A recent study has found the national average for car insurance is $1,318 per year.
Insure.com has published its car insurance rates by state study for 2017, revealing the cheapest and most expensive states to insure a car annually. While car insurance rates are based on a variety of risk factors, location is normally a big rating factor for auto insurance companies.
This year’s study calculated auto insurance rates from six large carriers: Allstate, Farmers, GEICO, Nationwide, Progressive, and State Farm. Rates were compiled in May 2017 and include 10 zip codes per state. Rates are based on full coverage for a single, 40-year-old male who commutes 12 miles to work each day, with policy limits of $100,000 for injury liability for one person, $300,000 for all injuries, $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, and the rate includes uninsured motorist coverage.
Here are the most expensive states for car insurance:
This year, Texas residents can expect to pay an average of $1,506 per year for auto insurance.
Delaware ranks ninth with an average annual insurance premium of $1,526.
Costing slightly more than Delaware is Wyoming, with an average annual rate of $1,538.
The state of California is already notorious for terrible traffic, and residents can also expect to pay one of the highest premium rates in the nation at $1,673.
6. Washington, D.C.
The country’s capital is one of the highest areas for auto insurance, costing $1,696 per year on average.
In fifth place is the state of Florida, where residents can expect to pay an average of $1,840 for auto insurance per year.
4. Rhode Island
Ranking fourth is Rhode Island, with an average annual premium of $1,848.
According to Insure.com, Connecticut has an average annual premium of $1,987, which is 44 percent more than the national average. One main reason is due to the higher density of vehicles on the road per square miles compared to other states.
Louisiana was the most expensive state in 2010, 2012, and 2013 and now sits at second place with an average annual rate of $1,921. Louisiana has a higher than average amount of uninsured motorists on the road, with nearly 14 percent of Louisiana drivers estimated to be driving without insurance.
Michigan has topped the list five of the eight years the study has been conducted, and once again leads the way with an average annual premium of $2,394 – that’s 82 percent higher than the national average. One major reason is the state’s no-fault car insurance system, which requires car owners to buy personal injury protection coverage that pays for the medical expenses of the policyholder and household residents if they are injured in an auto accident. The state is estimated to have 21 percent of drivers on the road without car insurance, likely due to the high rates.