These are the most expensive states for auto insurance


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These are the most expensive states for auto insurance

Insurance information website Insure.com has released its ranking of states with the highest and lowest annual insurance rates and found that the differences between states are more apparent than previously thought.

According to Insure.com, the national average for annual premiums is $1,365. The rankings the website produced used this value as a baseline.


For 2018, the top five states with the highest insurance rates are:

Rank

State

Average premiums

1

Michigan

$2,239

2

Louisiana

$2,126

3

Florida

$2,050

4

Rhode Island

$1,852

5

Connecticut

$1,831

Insure.com noted that this marks Michigan’s fifth straight year as the state with the most expensive annual auto insurance premiums. While the state remains at the top of the list, Michigan’s average premiums this year at $155 are actually slightly lower than last year’s.

Michigan’s faultless auto insurance system could be at the heart of the high premium problem, the study said. While it’s not the only state to implement PIP coverage (meaning anyone injured in an accident—regardless of liability—will have their medical expenses), Michigan guarantees unlimited lifelong medical benefits for car accident victims, which means increases the risk of insurers.

On the other hand, the states with the cheapest annual auto insurance rates are:

Rank

State

Average premiums

1

Vermont

$932

2

Ohio

$944

3

Idaho

$989

4

Virginia

$1,013

5

Iowa

$1,025

Insure.com suggested the lower insurance costs in these states are due to their sparsely populated rural environment. Another reason for the low insurance rates is because states like Vermont have very low rates for uninsured drivers. Yet another reason — especially for states like Ohio — is that they have a very competitive insurance market, meaning drivers have many more affordable options to choose from.

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