10 Cheapest and Most Expensive States for Car Insurance

As expected, where you live affects premiums more than many other factors. That is why it is more meaningful to know if vehicle insurance rates are low or high in your region in comparison to the rest of the country. Simply because the local legislations, conditions and statistics are very influential in what you end up paying.

Have you ever wondered why you seem to be paying more than the most. Maybe you think you are getting away lightly with low prices. Either of these sentiments might be supported if you are from one of the twenty listed below as being in the most expensive and cheapest states.

Yet, no matter if you are blessed with cheap or cursed with expensive premiums, there is always even more ways to save money. One of the proven ways is to make comparisons across multiple companies. So, it is good to know that you can do something about costs right at the start and carry on reading.

The Statistics

This article will focus on the latest report by the National Association of Insurance Commissioners (NAIC). The Vehicle Ins. Database Report used here is for 2013. Although there are other ‘more current’ reports produced by several other independent websites, it seems the best and most accurate data will be from this national regulatory body.

The NAIC is the standard setting and regulating body that was created and currently governed by the chief regulators from all 50 states, the District of Columbia and territories. In other words, it is where companies, brokers and agents eventually report to.

=> 10 Most Expensive States for Auto Insurance

Here you will find two lists and their corresponding median figures across all users. The first list comprises the average cost per state for just Liability Coverage, which is mandatory.

The second list is for the average total expenditure. Unfortunately, it is not obvious what is the typical expenditure in the second list. However, we know that about 72% of Americans add Collisions and Comprehensive to the minimum required to protect their own cars as well. So, we assume it is pretty close to full coverage.

The aim is to see the price difference between a basic and a typically purchased policy and hopefully, it will give you a pretty good idea. 

Liability Only Auto Insurance Coverage (National Avg. $518.49):

  1. New Jersey, $882.10
  2. Florida, $860.43
  3. New York, $791.14
  4. Delaware, $783.30
  5. Michigan, $742.31
  6. Louisiana, $723.93
  7. Rhode Island, $719.53
  8. Nevada, $648.19
  9. Connecticut, $635.62
  10. District of Columbia, $634.70

Total combined average car insurance premiums paid (National Avg.: $954.30):

  1. New Jersey, $1,368.27
  2. District of Columbia, $1,316.48
  3. Louisiana, $1,307.72
  4. New York, $1,301.48
  5. Michigan, $1,264.21
  6. Rhode Island, $1,210.54
  7. Florida, $1,209.74
  8. Delaware, $1,187.18
  9. Connecticut, $1,109.03
  10. Massachusetts, $1,080.48

=> 10 Cheapest States for Car Insurance

Again these lists will follow the same line up as above.

Liability Only Car Insurance Coverage (National Avg. $518.49):

  1. North Dakota, $284.03
  2. South Dakota, $290.24
  3. Iowa, $291.24
  4. Wyoming, $323.34
  5. Maine, $333.69
  6. Idaho, $339.50
  7. Kansas, $342.20
  8. Vermont, $343.85
  9. Nebraska, $347.57
  10. Wisconsin, $354.56

Total combined average auto insurance premiums paid (National Avg.: $954.30):

  1. Idaho, $650.57
  2. Iowa, $668.09
  3. Maine, $674.94
  4. Wisconsin, $689.76
  5. Indiana, $704.48
  6. South Dakota, $718.57
  7. Vermont, $734.82
  8. North Dakota, $738.47
  9. Ohio, $738.68
  10. North Carolina, $738.97

Obviously, the aim should be to achieve a decent protection with your vehicle policy purchase. If the money is tight nobody can argue against just getting what you need and being done with it. However, you should know that wouldn’t provide any protection for your own automobile or take care of your and family members injuries.

It seems like these lists follow a pattern of the more rural the state, the cheaper the costs. Whether this is reflective of rural drivers not purchasing ‘optional’ coverage or claims in there simply make it more affordable is unknown. However, Ohio, North Carolina, and Indiana all replace rural ones in combined average premiums paid; being the only three more densely populated to do so. If you want to know how much is the median cost in your area you can follow the link, especially if it isn’t listed above.

The Price Gap Between Basic and More Inclusive Policies

A few things can increase or decrease it. If you look at the above lists, you will notice that where premiums are cheap the gap is more distinctive and it is closer in expensive areas. This may be due to lighter basic requirements that make the former more affordable. The lighter they are less the third party settlements and costs. In return, companies can price minimum required policies reasonably that should technically decrease number of uninsured motorists.

Secondly, the more fierce the competition among companies is the smaller the gap because companies get creative and start throwing in more into policies at good prices to make them stand out.

Thirdly, general awareness among motorists may mean that people are looking for better protection. This may be due to how well off people are as well. The more people shun away from third party only and look for full coverage policies the more competitive this segment becomes. And it can simply make the better cheaper.

Finally, high or low figures of injury settlements and accidents can pull these two figures apart or push them together.

Hopefully, we managed to demonstrate the significance of location. Also, you should have a better idea as to how much more you need to pay for a decent plan that defends you against claims from others and protects your own vehicle (and may be family for injuries, providing you have PIP).