States With the Priciest Car Insurance

State of Pay

Most people know that getting a ticket or buying a flashy convertible will likely net them a higher car insurance premium, but did you know that your place of residency could be costing you as well? A recent report released by Insure.com calculated the average annual insurance premium in each state and discovered that a locale’s laws, geography and infrastructure can heavily influence a resident’s monthly auto insurance payments.

To conduct its study, Insure.com commissioned Quadrant Information Services, which monitors insurance rates, to calculate the average premiums on a policy for a 40-year-old single male driver who commutes 12 miles to work. The sample policy had limits of $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 coverage. The policy also included uninsured motorist coverage.

Insure.com discovered that there was a $1,546 difference between the state with the highest average annual insurance premium and the state with the lowest. Amy Danise, managing editor of the website, said that while multiple factors can contribute to higher policy rates, it generally comes down to claims.

“States that don’t have to pay expensive or numerous claims are going to have lower rates,” Danise says.  She also points out that if you live in a state that has a large number of uninsured motorists, your premium is going to be high. “People who do have insurance end up making the claim, even if they didn’t cause the accident. There’s more people crashing, but a smaller pool of people paying the insurance companies.”

Read on to find out if your place of residence is costing you extra in car insurance.

Photo Credit: Joe Shalbotnik