Auto Insurance Rates by ZIP Code (2024)

Auto insurance companies use many different variables when calculating your specific auto insurance premiums.

But does your ZIP code affect your auto insurance? It most definitely does. In fact, comparing auto insurance rates by ZIP code can produce some surprising results.

When you do an auto insurance ZIP code comparison, you will find changes in auto insurance rates by city, but they can also change within a city.

In a big city, you might actually find that a simple move across the street can change your rate if it puts you in another ZIP code. This can make it challenging to find cheap auto insurance rates in your city.

This might seem strange, but insurers typically include statistics for claims, accidents, and crime levels for a specific area in their calculations.

Read through our complete guide to uncover the truth about why your ZIP code impacts your rates, and learn what you can do to keep your premiums lows.

Enter your ZIP code into our FREE online tool above right now to compare auto insurance rates by ZIP code.

Are auto insurance rates impacted by your ZIP code?

There are a lot of factors that affect auto insurance rates. One factor that has a big impact is where you live. We don’t just mean your state or city, either. Your specific ZIP code will affect what you pay on average for auto insurance.

When you do an insurance rate comparison by ZIP code, you will find that auto insurance rates can drastically change within the same local areas based on their differing ZIP codes.

Auto insurance companies will consider statistics from your neighborhood when assessing your risk. Specifically, vehicle crash statistics, crime rates, and population density will be analyzed.

Higher rates of auto theft, fatal accidents, and denser populations are often considered higher-risk ZIP codes. If you live in one of the higher-risk ZIP codes, your average annual insurance rates will increase.

However, if you live in a lower-risk ZIP code, you’ll receive cheaper auto insurance rates.

In the table below, we collected the average annual auto insurance rates by state for the ZIP codes with the highest premiums. Check it out.

Most Expensive ZIP Code per State

Currently, neighborhoods in Detroit, Michigan, Brooklyn, New York, and New Orleans, Louisiana are the most expensive spots in the country.

The average annual rate for auto insurance in the 70117 ZIP code in New Orleans is $9,303.50. In Brooklyn, New York, folks living in the ZIP code 11212 receive average yearly rates of $10,751.24.

Unfortunately, Detroit, Michigan residents living in the 48201 ZIP code pay three times as much as the Brooklyn residents for auto insurance, with average annual rates reaching a grand total of $30,350.09.

Now let’s explore the least expensive ZIP codes in each state. Check out the average annual rates for the lowest paying ZIP codes in each state in the table below.

Least Expensive ZIP Codes by State

Those living in Lexington, Virginia, Anahola, Hawaii, and Tiffin, Ohio receive some of the lowest annual auto insurance rates in the country, according to our data.

The 44883 ZIP code in Tiffin, Ohio pays an average of $2,325.38 per year for auto insurance. In Anahola, Hawaii, folks living in the 96703 ZIP code pay a low annual rate of $2,189.62.

For the lucky drivers in the 24450 ZIP code in Lexington, Virginia, your average annual rates are only $2,018.13.

This means the difference between the lowest-paying ZIP code and the highest paying ZIP code in America is a staggering $28,331.96 annually.

If you live in a high-cost ZIP code, there are plenty of ways to help you lower your annual rates. Seek out discounts, compare quotes from multiple companies, and only buy the level of coverage you actually need.

The truth is, a lot more than just your ZIP code will impact your auto insurance rates. For example, your driving record and age also come into play. In fact, some states actually no longer allow insurance companies to even use ZIP codes as a determining factor.

We have good news for the Detroit residents in the 48201 ZIP code. Your high rates will start to lower substantially thanks to new laws and regulations enacted in the state of Michigan in July of 2020.

Now, only driving-related demographics can be used to determine your rates in Michigan. Your gender, ZIP code, and credit history can no longer be considered. Residents can also choose to deny previously required auto insurance limits.

Think of the average annual rates as guidelines rather than promises. Not only are there many different variables that impact your individual rates, but each state also has different auto insurance laws and regulations.

Whatever your ZIP code is, the best way to know how much auto insurance will cost you is by comparing quotes from as many companies in your area as possible. These days, you can easily find insurance forms like the ones on this page that allow you to enter your ZIP code for a quote.

