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These are the most expensive states for auto insurance

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Insurance information website Insure.com has published its ranking of states with the highest and lowest annual insurance rates, discovering that the variance among states is 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 is Michigan’s fifth straight year as the state with the most expensive annual auto insurance premiums. Although the state remains at the top of the list, Michigan’s average premiums this year are actually slightly lower than last year’s, by $155.

Michigan’s no-fault auto insurance system might be at the heart of its high premiums issue, the study noted. Although it is not the only state that implements PIP coverage (which means everyone injured in an accident – regardless of liability – will have their medical expenses covered) Michigan guarantees unlimited lifetime medical benefits to auto accident victims, which increases insurers’ risk.

On the other hand, the states with the cheapest annual rates for auto insurance 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 that the lower cost of insurance in these states is due to their sparsely populated rural settings. Another reason for the low insurance rates is because states such as Vermont boast very low uninsured driver rates. Yet another reason – particularly for states like Ohio – is that they have a very competitive insurance market, which means many more affordable options for drivers to choose from.

Related stories:
Auto insurance claims satisfaction hits all-time high
Michigan AG may back mayor’s lawsuit over no-fault insurance

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