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Insure.com's 2013 Survey of Most and Least Expensive States for Car Insurance

Most people choose where they want to live because of the location or a job, but after looking at some of the costs for car insurance, some might consider relocating to stop paying a higher car insurance bill. Louisiana comes in at number one, with an average yearly cost of $2,699. Rounding out the top five are Louisiana, Michigan, Georgia, Oklahoma, and Washington, D.C. Both Louisiana and Michigan have held one of the top three spots since the initiation of the survey in 2010, with Maine and Iowa holding down the bottom of the list since last year, but have remained in the bottom ten since 2010. Certain factors can make car insurance more expensive in specific areas, including the number of insurers competing for business, driving conditions, and the way the state sets up insurance systems. To perform the survey, Insure.com worked with Quadrant Information Services to provide insurance rates on over 750 models from the six largest insurance carriers, including State Farm, Allstate, Progressive, Farmers, GEICO, and Nationwide. All rates were compiled in December 2012 and averaged for the state. Each rate was based on insurance for a "single, 40-year-old male who commutes 12 miles to work each day, with policy limits of 11/300/50 ($100,000 for injury liability for one person, $300,000 for all injuries, and $50,000 for property damage in an accident) and a $500 deductible on collision and comprehensive damage," said Barbara Marquand of Insure.com in her survey results. Taking a look at the top three, Louisiana reports the most bodily injury claims of all states and has a high rate of comprehensive claims, including damage from natural disasters. Also, most drivers will hire an attorney when filing an insurance claim. It is possible that it's the judicial system of the state, and not the drivers, that cause the inflated insurance rates. Michigan, with an average of $2,520 per year cost for insurance, ranks number two and is the only state to offer unlimited lifetime personal injury protection. Many states will cap that benefit, but not Michigan. However, this benefit must be purchased with a policy to receive full benefits. It covers not only the driver, but family and passengers without that specific coverage. There has been much controversy over this policy, with efforts to change it in place. Jumping down to the bottom of the list is number fifty, Iowa. Because most of the state is rural, it helps to keep insurance costs down. As the culture is rather conservative, hardly anyone will sue another over a car accident. President of the Independent Insurance Agents of Iowa and vice president of Ramsey Weeks in Grinnell, Paul Pohlson stated in an interview for the survey that, "I look at other cities I travel to, and I just think we have fewer accidents because people seem to slow down here. Maybe we don't have as much road rage." Coming in dead last is Maine, as it is one of the most rural states in the country and there isn't as much city driving as you would see further south in areas like New York. Also, teens must complete a driver education course before they can receive their permit, something that isn't seen in more populated states. Licensing systems are stricter, which also attributes to the low rates. Source: Insure.com

2013 Insurance Rates by State

Rank State Premium*
1 Louisiana $ 2,699
2 Michigan $ 2,520
3 Georgia $ 2,155
4 Oklahoma $ 2,074
5 Washington, D.C. $ 2,006
6 Montana $ 1,914
7 California $ 1,819
8 West Virginia $ 1,816
9 Rhode Island $ 1,735
10 Kentucky $ 1,725
11 Connecticut $ 1,723
12 New Jersey $ 1,697
13 Alabama $ 1,667
14 Missouri $ 1,638
15 Massachusetts $ 1,625
16 Pennsylvania $ 1,604
17 Delaware $ 1,586
18 Hawaii $ 1,583
19 Texas $ 1,545
20 Arkansas $ 1,545
21 Maryland $ 1,528
National average $ 1,510
22 North Dakota $ 1,501
23 Wyoming $ 1,496
24 Alaska $ 1,455
25 Utah $ 1,438
26 Kansas $ 1,435
27 Minnesota $ 1,432
28 New Mexico $ 1,431
29 Tennessee $ 1,408
30 South Dakota $ 1,397
31 Oregon $ 1,387
32 Nebraska $ 1,384
33 New York $ 1,369
34 Florida $ 1,364
35 Mississippi $ 1,345
36 Nevada $ 1,341
37 Virginia $ 1,322
38 Illinois $ 1,322
39 South Carolina $ 1,288
40 Colorado $ 1,271
41 Wisconsin $ 1,228
42 Arizona $ 1,227
43 Washington $ 1,226
44 Indiana $ 1,183
45 Vermont $ 1,176
46 Idaho $ 1,133
47 New Hampshire $ 1,112
48 Ohio $ 1,106
49 North Carolina $ 1,085
50 Iowa $ 1,028
51 Maine $ 934
Source: Insure.com. * Dollar figures shown are an average of insurance rates for more than 750 vehicles in the 2013 model year.
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