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Looking For Low Car Insurance Rates? Avoid Michigan

If you are hoping to save money on your car insurance, don’t move to Michigan. The 26th state has the most expensive insurance rates in the nation according to a recent survey. Michigan drivers pay the highest percentage of their income towards auto insurance in the country, a whopping 8 percent. Here is a quick rundown of the most and least expensive states to insure your car.

Michigan – Car insurance rates in Michigan average $2541 which puts them on the top of the heap for high car insurance rates. Michigan law requires that every policy provide unlimited personal injury protection. This means that if you are in an accident and severely injured, your insurer will have to pay for physical therapy for the rest of your life. The high cost of insurance has lead to an uninsured driver rate of almost 19 percent according to the Insurance Research Council.

Louisiana – Drivers in Louisiana fork up five percent of their income for car insurance. The average premium runs around $2453. State judges preside over accident claims under $50,000 and high awards help keep premiums high. Despite a no-pay, no-play law which limits damage awards to uninsured drivers, the uninsured rate is still 13 percent.

Kentucky – This state rounds out the top three most expensive states to insure a car. Kentuckians spend roughly 4.5 percent of their annual income on car insurance. The average premium comes in at $2,292.

The rest of the top ten are as follows:

4. West Virginia: 4.3 percent

5. Mississippi: 4 percent

6. Arkansas: 3.7 percent

7. Delaware: 3.6 percent

8. New York: 3.5 percent

9. Nevada: 3.4 percent

10. Florida: 3.3 percent

The Least Expensive States to Insure a Car

If you are looking for low car insurance rates these states can help you save a ton on your yearly premiums.

Massachusetts – Moving to Massachusetts can be a money saver, the residents of this state devote only 1.4 percent of their income to car insurance. The results may be slightly skewed due to the high median income in Massachusetts.

North Carolina – This state comes in as the second least expensive state in the nation and is much more representative of the national median income. A court system that frowns on auto accident claims and a mostly rural population accounts for the low rates. Residents here pay a tiny 1.6 percent of their income towards car insurance.

Hawaii – The median income in this state runs about $76,000, which means that residents of Hawaii are only paying about 1.6 percent of their income towards insuring their cars.  The average price Aloha State drivers are paying is $1244.

These states round out the top 10 least expensive states to insure your car:

4. Alaska: 1.7 percent

5. Oregon: 1.95 percent

6. Iowa: 1.97 percent

7. New Hampshire: 1.98 percent

8. California: 1.991 percent

9. Virginia: 1.992 percent

10. Maine: 1.993 percent

State regulations have a big impact on insurance rates. Michigan is so expensive because they require policies to guarantee unlimited personal injury coverage. In addition to state regulations, factors such as the cost of medical care, the amount of fraud and the percentage of uninsured drivers will affect insurance rates.  Population and the likelihood of residents to sue can also push rates higher or lower.

No matter what state you live in shopping your insurance rates every couple of years is the best way to make sure you are paying the lowest possible premium. Ask for all available discounts and considering bundling your home and auto to get the best deal. 

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