In this article, we will look at the top 15 states with the most expensive car insurance in the US. If you want to skip our detailed analysis of the car insurance industry, you can go to the Top 5 States with the Most Expensive Car Insurance in the US.
The car insurance market is a consistently growing sector owing to the increasing number of vehicles on the road and awareness of the burgeoning benefits of car insurance. Car insurance effectively provides financial protection to car owners in the event of accidents, theft, or damage. By relying on modern technologies and methods, car insurance companies create customized and usage-based insurance plans to fit each client's specific needs.
An Analysis of The Car Insurance Industry
According to a report published by Research and Markets, the global vehicle insurance market was valued at $1.1 billion in 2022. The global vehicle insurance industry is making great strides and the market is expected to grow at a compound annual growth rate (CAGR) of 7.3% during 2022-2030, reaching $1.9 billion by the end of the forecasted period.
The motor insurance market covers insurance for not just cars but also trucks, motorcycles, or any other road vehicles. It is one of the biggest markets under the widespread categories of non-life insurance. A report by Mordor Intelligence suggests that insurance companies are leaning towards usage-based insurance and telematic devices to calculate insurance premiums. Usage-based insurance is auto-insurance that measures how much a vehicle has traveled, where it traveled, and how it was driven. These calculations are recorded through telematic devices pre-installed in the vehicle.
The National Association of Insurance Commissioners (NAIC) declared that in the next 5 years, approximately 20% of insurance companies in the US would offer usage-based insurance. Such services are beneficial to the company and the policyholder, since they ensure that the driver avoids accidents through safe driving and their insurance premium reduces and insurance companies have to face less claims.
Furthermore, developed countries are moving towards online motor insurance providers rather than in dealing with representatives in person. This is largely due to the increase in reliance on the internet and the development of online technologies. Developed countries that have easy accessibility to such services favor the online channels for insurance more enthusiastically than one on one interaction.
Largest Car Insurance Companies in the US
The Progressive Corporation (NYSE:PGR) is a US-based insurance company. Since 2022 it has maintained a reputation as one of the largest car insurance companies in the US. On November 1, The Progressive Corporation (NYSE:PGR) announced its 11th annual Keys to Progress vehicle giveaway that was set to take place on November 8. The company collaborated with Enterprise Rent-A-Car to provide 82 veterans, veteran owned small business owners, and military related organizations with keys to their own transportation. These vehicles would come with six months insurance provided by Enterprise. Since 2012, the Keys to Progress initiative has donated more than 1,000 vehicles to veterans.
The Travelers Companies Inc (NYSE:TRV) is another major US-based insurance company that provides property casualty insurance for autos, homes and businesses. On November 3, the company announced that it has acquired Corvus Insurance Holdings, Inc, an industry-leading cyber insurance managing general underwriter, powered by proprietary technology. Funded by the internal resources of The Travelers Companies Inc (NYSE:TRV), the transaction is expected to be concluded by the first quarter of 2024. The merging of these two entities would combine the expertise of Corvus in cyber sales, service and support and The Travelers Companies Inc.'s (NYSE:TRV) industry-leading distribution in the market.
The Allstate Corporation (NYSE:ALL) is an insurance company that offers insurance services for autos, electronics, homes, devices, autos and identity theft. On November 6, the company announced that it has released the latest version of their mobile application, offering additional features besides insurance services. New features include the GasBuddy, to help customers find cheapest fuel in the area, and Risk Factor which informs customers of climate/weather related risk in the vicinity of their home. Lastly, Good Hands Repair Network is their latest feature that helps customers find their nearest auto body workshop. The company also made additional enhancements to the overall interface of the application, making their app standout from the competition.
15 States with the Most Expensive Car Insurance in the US
15 States with the Most Expensive Car Insurance in the US
Methodology
In this article, we have listed 15 states with the most expensive car insurance in the US. We have ranked the states using data we collected from Compare.com. We used data obtained for the latest year in their dataset, which is for the year 2021. We have listed the states with the most expensive car insurance in the US below in ascending order.