These online forms will return a handful of auto insurance rates that have been customized for you. Just make sure to choose an online quote form that asks for detailed information, otherwise, you may not get an accurate quote.

After receiving a quote, if you’re interested in purchasing that policy, you’ll want to contact that insurance company directly to verify that the rate is correct and find out what they need from you to sign up for a policy.

Using these online quote forms should also always be free, and it also should not obligate you to purchase insurance from any of the companies that provide you with rate information.

Remember, you always have the right to review the different rates, find out more about the insurers you’re interested in, and can even decide to keep your old coverage. Let’s explore how and why ZIP codes impact your auto insurance rates in more detail.

What cities and ZIP codes have the highest and lowest auto insurance rates?

You now understand why some ZIP codes receive higher auto insurance rates than others. But where are the highest auto insurance rates in the country?

Below is a table of the top 25 most expensive average annual auto insurance rates by ZIP code in the country, all of which are currently in Michigan.

25 Most Expensive Auto Insurance Rates by ZIP Code in the U.S.

As you’ve learned, Michigan’s new insurance laws will cause those rates to decrease dramatically over time.

By contrast, the 25 U.S. ZIP codes with the lowest annual average auto insurance rates are all in Virginia. Check the table to see the lowest average auto insurance rate by ZIP code.

25 Least Expensive Auto Insurance Rates by ZIP Code in the U.S.

Sometimes towns that are situated between two major cities see an increased amount of traffic as people commute from one city to another. Sometimes cities are rated higher because of their crime rates.

For example, Irvington, NJ has a crime rate that is six times higher than the state’s overall crime rate, which means motor vehicle theft and vandalism is going to be higher there, too.

There can be a wide variety of things that cause one ZIP code to be rated higher than another, and these factors can change over time. Your rates in your ZIP code will usually reflect the most currently available data.

That means if the crime rate in a ZIP code falls, you may see a rate decrease. However, if a new company opens up in your town that will employ thousands of people, causing more traffic, you may see an increase in your rates.

How can you tell what city has the cheapest auto insurance? You’ll generally find that if a state has overall low rates, its cities will as well. This is why you see all of the most expensive ZIP codes in Michigan, and the least expensive ZIP codes in Virginia.

Of course, a state with otherwise low rates in most cities can see its average skewed by the high rates in a big city. For example, this happens in New York because of New York City, and in Illinois because of Chicago.

In general, smaller cities like Portland, Maine tend to have much lower rates for auto insurance than larger metropolitan areas.

Can your ZIP code lower your auto insurance rates?

You may not be able to change your location all too easily, but you can still control some other things that will help lower your insurance rates.

One of the simplest things you can do is to look for companies that offer discounts for things you already do. Auto insurance discounts stack, which means the more you qualify for, the more you’ll save.

For example, many insurers offer auto and home bundling discounts for their customers who wish to bundle insurance policies, which applies no matter what ZIP code you live in.

Therefore, if you need to insure both your home and your car, for example, you might find companies that will lower your rates on both policies because they’ll be getting all of your business.

In the long run, keeping your credit score up, avoiding traffic tickets, and not making any accident claims can help you reduce your rates too. When you purchase a new or used car, consider safety features that might make one model cheaper to insure than another.

All that being said, in most states you will still be rated, in part, by your ZIP code. If you ever decide to move, you should keep your insurance rates in mind and do a little research ahead of time.

Think about it. A slightly higher rent payment may be more manageable if it lowers your auto insurance. But a higher insurance payment may eat up any savings you’d earn by moving to a cheaper neighborhood.

This can also become an issue if your town adds a new ZIP code, which can change your insurance rate even if you personally did nothing at all. Staying abreast of changes in your town can give you an inkling of what will happen to your insurance rates in the future.

Of course, insurance companies are all different. You’ll find that some offer a great package of rates and plans for you, while others do not.

You might even find that the company that has the best rate doesn’t have the best service. In that case, it may be worth paying a little more for your policy.

