#auto insurance comparison
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It’s no secret that drivers in different states pay different rates, even when their driving records are very similar. Recently the website Insure.com did a comparison of state automobile insurance costs. identifying the priciest and cheapest states for car insurance.
The survey averaged coverages from six providers per state for a 40-year-old driver with a 12-mile commute to work. The quotes were for a yearly policy with $100,000 coverage for a single person, $300,000 for all injured and $50,000 for property damage.
- Michigan, $2,541
- Louisiana, $2,453
- Oklahoma, $2,197
- Montana, $2,190
- Washington, D.C. $2,146
- California, $1,991
- Mississippi, $1,896
- New Mexico, $1,896
- Arkansas, $1,836
- Maryland, $1,807
- North Dakota, $1,794
- Connecticut, $1,786
- Rhode Island, $1,747
- Wyoming, $1,714
- Hawaii, $1,707
- South Dakota, $1,707
- Georgia, $1,670
- New Jersey, $1,663
- West Virginia, $1,633
- Kentucky, $1,629
- New York, $1,627
- Minnesota, $1,614
- Washington, $1,584
- Missouri, $1,563
- Indiana, $1,518
- Colorado, $1,508
- Texas, $1,492
- Delaware, $1,489
- Florida, $1,476
- Nebraska, $1,470
- Pennsylvania, $1,468
- Kansas, $1,461
- Alaska, $1,454
- New Hampshire, $1,334
- Massachusetts, $1,328
- Idaho, $1,325
- Alabama, $1,306
- Oregon, $1,306
- Nevada, $1,300
- Illinois, $1,290
- Arizona, $1,280
- Utah, $1,272
- Virginia, $1,237
- Iowa, $1,179
- North Carolina, $1,154
- Ohio, $1,152
- Tennessee, $1,146
- Wisconsin, $1,128
- Maine, $1,126
- South Carolina, $1,095
- Vermont, $995
Why is there such a difference (255%) between the most and least expensive? According to Insure.com, the reasons are several.
The primary one, however, is uninsured motorists. In states with a lot of uninsured motorists, the insured must kick more money into the pool to cover accidents in which they are involved.
According to 2007 data compiled by the Insurance Research Council. the top states with uninsured motorists were:
- New Mexico, 29%
- Mississippi, 28%
- Alabama, 26%
- Oklahoma, 24%
- Florida, 23%
The states with the fewest uninsured drivers were:
- Massachusetts, 1%
- Maine, 4%
- North Dakota, 5%
- New York, 5%
- Vermont, 6%
The leading state in insurance premiums, Michigan, finished 10th with 17%. So why was it No. 1? For one reason, of all the states, only Michigan has no cap on personal injury protection payments to those hurt in a vehicle accident. A separate, not-for-profit, state-originated association picks up payments only after the insurance company has paid out almost half a million dollars in claims, in addition to three years of lost wages and damage replacement costs. Of course, all of these expenses are paid for with insurance premium dollars.
Insure’s report also suggests that the friendly climate for litigation in Louisiana helps drive up its premiums, while violent weather does the same for Oklahoma drivers.
At the other end of the spectrum, Vermont’s low premium is, according to one expert, a function of low traffic volume and “rural sensibilities.”
Concerned about the cost of car insurance? Then you might also consider which car you drive. It can make an even larger difference than where you drive it.