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


10th Least Expensive: Utah

Average Annual Premium: $1,272 Photo Credit:  Pink Sherbert Photography


9th Least Expensive: Virginia

Average Annual Premium: $1,237 Photo Credit: tobyotter


8th Least Expensive: Iowa

Average Annual Premium:  $1,179 Photo Credit:  Jewell Willet


7th Least Expensive: North Carolina

Average Annual Premium: $1,154 Photo Credit: Mike Mariano


6th Least Expensive: Ohio

Average Annual Premium: $1,152 Photo Credit:  gwdexter


5th Least Expensive: Tennessee

Average Annual Premium: $1,146 Photo Credit: Woody’s World 1778


4th Least Expensive: Wisconsin

Average Annual Premium: $1,128 Photo Credit:  Krossbow


3rd Least Expensive: Maine

Average Annual Premium: $1,126 Photo Credit: Woody’s World 1778


2nd Least Expensive: South Carolina

Average Annual Premium: $1,095 Photo Credit: cjc4454


Least Expensive: Vermont

Average Annual Premium: $995 A cold winter may not seem to carry too many benefits – especially when considering how particularly brutal this last one has been – but it definitely plays a large part in why Vermont’s premiums are so low.  According to Danise, the bad weather keeps people indoors, which leads to a  lower level of traffic congestion on Vermont’s roads, meaning fewer accidents and therefore fewer claims. Photo Credit:   exfordy


10th Most Expensive: Maryland

Average Annual Premium: $1,807 Photo Credit: Mike Mariano


9th Most Expensive: Arkansas

Average Annual Premium: $1,836 Photo Credit: Woody’s World 1778


8th Most Expensive: New Mexico

Average Annual Premium: $1,896 Photo Credit: cjc4454


8th Most Expensive: Mississippi

Average Annual Premium: $1,896 Mississippi is actually tied with New Mexico in terms of the rankings. Photo Credit:  Southern Foodways Alliance


6th Most Expensive: California

Average Annual Premium: $1,991 Photo Credit: Marcin Wichary


5th Most Expensive: Washington, D.C.

Average Annual Premium: $2,146 Photo Credit: andrewarchy


4th Most Expensive: Montana

Average Annual Premium: $2,190 Photo Credit:  Woodys World 1778


3rd Most Expensive: Oklahoma

Average Annual Premium: $2,197Photo Credit:   cjc4454


2nd Most Expensive: Louisiana

Average Annual Premium: $2,453 Louisiana, which held the top spot in last year’s rankings, can blame its higher insurance premiums on how its judicial system is structured. Danise explains that under state laws, lawsuits that seek less than $50,000 in damages are heard by an elective judge, rather than by a jury. “These judges tend to favor the little guy,” she says, since they are the ones responsible for the judge’s re-election. Danise adds that personal injury lawyers in Louisiana are hip to this and tailor their cases to seek $49,000 in damages, “just below the threshold.” This leads to a lot of expensive claims being paid out by insurance companies. Photo Credit:  Woodys World 1778


Most Expensive: Michigan

Average Annual Premium: $2,541 According to Danise, Michigan has always been high on Insure.com’s list (last year it was second), but the fact that it’s the only state that guarantees unlimited personal injury protection payments by law finally nudged it to the top. “Insurance companies in Michigan pay a giant amount of money in personal injury claims,” Danise says, meaning they have to charge a higher premium to all. Photo Credit:  Richard Masoner


The Most Expensive Cars to Insure

Your place of residency isn’t the only factor that drives what you pay to insure your vehicle.  Find out what 2011 car models specifically present the best (and worst) insurance deals in this MainStreet roundup! Photo Credit: Nissan.com


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