Saturday, May 18, 2024

The states where people pay the most in car insurance premiums

Cheap Insurance compiled a ranking of the states where people pay the most in full-coverage car insurance premiums using MarketWatch data.

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A blurry view of a fast moving car.

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Nearly every state requires drivers to carry car insurance, but the laws vary, and many factors affect the cost of coverage.

Some are controllable, at least to degrees: the type of car you have and your credit history. Some are not: your age and gender. Your marital status, place of residence, and claims history are among the other variables that go into it.

Across the United States, premiums are soaring, rising 20% year over year and increasing six times faster than consumer prices overall as of December 2023, CBS reported. Last September, CNN noted that car insurance rates jumped more in the previous year than they had since 1976.

CBS pointed to many potential reasons for these increases in prices. Coronavirus pandemic-era issues have made buying, fixing, and replacing vehicles costlier. Extreme weather events caused by climate change also damage more vehicles, while insurance companies are increasing their business costs. Severe and more frequent crashes are to blame as well, CNN reported.

On top of these, local factors such as population density, the number of uninsured drivers, and the frequency of insurance claims all affect premiums, which can lead motorists to change or switch their coverage, use other modes of transportation, or even alter decisions about when to buy a vehicle or what to look for.

To see how geography affects cost, Cheap Insurance mapped the states where people pay the most in car insurance premiums using MarketWatch data. Premium estimates were based on full-coverage car insurance for a 35-year-old driver with good credit and a clean driving record. Data accurate as of February 2024.

Americans pay $167 per month on average for full-coverage insurance

A heat map showing full-coverage car insurance premiums across the US

Cheap Insurance

There are common denominators among the five states where it's most expensive to have car insurance: Michigan, Florida, Louisiana, Nevada, and Kentucky. Washington D.C. is another pricey locale, ranking #4 overall.

Three of these six are no-fault jurisdictions and require additional coverage beyond coverage to pay for medical costs. Michigan notably calls for $250,000 in personal injury protection (though people with Medicaid and Medicare may qualify for lower limits), $1 million in personal property insurance for damage done by your car in Michigan, and residual bodily injury and property damage liability that starts at $250,000 for a person harmed in an accident.

Other commonalities between these states include high urban population densities. At least 9 in 10 people in Nevada, Florida, and Washington D.C. live in cities and urban areas, which leads to more crashes and thefts and high rates of uninsured drivers and lawsuits. Additionally, Louisiana, Florida, and Kentucky rank #5, #8, and #10, respectively, in motor vehicle crash deaths per 100 million vehicle miles traveled in 2021 based on Department of Transportation data analyzed by the Insurance Institute for Highway Safety.

#5. Kentucky

A highway in Louisville.

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- Monthly full-coverage insurance: $210
- Monthly liability insurance: $57

#4. Nevada

A car driving through the desert and mountain scenery in Nevada.

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- Monthly full-coverage insurance: $232
- Monthly liability insurance: $107

#3. Louisiana

Cars parked on a street in New Orleans.

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- Monthly full-coverage insurance: $253
- Monthly liability insurance: $77

#2. Florida

A bridge over turquoise water.

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- Monthly full-coverage insurance: $270
- Monthly liability insurance: $115

#1. Michigan

A truck on a highway surrounded by Fall foliage.

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- Monthly full-coverage insurance: $304
- Monthly liability insurance: $113

Story editing by Carren Jao. Copy editing by Paris Close. Photo selection by Lacy Kerrick.

This story originally appeared on Cheap Insurance and was produced and distributed in partnership with Stacker Studio.