Auto Insurance Nightmares: Which State Has The Worst Coverage?

The cost of car insurance varies significantly from state to state in the US. While the national average for full-coverage car insurance is $1,895, the price can range from $1,175 in Maine to $2,883 in Louisiana. Factors such as population density, the frequency of insurance claims, and the number of uninsured drivers in a state all influence the price of auto coverage. For example, Michigan has the highest rates in the country for auto insurance, with drivers paying an average of $154 a month for minimum coverage, while South Dakota has the cheapest auto insurance, with drivers paying just $29 a month on average.

Michigan has the highest rates for auto insurance

The cost of car insurance varies across the US, with prices differing by more than $100 a month depending on location. This is due to differing state regulations, weather conditions, and road risks. For example, South Dakota has the cheapest auto insurance, with drivers paying just $29 a month on average for minimum coverage.

In Michigan, the average cost of full-coverage car insurance is $2,418 per year, or $202 per month. The cheapest full-coverage car insurance in Michigan is offered by Geico, at an average rate of $1,140 per year. The average cost of minimum coverage in Michigan is $593 per year, but the cheapest rates can be found at Wolverine Mutual, with an average of $204 per year.

Michigan has some of the most expensive car insurance rates in the nation due to high minimum coverage requirements. The state has a no-fault system, so personal injury protection (PIP) insurance is mandatory. This means that each driver must file insurance claims with their own provider, regardless of who is at fault. As a result, insurance companies charge higher premiums.

In addition, Michigan has a high percentage of uninsured drivers, with 20% of drivers uninsured, compared to the national average of 13%. When an uninsured driver crashes, the cost of the accident is passed on to insured drivers through higher premiums.

New York has the highest average car insurance rates

New York has some of the highest car insurance rates in the country, with drivers paying an average of $3,757 per year for full coverage and $1,553 per year for minimum coverage. This is significantly higher than the national average, which is $2,348 for full coverage and $639 for minimum coverage.

There are several reasons why car insurance is so expensive in New York. Firstly, New York is a no-fault state, which means that residents are generally subject to higher premiums. Secondly, New York has a dense population, high traffic volume, harsh winters, and a high likelihood of insurance fraud, all of which contribute to higher insurance rates. Additionally, New York has seen a recent increase in motor vehicle theft, which has driven up the cost of car insurance.

When it comes to finding the cheapest car insurance in New York, Progressive, American Family, USAA, Geico, and Erie Insurance are the most affordable options. These companies offer rates that are significantly lower than the state average, especially for drivers with a clean record. For example, Progressive's average annual rate for car insurance in New York is $926, which is $882 less than the statewide average.

It's worth noting that car insurance rates in New York can vary depending on age, gender, driving record, credit score, and other factors. For example, young drivers typically pay higher premiums due to statistical risk factors. Additionally, drivers with a poor credit score may pay more for their car insurance as insurers often equate good credit with being responsible.

To save money on car insurance in New York, it's recommended to compare quotes from multiple providers, explore discount opportunities, and consider a higher deductible. Shopping around and taking advantage of discounts can help drivers find the most affordable coverage for their needs.

Louisiana has the most expensive car insurance

One of the main factors is the high number of uninsured drivers in the state. In 2019, it was estimated that around 11.7% of drivers in Louisiana were uninsured. This means that insured drivers are more likely to have to make a claim if they're involved in an accident with an uninsured driver, pushing up the cost of insurance for everyone.

Inflation is also a major factor in Louisiana's high car insurance premiums. The cost of car parts and repairs has increased due to inflation, and insurance companies have passed this cost onto their customers in the form of higher premiums. Louisiana has seen some of the sharpest increases in insurance premiums in the country, with rates rising by 73% since 2019.

Another factor that affects car insurance rates in Louisiana is the state's driving statistics. If a state has a high number of accidents, thefts, or claims, insurance companies will charge higher rates to offset the cost of paying out on these incidents. Louisiana has a relatively high number of accidents and claims compared to other states, which contributes to the high cost of car insurance.

Finally, the population density of a state can also affect car insurance rates. More densely populated areas tend to have higher rates of accidents, thefts, and claims, which leads to higher insurance premiums. Louisiana is a fairly densely populated state, especially in cities like New Orleans, Baton Rouge, and Shreveport, which can drive up the cost of insurance for residents.

While there are several factors contributing to Louisiana's high car insurance rates, the main issue seems to be the large number of uninsured drivers in the state. This has led to increased claims and lawsuits, which have caused insurance companies to raise their rates across the board.

Florida has the second-most expensive car insurance

Florida's high-risk status is due to a combination of factors, including its large percentage of uninsured drivers (over 20%) and the risk of weather damage from hurricanes and flooding. The state also has a high number of young drivers, with 12 universities and more than 300,000 students, which increases the risk of accidents and claims. These factors contribute to higher insurance premiums for Florida residents.

In addition to Florida, the other states with the most expensive car insurance rates include Louisiana, California, Colorado, and South Dakota. On the other hand, the cheapest states for car insurance include Maine, New Hampshire, Vermont, Ohio, and Idaho.

The cost of car insurance can vary significantly depending on the state, with the national average for full coverage being $1,895 per year. The state you reside in is one of the biggest factors influencing your auto insurance premium, as it affects the risk assessment made by insurance companies.

California has the third-most expensive car insurance

California is one of the most expensive states for car insurance, with quotes up to 24% higher than the national average. The average cost of car insurance in California is $2,645 for full coverage and $641 for minimum coverage, compared to the national average of $2,348 for full coverage and $639 for minimum coverage. California is the third-most expensive state for car insurance, with Michigan and Nevada taking the top spots.

The high cost of car insurance in California is due in part to the state's heavily congested roadways, dense traffic, and high likelihood of accident claims. California also has a high number of uninsured drivers, which can drive up the cost of insurance for those who are insured.

The cost of car insurance in California varies depending on individual factors such as age, driving history, and location. For example, teen drivers typically pay more for car insurance due to their lack of experience. In California, the average rate for a 17-year-old driver is $4,896 per year.

To find the cheapest car insurance in California, it is recommended to compare quotes from multiple companies, ask about discounts, maintain a clean driving record, and consider a higher deductible.

Frequently asked questions