What States Have The Most Expensive Car Insurance Premiums?

Turning out to be the fifth consecutive year, Michigan has again ranked first as the state that has the highest vehicle insurance rates.

That was revealed in a study that was conducted by the website, Insure.com. The average yearly vehicle insurance premium in Michigan for this year came in at $2,239 which makes it  $874 or 64 percent higher than the average premium on a national level which comes in at $1,365. The premium in Michigan is higher than every other state for the primary reason that it makes use of a no-fault vehicle insurance system which is considered a unique one.

The 2018 average yearly vehicle insurance premium in Michigan is $2,239

Just like other states that make use of this no-fault vehicle insurance system, the state has the requirement that all the drivers who use the road have to carry a coverage known as personal injury protection. This implies that in the event of a car accident, the PIP would be able to cover the policyholder’s medical expenses, the expenses of the household members as well as the passengers.

Louisiana closely came behind Michigan and the average yearly vehicle insurance premium in the state is 56 percent higher than the average premium on a national level. Florida was the third most expensive state for vehicle insurance, Rhode Island was the fourth most expensive state for vehicle insurance and the fifth most expensive state when it comes to car insurance.

State With The Cheapest  Premium

Vermont was at the very end of the list and was the state with the least premium for vehicle insurance. On an average, vehicle insurance premium in the state is 443 percent less than the figure for the average premium on a national level. Specifically, average policy in Vermont is $932.

The average premium policy in Vermont is $932

States and Average Insurance Premiums

Other states that had expensive insurance premiums included Connecticut with an average premium of $1,831. At the sixth spot was DC with an average premium of $1,827. California was at the seventh spot with an average insurance premium of $1,731. Georgia is the eight state with the average insurance premium of $1,668. Also, for the states with the least premiums, Vermont as already stated was the first at $932, Ohio was the second with an average insurance premium of $944. The third state that had the least insurance premiums was Idaho with $989 and the fourth state was Virginia with an average premium of $1,013.  The fifth state with the least insurance premium was Iowa with $1,025.

The average yearly insurance premiums in Connecticut is $1,831

Risk Factors

Irrespective of where you reside in the state, the website has also successfully identified a couple of top risk factors that affect vehicle insurance rates. First on the list is gender and age. In general, the females had lower premiums as compared to the male. That was as suggested by the statistics indicating that women got involved in a lesser number of auto accidents than their male counterparts. In addition, experience also mattered and the older drivers were likely to pay lesser premiums as compared with the younger drivers.

Also, your car’s location matters. Beyond your particular state, the exact details of the place where your vehicle is located, with the inclusion of the crime rates, whether or not you keep your car in the garage and also your city’s claim rates all affect your premium.

Also, the driving record is another risk factor. A history that indicates driving violations, as well as auto accident, can also affect how much premium you have to pay. The best option in this wise is to ensure that you have a clean record.

In addition, the type of car you drive also affects your premium. For example, the insurance rates on minivans are lower than the rates for sports cars. 24/7 Wall Street reported that the cars that attract the highest insurance premiums include Tesla Model S, i.e. the electric four-door which has $1,789 as its average yearly insurance premium.

Also, the Mercedes-Benz S class, i.e. the four-door has an average yearly insurance premium of $1,540. Another car on the list is Mitsubishi Lancer which has $1,458 as its average yearly insurance premium of $1,458. The Scion FR-S has a  yearly insurance premium that is $1,403 on an average. Also, the Dodge Charger has a yearly insurance premium that is $1,385 on an average.

The cars that had the cheapest insurance include Subaru Outback that has $539 as its average. Acura RDX with four doors also has $590 as the amount for its yearly instance premium. The Chevrolet Silverado’s average yearly insurance premium is $620. Also, Subaru Forester with four doors has an average yearly premium of $645.