This State Now Has the Costliest Car Insurance

Unhappy driver with thumbs down
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For seven long years, Michigan policyholders paid higher average car insurance rates than drivers in any other part of the nation.

But that dubious honor has moved from the far north of the country to the far south.

Louisiana is now home to the highest average insurance rate, according to Insure.com’s annual tally of auto insurance costs nationwide.

The state has been creeping toward the top spot for a while, finishing in the top five numerous times. In a press release, Penny Gusner, senior consumer analyst for Insure.com, says:

“While most states experienced rate declines over the past year, the cost of insurance in Louisiana leaped by 19%. The average premium in the state is now $2,839, making it 99% more expensive than the national average.”

Why are rates so high in Louisiana? Insure.com says many uninsured drivers (11.7% of all drivers in the state) and underinsured drivers are part of the reason. In addition, what Insure.com characterizes as “easy lawsuits” also have pushed rates much higher.

The states with the highest average car insurance rates in 2021 are:

  • Louisiana — $2,839
  • Michigan — $2,112
  • Florida — $2,082
  • California –$1,966
  • Missouri — $1,895

Insure.com says Michigan’s fall from first place to second is “based on a technicality.” Changes to the state’s no-fault auto insurance laws now allow drivers to select the amount of personal injury protection (PIP) coverage they carry.

Previously, drivers had to purchase PIP coverage that guaranteed unlimited, lifetime medical benefits to auto accident victims. That law caused risk to soar for insurance companies, and they passed on the cost to customers in the form of higher premiums.

Meanwhile, the five states with the cheapest average car insurance rates in 2021 are:

  • Maine — $858
  • New Hampshire — $885
  • Wisconsin — $938
  • Idaho — $985
  • Ohio — $992

How to lower your car insurance costs

Gusner notes that one of the best ways to tame your auto insurance costs is to shop around from time to time, as “rates fluctuate based on a host of factors that stretch beyond location.”

If you hate the idea of taking the time to shop around, a service such as The Zebra or Gabi will gather quotes for you so you can pick the best rate.

These companies specialize in streamlining the shopping experience. In short, they do the work so you don’t have to.

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