15 States with the Most Expensive Car Insurance in the US
15. Washington
Average Insurance Cost: $884
First up on our list of the top 15 states with the most expensive car insurance in the US State of Washington. It is the 18th largest state in the US and the second most populous state. The average insurance cost for vehicles in Washington is $884, as of July 2021.
Major companies that are operating in the United States to offer effective insurance services to their customers are The Progressive Corporation (NYSE:PGR), The Travelers Companies Inc (NYSE:TRV), and The Allstate Corporation (NYSE:ALL).
14. Georgia
Average Insurance Cost: $897
The state of Georgia comes 14th on our list of the 15 states with the most expensive car insurance in the US. It is the 8th most populous state in the US and the 24th largest. With dense rainforests, Georgia is known for its abundant natural resources. As of July 2021, the average car insurance cost is $897 in the state of Georgia.
13. Texas
Average Insurance Cost: $934
The state of Texas is in the South Central region of the United States. It is the second largest state in the US in both area and population. Texas offers a diverse range of landscapes and is famous for its scenic coastal swamps and piney woods. As of July 2021, the average car insurance cost is $934 in Texas.
12. Nevada
Average Insurance Cost: $985
Nevada, also known as the ‘The Silver State’, ranks 12th on our list of top 15 states with the most expensive car insurance in the US. The state is famous for its gold and silver and its largest city, Las Vegas attracts a large number of tourists each year. The average insurance cost for cars in Las Vegas is $985, as of 2021.
11. Maryland
Average Insurance Cost: $1,017
The state of Maryland ranks 11th on our list of the top 15 states with the most expensive car insurance in the US. Maryland is the 8th smallest state in the US and the 18th most populous. It borders a number of states as well as the Atlantic Ocean to its east. The average car insurance cost in Maryland is $1,017, as of 2021.
10. Connecticut
Average Insurance Cost: $1,049
Ranking 10th on our list of states with most expensive car insurance in the US, the Connecticut state borders with New York to its west, Massachusetts to its north, and Long Island Sound to its south. The state is named after the Connecticut River that bisects the state. The average insurance cost for cars in Connecticut is $1,049, as of 2021.
9. Massachusetts
Average Insurance Cost: $1,059
Massachusetts state is located in the New England region of the United States. It is the 6th smallest state and the 16th most populous state. Boston is the capital of Massachusetts and happens to be the cultural and financial hub of the state. As of 2021, the average insurance cost for cars in Massachusetts is $1,059.
8. Delaware
Average Insurance Cost: $1,146
The state of Delaware borders with Pennsylvania to its north, Maryland to its south and west, New Jersey to its northeast, and lastly touches the water body of the Atlantic Ocean to its east. It is a relatively small state, ranking 2nd in area and 6th in terms of population. As of 2021, the average insurance cost for cars in Delaware is $1,146.
7. Rhode Island
Average Insurance Cost: $1,148
Rhode Island ranks 7th on our list of the top 15 states with the most expensive car insurance in the US. It is the smallest state in the US in area and the 7th least populated state. Its capital is Providence and that is the most densely populated area in the entire state. As of 2021, the average insurance cost for cars in Rhode Island is $1,148.
6. Florida
Average Insurance Cost: $1,185
The state of Florida borders the Gulf of Mexico as well as the Atlantic Ocean. While the capital of the state is Tallahassee, other metropolitan cities such as Tampa Bay, Miami, Orlando and Cape Coral are the main tourist attractions and financial hubs of Florida. The average insurance cost for cars in Florida is estimated to be $1,185, as of 2021.
Some of the biggest insurance companies in the world include The Progressive Corporation (NYSE:PGR), The Travelers Companies Inc (NYSE:TRV), and The Allstate Corporation (NYSE:ALL).
