Top 10 Most Expensive States for Car Insurance
Interested in how your state ranks in terms of car insurance premiums?
Each year, Insure.com does a state-by-state comparison of insurance costs, ranking all 50 states plus Washington D.C. by the average annual premiums. The rates are based on insurance for a single, 40-year-old male who drives 12 miles to work each day. Policy limits are $100,000 for injured liability for one person, $300,000 for all injuries, and $50,000 for property damage in an accident. The deductible is $500 on collision and comprehensive coverage. It also includes uninsured motorist coverage and assumes the driver has a clean record and good credit.
Kicking off the top 10 list of most expensive states to insure a vehicle is Kentucky with an average annual premium of $1,725. According to the most recent data from the United States Census Bureau, Kentucky has a state population of 4.38 million and is home to Louisville, Bowling Green, and Lexington.
Next on the list is Rhode Island, the Ocean State, with an average annual premium of $1,735 – just slightly more than Kentucky’s average.
Rhode Island is one of the least populated states in America with just over one million residents and has its cost of living is higher than the nation’s average. Although it barely has over one million residents, Rhode Island is the second most densely populated state in America, behind New Jersey.
Coming into eighth on the list is West Virginia, where the average annual insurance premium based on Insure.com’s parameters was $1,816. Most well known for its mountains and diverse topography, West Virginia has approximately 1.85-million residents, and its capital, Charleston, is also its most populous city.
California, most well known for its congested traffic, is surprisingly seventh on the list with an annual average insurance premium of $1,819. It is the most popolous state in America with over 38-million people living in it. So it’s no surprise that it lands on the top 10 list of most expensive states for car insurance.
Montana was ranked sixth on the list, with an average annual premium of $1,914. With barely one million people living in Montana, it’s more of a tourist state in America thanks to its Glacier National Park, the Little Bighorn National Monument, and three of the five entrances to Yellowstone National Park. It’s the seventh least popolous state in America and the third least densely populated.
The United States capital was fifth on the list averaging $2,006 for its annual premium. With slightly over 600,000 residents, the capital is also the 25th most popolous state in America. Most commute to Washington, D.C. from Maryland and Virginia, with more than one million people roaming around during the work week.
Oklahoma was fourth with an average annual premium of $2,074. Known as The Sooner State, Oklahoma has 3.8-million residents and its largest city is also its capital, Oklahoma City. The state has one of the fastest growing economies in the nation as a major producer of natural gas, oil, and agriculture.
With congested traffic in the major city areas of Georgia, like Atlanta, fender benders are fairly common helping raise the state’s average annual premium to $2,155 – good enough for third place on the top 10 list. According to Victor Hamby, president of the Professional Insurance Agents of Georgia, the insurance market in Atlanta was actually ultra competitive from 2003 to 2010. But then things changed when claims caught up with the insurance agencies after underpricing the market. Rates over the recent years have increased for the first time, anywhere from two to 12 percent.
Michigan is in second place and is the only state that guarantees unlimited lifetime personal injury protection (PIP) benefits for treatment of injuries from a car accident. Since PIP is required by all car insurance customers, Michigan’s unlimited PIP benefits raises the average annual premium to $2,520. According to Insure.com, a portion of everyone’s premium includes an assessment from the Michigan Catastrophic Claims Association, which was $175 this year per vehicle. The Michigan Catastrophic Claims Association covers any expenses above the $500,000 threshold and is a state-created nonprofit organization.
Finally, the most expensive state for car insurance in 2013 is Louisiana with an average annual premium of $2,699. Compared to the rest of the country, data shows that Louisiana drivers who get into accidents file more bodily injury claims than drivers in other states. The state also has a high rate of comprehensive claims, including damage from natural disasters. Some point to Louisiana’s judicial system for having expensive insurance rates; the state has lawsuits with claims under $50,000 going before a judge rather than a jury. Many believe elected judges are more likely to side with the local residents than insurance companies.
Jason Siu began his career in automotive journalism in 2003 with Modified Magazine, a property previously held by VerticalScope. As the West Coast Editor, he played a pivotal role while also extending his expertise to Modified Luxury & Exotics and Modified Mustangs. Beyond his editorial work, Jason authored two notable Cartech books. His tenure at AutoGuide.com saw him immersed in the daily news cycle, yet his passion for hands-on evaluation led him to focus on testing and product reviews, offering well-rounded recommendations to AutoGuide readers. Currently, as the Content Director for VerticalScope, Jason spearheads the content strategy for an array of online publications, a role that has him at the helm of ensuring quality and consistency across the board.
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Michigan's auto Insurance has gotten to be so out of hand. It's more than doubled in the past 3 years. I went from paying about 1000$ a year to over 2400$ a year. I had 1 pt. on my licence when I was paying 1000$ with not one single claim now I have 2 pts on my licence and still never have I had a claim on my auto insurance? This is legal stealing that the state of michigan is doing and our government needs to step in or this troubled state is going to dig itself in a hole that we the people will never beable to get out of. It's sad what the Insurance companies in Michigan are doing to its people and our government doesn't even care
Michigan is in trouble! Increased insurance rates, registration fees, and gas taxes that have been proposed this year will have a negative effect on the revenue the state generates from me. People will be forced to drop insurance coverage, and will not register vehicles. I have decided that it is not worth the cost to register and insure as many vehicles as I did in the past. I will now operate two vehicles instead of four. By my math the fund, and the state has just lost money. I will keep my extra vehicles parked until there is a demand for them