The average cost of car insurance in the U.S. is $1,895 per year. However, rates are personalized for every driver. Some of the biggest factors that can impact your car insurance premium are your age, gender, vehicle make/model and location. Additionally, your state, city and ZIP code will also affect the amount you pay for coverage.
In this guide, we’ll look at which cities have the cheapest average car insurance rates in every state and explain how car insurance rates in major cities have changed over time. We’ll also share some tips for reducing your car insurance premiums, regardless of where you live.
- The cost of car insurance can vary significantly depending on your city.
- Drivers in big cities pay higher car insurance rates than people in rural areas.
- Comparing rates from several insurers will help you find the cheapest policy.
Cheapest cities for car insurance in each state
Some U.S. cities have more expensive car insurance rates than others. The cities of Chebeague Island, Maine; Swanzey, New Hampshire; and Middle Point, Ohio have the cheapest rates by city.
In the table below, you can see the cheapest city for car insurance in all 50 states, as well as the average annual cost and average monthly cost.
| State | City | Average annual cost | Average monthly cost |
|---|---|---|---|
| Alaska | Ketchikan | $1,386 | $116 |
| Alabama | Fort Rucker | $1,664 | $139 |
| Arkansas | Yellville | $1,750 | $146 |
| Arizona | Lake Havasu City | $1,386 | $115 |
| California | Mount Shasta | $1,832 | $153 |
| Colorado | Fruita | $1,861 | $155 |
| Connecticut | Old Mystic | $1,496 | $125 |
| Washington, D.C. | Washington Navy Yard | $2,157 | $180 |
| Delaware | Little Creek | $1,835 | $153 |
| Florida | Mossy Head | $2,292 | $191 |
| Georgia | Moody AFB | $1,514 | $126 |
| Hawaii | Anahola | $1,347 | $112 |
| Iowa | Coralville | $1,311 | $109 |
| Idaho | Mountain Home AFB | $1,286 | $107 |
| Illinois | Chenoa | $1,336 | $111 |
| Indiana | Craigville | $1,366 | $114 |
| Kansas | New Century | $1,690 | $141 |
| Kentucky | Adairville | $1,805 | $150 |
| Louisiana | Sarepta | $2,452 | $204 |
| Massachusetts | Erving | $1,350 | $113 |
| Maryland | Maugansville | $1,428 | $119 |
| Maine | Chebeague Island | $1,053 | $88 |
| Michigan | Grand Haven | $1,902 | $159 |
| Minnesota | North Mankato | $1,640 | $137 |
| Missouri | Lohman | $1,789 | $149 |
| Mississippi | Mooreville | $1,760 | $147 |
| Montana | Missoula | $1,908 | $159 |
| North Carolina | Lake Junaluska | $1,477 | $123 |
| North Dakota | West Fargo | $1,378 | $115 |
| Nebraska | La Vista | $1,722 | $144 |
| New Hampshire | Swanzey | $1,178 | $98 |
| New Jersey | Brielle | $1,602 | $133 |
| New Mexico | Alamogordo | $1,742 | $145 |
| Nevada | Winnemucca | $1,600 | $133 |
| New York | Big Flats | $1,449 | $121 |
| Ohio | Middle Point | $1,209 | $101 |
| Oklahoma | Vera | $1,970 | $164 |
| Oregon | Central Point | $1,486 | $124 |
| Pennsylvania | Shippensburg | $1,491 | $124 |
| Rhode Island | Newport East | $1,585 | $132 |
| South Carolina | Tamassee | $1,746 | $145 |
| South Dakota | Tea | $1,920 | $160 |
| Tennessee | Jonesborough | $1,391 | $116 |
| Texas | Dinero | $1,737 | $145 |
| Utah | Cedar City | $1,671 | $139 |
| Virginia | Mount Crawford | $1,232 | $103 |
| Vermont | Essex Junction | $1,240 | $103 |
| Washington | Ardenvoir | $1,355 | $113 |
| Wisconsin | Combined Locks | $1,303 | $109 |
| West Virginia | Triadelphia | $1,798 | $150 |
| Wyoming | Big Horn | $1,702 | $142 |
Cheapest ZIP codes for car insurance in top 10 cities
The cheapest ZIP codes for car insurance in major U.S. cities are 60657 (Chicago, IL), 78799 (Austin, TX), and 78266 (San Antonio, TX).
Car insurance premiums tend to be more expensive in major cities than in smaller towns and rural areas. However, rates can also vary within different ZIP codes in the same city.
Below are the cheapest ZIP codes for car insurance in the top 10 biggest U.S. cities.
| State | City | ZIP code | Average annual cost | Average monthly cost |
|---|---|---|---|---|
| New York | New York | 10473 | $2,175 | $181 |
| California | Los Angeles | 90732 | $2,534 | $211 |
| Illinois | Chicago | 60657 | $1,668 | $139 |
| Texas | Houston | 77345 | $1,994 | $166 |
| Arizona | Phoenix | 85340 | $1,950 | $163 |
| Pennsylvania | Philadelphia | 19113 | $2,540 | $212 |
| Texas | San Antonio | 78266 | $1,860 | $155 |
| California | San Diego | 92128 | $2,113 | $176 |
| Texas | Dallas | 75260 | $1,927 | $161 |
| Texas | Austin | 78799 | $1,832 | $153 |
How do car insurance rates in my city compare to the state average?
