Car Insurance Costs for Young Drivers by State: Cheapest to Most Expensive in 2026
Where you live can mean a $6,000+ difference in annual premiums for the same 20-year-old driver.
| Rank | State | Avg. Annual (20 y/o, Full) | Liability Only | Key Factor |
|---|---|---|---|---|
| 1 | Maine | $3,120 | $1,250 | Low population density, few claims |
| 2 | Idaho | $3,280 | $1,310 | Rural roads, low fraud rates |
| 3 | Ohio | $3,410 | $1,360 | Competitive insurer market |
| 4 | Vermont | $3,450 | $1,380 | Low population, few accidents |
| 5 | Iowa | $3,520 | $1,410 | Low litigation rates |
| 6 | Wisconsin | $3,580 | $1,430 | Competitive market, low fraud |
| 7 | Indiana | $3,640 | $1,460 | At-fault state, low costs |
| 8 | North Carolina | $3,680 | $1,470 | Rate regulation, gender ban |
| 9 | Virginia | $3,750 | $1,500 | Moderate density, at-fault |
| 10 | Nebraska | $3,810 | $1,520 | Low population density |
| 11 | Tennessee | $3,890 | $1,560 | At-fault, moderate costs |
| 12 | New Hampshire | $3,920 | $1,570 | No mandatory insurance law |
| 13 | South Dakota | $3,970 | $1,590 | Rural, low claims volume |
| 14 | Kansas | $4,020 | $1,610 | Moderate rates, at-fault |
| 15 | Oregon | $4,080 | $1,630 | No-fault not required |
| 16 | Utah | $4,120 | $1,650 | No-fault state, moderate |
| 17 | Pennsylvania | $4,180 | $1,670 | Mixed no-fault option |
| 18 | Minnesota | $4,240 | $1,700 | No-fault, weather claims |
| 19 | Wyoming | $4,280 | $1,710 | Low population, rural |
| 20 | Montana | $4,320 | $1,730 | Gender pricing banned |
| 21 | Arkansas | $4,380 | $1,750 | Higher uninsured rate |
| 22 | Mississippi | $4,440 | $1,780 | High uninsured drivers |
| 23 | Kentucky | $4,520 | $1,810 | No-fault state |
| 24 | Alabama | $4,580 | $1,830 | Tort state, moderate |
| 25 | South Carolina | $4,650 | $1,860 | High uninsured rate |
| 26 | Missouri | $4,720 | $1,890 | Urban/rural mix |
| 27 | Washington | $4,790 | $1,920 | Higher repair costs |
| 28 | Illinois | $4,870 | $1,950 | Chicago metro density |
| 29 | West Virginia | $4,920 | $1,970 | Mountainous terrain |
| 30 | Oklahoma | $4,980 | $1,990 | Weather damage claims |
| 31 | Arizona | $5,060 | $2,020 | Growing urban areas |
| 32 | Georgia | $5,140 | $2,060 | Atlanta congestion |
| 33 | New Mexico | $5,200 | $2,080 | High uninsured rate |
| 34 | Hawaii | $5,260 | $2,100 | No-fault, age ban, island costs |
| 35 | Colorado | $5,340 | $2,140 | Weather, growing population |
| 36 | Alaska | $5,400 | $2,160 | Extreme conditions, remote |
| 37 | Texas | $5,480 | $2,190 | Large state, high accident rate |
| 38 | Massachusetts | $5,560 | $2,220 | No-fault, credit ban |
| 39 | Maryland | $5,640 | $2,260 | DC metro congestion |
| 40 | Delaware | $5,720 | $2,290 | High density, no-fault |
| 41 | Connecticut | $5,810 | $2,320 | High cost of living |
| 42 | Rhode Island | $5,890 | $2,360 | Dense, high repair costs |
| 43 | California | $5,980 | $2,390 | Credit ban, litigation |
| 44 | New Jersey | $6,120 | $2,450 | No-fault, dense, expensive |
| 45 | District of Columbia | $6,280 | $2,510 | Urban density, theft |
| 46 | Nevada | $6,890 | $2,760 | High accident rates |
| 47 | New York | $7,410 | $2,960 | No-fault, NYC density |
| 48 | Florida | $7,680 | $3,070 | No-fault, fraud, litigation |
| 49 | Louisiana | $8,920 | $3,570 | Litigation, hurricanes, fraud |
| 50 | Michigan | $9,850 | $3,940 | Unlimited PIP, no-fault |
Averages for a 20-year-old driver with clean record. Rates vary by insurer, vehicle, and individual factors within each state.
Why These States Are Cheapest
- Maine ($3,120): Low population density means fewer multi-car accidents. Rural roads and low fraud rates keep claims costs low.
- Idaho ($3,280): Low litigation rates and a competitive insurance market. Rural population means less congestion-related accidents.
- Ohio ($3,410): A highly competitive insurance market with many regional insurers driving prices down. At-fault state with reasonable regulation.
- Vermont ($3,450): The second-least populated state. Low accident frequency and minimal fraud keep premiums affordable.
- Iowa ($3,520): Low litigation costs and a stable, competitive market. Not a no-fault state, which helps keep premiums in check.
Why These States Are Most Expensive
- Michigan ($9,850): Michigan required unlimited personal injury protection (PIP) until 2020. Even after reform, legacy costs and a no-fault system keep premiums the highest in the nation.
- Louisiana ($8,920): Extremely high litigation rates, frequent hurricane damage claims, and one of the highest uninsured driver rates (about 13%) in the country.
- Florida ($7,680): No-fault insurance, rampant fraud, high litigation, and severe weather. Florida also has one of the highest uninsured driver rates at roughly 20%.
- New York ($7,410): No-fault state with mandatory PIP. NYC density drives extremely high claim costs. High minimum coverage requirements.
- Nevada ($6,890): High accident rates on major highways, growing population in Las Vegas metro, and rising repair costs.
How State Regulations Affect Young Driver Rates
States that ban credit-based pricing
California, Massachusetts, Michigan, and Hawaii prohibit insurers from using credit scores to set rates. This can help young drivers with limited credit history but may raise baseline rates.
No-fault vs at-fault states
No-fault states (Michigan, Florida, New York, New Jersey, and 8 others) tend to have higher premiums because every driver's insurer pays their own claims regardless of fault. At-fault states generally have lower premiums.
States that ban gender-based pricing
California, Hawaii, Massachusetts, Michigan, Montana, and North Carolina prohibit gender as a rating factor. In these states, young male drivers pay the same as young female drivers of the same age.
Going to College in a Different State?
If you attend college in a different state from your parents, which state's rates apply? The rules vary:
- Car stays at home: Your parents' state rates apply. Qualify for the distant student discount.
- Car comes to campus: The garaging address may need to change to the college state. This can raise or lower your premium depending on the state.
- Most insurers: Consider full-time students as residents of their parents' home state for insurance purposes, even if the car is at campus.
- Best practice: Notify your insurer about the change. Failing to update your garaging address can void coverage.