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
  • 10th Least Expensive: Utah

    Average Annual Premium: $1,272 Photo Credit:  Pink Sherbert Photography
    9th Least Expensive: Virginia
  • 9th Least Expensive: Virginia

    Average Annual Premium: $1,237 Photo Credit: tobyotter
    8th Least Expensive: Iowa
  • 8th Least Expensive: Iowa

    Average Annual Premium:  $1,179 Photo Credit:  Jewell Willet
    7th Least Expensive: North Carolina
  • 7th Least Expensive: North Carolina

    Average Annual Premium: $1,154 Photo Credit: Mike Mariano
    6th Least Expensive: Ohio
  • 6th Least Expensive: Ohio

    Average Annual Premium: $1,152 Photo Credit:  gwdexter
    5th Least Expensive: Tennessee
  • 5th Least Expensive: Tennessee

    Average Annual Premium: $1,146 Photo Credit: Woody’s World 1778
    4th Least Expensive: Wisconsin
  • 4th Least Expensive: Wisconsin

    Average Annual Premium: $1,128 Photo Credit:  Krossbow
    3rd Least Expensive: Maine
  • 3rd Least Expensive: Maine

    Average Annual Premium: $1,126 Photo Credit: Woody’s World 1778
    2nd Least Expensive: South Carolina
  • 2nd Least Expensive: South Carolina

    Average Annual Premium: $1,095 Photo Credit: cjc4454
    Least Expensive: Vermont
  • 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
  • 10th Most Expensive: Maryland

    Average Annual Premium: $1,807 Photo Credit: Mike Mariano
    9th Most Expensive: Arkansas
  • 9th Most Expensive: Arkansas

    Average Annual Premium: $1,836 Photo Credit: Woody’s World 1778
    8th Most Expensive: New Mexico
  • 8th Most Expensive: New Mexico

    Average Annual Premium: $1,896 Photo Credit: cjc4454
    8th Most Expensive: Mississippi
  • 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
  • 6th Most Expensive: California

    Average Annual Premium: $1,991 Photo Credit: Marcin Wichary
    5th Most Expensive: Washington, D.C.
  • 5th Most Expensive: Washington, D.C.

    Average Annual Premium: $2,146 Photo Credit: andrewarchy
    4th Most Expensive: Montana
  • 4th Most Expensive: Montana

    Average Annual Premium: $2,190 Photo Credit:  Woodys World 1778
    3rd Most Expensive: Oklahoma
  • 3rd Most Expensive: Oklahoma

    Average Annual Premium: $2,197Photo Credit:   cjc4454
    2nd Most Expensive: Louisiana
  • 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
  • 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
  • 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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