Top 5 most expensive states for car insurance
If you鈥檙e looking to save money on car insurance, it鈥檚 best not to live in Michigan 鈥� North Carolina might be a better fit.
Drivers in the Great Lakes State pay more than double the national average for car insurance premiums, the highest rate in the country, while those in North Carolina pay 41 percent less, representing the lowest, according to from consumer information site InsuranceQuotes.com.
The rankings, which were based on data from the country鈥檚 largest insurance carriers and on a , provide a glimpse into what drives auto insurance costs up and down around the country.
According to the study, the five states with the highest average annual car insurance rates are: Michigan, at 136 percent above the national average; Rhode Island, at 45 percent; New York, at 42 percent; Delaware, at 41 percent; and Louisiana, at 33 percent.
Those with the least expensive rates by percentage below the national average are: North Carolina, at 41 percent; Idaho, at 37 percent; Ohio and Maine, each at 33 percent; and Wisconsin, at 28 percent.
The reason for the disparities depend on things like population density, crime rate, and cost of living, . Largely rural states, for instance, have fewer traffic accidents and less crime, which in turn keep insurance rates down.
Natural disasters can also influence car insurance pricing. While insurance companies are prohibited from raising premiums after a single event 鈥� like a destructive wildfire or hurricane 鈥� past events will be factored into future costs, Sarah Stodola .
鈥淪o even if a big storm doesn鈥檛 lead directly to increased premiums, in a less direct way, it will encourage higher premiums as insurers reassess the potential damages they could have to pay out if climate change creates more frequent and intense weather events,鈥� she noted.
Legislation is also big factor in insurance costs. In Michigan, a ensures that each insurance company compensates its own policyholders regardless of who鈥檚 at fault in a vehicular accident. The state also provides unlimited, lifetime medical coverage for people injured in auto accidents, a benefit that no other state offers. But as health care and auto repair costs rise, so does the rate of insurance in Michigan.
On the other hand, North Carolina law mandates an evaluation of an injured person鈥檚 role in an accident, making it difficult to win personal injury lawsuits 鈥� a big reason behind the state鈥檚 low auto insurance rates, .
Of course, not everyone can up and leave the state they鈥檙e in for the sake of saving on car insurance. Comparing insurance policies among companies, maintaining good credit, and taking advantage of existing discounts on things like low mileage driving , according to the Insurance Information Institute.
