Auto insurance premiums are part of the lives of nearly 230 million U.S. drivers. The cost of car premiums can vary widely, not only from person to person, but also much broadly, such as the state in which you are driving. Six of the 10 most expensive states for auto insurance premiums were also among the 10 highest states in population density.
Only Louisiana was a state with a premium cost above 10 and a population density in the lower half of the Census Bureau's density ranking. We also found that the opposite applies to most of the cheaper states for auto insurance. As defined by the Census Bureau, 81% of Americans live in urban areas. Average disposable income was not such an obvious factor, at least at the state level.
Only four of the 10 most expensive states for auto insurance premiums across the Northeast Corridor were states with average incomes higher than the national average. States with the lowest average income, such as Georgia, Louisiana, Michigan, and South Carolina, also have some of the highest premium costs. Michigan, Florida, Rhode Island, Delaware and Nevada have the most expensive car insurance rates. Drivers in these states have some of the highest auto insurance premiums in the country, although the reasons for these rates vary by state.
While Alabama experiences a good deal of volatile weather and crime, its low costs of living help moderate auto insurance costs. And the second, the New Jersey Fair Insurance Conduct Act, would make it easier for citizens to file civil lawsuits against insurers for bad faith claims. Drivers with little or no insurance get into accidents and then sue each other in front of elected judges who are more than happy to side with drivers rather than insurance companies; the big loser is car insurance rates. States with high rates of uninsured drivers often have higher insurance costs than states where most drivers are insured.
Expensive states for car insurance generally have high-density cities, more uninsured drivers (causing those with insurance to pay more), and claims that increase rates. Also, learn about the factors that affect insurance and the most expensive and least expensive states for car insurance. Another factor affecting your car insurance rate is how your state handles car insurance in relation to car accidents. New York drivers pay the highest average car insurance premiums in the country, more than three times what motorists pay in Maine, the state with the lowest rates, according to a new report.
Alaskan drivers pay slightly less for their car insurance on average than the typical American driver. Car insurance costs can vary wildly depending on your location and whether you have full or only liability coverage, so MoneyGeek looked at hundreds of thousands of auto insurance quotes from across the country to determine the average cost of auto insurance by state. After comparing the quotes and understanding which car insurance best fits your requirements, you can make the final decision on buying the car insurance policy.