Most expensive, cheapest states for car insuranceIt's no secret that drivers in different states pay different rates, even when their driving records are very similar. Recently the website Insure.com did a comparison of state automobile insurance costs, identifying the priciest and cheapest states for car insurance.

The survey averaged coverages from six providers per state for a 40-year-old driver with a 12-mile commute to work. The quotes were for a yearly policy with $100,000 coverage for a single person, $300,000 for all injured and $50,000 for property damage.
  1. Michigan, $2,541
  2. Louisiana, $2,453
  3. Oklahoma, $2,197
  4. Montana, $2,190
  5. Washington, D.C., $2,146
  6. California, $1,991
  7. Mississippi, $1,896
  8. New Mexico, $1,896
  9. Arkansas, $1,836
  10. Maryland, $1,807
  11. North Dakota, $1,794
  12. Connecticut, $1,786
  13. Rhode Island, $1,747
  14. Wyoming, $1,714
  15. Hawaii, $1,707
  16. South Dakota, $1,707
  17. Georgia, $1,670
  18. New Jersey, $1,663
  19. West Virginia, $1,633
  20. Kentucky, $1,629
  21. New York, $1,627
  22. Minnesota, $1,614
  23. Washington, $1,584
  24. Missouri, $1,563
  25. Indiana, $1,518
  26. Colorado, $1,508
  27. Texas, $1,492
  28. Delaware, $1,489
  29. Florida, $1,476
  30. Nebraska, $1,470
  31. Pennsylvania, $1,468
  32. Kansas, $1,461
  33. Alaska, $1,454
  34. New Hampshire, $1,334
  35. Massachusetts, $1,328
  36. Idaho, $1,325
  37. Alabama, $1,306
  38. Oregon, $1,306
  39. Nevada, $1,300
  40. Illinois, $1,290
  41. Arizona, $1,280
  42. Utah, $1,272
  43. Virginia, $1,237
  44. Iowa, $1,179
  45. North Carolina, $1,154
  46. Ohio, $1,152
  47. Tennessee, $1,146
  48. Wisconsin, $1,128
  49. Maine, $1,126
  50. South Carolina, $1,095
  51. Vermont, $995
Why is there such a difference (255%) between the most and least expensive? According to Insure.com, the reasons are several.

The primary one, however, is uninsured motorists. In states with a lot of uninsured motorists, the insured must kick more money into the pool to cover accidents in which they are involved.

According to 2007 data compiled by the Insurance Research Council, the top states with uninsured motorists were:
  1. New Mexico, 29%
  2. Mississippi, 28%
  3. Alabama, 26%
  4. Oklahoma, 24%
  5. Florida, 23%
The states with the fewest uninsured drivers were:
  1. Massachusetts, 1%
  2. Maine, 4%
  3. North Dakota, 5%
  4. New York, 5%
  5. Vermont, 6%

The leading state in insurance premiums, Michigan, finished 10th with 17%. So why was it No. 1? For one reason, of all the states, only Michigan has no cap on personal injury protection payments to those hurt in a vehicle accident. A separate, not-for-profit, state-originated association picks up payments only after the insurance company has paid out almost half a million dollars in claims, in addition to three years of lost wages and damage replacement costs. Of course, all of these expenses are paid for with insurance premium dollars.

Insure's report also suggests that the friendly climate for litigation in Louisiana helps drive up its premiums, while violent weather does the same for Oklahoma drivers.

At the other end of the spectrum, Vermont's low premium is, according to one expert, a function of low traffic volume and "rural sensibilities."

Concerned about the cost of car insurance? Then you might also consider which car you drive. It can make an even larger difference than where you drive it.





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Sharon

hahahahaha. some of these rates are laughable. Who would actually pay them (or can afford them)? I found it for less than half that from New York Motor Insurance. you guys are crazy.

January 03 2014 at 5:24 PM Report abuse rate up rate down Reply