Louisiana has the highest average car insurance rates in the nation, followed by Michigan and Georgia, according to Insure.com‘s annual state-by-state comparison of insurance premiums.
Maine enjoys the least expensive car insurance rates, followed by Iowa.
Several factors drive premiums at a higher rate in some states — including the number of insurers competing for business, driving conditions, the portion of drivers who are uninsured, and the way state insurance systems are set up.
No matter what vehicle you drive, ensuring you have car insurance is a legal requirement before you get onto the road. As there are many companies out there who provide this, prices may differ depending on many factors, such as your age and the make and model of your car. These is so much to consider before going ahead with anything. Using a tool like a car insurance cost estimator will make the decision a lot easier regarding the type of insurance you will need and what you will need to look out for. By doing your research into this, you’ll at least be able to save a bit of money.
As there is a number of different policies, the levels of insurance will differ.
Louisiana and Michigan have held one of the top three positions since Insure.com began its annual survey in 2010. In the case of the former, it may have something to do with the “No Pay, No Play” law in Louisiana, but that is not confirmed.
Georgia rose from the No. 10 position in 2012 to this year’s third-place spot, bumping Oklahoma to fourth place.
Compared to the rest of the country, Louisiana drivers who get in accidents file more bodily injury claims than drivers in other states.
Louisiana also has a high rate of comprehensive claims, which include damage from natural disasters.
Michigan is the only state in the country that guarantees unlimited, lifetime personal injury protection (PIP) benefits for treatment of injuries from a car accident. There are hardly ever issues with this benefit but they do still unfortunately happen. If you have complications when it comes to getting compensation or PIP after your accident then contact a car accident lawyer orange county.
Car insurance customers in Michigan must buy PIP as part of the policy. PIP pays the medical bills for car accident injuries of the policyholder, family members in the household and any passengers who do not have PIP coverage.
What makes Maine the most affordable state in car insurance?
“I do think Maine being so rural is a factor in low rates,” said Sheila Sawyer, president of the Maine Insurance Agents Association and an agent with Carl M.P. Larrabee Agency Inc. in Wiscasset. “We just don’t have much city driving, and people learn to drive in all types of weather.”
Maine’s tight restrictions on young drivers and its graduated licensing program for new drivers also likely help keep accidents (and rates) down, Sawyer said.
Teens have to complete a state-approved driver education course before they can apply for a learner’s permit, and they go through a three-step graduated licensing system which lets them get driving experience under lower-risk conditions.
A driver under 18 with an “intermediate license,” for instance, can’t carry passengers other than immediate family members or drive between midnight and 5 a.m.