Most people have griped about their auto insurance rates at one time or another. Some may have even wondered how their premiums compare to their fellow Americans in other states.
The website insure.com has compiled a complete ranking of all 50 states by average auto insurance premiums. Here are the states with the five cheapest, and most expensive car insurance rates.
Top 5 Cheapest States For Car Insurance
1. Maine – Average premium: $902.85 – It’s bordered on one side by an ocean and two sides by Canada, so very few motorists are “just passing through.” Plus, it’s rural (only 1.6 million people live there), so there is less congestion and fewer accidents.
2. Vermont – Average premium: $968.58 – It’s even smaller than Maine in terms of population (about 625,000), so the roads are even more deserted. Plus, it shares Maine’s traits of being a Canadian border state without major metro areas.
3. Ohio – Average premium: $999.86 – In terms of car insurance rates, we should rename this state O-Lo-O. That’s because it has a low rate of collisions as well as a healthy economy – both of which contribute to cheap car insurance premiums.
4. Wisconsin – Average premium: $1,010.93 – If you throw out the cities of Milwaukee, Green Bay, and Madison, Wisconsin is primarily an agricultural state, which lowers its insurance costs. Plus, the state is home to one of the fastest legal systems in the nation, which helps prevent long, drawn out claim processes – a primary cause of jacked up rates.
5. New Hampshire – Average premium: $1,011.23 – The reason for New Hampshire’s inclusion on this list can be found in the numbers. It ranks near the bottom in incidents of drunk driving, road fatalities, and seat belt scofflaws, which all adds up to safer drivers.
Top 5 Most Expensive States For Car Insurance
1. Louisiana – Average premium: $2,510.87 – Yes, the state has aging roads and a big city in New Orleans. But the main reason for its top billing? The Louisiana courts. There’s a law that prohibits jury trials for cases under $50,000, which results in larger out-of-court settlements than in other states. As a result, insurers pass those costs on to the state’s drivers.
2. Michigan – Average premium: $2,098.29 – Whereas most auto insurance policies cap the amount paid out for medical bills of accident victims, policies written in Michigan law pay all of the victims’ medical expenses for life. That drives up premiums for everybody.
3. Oklahoma – Average premium: $1,869.39 – The Sooner State is home to a “perfect storm” of factors which boost premiums. They include: a high incidence of young (read: inexperienced) drivers operating vehicles, lower average incomes and credit scores (making them bigger insurance risks), and — you guessed it — a large amount of storm-related damage claims.
4. Montana – Average premium: $1,857.96 – Residents of this state have a long and storied history of drinking and driving; such activity was legal less than a decade ago. This fact, coupled with a large number of uninsured drivers, has prompted auto insurance companies to increase rates.
5. California – Average premium: $1,774.41 – Several large, congested metropolitan areas? Check. A sky-high rate of uninsured drivers? Check. A border with Mexico, where thousands of stolen cars are transported? Check. This one’s a no-brainer.