Louisiana the Most Expensive State for Car Insurance

Louisiana the Most Expensive State for Car Insurance

Got a couple of speeding tickets under your belt? Then you’re not going to want to settle in Louisiana, which can now boast that it has the highest car insurance rates in the U.S.

These findings are based on a new Insure.com national survey that collected average auto insurance rates for more than 2,400 vehicles, based on 10 ZIP codes per state and rates from six large carriers, and the averages were calculated nationally as well as for each state. The average insurance premium in Louisiana is $2,510.87, followed by Michigan, which comes in at $2,098.87. If you’re looking to save a few bucks, move to Maine where the insurance premium is just $902.85.

So why is it so expensive to drive in Louisiana? According to some insurance experts, it’s because of the state’s court system. Only cases with claims in excess of $50,000 receive a jury trial, so there are a lot of settlements that come in at $49,000. That’s great news for those seeking a claim against an at-fault driver, but bad news for the insurance companies that have to pay the tab. Added to this legal quagmire is the fact that Louisiana has had higher bodily injury rates and more lawsuits per capita than most states.

To keep there rates low, Maine has a few policies in place to keep cash in your pocket. According to Chris Condon, incoming president of the Maine Insurance Agents Association, this is because the average number of annual miles driven is low, as is commuter mileage, and its highways are not that busy.

Top 10 Most Expensive States for Car Insurance

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, DC                $1,753.19
  8. Georgia                                 $1,751.42
  9. Illinois                                   $1,679.15
  10. Connecticut                        $1,678.90

Top 10 Least Expensive States for Car Insurance

  1. Maine                                   $902.85
  2. Vermont                              $968.58
  3. Ohio                                      $999.86
  4. Wisconsin                            $1,010.93
  5. New Hampshire               $1,011.23
  6. Iowa                                      $1,039.04
  7. Massachusetts                   $1,043.80
  8. North Carolina                   $1,130.45
  9. Arizona                                 $1,152.50
  10. Tennessee                         $1,170.12