Most expensive and cheapest car insurance rates by ZIP code in 2024

Location is one of the main factors in determining car insurance rates by ZIP code. These cities have the highest and lowest car insurance rates in 2024.

Curious why car insurance rates often increase from year to year? For example, why do you pay more for car insurance than a friend in another ZIP code?

The premiums charged by your insurance company are based on different criteria, such as your driving history, vehicle year/make/model and age. The city you live in can also impact how much you will pay for car insurance.

Keep reading to compare car insurance rates by ZIP code and which cities are the most expensive.

Average car insurance rates by ZIP code

Recently, CarInsurance.com collected automobile insurance premium data from every state and significant ZIP code in the country. Our analysis shows which cities/ZIP codes have the costliest car insurance rates and the least expensive automobile insurance rates, on average.

Living in a more rural ZIP code area can yield cheaper car insurance premiums than large metropolitan ZIP codes. Keep reading to learn which cities are more or less expensive for car insurance.

Most expensive car insurance rates by ZIP code

Below are the cities (based on ZIP codes) with the highest car insurance rates, according to 2022 data.

Other ZIP codes with pricey car insurance rates include Chicago ($2,919), Baltimore ($2,918) Lookout, Kentucky ($2,890), Newark, New Jersey ($2,807) and Providence, Rhode Island ($2,726). Remember, these are average rates across these ZIP codes within these states.

Which cities have the highest car insurance cost?

However, taking a closer look unveils the highest actual premium prices policyholders in many of the ZIP codes may end up paying (on a low-to-high range, not averaged out), although they will pay less on average for a policy in these cities:

Geoff Cudd, a Philadelphia-based consumer advocate and owner of FindTheBestCarPrice.com, says many factors play into why car insurance rates vary so greatly from location to location.

“Among them are social factors like population density, how many people are on the road, how high the theft rate is, and how many accidents occur in that state. There are also environmental factors like what road conditions are like in that state and how bad the weather is,” Cudd says.

Mark Friedlander, director of corporate communications for the Insurance Information Institute in St. Johns, Florida, explains that your ZIP code can significantly affect your out-of-pocket insurance costs.

“You could reside in a large city like Chicago or Los Angeles and pay significantly different rates based on what ZIP code you live in within that city,” he says.

Learn more: Which states are no-fault states and what does that mean?

Cheapest car insurance rates by ZIP code

On the other hand, there are plenty of areas in the U.S. where you will fork over much less for car insurance. See the table below for the cheapest car insurance rates by ZIP code and city, state and annual car insurance cost.

Five additional ZIP codes that boast lower rates are Ketchikan, Alaska ($1,150); Walnut Bottom, Pa. ($1,150); Anahola, Hawaii ($1,158); Howard, Wis. ($1,159); and Swanzey, New Hampshire ($1,161).

Which cities and ZIP codes have the cheapest car insurance?

Want to know where you can get the cheapest car insurance? Here are a few:

See the table below for the cheapest ZIP codes for car insurance in the U.S.

Why does car insurance cost vary by ZIP code?

Friedlander points to a simple fact: The city you live in often significantly affects car insurance premiums.

“Metro-area drivers pay much more for auto insurance than drivers in rural locations in the same state,” he says. “For example, drivers in the Chicago area pay much more for auto insurance compared to downstate Illinois cities.”

Additionally, ZIP codes with single-digit uninsured motorist rates “have lower average rates than those with uninsured motorist rates above 20%,” Friedlander says.

Drivers in ZIP codes with lower populations and accident rates will be charged less than motorists in cities with higher traffic volumes, accident frequencies and severity, vandalism, theft, crime rates and insurance payouts.

“Inflation is also contributing to higher auto premiums,” Friedlander says. “According to an analysis from the Insurance Information Institute, what we are now seeing are double-digit year-over-year increases in repair costs, driven by supply chain shortages of replacement parts and higher labor costs. Parts and equipment are up 12.6% year-over-year.”

Moreover, the cost of vehicles plays a huge role in the pricing equation for insurance. Friedlander says new vehicle prices are up 12.2% yearly, while used vehicle prices have increased by 40.5%.

Final thoughts: Car insurance rates by ZIP code

Car insurance companies assess many factors when setting rates, and your ZIP code is one of them — based on the number, severity or cost of car insurance claims, insurers assign different risk levels.

To estimate car insurance costs, input your coverage needs and location into our estimator tool.

Resources & Methodology

Sources

Insurance Information Institute. “Facts + Statistics: Uninsured motorists.” Accessed June 2022.

Methodology

CarInsurance.com commissioned Quadrant Information Services in 2022 for auto insurance rates for a 40-year-old male driver with a good insurance score (no violations) and a 12-mile commute with a full-coverage policy. The data includes auto coverage by ZIP code for 2022 and data from 2019 and 2022 vehicle data.

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Laura Longero

Executive Editor

Laura is an award-winning editor with experience in content and communications covering auto insurance and personal finance. She has written for several media outlets, including the USA Today Network. She most recently worked in the public sector for the Nevada Department of Transportation.

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John McCormick

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John is the editorial director for CarInsurance.com, Insurance.com and Insure.com. Before joining QuinStreet, John was a deputy editor at The Wall Street Journal and had been an editor and reporter at a number of other media outlets where he covered insurance, personal finance, and technology.

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Leslie Kasperowicz

Managing Editor

Leslie Kasperowicz is an insurance educator and content creation professional with nearly two decades of experience first directly in the insurance industry at Farmers Insurance and then as a writer, researcher, and educator for insurance shoppers writing for sites like ExpertInsuranceReviews.com and InsuranceHotline.com and managing content, now at CarInsurance.com.

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Nupur Gambhir

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Nupur Gambhir is a content editor and licensed life, health, and disability insurance expert. She has extensive experience bringing brands to life and has built award-nominated campaigns for travel and tech. Her insurance expertise has been featured in Bloomberg News, Forbes Advisor, CNET, Fortune, Slate, Real Simple, Lifehacker, The Financial Gym, and the end-of-life planning service.

Erik J. Martin is a Chicago area-based freelance writer whose articles have been published by AARP The Magazine, The Motley Fool, The Costco Connection, USAA, US Chamber of Commerce, Bankrate, The Chicago Tribune, and other publications. He often writes on topics related to insurance, real estate, personal finance, business, technology, health care, and entertainment. Erik also hosts a podcast and publishes several blogs, including Martinspiration.com and Cineversegroup.com.

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*Carinsurance.com is not affiliated with any state or government agency. Advertised example rates are returned based on the driver's self-reported data, by comparing their current reported premium against their new policy premium, and the driver meeting certain criteria. Also, safe driver and other discounts may have been applied to achieve the advertised rate, which may not be available to the average consumer. Your actual quoted rate may vary greatly and may be subject to adjustment based on verification of your self-reported data.

Advertised example rates are returned based on the driver's self-reported data and the driver meeting certain criteria. Also, safe driver and other discounts may have been applied to achieve the advertised rate, which may not be available to the average consumer. Your actual quoted rate may vary greatly and may be subject to adjustment based on verification of your self-reported data.