What State Has the Highest Car Insurance?

Car-insurance
Louisiana drivers pay the most on average for car insurance, while Maine drivers face the lowest average rates, according to a new survey commissioned by Insure.com.

The survey ranks the states from most to least expensive based on the data results of more than 2,400 vehicles in 10 ZIP codes per state and using rates from the six largest carriers.

The point is not just to finger the likes of Louisiana, Michigan and Oklahoma (the three highest) or allow Ohio, Vermont and Maine to boast. Rather, the study reveals state laws and policies that affect rates, and the authors point to several that have negative and positive impacts.

For instance, one of the reasons Louisiana’s rates are higher on average is because only cases with claims exceeding $50,000 receive a jury trial. This means more cases are settled out of court, which leads to higher accident settlements and higher insurance costs. Michigan allows unlimited medical benefits for the life of accident victims, the cost of which eventually gets spread to all drivers in the form of higher rates.

On the other hand, Maine benefits from low commuter mileage, which makes its highways less crowded and its number of accidents lower.

Check after the jump to find out where your state ranks in terms of average car insurance rates.

The most and least expensive states for car insurance, 2010

Rank, State, Average Premium
1 Louisiana $2,510.87
2 Michigan $2,098.29
3 Oklahoma $1,869.39
4 Montana $1,857.96
5 California $1,774.41
6 South Dakota $1,772.83
7 Washington, D.C. $1,753.19
8 Georgia $1,751.42
9 Illinois $1,679.15
10 Connecticut $1,678.90
11 Arkansas $1,648.80
12 New Mexico $1,603.65
13 Rhode Island $1,595.97
14 West Virginia $1,589.69
15 Alaska $1,572.21
16 Wyoming $1,552.98
17 Maryland $1,550.13
18 Kansas $1,524.51
19 Kentucky $1,515.30
20 Colorado $1,480.97
21 Mississippi $1,474.94
22 New Jersey $1,473.73
23 New York $1,463.21
24 Texas $1,462.65
25 Florida $1,453.20
National $1,429.26
26 Pennsylvania $1,420.78
27 Delaware $1,405.80
28 Missouri $1,390.59
29 Minnesota $1,381.09
30 Alabama $1,380.38
31 North Dakota $1,365.22
32 Hawaii $1,306.97
33 Indiana $1,302.51
34 Nevada $1,282.50
35 Washington $1,279.84
36 Utah $1,234.30
37 Virginia $1,233.36
38 Nebraska $1,210.74
39 Oregon $1,194.69
40 Idaho $1,183.47
41 South Carolina $1,182.18
42 Tennessee $1,170.12
43 Arizona $1,152.50
44 North Carolina $1,130.45
45 Massachusetts $1,043.80
46 Iowa $1,039.04
47 New Hampshire $1,011.23
48 Wisconsin $1,010.93
49 Ohio $999.86
50 Vermont $968.58
51 Maine $902.85

By Stephen Markley | April 12, 2010 | Comments (18)

Comments 

KeithO

Horrendous roads, idiotic drivers, "good-ole boy" plantation mentality, legendary corruption, and now the highest car insurance rates in the nation. Louisiana--gotta love it!

Well, at least our NFL team doesn't suck anymore.

Yes, it is very ironic that Louisiana has such high premiums. I would have thought that Hawaii with how expensive everything is here that we would be MUCH, MUCH higher on this list.

Yes, and we have horrendous roads too including the occasional potholes that swallow cars, but perhaps when you see that beautiful Pacific Ocean, you forget all of that. Aloha!

alex

As you can imagine, this is extremely useful for people in the motor trade. It provides insurance when taking a demonstration drive, or for testing customer vehicles for part-exchange or second-hand purchase. It also provides cover for driving vehicles from storage depots to showrooms, or in the case of larger organisations, between separate showrooms.
Auto Trade Insurance

If an agreement cannot be made, and neither motorist wants to accept responsibility then the case will be decided by motorists car insurance companies. In this situation both motorists could find themselves 50% liable.

Does anyone know what factors determines the most expansive and least expensive insurance state? I thought South Dakota would be in the bottom list but sadly no. This is a great list to look at before the next relocation.

DL

@ francis,

This list is for trends across states. I can tell you that my insurance dropped by almost half moving from Boston to Manchester, NH, even though the states that the cities reside in are very close on the list. Your rate in a small MA town farther away from Boston will be much lower as well, though the jobs and attractions are primarily in Boston.

Classic Insurance service is a full service offsetting agency. Classic Insurance service coverage and rates are adequate for only a selected group of people. Regardless of age Classic Insurance offers competitive rates for everyone. They offer better service where you can save money on your damages. They offer low cost policy types and they help in all your assurance needs.
http://carinsurance1.co.uk/ClassicInsurance/

Josh Warren

The list seems to be hit or miss. I can agree with LA, MI and even OK being in the top 5, but 'on average' rates in FL & NJ are much more expensive than MT, CA, SD for example. Their sample size isn't stout enough to capture an accurate picture.

Kevin


I am from California & use to live in Minneapolis, Minnesota This is not accurate what so ever!
In Minnesota I was Paying double what i was paying in California!!! Since Minnesota has a "No fault" Law in winter road inclement road conditions it meant higher insurance pay-outs with a state with a low population! California on the other hand doesn't have much in the way of weather related "gore" that Minnesota often faces!

Tina

I live in Michigan , I'm in my 30's ,No tickets or accidents I pay $2400 a Year and keeps going up .

Your blog is outstanding; the matter is something that not many people are talking intelligently about. I’m very happy that I stumbled across this in my search for something relating to this.


Daniel Schmitt and Company

Wow. Kind of makes me wish I lived in Maine!

Familiar key! Thats key is just like my car's key -- a Ford Focus.

Randall

One factor that's not being considered is the type of vehicles being insured. I would be interested to know what the average cost of the vehicles in each sample are. How about the average yearly cost of, say, owners with vehicles under $20,000, $20,000 - $40,000, and over $40,000. Age would be another factor to consider.

DeBinder Dundett

Randall, often it is not determined by the type of vehicle or what it costs.

It's possible to drive a cheap econobox and still be billed big bucks for insurance.

Age is always a factor since it is statistically shown that people under 25 and unmarried males have the highest accident rate.

Much of the time it is determined by how much it costs to repair a damaged vehicle and how likely it is for the vehicle to be totaled in case of collision.

Coupled with the tort laws of a state, and the losses of the previous year and that's how they come up with what to charge you for your insurance each year.

The rate goes up every year, in case you haven't noticed.

The insurance companies pass their losses on to you each year.

In Mexico the statistic is affected by the number of stolen cars.

Some northern states has the highest rates.

Auto insurance rates in most states are regulated by state insurance commissions. From those base restrictions, there are many different variables that companies use to set rates. On average, the profits for all major auto carriers have been high and stayed high over the past 10 years or so which, leads one to believe that rates could be lower if these carriers started placing people over profits like they claim to do in their advertising blitz campaigns.

Carlos

I just want to know why is there 51 states ???

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