According to a 2005 independent car insurance industry report, average car insurance rate for the year in New York, where the premiums are at its highest, was $3,164.54. The average car insurance rate in Maine, where car insurance premiums are cheapest, was $1,586.82.

Looking at both average, we can clearly see that the difference is too significant to be neglected.

Average car insurance rates in different states vary. There are several factors that affect this gauge. Geographic locations are one. Rural areas and states less hit with natural calamities are areas for lower average.