5 States Where Drivers Pay the Most for Car Insurance

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Upset and angry driver
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Drivers in Louisiana who want to save on car insurance might consider moving all the way up to Maine. On average, drivers in those states pay the highest and lowest rates, respectively, according to Insure.com’s latest analysis of car insurance rates.

Louisiana drivers pay an average of $2,839 in annual premiums, while Maine drivers pay a relatively skimpy $858.

The Insure.com analysis looked at the 50 U.S. states and the District of Columbia. For comparison, the average premium nationally is $1,428 per year.

These figures are based on data from six large insurers in 10 ZIP codes per state. They assume the insured is a 40-year-old single male who commutes 12 miles to work, has a clean driving record and has good credit. This hypothetical man’s car insurance policy includes:

  • Limits of $100,000 for injury liability for one person, $300,000 for all injuries and $50,000 for property damage in an accident
  • A $500 deductible on collision and comprehensive coverage
  • Uninsured motorist coverage

According to Insure.com, the top five most outrageous locations for car insurance premiums are:

  1. Louisiana
  2. Michigan
  3. Florida
  4. California
  5. Missouri

Why car insurance premiums vary by state

Several aspects of your location can impact your car insurance rates. Insure.com reports that these factors include:

  • State laws
  • Weather
  • Uninsured drivers
  • Crime, crash and claim rates

In Louisiana — which toppled Michigan, the state that had held the top spot for eight years — “uninsured and underinsured drivers combined with easy lawsuits are the major factors in pushing up rates,” Insure.com says.

Having a high percentage of uninsured motorists pushes up car insurance rates because it means there are fewer insured drivers to offset the risk for insurers. Conversely, having a low percentage of uninsured motorists helps lower rates.

The best way to lower your car insurance premium

If moving to Maine sounds a bit too chilly for you, fear not: There are more practical ways to slash your car insurance rates. Chief among them is shopping around.

You can do this yourself or sit back and let someone else do it for you.

If you prefer the easy route, check out a comparison site like The Zebra.

If you prefer shopping around the old-fashioned way, check out “How to Get the Best Possible Deal on Car Insurance.” It will help you determine what to look for in a policy so you can find the best one for you at the best price.

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