It's no secret that drivers in different states pay different rates, even when their driving records are
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.
very similar. Recently the website Insure.com did a comparison of state automobile insurance costs, identifying the priciest and cheapest states for car insurance.
Source: http://www.dailyfinance.com/
