The 10 Most Expensive States for Car Insurance

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The most expensive states for car insurance are saddled with factors like no-fault laws and high numbers of uninsured drivers. (Photo: @orathaim164 via Twenty20)
It’s no secret that car insurance isn’t free. It’s an important service for any driver, and as a result you have to pay a decent amount for it. There are a lot of things you can do to keep your car insurance premiums low, such as driving safely, attending driving courses, limiting your miles, and searching for discounts and incentives that you qualify for.
Unfortunately, there are also a lot of elements that factor into your auto insurance rates that you have little or no control over. One such factor is the state that you live in. Some states have rules or laws that contribute to higher rates, while others have to charge more because the risk of accidents is greater. Whatever the reasons, these are the 10 most expensive states for car insurance.

1. Michigan

Michigan leads this list largely due to its strict no-fault insurance laws, which require auto insurance companies to provide extensive coverage in any accident, regardless of who is at fault. As a result, even the best drivers are risks for car insurance providers, so companies have to charge a large amount. As Personal Injury Protection (PIP) coverage is the highest in Michigan, it is abused by many.

2. Montana

Montana may seem like an odd choice to be so high on this list of the most expensive states for car insurance, but the state leads the country in the automotive fatality rate. Montana features a bevy of open roads where drivers can speed and drive dangerously, and the result is a lot of serious accidents.

3. New Jersey

New Jersey is high on this list for the same reason as Michigan. The Garden State is a no-fault state, and it has the second-highest PIP coverage in the country. Add an extremely high accident rate due to the interstates and New Jersey is third on the list.

4. Louisiana

Louisiana may seem like a relaxed state, but not so much with auto insurance rates. The extreme rates in Louisiana are largely due to two things: Poor road conditions and the fact that Louisiana residents file the highest rate of personal injury claims in the country.

5. Oklahoma

The biggest reason for Oklahoma’s high rates is the large number of uninsured drivers that live in the state.

6. Washington D.C.

While not technically a state, the nation’s capital has far and away the highest rate of car theft in the country, which is why car insurance rates are so high. Also, since D.C. is a metropolitan area, accident rates are high.

7. California

California has a high number of densely populated metropolitan areas, which have greater rates of accidents and thefts.

8. Florida

Florida is in the top 10 most expensive states for car insurance because of its no-fault rules and the rate of PIP fraud.

9. Maryland

Maryland also has no-fault laws, in addition to challenging rules about paying premiums upfront, which raises costs.

10. Rhode Island

Rhode Island rounds out the list primarily because of the high cost of auto mechanic labor in the state. It costs a lot of money to have a vehicle repaired in Rhode Island, and as a result, car insurance companies have to charge higher premiums.
Just because you live in one of these 10 most expensive states for car insurance doesn’t mean your rates need to be way above average. If you want to lower the cost of your auto insurance, but you aren’t interested in shopping around, you can have Jerry find a package that is the perfect fit for you.