highway performance and effectiveness. In addition, Rhode Island has a high cost of living, which may contribute to the high cost of auto insurance due to increased costs for car repair.

Rhode Island auto insurance resources:

South Carolina

other U.S. drivers. South Carolina's highly-ranked highways, low cost of living, low population density and mild weather may contribute to affordable average car insurance rates in the Palmetto State.

South Carolina auto insurance resources:

South Dakota

Drivers in the Mount Rushmore State spend around the same amount on their car insurance as the national average. South Dakota claims average rankings when it comes to crime rate, cost of living and population density – so it may be no surprise that the state's insurance rates hover around the national average.

South Dakota auto insurance resources:

Tennessee

Tennessee drivers typically pay around $336 less per year for full coverage auto insurance than the average American. The Volunteer State ranks seventh in best highway performance and has the sixth-lowest cost of living, both factors which may contribute to the state's relatively low cost of auto insurance.

Tennessee auto insurance resources:

Texas

Texas drivers generally pay around $149 more for full coverage car insurance per year than the national average. While the state claims average rankings in cost of living, crime rate and highway performance, Texas ranks first for most fatal car accidents, which could contribute to higher average car insurance premiums.

Texas auto insurance resources:

Utah

Drivers in the Beehive State pay an average of $368 less per year for full coverage car insurance than drivers in the rest of the country. Utah has a low crime rate and a low number of fatal crashes each year – both factors which may contribute to lower average auto insurance premiums in the state.

Utah auto insurance resources:

Vermont

Vermont drivers pay an average of $467 less per year for full coverage auto insurance than the national average. Vermont has one of the lowest crime rates in the country, relatively few fatal crashes and a low number of licensed drivers. These factors may contribute to cheaper average car insurance costs in the state.

Vermont auto insurance resources:

Virginia

Virginia residents spend an average of $370 less per year on full coverage car insurance than other drivers in the U.S. Virginia has one of the lowest crime rates in the country, and the Old Dominion state ranks in the middle of the pack in terms of cost of living, highway performance and population density. Keep in mind that the commonwealth does not have minimum liability insurance requirements for its citizens. Still, it's a good idea to purchase auto insurance to protect your finances in the event of an accident.

Virginia auto insurance resources:

Washington

Despite the state's high cost of living, Washington residents spend almost $500 less per year on full coverage car insurance than the national average. Washington experiences relatively few fatal crashes each year compared to other states. In addition, the state has low population density and mild weather patterns, which could contribute to relatively affordable car insurance in the state.

Washington auto insurance resources:

Washington D.C.

The average annual cost of full coverage car insurance in Washington, D.C. is $181 more expensive than the national average for several reasons. The nation's capital has a population density around ten times higher than any state, which contributes to congestion and potential car accidents. In addition, the District has the second-highest cost of living in the United States, which can drive up the average cost of car insurance premiums due to higher costs for car repair.

Washington D.C. auto insurance resources:

West Virginia

West Virginia residents typically spend $175 less per year on their full coverage car insurance than the national average. West Virginians may spend less on their car insurance due to the state's low crime rate, low cost of living and low number of licensed drivers.

West Virginia auto insurance resources:

Wisconsin

Wisconsin drivers pay $488 less per year on average than other drivers in the U.S. for full coverage car insurance. Wisconsin has one of the lowest population densities in the country, at just six people per square mile. The state also has a low crime rate and a low cost of living. Together, these factors may account for the lower-than-average premiums in the Badger State.

Wisconsin auto insurance resources:

Wyoming

In general, Wyoming drivers pay $179 less per year than the national average for full coverage car insurance. Wyoming has a low crime rate, little traffic congestion, a low cost of living and a low population density – all factors which may contribute to lower average car insurance premiums in the state.

Wyoming auto insurance resources:

No-fault states

Another factor impacting your car insurance rate is how your state handles car insurance in relation to car accidents. Some states are considered no-fault states, while others are at-fault states, or tort states. Contrary to what some believe, living in a no-fault state does not mean that no one is considered at fault in an accident. No-fault simply refers to how your or the other driver's car insurance kicks in when there is an accident, specifically related to medical expenses. Below is a list of the 12 no-fault states:

Florida
Hawaii
Kansas
Kentucky
Massachusetts
Michigan
Minnesota
New Jersey
New York
North Dakota
Pennsylvania
Utah

In a no-fault state, each party must first file a claim with their own car insurance to help cover any medical expenses after an accident, regardless of who caused the crash. Drivers in a no-fault state are typically required to carry a certain amount of Personal Injury Protection (PIP) to help cover these medical costs.

No-fault states can still determine liability after an accident and the responsible party could be liable for property damage and medical expenses that exceed a certain threshold, depending on the state. In at-fault or tort states, the driver responsible for the crash (or their car insurance company) compensates the other driver for their losses, including bodily injury and property damage, and the not-at-fault driver is not required to file a claim for their medical expenses with their own auto insurer.

PIP coverage does not include coverage for property damage. While no-fault states typically require that drivers carry a certain level of PIP coverage to help pay for their medical expenses, the same does not usually apply for property damage. Instead, property damage from a car accident in most no-fault states is handled similarly to property damage in at-fault states, where the at-fault driver's insurance is responsible for covering any property damage. Michigan is the exception, as its department of insurance requires drivers to carry property protection insurance with a coverage limit of $1 million dollars to cover any property damaged by a driver in a car accident.

Frequently asked questions

Methodology

Bankrate utilizes Quadrant Information Services to analyze 2021 rates for all ZIP codes and carriers in all 50 states and Washington, D.C. Quoted rates are based on a 40-year-old male and female driver with a clean driving record, good credit and the following full coverage limits:

$100,000 bodily injury liability per person
$300,000 bodily injury liability per accident
$50,000 property damage liability per accident
$100,000 uninsured motorist bodily injury per person
$300,000 uninsured motorist bodily injury per accident
$500 collision deductible
$500 comprehensive deductible

To determine minimum coverage limits, Bankrate used minimum coverages that meet each state's requirements. Our sample drivers own a 2019 Toyota Camry, commute five days a week and drive 12,000 miles annually.
These are sample rates and should be used for comparative purposes only. Your quotes may be different.

Is Car Insurance Cheaper in Texas Than California

Source: https://www.bankrate.com/insurance/car/states/