It’s no secret that car insurance can be pricey. 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 premium 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 rate 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, according to Jerry.ai’s in-house data.
1. New York
New York leads this list largely due to its strict no-fault insurance law, which requires 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 insurers, so they have to charge a large amount. It also doesn’t help that there is a high rate of insurance fraud in the state. On average, drivers in New York pay $5,936.28 each year for car insurance. This means they pay a whopping 92% above the average for the rest of the country.
Louisiana may seem like a relaxed state, but this isn’t the case when it comes to auto insurance rates. On average, drivers in Louisiana pay $4,774.31 annually for coverage. That’s 54% above the average for the rest of the U.S. The extreme rates in Louisiana are largely due to two things: poor road conditions and the fact that Louisiana residents file a large number of personal-injury claims.
3. Rhode Island
Rhode Island lands in third place, primarily because of the high cost of auto-mechanic labor in the state. It costs a lot of money to have a vehicle repaired there, and as a result, car insurance companies have to charge higher premiums. On average, drivers in Rhode Island pay $4,003.42 each year for car insurance.
There are two factors behind Georgia’s high auto insurance premiums. First, its highways are hotspots for car accidents. And second, the state has given insurance companies the go-ahead to raise rates without the blessing of Georgia’s insurance commissioner — and insurers have taken advantage of this. This means drivers in Georgia pay an average of $3,993.92 each year for car insurance.
You can blame Nevada’s relaxed liquor laws and all the raucous partiers who flock to Las Vegas for this state’s high car insurance premiums. On average, Nevada drivers pay $3,847.87 per year for auto insurance.
Florida lands on this list because of its no-fault insurance law, its busy roads, its high number of uninsured drivers, and its population of high-risk drivers, including the elderly, young college students, and wandering tourists. It’s no wonder that Floridians pay an average of $3,801.74 a year for car insurance.
7. New Jersey
Like New York and Florida, New Jersey is a no-fault state. The Garden State also has the highest population density in the country, which translates into higher accident rates and more claims. In one year, drivers in New Jersey pay an average of $3,604.81 for auto insurance.
Once again a no-fault car insurance law is driving up rates, this time in Michigan. This state also has the most expensive minimum coverage levels in the U.S., as well as the highest level of Personal Injury Protection (PIP) coverage. So all this means that Michigan residents pay $3,570.23 each year for car insurance, on average.
Connecticut has its share of wealthy residents, who have a habit of buying pricier vehicles and more expensive coverage options. Drivers in this state can expect to pay an average of $3,516.37 each year for car insurance.
Delaware ranks high in population density, which means there are more car accidents, which means there are more claims to pay out for insurance companies. It also costs more money to repair vehicles in this state. On average, Delaware drivers pay $3,365.89 annually for car insurance.
Now, just because you live in one of these 10 states, this doesn’t mean your auto insurance rates need to be way above average. If you want to lower the cost of your coverage but aren’t interested in shopping around, filling out long forms, and dealing with pesky salespeople, you can have Jerry.ai find a car insurance policy that is the perfect fit for you.