Iowa remains one of the lowest cost states to buy auto insurance. The average auto insurance expenditure dropped from $818 in 2006 to $791 in 2010, according to a 2013 report from the National Association of Insurance Commissioners.
In 2010 (the latest data available), the average expenditure was highest in New Jersey ($1,157), followed by the District of Columbia ($1,134), and Louisiana ($1,122). The 2010 average expenditure was up slightly (0.6 percent) from $787 in 2009. The lowest premium states were South Dakota, North Dakota and Iowa.
To calculate average expenditures the National Association of Insurance Commissioners (NAIC) assumes that all insured vehicles carry liability coverage but not necessarily collision or comprehensive coverage. The average expenditure measures what consumers actually spend for insurance on each vehicle. It does not equal the sum of liability, collision and comprehensive expenditures because not all policyholders purchase all three coverages.