How High Are the Auto Insurance Rates in My State?

No matter which state they live in, Americans are required to purchase auto insurance if they want to drive. But that doesn’t stop people from complaining about how much it costs. The market-savvy drivers shop around for the lowest premiums, keep their driving records as clean as possible, and look for ways to be eligible for policy discounts.

Still, many people in the U.S. may wonder: How much am I paying in auto insurance as compared to drivers in other states?

Rankings by State

To answer this question, let’s look at the results of a study carried out by Quadrant Information Services. The organization looked at auto insurance premiums charged by six major insurers in 10 zip codes per state for more than 900 different vehicle models. These results were averaged into a single figure that was used to rank each state.

The figures are based on a 40-year old male, unmarried driver who has a 12-mile daily workday commute. The annual premium is priced for a policy with a $500 deductible and limits of $100,000 for one person’s injury liability, $300,000 for all incurred injuries per incident, and $50,000 for property damage per accident — and uninsured motorist coverage is included.

Why are they so different?

The variance by state depends on many different factors, but one of the most common is the number of uninsured drivers in that state. For instance, almost 1 out of every 4 drivers are uninsured in Oklahoma, while that figure drops to less than 1 in 20 in Maine.

Louisiana and Michigan’s rates are also affected by state laws pertaining to auto insurance. In Louisiana, claim amounts must exceed $50,000 before their cases are heard before a jury trial, and elected judges (who are thought to be pro-plaintiff) decide cases involving lower amounts. And in Michigan, premiums are driven up by the state’s no-fault insurance system, which pays uncapped lifetime medical benefits for auto accident victims injured in a crash.

Unless U.S. laws change to allow auto insurance competition across state lines, drivers cannot avoid paying higher or lower premiums based on their state of residence.

Your best bet? Check online for cheap car insurance and keep as much money in your wallet as possible.

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