Most and least expensive states for car insurance
(MoneyWatch) It seems like Hurricane Katrina and the BP (BP) oil spill should be enough troubles for one state. But if you live in Louisiana, you also pay the highest auto insurance rates in the country.
According to a just-released study by the website Insure.com, the $2,536 average cost to insure a car in Louisiana is nearly three times the $889 average in Maine, the lowest-cost state.
Factors that push up rates include a large number of uninsured drivers, state insurance laws, how many insurers compete in the state and whether recent natural disasters have pushed up claims. "Many of these problems are outside the control of drivers," says Amy Danise, editorial director of Insure.com. "But even if you live in an expensive state, you can hold down your insurance costs by keeping your driving record as clean as possible and selecting a car that is cheap to insure."
After Louisiana, Oklahoma ($2,047) and Michigan ($2,013) are the next most expensive states. High levels of insurance awards to accident victims are major factors in Louisiana and Michigan, according to Insure.com. In Oklahoma, in addition to many uninsured drivers, recent claims for tornado damage have pushed up rates.
Least expensive states
In Maine (average cost $889), relatively light traffic, a low crime rate and competitive rates among insurance companies contribute to low costs. Similar factors, plus a low rate of uninsured drivers keep costs down in second-least expensive Iowa ($985). Wisconsin ($987) also has a low crime rate and competition among companies and has a relatively low level of auto-related lawsuits.
To see how your state ranks, check the list below. These are averages. Your own rates will be affected by exactly where you live, how many miles you drive annually and your credit score.
1. Louisiana: $2,536
2. Oklahoma: $2,047
3. Michigan: $2,013
4. West Virginia: $2,002
5. Washington, D.C.: $1,866
6. Montana: $1,856
7. Rhode Island: $1,830
8. Wyoming: $1,732
9. California: $1,709
10. Georgia: $1,694
11. Connecticut: $1,665
12. Texas: $1,661
13. Florida: $1,654
14. Delaware: $1,652
15. New Jersey: $1,608
16. Pennsylvania: $1,598
17. Hawaii: $1,594
18. Kentucky: $1,572
19. Mississippi: $1,502
20. Missouri: $1,455
21. Alaska: $1,431
22. North Dakota: $1,426
23. New York: $1,431
24. Kansas: $1,410
25. Massachusetts: $1,378
26. Maryland: $1,372
27. Alabama: $1,345
28. Arkansas: $1,334
29. Colorado: $1,322
30. Utah: $1,315
31. Washington: $1,305
32. South Dakota: $1,303
33. Indiana: $1,301
34. Virginia: $1,297
35. New Mexico: $1,274
36. Minnesota: $1,264
37. Nebraska: $1,244
38. Oregon: $1,241
39. Tennessee: $1,228
40. Nevada: $1,223
41. Illinois: $1,192
42. Arizona: $1,176
43. New Hampshire: $1,133
44. South Carolina: $1,108
45. Ohio: $1,099
46. Vermont: $1,063
47. North Carolina: $1,022
48. Idaho: $1,011
49. Wisconsin: $987
50. Iowa: $985
51. Maine: $889
Image courtesy of Flickr user The TruthAbout.
