New Car Insurance Burden Index: Louisiana Drivers Hit Hardest, New Hampshire Least

The news: MonitorBankRates has published a new Auto Insurance Burden Index (rankings as of October 17, 2026) that measures how heavily car insurance weighs on household budgets in every state. Louisiana tops the list as the most burdened state — the average driver there pays about $1,743 a year, or roughly 2.87% of the state's median household income. New Hampshire is the least burdened, at about $915 a year — just 0.92% of median income.

The national baseline is set at 100, representing a U.S. average premium of about $1,258 a year, or 1.56% of the $80,734 median household income. Ten states score 115 or higher, landing in the index's "high" or "severe" burden bands. Here is what the new ranking reveals and what it means for your wallet.

The hardest-hit states, ranked

The index's top 10 most burdened states, per MonitorBankRates' October 17, 2026 rankings:

1. Louisiana — score 165.9 (severe); ~$1,743/yr; 2.87% of income
2. Florida — score 142.1 (severe); ~$1,703/yr; 2.28% of income
3. New York — score 128.4 (high); ~$1,676/yr; 1.95% of income
4. Georgia — score 123.4 (high); ~$1,513/yr; 1.96% of income
5. Mississippi — score 123.2 (high); ~$1,232/yr; 2.18% of income
6. Michigan — score 120.9 (high); ~$1,429/yr; 1.96% of income
7. Rhode Island — score 119.1 (high); ~$1,574/yr; 1.79% of income
8. Texas — score 118.9 (high); ~$1,470/yr; 1.87% of income
9. South Carolina — score 116.3 (high); ~$1,332/yr; 1.92% of income
10. Nevada — score 115.1 (high); ~$1,421/yr; 1.82% of income

At the other end, the five lightest-burden states are New Hampshire (64.7), Hawaii (66.8), Vermont (67.7), Maine (69.6) and Wisconsin (71.4). A New Hampshire driver carries roughly two-and-a-half times less insurance burden, relative to income, than a Louisiana driver.

How the index works

The MonitorBankRates Auto Insurance Burden Index (MBR-AIBI) answers a question raw premium rankings ignore: relative to what people earn, where does car insurance strain budgets the most? Each state's score combines two measures:

• Affordability (60% weight): the state's average annual auto premium as a share of its median household income.
• Price level (40% weight): the state's average premium relative to the national average.

The underlying premium data comes from the NAIC (National Association of Insurance Commissioners) Auto Insurance Database Report average premium supplement, the standard public source for state-level auto insurance costs. Median household income comes from the U.S. Census Bureau's American Community Survey (table B19013). The index recomputes whenever those annual data releases land, and scores are comparable across releases since each is a ratio against the national baseline.

One caveat: NAIC premium data runs on a reporting lag — the October 2026 rankings rest on the NAIC's 2022 database report. So this is a structural picture of affordability across states, not a reflection of this month's quotes. If you have been watching prices climb at renewal, the underlying pressure is very likely higher than these figures suggest.

Surprises in the data

A few rankings look different than the usual "most expensive states" lists — and that is exactly the point:

• Mississippi ranks 5th in burden but far lower on raw premium. At ~$1,232 a year, its average premium is below the national average — but because median incomes are lower, it eats 2.18% of household income, a heavier real burden than in many pricier states.
• Florida is #2 and Louisiana #1 — the disaster belt pays dearly. States with heavy hurricane and litigation exposure cluster at the top. Florida's average liability-only premium (~$1,152 a year, per the index) is the highest shown — a signal of how much claims costs are driving prices there.
• New York is expensive in dollars but middling in burden. At ~$1,676 a year it is one of the priciest states in absolute terms, yet higher incomes soften the blow to 1.95% of median income — 3rd on the burden list rather than 1st.
• The West looks comparatively affordable. Wyoming, Montana, Oregon, Washington, Alaska and Hawaii all land in the moderate or low bands — lower claim costs and, in several cases, strong median incomes keep the burden down.

What it means for you

If you live in one of the top-10 states, your car insurance is taking a bigger bite out of your budget than it does for the average American — and "just paying it" may be costing you hundreds a year more than necessary. The index is built from statewide averages, so your personal quote could be better or worse depending on your age, vehicle, ZIP code, driving record and credit-based insurance score (in states where insurers may use it).

If you live in a low-burden state, congratulations — but do not treat the ranking as a reason to stay put. Loyalty pricing, missed discounts and coverage creep raise premiums everywhere. The average American driver still pays about $1,258 a year for car insurance, and re-shopping your policy annually is one of the few levers that consistently works.

What to do if you live in a high-burden state

1. Compare 4–5 quotes at every renewal. Insurers price risk differently, so identical drivers can see quotes differ by $1,000+ a year. This matters most where premiums are highest — Florida and Louisiana drivers have the most to save.
2. Try a telematics program. Usage-based programs that track braking, mileage and time of day can cut premiums up to 30% for careful drivers — especially valuable in states where base rates are punishing.
3. Raise your deductible if you have savings. Moving from a $500 to a $1,000 collision deductible typically cuts that portion of the premium by 15–30%. Only do this if you could actually pay the higher amount out of pocket.
4. Stack discounts deliberately. Bundling auto with renters or homeowners, paying the premium in full instead of monthly, completing a defensive driving course, and maintaining a clean record are the discounts that move the needle most in high-cost states.
5. Reconsider your coverage level on older cars. If your car is paid off and worth only a few thousand dollars, dropping collision and comprehensive can make sense — particularly in Mississippi, Georgia and South Carolina, where liability-only costs are comparatively low.
6. Check state-specific help. New drivers in Texas and college students in Florida often qualify for insurer programs aimed at their profiles — our Texas new-driver guide and Florida college-student guide break down the cheapest options.

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