The most costly state for automotive insurance coverage — plus what it prices in each state

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One survey from NerdWallet finds that switching automotive insurance coverage may save good drivers about $417 a yr.

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There is not any doubt that automotive insurance coverage is dear — NerdWallet reveals that the common price of automotive insurance coverage is $1,630 per yr — and one survey from the corporate finds that switching may save good drivers about $417 a yr. (See the bottom automotive insurance coverage charges you may qualify for right here.)

However the excessive price of automotive insurance coverage can depend upon the state you reside in (see the chart beneath for common premiums by state), with Maine usually being the most cost effective and Louisiana the costliest. Louisiana’s excessive charges are largely because of its greater crime price, frequent excessive climate and rising site visitors density, whereas Maine, a state with low inhabitants density, has the bottom quantity of uninsured drivers and a decrease danger of accidents, says Andrew Hurst, auto insurance coverage skilled at Policygenius.

Typically, states with cheaper automotive insurance coverage might have decrease ranges of required automotive insurance coverage, extra insurance coverage firm competitors, decrease crime charges, decrease charges of uninsured drivers, fewer whole claims from drivers, drivers who total drive fewer miles and/or much less excessive climate . “A rural state with little crime, many automotive insurers and never a lot excessive climate will possible pay lower than a largely city state with many automotive insurance coverage claims, few insurers and plenty of weather-related claims for flooding and hail,” says Les Masterson, insurance coverage analyst with Carinsurance.com. (See the bottom automotive insurance coverage charges you may qualify for right here.)

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It is also necessary to contemplate whether or not you might be in a no-fault state: “No-fault states (there are 12) — [this] implies that insurance coverage corporations cowl their members’ accidents and damages as an alternative of getting the at-fault driver’s protection pay — usually result in greater charges,” says Masterson. These embrace Florida, Michigan, New Jersey, New York, Pennsylvania, Hawaii, Kentucky, Massachusetts, Minnesota, North Dakota and Utah. Litigious states additionally get handed greater charges, as insurers worth towards litigation. “If a policyholder makes a declare and is not glad with it, they might take their insurance coverage firm to courtroom. This course of may be costly, creating the potential for greater bills and losses for insurance coverage corporations,” says Hurst. In locations the place price setters have judged the inhabitants to be extra litigious, charges could also be greater.

The variety of uninsured drivers will also be an enormous driver in charges, consultants say. Certainly, Louisiana and Florida, which incessantly land close to the highest of lists of the costliest states to insure your automotive, have quite a lot of uninsured drivers, which creates a suggestions loop: when there’s numerous uninsured drivers, different drivers are extra Prone to carry extra types of insurance coverage towards them, Hurst explains: “This will increase the chance of a single insurer paying extra settlements, which means that insurer will file for greater charges to cowl anticipated losses,” says Hurst. Insurers additionally worth towards litigation and if a policyholder makes a declare and is not glad with it, they might take their insurance coverage firm to courtroom. “This course of may be costly, creating the potential for greater bills and losses for insurance coverage corporations. In locations the place price setters have judged the inhabitants to be extra litigious, charges could also be greater,” says Hurst. Michigan, one other state that has excessive charges, additionally faces this downside, Hurst says, and it “requires excessive private harm safety protection that usually ends in excessive settlements for insurance coverage suppliers,” he provides, when explaining its excessive charges. (See the bottom automotive insurance coverage charges you may qualify for right here.)

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Common automotive insurance coverage premiums, by state

1

Louisiana

$2,839

2

Michigan

$2,112

3

Florida

$2,082

4

California

$1,966

5

Missouri

$1,895

6

DC

$1,881

7

Rhode Island

$1,801

eighth

Wyoming

$1,768

9

Texas

$1,710

10

Georgia

$1,705

11

Montana

$1,627

12

Connecticut

$1,580

13

South Dakota

$1,575

14

Colorado

$1,574

15

Arkansas

$1,462

16

Kansas

$1,454

17

Delaware

$1,443

18

Arizona

$1,417

19

Maryland

$1,410

20

South Carolina

$1,409

21

Minnesota

$1,407

22

Oklahoma

$1,393

23

NewMexico

$1,391

24

Nebraska

$1,383

25

Nevada

$1,380

26

Mississippi

$1,378

27

Alabama

$1,358

28

North Carolina

$1,326

29

Kentucky

$1,321

30

New Jersey

$1,319

31

Massachusetts

$1,314

32

West Virginia

$1,299

33

Washington

$1,298

34

Hawaii

$1,254

35

Utah

$1,250

36

North Dakota

$1,234

37

Oregon

$1,229

38

Tennessee

$1,206

39

Illinois

$1,205

40

Indiana

$1,189

41

Alaska

$1,175

42

new York

$1,163

43

Vermont

$1,151

44

Virginia

$1,033

45

Iowa

$1,032

46

Pennsylvania

$1,028

47

Ohio

$992

48

Idaho

$985

49

Wisconsin

$938

50

New Hampshire

$885

51

Maine

$858

Supply: Insure.com, 2021


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