Insure.com’s 2013 Survey of Most and Least Expensive States for Car Insurance

Insure.com’s 2013 Survey of Most and Least Expensive States for Car Insurance

2013 Insurance Rates by State
Rank	State	Premium*
1	Louisiana	$ 2,699
2	Michigan	$ 2,520
3	Georgia	$ 2,155
4	Oklahoma	$ 2,074
5	Washington, D.C.	$ 2,006
6	Montana	$ 1,914
7	California	$ 1,819
8	West Virginia	$ 1,816
9	Rhode Island	$ 1,735
10	Kentucky	$ 1,725
11	Connecticut	$ 1,723
12	New Jersey	$ 1,697
13	Alabama	$ 1,667
14	Missouri	$ 1,638
15	Massachusetts	$ 1,625
16	Pennsylvania	$ 1,604
17	Delaware	$ 1,586
18	Hawaii	$ 1,583
19	Texas	$ 1,545
20	Arkansas	$ 1,545
21	Maryland	$ 1,528
	National average	$ 1,510
22	North Dakota	$ 1,501
23	Wyoming	$ 1,496
24	Alaska	$ 1,455
25	Utah	$ 1,438
26	Kansas	$ 1,435
27	Minnesota	$ 1,432
28	New Mexico	$ 1,431
29	Tennessee	$ 1,408
30	South Dakota	$ 1,397
31	Oregon	$ 1,387
32	Nebraska	$ 1,384
33	New York	$ 1,369
34	Florida	$ 1,364
35	Mississippi	$ 1,345
36	Nevada	$ 1,341
37	Virginia	$ 1,322
38	Illinois	$ 1,322
39	South Carolina	$ 1,288
40	Colorado	$ 1,271
41	Wisconsin	$ 1,228
42	Arizona	$ 1,227
43	Washington	$ 1,226
44	Indiana	$ 1,183
45	Vermont	$ 1,176
46	Idaho	$ 1,133
47	New Hampshire	$ 1,112
48	Ohio	$ 1,106
49	North Carolina	$ 1,085
50	Iowa	$ 1,028
51	Maine	$ 934
Source: Insure.com. * Dollar figures shown are an average of insurance rates for more than 750 vehicles in the 2013 model year.

Most people choose where they want to live because of the location or a job, but after looking at some of the costs for car insurance, some might consider relocating to stop paying a higher car insurance bill. Louisiana comes in at number one, with an average yearly cost of $ 2,699. Rounding out the top five are Louisiana, Michigan, Georgia, Oklahoma, and Washington, D.C.

Both Louisiana and Michigan have held one of the top three spots since the initiation of the survey in 2010, with Maine and Iowa holding down the bottom of the list since last year, but have remained in the bottom ten since 2010. Certain factors can make car insurance more expensive in specific areas, including the number of insurers competing for business, driving conditions, and the way the state sets up insurance systems.

To perform the survey, Insure.com worked with Quadrant Information Services to provide insurance rates on over 750 models from the six largest insurance carriers, including State Farm, Allstate, Progressive, Farmers, GEICO, and Nationwide. All rates were compiled in December 2012 and averaged for the state. Each rate was based on insurance for a “single, 40-year-old male who commutes 12 miles to work each day, with policy limits of 11/300/50 ($ 100,000 for injury liability for one person, $ 300,000 for all injuries, and $ 50,000 for property damage in an accident) and a $ 500 deductible on collision and comprehensive damage,” said Barbara Marquand of Insure.com in her survey results.

Taking a look at the top three, Louisiana reports the most bodily injury claims of all states and has a high rate of comprehensive claims, including damage from natural disasters. Also, most drivers will hire an attorney when filing an insurance claim. It is possible that it’s the judicial system of the state, and not the drivers, that cause the inflated insurance rates.

Michigan, with an average of $ 2,520 per year cost for insurance, ranks number two and is the only state to offer unlimited lifetime personal injury protection. Many states will cap that benefit, but not Michigan. However, this benefit must be purchased with a policy to receive full benefits. It covers not only the driver, but family and passengers without that specific coverage. There has been much controversy over this policy, with efforts to change it in place.

Jumping down to the bottom of the list is number fifty, Iowa. Because most of the state is rural, it helps to keep insurance costs down. As the culture is rather conservative, hardly anyone will sue another over a car accident. President of the Independent Insurance Agents of Iowa and vice president of Ramsey Weeks in Grinnell, Paul Pohlson stated in an interview for the survey that, “I look at other cities I travel to, and I just think we have fewer accidents because people seem to slow down here. Maybe we don’t have as much road rage.”

Coming in dead last is Maine, as it is one of the most rural states in the country and there isn’t as much city driving as you would see further south in areas like New York. Also, teens must complete a driver education course before they can receive their permit, something that isn’t seen in more populated states. Licensing systems are stricter, which also attributes to the low rates.

Source: Insure.com