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Best and worst states for car insurance prices

Maine, Iowa are least costly, survey finds.

By AutoWeek Mar 19, 2013 9:50AM




Drivers in Louisiana and Michigan are hit hardest when it comes to car insurance premiums, while those in Maine and Iowa pay the least, according to Insure.com's annual rankings.


According to Amy Danise, editorial director of Insure.com, one reason for higher car insurance premiums in Louisiana, about $2,699 per year on average, is the high number of bodily injury claims filed after car crashes in the state.


Michigan's high premiums are a result of the state's guarantee of unlimited, lifetime personal injury protection benefits for treatment of injuries from a car crash. This requires insurance companies to cover the first $500,000 in medical treatments while a state-created nonprofit, Michigan Catastrophic Claims Association, reimburses medical expenses beyond that amount. Michigan drivers are hit with an annual fee for the catastrophic claims fund. In 2013 that fee is $175 per vehicle.


As for the least expensive states, Insurance.com credits “rural sensibilities” and lower population density with the lower costs in Iowa. Maine offers similar characteristics and a graduated licensing program that limits young drivers, likely reducing the rate of crashes.

To get the numbers, Insure.com looked at auto insurance rates for more than 750 car models from six large carriers -- Allstate, Farmers, GEICO, Nationwide, Progressive and State Farm -- in 10 ZIP codes per state.


By averaging the rates for all vehicles in each state, Insure.com was able to come up with its rankings. This is the third year the survey has been conducted.


Rates are for comparative purposes within the same model year and are based on insurance for a single, 40-year-old male who commutes 12 miles to work each day, with policy limits of 100/300/50 ($100,000 for injury liability for one person, $300,000 for all injuries and $50,000 for property damage in an accident) and a $500 deductible on collision and comprehensive coverage. The hypothetical driver has a clean record and good credit. The rate includes uninsured motorist coverage. Actual rates will depend on individual driver factors.


Here are Insure.com's rankings for the 10 most expensive and 10 least expensive states for car insurance. See the full list here.



Ten most expensive states

(average annual premium)

-- Louisiana: $2,699

-- Michigan: $2,520

-- Georgia: $2,155

-- Oklahoma: $2,074

-- Washington, D.C.: $2,006

-- Montana: $1,914

-- California: $1,819

-- West Virginia: $1,816

-- Rhode Island: $1,735

-- Kentucky: $1,725



Ten least expensive states:

-- Maine: $934

-- Iowa: $1,028

-- North Carolina: $1,085

-- Ohio: $1,106

-- New Hampshire: $1,112

-- Idaho: $1,133

-- Vermont: $1,176

-- Indiana: $1,183

-- Washington: $1,226

-- Arizona: $1,227


-- Sherrice Gilsbach


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18Comments
Mar 19, 2013 1:24PM
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Insurance is one of the biggest scams out there, Especially in Michigan where our rate is based on our credit rating! Hello Attorney General Why is this even aloud? We are not asking for a LOAN.
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Do these figures include the amount the insured pay for the uninsured drivers? Or auto fraud?

Every State should mandate no license tags for  an(your) auto unless you have proof of insurance.

Mar 19, 2013 10:01AM
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So, in other words, People from Louisiana lie more than people from any other state? Why would that state have more bodily injury claims? Weak bones???
Mar 19, 2013 2:46PM
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Have you ever noticed that no matter how hard hit the economy is, insurance companies are never impacted!  I agree that insurance in general is a state regulated scam.  No matter what the issue of the time is (bad credit, lapsed policy...) they raise rates, pay GREAT bonuses to their top scamsters and for any reason they can find, they raise rates!  Please....
Mar 19, 2013 2:02PM
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I don't know where these figures were gathered from, but I can tell you Arizona is completely wrong.

My Insurance more than doubled when I moved From Idaho to Arizona. The reason USAA state was all southern states are higher due to an increase in uninsured motorists.

Mar 19, 2013 3:24PM
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auto insurance is a total scam....they use your credit rating to determine how likely you are to have an accident. Enough said
Mar 19, 2013 2:06PM
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Its different for every car, what car or cars are they using for this?  My insurance is outrageous in ND.

For the same car it is cheaper in OK and IN...   I think these numbers are wrong.... 

 

 

Apr 8, 2013 3:52PM
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Best and worst states for car insurance prices - MSN Autos : Try this site where you can comapre quotes from different companies:  usainsurancequotes.net
Mar 19, 2013 2:49PM
Mar 19, 2013 1:37PM
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Find out what states have mandatory auto insurance and what states don't. Then decide what will happen when health insurance is mandatory.. I myself cannot afford health insurance but am grateful for our current system for helping for my medical bills.
Mar 19, 2013 1:30PM
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  Most people may not know it, but one reason for high car insurance premiums is... motorcycles!

 Motorcycle accidents-- especially in states where no helmet is required, but acccidents persists-- also raises auto insurance prices, collectively-- on cars, too!

  Think about that the next time some middle-aged, balding or old cyclist wants to feel the wind and his "freedom" going thru his balding head, and combover!

  Motorcycle accidents ARE tied directly to auto rates, in virtually all states. Just ask the insurance compnies!

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