Equifax

Finance Blog

Auto Insurance Policy Rates Vary By State

Written by Ilyce Glink on March 15, 2012 in Insurance  |   4 comments

Owning a car is expensive. In addition to maintenance, parking, and gasoline, drivers are required to pay for car insurance—it’s mandated by law, and it could save you a lot of money if you end up in an accident. Even so, an auto insurance policy…

saving money auto insurance policyOwning a car is expensive. In addition to maintenance, parking, and gasoline, drivers are required to pay for car insurance—it’s mandated by law, and it could save you a lot of money if you end up in an accident. Even so, an auto insurance policy is an expense most drivers wish they could do without.

Your yearly insurance budget depends on where you live. According to Insure.com, drivers in Louisiana, Oklahoma, and Michigan pay the most for car insurance. If your goal is saving money, move to Wisconsin, Iowa, or Maine for the lowest auto insurance rates.

Uninsured drivers do the most to drive up prices. Motorists hit by uninsured drivers have to rely on their own coverage to fix their cars or pay for medical attention. According to the Insurance Research Council, Oklahoma and Florida—ranked number two and 13 respectively on the list of most expensive states for car insurance according to Insure.com—each have an estimated 24 percent of uninsured drivers. Massachusetts and Maine, ranked number 25 and 51, each have only 4.5 percent of drivers without insurance.

Premiums in any state can be dependent on a variety of factors, including:

  • The number of uninsured drivers behind the wheel statewide
  • A state’s insurance laws
  • The level of competition among carriers
  • Severe weather

The states with the highest insurance policy premiums have their own issues to contend with. Louisiana, the state with the highest insurance cost, is the only state that requires claims to reach $50,000 before going to jury trial. Insure.com says that lawsuits involving claims for less than that go to specific judges, and those judges tend to side with their constituents instead of insurance companies. The costs of those claims and legal fees are then passed down to consumers.

Maine, on the other hand, can credit its low percentage of uninsured drivers for the state’s lower insurance rates. Those factors, combined with a low crime rate and good weather over the past few years, have helped keep the price of insurance low. Competition between carriers for consumers’ business keeps rates low, too.

All hope is not lost if you live in an expensive state, according to Amy Danise, editorial director of Insure.com. She notes, “Many of these problems are outside the control of the drivers. But even if you live in an expensive state, you can hold down your insurance costs by keeping your driving record as clean as possible and selecting a car that is cheap to insure.”

State rankings of auto premiums for 2012, according to Insure.com:

state auto insurance ranking

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

READ MORE:

Adjusting Your Homeowners Insurance
Will Your Policy Protect You from an Uninsured Driver?
How to Handle a Hit-and-Run Car Accident
Health Insurance Discounts for Healthy Lifestyle Habits

Ilyce R. Glink is the author of several books, including 100 Questions Every First-Time Home Buyer Should Ask and Buy, Close, Move In!. She blogs about money and real estate at ThinkGlink.com and at the Home Equity blog for CBS MoneyWatch.

 

4 comments

  1. Larry McLaughlin says:

    Where are the rankings for the other 26 states?

  2. j. gresham says:

    yeah, where are the other rankings? May i buy car insurance from the other cheapest state?

  3. EFX Finance Blog editor, JF says:

    You can find the full list of state auto insurance rates from the source, Insure.com: http://www.insure.com/car-insurance/car-insurance-rates.html

    Thanks for reading, and hope to see you back on the blog soon.

  4. InsuranceQuotesFast says:

    Labor costs also affect the price of insurance. Some states have higher auto body costs because of higher certification requirements for auto body workers, and therefore higher insurance premiums.

    We cover some other reasons on our blog: http://www.insurancequotesfast.com/blog/car-insurance/insurance-rates-state-to-state/


Leave a Comment


Name :


Commenting guidelines

We welcome your interest and participation on this forum, but be aware that comments will be published at Equifax's sole discretion. Please don't use this blog to submit questions or concerns about your Equifax credit report or raise customer service issues. Instead, you should contact Equifax directly for all such matters and any attempts to do so in this forum will be promptly re-directed.

Some other factors to consider when commenting:
  1. Registration and privacy. While no registration is required to visit our forum, participants wishing to post a message must register by creating an account. All personal information provided by forum members incident to registration is governed by our Terms of Use and Privacy Policy.
  2. All comments are anonymous. We'll delete your name, e-mail address, and any other identifying information, including details about your investments.
  3. We can't post or respond to every comment - As much as we'd like to, we can't post every comment, nor can we guarantee that we will respond to each individual message. All questions or comments about your Equifax credit report or similar customer service issues should be handled by contacting Equifax directly.
  4. Don't offer specific legal, tax or financial advice. All of the materials on this Site are for information, education, and noncommercial purposes only and this forum is not intended as a means of expressing views or ideas regarding any specific legal, tax, or investment advice. While offering general rules of thumb is both permitted and encouraged, recommending specific ideas or strategies regarding investments, taxes, and related matters is prohibited.
  5. Credit Repair. This blog is not intended as a venue for the discussion or exchange of ideas regarding credit repair or other strategies intended to assist visitors and community members improve or otherwise modify their credit histories, ratings or scores.
  6. Stay on topic. Your comment should be concise and pertain to the specific post in question.
  7. Be respectful of the community. The use of profanity, offensive language, spam, and personal attacks will not be tolerated and egregious or repeat offenders will be banned from future participation. We encourage disagreement and healthy debate, but please refrain from personal attacks on our WordPresss and contributors.
  8. Finally: Participation in this forum may be terminated by Equifax immediately and without notice for failure to comply with any guidelines or Terms of Use. As such, you should familiarize yourself with all pertinent requirements prior to submitting any response through the blog or otherwise. All opinions expressed in this forum are solely those of the individual submitting the comment, and don't necessarily represent the views of Equifax or its management.

Equifax maintains this interactive forum for education and information purposes in order to allow individuals to share their relevant knowledge and opinions with other members and visitors. We encourage you to participate in discussions about personal finance issues and other topics of interest to this community, but please read our commenting guidelines first. Equifax reserves the right to monitor postings to the forum and comments will be published at our discretion. Do you have questions or comments about your Equifax credit report or customer-service issues regarding an Equifax product? If so, please contact Equifax directly. All opinions and information expressed or shared in blog comments are solely those of the person submitting the comments, and don't necessarily represent the views of Equifax or its management.


Insurance Archive

Stay Informed Sign up for our FREE Equifax email Newsletter