Comparing auto insurance rates might help you save quite a bit of money over the course of a year, even in an expensive ZIP code. And of course, you want to make sure you are still getting good coverage.

It’s important to look at both insurance by ZIP code and reviews of the company when you’re shopping around.

A good independent agent or online insurance quote site can help you save a lot of time by helping you shop for the best auto insurance prices available in your ZIP code.

Does living in a rural or urban area affect your auto insurance rates?

How much does ZIP code affect auto insurance?

One large auto insurance comparison site performed a study to illustrate how much of a difference location made to insurance rates. This study was based on averages from six large insurers, and these were all prices for the same individual driver and type of vehicle.

In other words, everything was controlled except for the location.

Generally, rural areas are cheaper than urban areas for auto insurance. Typically, urban areas with a dense population and a lot of cars tend to be more expensive.

It might be logical to conclude that more traffic equals more risk of having an accident, but that’s not the only thing that insurers consider. They might also look at the rate of car thefts, and those numbers tend to be higher in crowded urban areas too.

Many factors contribute to how a ZIP code is rated, from the amount of available street parking to the overall condition of the roads. The insurance companies that rate by ZIP code use a lot of different statistics during this process.

Different states have different insurance regulations and minimum legal insurance requirements.

Some states are much more heavily populated than others. Some have at-fault laws on the books and others are considered no-fault states.

In an at-fault state, the driver who caused the accident is responsible for paying for the damages. In a no-fault state, you must rely on your own auto insurance provider, regardless of who is at fault.

All of those differences have a significant effect on which ZIP code is cheaper for auto insurance.

Do crime levels impact how a ZIP code is rated by an auto insurance company?

One of the factors that we mentioned earlier that affects how much you’ll pay for auto insurance by ZIP code is how much crime there is where you live. Specifically, insurers are concerned about car-related crimes like vandalism and vehicle theft.

Replacing a stolen car or filing a vandalized vehicle costs the insurer more money. Because these crimes directly impact claims paid, insurance companies take them into consideration when rating a ZIP code.

Do you live in a city that is used to dealing with auto theft? The more car thefts in an area, the more you will be charged for your insurance to account for the increased likelihood that you will have your vehicle stolen.

According to the Federal Bureau of Investigation (FBI), around 748,841 vehicles were stolen in 2018.

In the table below, see the total number of vehicle thefts by state, ordered from least to most. We’ve also included the average annual rate for full coverage auto insurance for each state as well.

Motor-Vehicle Theft Rates by State

Florida, Texas, and California have some of the highest vehicle theft rates in the country. Those states are also in the top 25 most expensive states for auto insurance.

Vermont, Wyoming, and Maine have the least amount of stolen vehicles in the country. All three of these states fall within the lowest 25 states for auto insurance rates.

You’ll also see an increase in your rate if there are higher levels of vandalism and other car-related criminal activity in your ZIP code.

You might think that this only impacts your comprehensive and collision coverage, but it can actually impact your liability rates as well. Crime isn’t something that only happens while a vehicle is stopped unfortunately.

There are multiple types of crime that can happen while you are driving, but the three worst ones include:

• Hit and run: A driver strikes a pedestrian or a bicyclist and does not stop their vehicle.
• DUI/OUI: A driver gets behind the wheel after drinking or using drugs.
• Staged car accidents: A driver purposely causes an accident that makes you appear to be at fault so they can collect on the insurance. For example, they may wave you through a stop sign and then slam on the gas so you hit their car. They typically have someone they know nearby who can act as a “witness” to report that you’re at fault to the insurance company.

The more accidents reported in a ZIP code, the higher your liability coverage is likely to be for the year. So why is auto insurance cheaper in different ZIP codes? Let’s look at some of the factors.

How does the number of motor-vehicle accidents in a ZIP code impact your auto insurance rates?

In simple terms, the more car accidents there are in your ZIP code, the higher your insurance rate will be. This is because your risk of getting into an accident and filing a claim is increased.

To mitigate any potential losses, insurance providers charge higher rates. In the table below, you can see the number of fatal vehicle accidents and total deaths by state, with data from the Insurance Institute for Highway Safety.

Fatal Crash Rates by State