Car insurance costs vary drastically by state due to state laws, litigation, claims costs, local risk factors, and cost of living. Inflation has caused average car insurance prices to increase 11.3% in 2025 and 57% since 2022. The top ten most expensive states for car insurance in 2025 include Florida, Louisiana, and New Jersey.

Florida ranks as the most expensive state for car insurance in 2025 at $2,912 annually. Factors like hurricanes, high senior population, tourist traffic, and Personal Injury Protection (PIP) insurance requirements contribute to the high costs. Louisiana and New Jersey also have high rates due to various factors like laws and weather events.

To save on car insurance, consider shopping around for quotes annually, controlling factors like credit score and driving record, and dropping unnecessary coverage. Utilize budgeting apps like Rocket Money to track expenses and negotiate lower rates. Consider investing the savings through services like Acorns and Moby for long-term financial growth.

Read more at Yahoo Finance: Is living in 1 of these 3 states driving your car insurance costs sky high? How to reduce costs no matter where you live