When shopping for auto insurance, it can be helpful to understand how the average cost of car insurance in your city compares to the average rate in your state.
For example, the average cost of car insurance in Los Angeles, CA is 30% higher than the average rate in California. However, the average premium in San Diego, CA is 4% less than the statewide average.
The following table shows the average car insurance premium in the top 10 biggest cities in the U.S. and how the citywide average rate compares to the statewide average rate.
| State | State average | City | Average cost | % difference from state average | $ difference from state average |
|---|---|---|---|---|---|
| New York | $1,870 | New York | $2,600 | 39% higher | $730 more |
| California | $2,416 | Los Angeles | $3,149 | 30% higher | $733 more |
| Illinois | $1,532 | Chicago | $1,930 | 26% higher | $398 more |
| Texas | $2,043 | Houston | $2,317 | 13% higher | $274 more |
| Arizona | $1,812 | Phoenix | $2,251 | 24% higher | $439 more |
| Pennsylvania | $1,872 | Philadelphia | $2,782 | 49% higher | $910 more |
| Texas | $2,043 | San Antonio | $2,181 | 7% higher | $138 more |
| California | $2,416 | San Diego | $2,324 | 4% lower | $92 less |
| Texas | $2,043 | Dallas | $2,278 | 12% higher | $235 more |
| Texas | $2,043 | Austin | $1,930 | 6% lower | $113 less |
Car insurance rate trends by city: 2019 to 2023
Depending where you live, the cost of car insurance might be increasing or decreasing. For example, the 2023 average premium in Los Angeles has increased since 2019, whereas the average rate in New York City has decreased during the same period.
Below, you can see how car insurance rates have changed in major U.S. cities between 2019 and 2023.
| State | City | 2023 | 2022 | 2019 |
|---|---|---|---|---|
| New York | New York | $2,600 | $4,058 | $3,928 |
| California | Los Angeles | $3,149 | $2,914 | $2,989 |
| Illinois | Chicago | $1,930 | $1,963 | $2,058 |
| Texas | Houston | $2,317 | $2,154 | $2,114 |
| Arizona | Phoenix | $2,251 | $1,859 | $2,279 |
| Pennsylvania | Philadelphia | $2,782 | $2,276 | $3,129 |
| Texas | San Antonio | $2,181 | $1,866 | $1,875 |
| California | San Diego | $2,324 | $2,035 | $1,894 |
| Texas | Dallas | $2,278 | $2,106 | $2,153 |
| Texas | Austin | $1,930 | $1,775 | $1,798 |
Why do car insurance rates vary by city?
There are several reasons why car insurance rates vary by city. When setting rates, insurance companies look at several location-specific factors, like the number of uninsured drivers in the area, the number of accidents, the number of vehicle thefts, and the number of claims filed in recent years.
In areas with a high number of uninsured drivers or high crime rates, for example, insurance rates tend to be more expensive. Additionally, if many drivers have filed recent claims in the area (like after a hurricane or flood), car insurance premiums might increase in the city.
How does urban vs. rural living affect car insurance premiums?
In general, car insurance premiums are more expensive in urban areas than in rural areas..
“Urban areas tend to have higher population densities, meaning more cars on the road and more accidents and claims, leading to increased insurance rates,” says Justin Yoshizawa, director of product management state at Mercury Insurance. “Vehicle theft and vandalism is also more prevalent in urban areas, further driving up claim frequency and insurance premiums.”
Check out the 10 most important factors that affect car insurance rates
What steps can I take to lower my car insurance premium?
No matter where you live, there are plenty of ways to reduce your car insurance premium. Here are some tips for getting cheaper coverage:
- Ask about discounts: Most car insurance companies offer discounts that can help you save money on auto insurance. When comparing car insurance companies, look for ones that offer multiple discounts you can take advantage of.
- Pay your premium in full: You can typically save a small amount on car insurance if you pay the annual premium upfront and in full.
- Take a defensive driving course: Many car insurance carriers offer savings for drivers who complete an approved defensive driving course. However, this discount isn’t available in all states.
- Maintain a clean driving record: Drivers with a clean record free of accidents, speeding tickets and other violations usually pay the lowest rates. Additionally, safe drivers may qualify for special car insurance discounts.
- Compare quotes: The cost of car insurance can vary significantly between companies. Comparing quotes from multiple insurance carriers can help you find the most affordable policy for your situation.
Check out the most expensive and cheapest car insurance rates by ZIP code
Final thoughts
Your location can greatly impact the cost of your car insurance policy. If you live in a major city or urban area, you can expect to pay higher rates than someone who lives in a small town or rural area.
To get the cheapest car insurance for your location and unique driver profile, shop around and compare quotes, look for carriers that offer discounts, and maintain a clean driving record.
Resources & Methodology
Methodology
To find the cheapest cities for car insurance in the U.S., we collected car insurance quotes in 51 states, nearly 30,000 cities, and more than 34,000 ZIP codes. We received quotes for 40-year-old male and female drivers with a good insurance score and no violations, driving 10,000 miles per year. The vehicle we used for our sample quotes was a 2023 Honda Accord LX. These quotes are for a full coverage policy with liability coverage limits of 100/300/100 and a $500 deductible for collision and comprehensive insurance.
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