This is the most expensive state for car insurance

car insurance

There's no question that car insurance is expensive: NerdWallet reveals the average cost of car insurance is $1,630 per year, and a company survey finds switching could save good drivers around $417 per year. (See the lowest car insurance rates you can qualify for here.)

But the high cost of car insurance can depend on the state you live in (see the table below for average premiums by state), with Maine being the cheapest and Louisiana being the most expensive. Louisiana's high rates are due in large part to its higher crime rate, frequent extreme weather, and increasing traffic density, while Maine, a sparsely populated state, has the lowest number of uninsured drivers and lowest risk of accidents, says Andrew Hurst, an auto insurer. Policygenius expert.

In general, states with cheaper auto insurance may have lower levels of required auto insurance, more competition among insurance companies, lower crime rates, lower rates of uninsured drivers, fewer total claims from drivers, drivers who generally drive fewer miles and/or less extreme weather. . “A rural state with little crime, lots of auto insurers, and not a lot of extreme weather is likely to pay less than a largely urban state with lots of auto insurance claims, few insurers, and lots of weather-related claims from flood and hail,” Les says. Masterson, insurance manager. Analyst at Carinsurance.com.  (See the lowest car insurance rates you can qualify for here.)

It's also important to consider if you're in a no-fault state: “No-fault states (there are 12): [this] means that insurance companies cover their members' injuries and damages rather than at-fault driver coverage paying . — often lead to higher rates,” says Masterson. These include Florida, Michigan, New Jersey, New York, Pennsylvania, Hawaii, Kentucky, Massachusetts, Minnesota, North Dakota, and Utah. Litigation states also get higher rates, as insurers quote against litigation. “If an insured files a claim and is not satisfied with it, they can take their insurance company to court. This process can be expensive, creating the potential for increased expenses and losses for insurance companies,” says Hurst. In places where rate-setters have judged the population to be more litigious, rates may be higher.

The number of uninsured drivers can also be a big factor in rates, experts say. In fact, Louisiana and Florida, which frequently rank high on lists of the most expensive states to insure your car, have many uninsured drivers, which creates a feedback loop: When there are a large number of uninsured drivers, other drivers are more likely to have more forms of insurance against them, explains Hurst: "This increases the likelihood that a single insurer will pay more settlements, which means the insurer will ask for higher rates to cover expected losses," Hurst says. . Insurers also set prices against litigation and if a policyholder files a claim and is not satisfied with it, he can take his insurance company to court. “This process can be costly, creating the potential for increased expenses and losses for insurance companies. In places where rate-setters have judged the population to be more litigious, rates can be higher,” says Hurst. Michigan, another state that has high rates, also faces this problem, says Hurst, and “requires high personal injury protection coverage that often results in high settlements for insurance providers,” he adds, explaining its high rates. (See the lowest car insurance rates you can qualify for here.)

Average car insurance premiums, by state

1Louisiana$2,839
2Michigan$2,112
3Florida$2,082
4California$1,966
5Missouri$1,895
6DC$1,881
7Rhode Island$1,801
8Wyoming$1,768
9Texas$1,710
10Georgia$1,705
11Montana$1,627
12Connecticut$1,580
13South Dakota$1,575
14Colorado$1,574
15Arkansas$1,462
16Kansas$1,454
17Delaware$1,443
18Arizona$1,417
19Maryland$1,410
20South Carolina$1,409
21Minnesota$1,407
22Oklahoma$1,393
23New Mexico$1,391
24Nebraska$1,383
25Nevada$1,380
26Mississippi$1,378
27Alabama$1,358
28North Carolina$1,326
29Kentucky$1,321
30New Jersey$1,319
31Massachusetts$1,314
32West Virginia$1,299
33Washington$1,298
34Hawaii$1,254
35Utah$1,250
36North Dakota$1,234
37Oregon$1,229
38Tennessee$1,206
39Illinois$1,205
40Indiana$1,189
41Alaska$1,175
42New York$1,163
43Vermont$1,151
44Virginia$1,033
45Iowa$1,032
46Pennsylvania$1,028
47Ohio$992
48Idaho$985
49Wisconsin$938
50New Hampshire$885
51Maine$858

Source: Insure.com, 2021


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