Michigan is Most Expensive State for Car Insurance

A study has revealed the most expensive and least expensive states in the U.S. to insure a car.

Leading the way as the most expensive state in the U.S. for car insurance is Michigan with an average rate of $2,476. The study was conducted by Insure.com, who has done the annual study since 2010 and Michigan has ranked among the top three states for most expensive rates every year since.

One of the major factors that makes Michigan an expensive state for auto insurance is because of its no-fault auto insurance system, which features the most generous personal injury protection (PIP) benefits in the country, according to Insure.com. Coming second on the most expensive list is Montana with an average rate of $1,886. Rounding out the top five are Washington, D.C. ($1,799), Louisiana ($1,774) and Florida ($1,742).

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Now if you’re looking to save money on auto insurance, Maine is your best option with an average rate of $805. The state has placed among the three states with lowest rates since the study began in 2010. “We have few large urban areas so we have lower overall traffic problems, and we don’t have hailstorms or tornadoes,” said Jeffrey McDonnell, president of the Maine Insurance Agents Association.

Ohio was last year’s least expensive state but this year rates have gone up slightly to an average of $843. The rest of the top five least expensive states are Idaho ($877), Iowa ($886) and New Hampshire ($905).

The study averaged rates for the 20 best-selling vehicles in the U.S. and compared rates from six major insurance companies. Insure.com admits that the car you drive matters, but it also added that “where you live usually matters more.” Factors that influence insurance rates include theft and fraud, with motorists paying more if they live in urban areas where claims are more frequent.