Most and Least Expensive States for Auto Insurance

It is a well-known fact that people normally pay different amounts for their auto insurance. While there are many individual factors that determine that rate, the State where one resides is also a major factor. There are literally places where the rates are twice as much as other places. The causes for these disparities are also quite diverse, with each State having its own reasons and justifications. The list changes from year to year, but the general picture remains the same. Without further ado, here is the list of all States arranged from the cheapest to the most expensive in terms of car insurance:

  1. Ohio (cheapest car insurance)
  2. Maine
  3. New Hampshire
  4. Idaho
  5. Iowa
  6. North Carolina
  7. Wisconsin
  8. Virginia
  9. Vermont
  10. New York
  11. Utah
  12. Indiana
  13. Missouri
  14. Arizona
  15. Nebraska
  16. South Carolina
  17. Oregon
  18. Kansas
  19. Minnesota
  20. Illinois
  21. New Mexico
  22. Mississippi
  23. Nevada
  24. Tennessee
  25. Arkansas
  26. Hawaii
  27. Pennsylvania
  28. Kentucky
  29. Washington
  30. Alabama
  31. Wyoming
  32. Colorado
  33. South Dakota
  34. Oklahoma
  35. Delaware
  36. Alaska
  37. Massachusetts
  38. Texas
  39. Connecticut
  40. North Dakota
  41. Maryland
  42. Florida
  43. New Jersey
  44. California
  45. Louisiana
  46. Montana
  47. Rhode Island
  48. Georgia
  49. West Virginia
  50. Michigan (most expensive car insurance)

From this list, it is clear to see that the residents of Michigan, West Virginia, Georgia, Rhode Island and Montana pay the highest auto insurance premiums, with each averaging more than $2000 per year. On the opposite end of the spectrum are Iowa, Idaho, New Hampshire, Maine and Ohio, with the cheapest three paying less than $1000 per year. Below is an in-depth look as to why the rates are the way they are for the ten States, starting with the most expensive:

1. Michigan
The high rates of auto insurance in Michigan are as a result of the State’s no-fault car insurance, and the requirement for car owners to buy PIP (Personal Injury Protection). The situation is made even worse by the fact that there is no limit on the PIP amount.

2. West Virginia
In this State, the high rates can be attributed to the prevalence of natural disasters such as tornadoes and floods, and also the high number of uninsured drivers.

3. Georgia
This State wasn’t always high up on this list, but massive increases in the last 5 years have seen it rise to the top. The high rates are associated with increase in traffic and accidents, and also the increase of the cost of car repair.

4. Rhode Island
The high cost of car repairs and increasing labor costs in body repair shops are to blame for the high auto insurance premiums in Rhode Island.

5. Montana
The main undoing for Montana is its reputation for having too many unsafe drivers. The State has one of the highest accident rates in the country which inevitable leads to high car insurance.

And now for the cheapest States:

1. Ohio
Drivers in Ohio have benefited from having many insurance companies competing for their business. That competition has essentially helped maintain the low auto insurance rates.

2. Maine
The low insurance rates can be attributed to rural nature of the State, high competition from many insurance companies and the lack of extreme weather events such as tornadoes and hail storms.

3. New Hampshire
The low rates here are associated with the fact that the State’s law does not require drivers to have any type of auto insurance.

4. Idaho
The drivers in this State benefit from the rural setup, moderate weather and a competitive market with many insurance companies.

5. Iowa
This States also benefits from its rural setting and also the fact that it has low minimum insurance requirements.

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