Average Car Insurance Rates: State by State

Who Cares About Average Car Insurance Rates, Anyway?

Average rates: State by State

Average rates: State by State

According to a recent survey conducted in 2014, the national average rate for full coverage car insurance is about $1,500. Why does anybody care if average car insurance rates in Michigan are the highest in the nation and Ohio comes in at #51? By the way, there are 51 entries because DC is included. Note that in this case, coming in last is a good thing for driver’s pocketbooks.  Auto insurance companies use a number of different factors to calculate any family’s actual premium. These include, of course, driving history, age, type of car, the way the car gets driven, and credit history.

However, if you have, for example, a very good driving history, you might wonder why you can’t find cheap Dallas car insurance while your buddy in Cleveland has had two wrecks in the last two years, and he still has cheaper rates than you do. This is really just more for information and to help consumers understand how laws and the local environment influence car insurance rates.

Average Car Insurance Rates in States: Highs and Lows

One thing that drives up prices in Michigan is the state law that requires generous PIP, or personal injury protection. PIP is no-fault coverage for bodily injuries, and it isn’t required by minimum liability insurance laws in every state, and it might not be as generous in some states where it is mandatory. For example, the Michigan plan allows lifetime limits, but New York caps benefits at $40,000.

The top most expensive average auto policy prices:

1 Michigan  $   2,551
2 West Virginia  $   2,518
3 Georgia  $   2,201
4 Washington, D.C.  $   2,127
5 Rhode Island  $   2,020
6 Montana  $   2,013
7 Louisiana  $   1,971
8 California  $   1,962
9 New Jersey  $   1,905
10 Florida  $   1,830

Other things that can drive up the price of auto insurance include the average cost of repairing cars, the rate of thefts, and the risk of claims. Even within a state, prices are usually higher in densely populated cities and metropolitan areas than they are in small towns and rural areas. It is likely that Detroit residents pay more than residents of small towns or out in the country.

That might make you wonder how W. Virginia made it to 2nd. It is a combination of natural factors, like the likelihood of hitting a deer or construction debris damaging windshields, and a high number of uninsured drivers. Bad weather is another factor, and the likelihood of disasters like hail or severe flooding that damage vehicles can drive up a state’s overall rates too.


By the way, these figures come from a study of average car insurance rates by state published by Insure.com. They commissioned Quadrant Information Service to survey the largest insurers to come up with the figures.  They used Allstate, Farmers, GEICO, Nationwide, Progressive and State Farm, and they only did the study in 10 ZIP codes for each state, so these figures are open to interpretation.


Lowest Average Car Insurance Rates by State

41 Utah  $   1,192
42 New York  $   1,173
43 Vermont  $   1,149
44 Virginia  $   1,114
45 Wisconin  $   1,087
46 North Carolina  $   1,060
47 Iowa  $   1,058
48 Idaho  $   1,053
49 New Hampshire  $      983
50 Maine  $      964
51 Ohio  $      926

Main has the luxury of being one state with a lot of sparsely populated areas that can be traveled without resorting to crowded freeways.Additionally, juries in Maine are not likely to award huge verdicts in personal injury cases involving cars. Finally, the crime rate in the state of Maine is low, and that means cars are not likely to be stolen or vandalized. Maine does get some winter storms, but they don’t tend to suffer a great number of calamities that damage cars in other states. Maine seems like a great place to live and drive!

Ohio does contain some large cities, but experts believe that the sheer number of different car insurance companies in the state help breed an atmosphere of competition that help keep prices low for consumers. Local insurance professionals also say that the way the state regulates companies and policies helps keep rates modest.



How Were Average Rates Calculated?

You already know that the premiums for any one person can vary a lot depending upon different factors.

For this study, rates are based upon buying full coverage for an unmarried male who is 40, commuted 12 miles a day, and has policy limits of 100/300/50. Note that these may not reflect mandatory liability insurance in each state. The policies had a $500 deductible for the collision and comprehensive part of the policy. This example driver also enjoys decent credit and a good driving record. Rates also include uninsured motorist.